Shares of Ichor Holdings Ltd. (ICHR) are set to open sharply lower, plummeting 24.83% in pre-market trading on Tuesday, following the release of disappointing third-quarter 2025 financial results, a weak fourth-quarter outlook, and the announcement of a new CEO. The semiconductor equipment supplier's performance has raised significant concerns among investors about its near-term prospects.
Ichor reported Q3 revenue of $239.3 million, slightly beating analyst expectations of $235.1 million. However, the company's bottom line fell far short of estimates. Adjusted earnings per share (EPS) came in at $0.07, missing the projected $0.12, while the company posted a substantial GAAP loss of $0.67 per share. The disappointing earnings were largely attributed to a low gross margin of 4.6% and an operating margin of -8.1%, reflecting the challenging market conditions facing the semiconductor industry.
Adding to investor concerns, Ichor provided a weak outlook for the fourth quarter, projecting revenues between $210 million and $230 million. This guidance suggests a sequential decline, with the company noting that it expects revenues to fall before a potential recovery in 2026. The softer outlook, combined with ongoing inventory impairment costs and market pressures, has likely contributed to the sharp sell-off. In a separate announcement, Ichor named Phil Barros as its new Chief Executive Officer, a transition that comes at a critical time for the company as it navigates through industry headwinds. The combination of disappointing results, pessimistic guidance, and leadership change has clearly shaken investor confidence, leading to the significant pre-market plunge.
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