Shares of Ichor Holdings Ltd. (ICHR) are set to open sharply lower on Tuesday, plummeting 24.83% in pre-market trading following the release of disappointing third-quarter 2025 financial results, a weak fourth-quarter outlook, and a leadership change. The semiconductor equipment supplier's performance has raised significant concerns among investors about its near-term prospects.
While Ichor reported Q3 revenue of $239.3 million, slightly beating analyst expectations of $235.1 million, the company's bottom line fell far short of estimates. Ichor posted an adjusted earnings per share (EPS) of $0.07, missing the projected $0.12, and more alarmingly, reported 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 missed earnings, pessimistic guidance, and a leadership change appears to have shaken investor confidence, leading to the significant pre-market decline.
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