Ichor Holdings Reports 18.2% Revenue Growth but Increased Losses in Q2 Fiscal 2025

Ichor Holdings, Ltd. reported its financial results for the second quarter and first half of fiscal 2025, revealing a significant increase in net sales but continued operational losses. For the three months ended June 27, 2025, the company achieved net sales of $240.3 million, an 18.2% increase from $203.2 million in the same period last year. For the first half of the fiscal year, net sales rose by 19.8% to $484.8 million compared to $404.6 million in the prior year. However, the company recorded a net loss of $9.4 million for the second quarter, compared to a loss of $5.1 million in the same quarter of 2024, and a total net loss of $14.0 million for the first half, slightly improved from a loss of $14.1 million in the previous year.

The increase in revenue was primarily attributed to heightened customer demand driven by a stronger semiconductor capital equipment spending environment. Despite the revenue growth, Ichor's gross margin decreased to 11.3% in the second quarter from 12.6% a year earlier, largely due to rising material costs, an unfavorable sales mix, and inventory write-off costs associated with the planned exit from operations in Scotland. Operating expenses also rose, with selling, general, and administrative costs increasing by 22.5% in the second quarter, reflecting higher exit disposal costs and increased employee-related expenses.

In terms of operational developments, Ichor's total assets decreased to $985.1 million as of June 27, 2025, down from $995.6 million at the end of December 2024. The company reported a slight increase in inventories to $259.4 million, while cash and cash equivalents fell to $92.2 million from $108.7 million. The company’s employee headcount remained stable, with no significant changes reported. Ichor continues to focus on its core business of designing and manufacturing fluid delivery subsystems for semiconductor capital equipment, with production facilities located in multiple countries, including the U.S., Singapore, and Mexico.

Looking ahead, Ichor Holdings remains optimistic about the long-term demand for semiconductors and related capital equipment, despite the ongoing challenges posed by macroeconomic conditions, including inflation and geopolitical tensions. The company anticipates that semiconductor equipment spending will grow in 2025, particularly in its primary markets. However, it acknowledges the potential impact of tariffs and trade negotiations on its operations and costs. Ichor's management is committed to navigating these challenges while continuing to invest in research and development to enhance its product offerings and maintain competitiveness in the market.