Q2 2026 Ichor Holdings, Ltd Earnings Call Transcript
Key Points
- Revenue of $295 million increased 15% sequentially, with gross margins up 130 basis points, more than doubling EPS compared to Q1.
- Gross margin of 14.1% exceeded the high end of guidance, driven by improved product mix, growth in component revenues, and non-semi business.
- Demand visibility is strengthening, with expectations for sequential revenue growth exceeding 10% in each of the next two quarters and second-half revenue volumes at least 25% higher than the first half.
- The company has the capacity to support $500 million in quarterly revenue and can expand capacity within its existing footprint to upwards of $3 billion annually.
- The Malaysia high-volume manufacturing site secured additional key qualifications, enabling more internal manufacturing and strengthening competitive advantage.
- Gross margin is expected to improve by another 100 basis points in each of the remaining two quarters of the year, even after exceeding Q2 expectations.
- The company completed its $200 million ATM equity offering, providing significant liquidity for strategic investments and growth initiatives.
- Isolated supply chain constraints, particularly related to flow controllers, caused some revenue to be recognized one week later than guided, missing the quarter-end deadline.
- Cash flow from operations was a use of $15.9 million due to incremental investments in inventory to prepare for continued growth.
- Capital expenditures are expected to trend higher in the second half of the year, though remaining within the target range of approximately 3% of revenue.
- The company is still working through the ramp-up of its Malaysia facility, which remains a headwind until fully absorbed, impacting gross margin improvements.
- Operating cash flow is expected to remain negative in the near term, with improvements in inventory turns not expected until the first half of 2027.
- The company noted that flow control suppliers remain a concern, indicating potential ongoing supply chain risks.
Good day, ladies and gentlemen, and welcome to I-Corps' second quarter 2026 earnings conference call.
At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.
If anyone should require operator assistance, please press star zero on your telephone keypad.
As a reminder, this call is being recorded.
I would now like to introduce your host for today's conference, Claire McAdams, Investor Relations for ICOR. Please go ahead.
Thank you, operator. Good afternoon, and thank you for joining today's second quarter 2026 conference call.
As you read our earnings press release and if you listen to this conference call, please recognize that both contain forward-looking statements within the meaning of the federal securities law.
These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
