Ichor Holdings ( (ICHR) ) has released its Q4 earnings. Here is a breakdown of the information Ichor Holdings presented to its investors.
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Ichor Holdings, Ltd. is a prominent company specializing in the design, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment, with additional applications in sectors such as defense, aerospace, and medical.
In its latest earnings report for the fourth quarter and fiscal year 2024, Ichor Holdings announced revenues of $233 million for Q4, reaching the upper end of their guidance range, and total revenues of $849 million for the fiscal year, showing a 5% increase from the previous year. Despite the revenue growth, the company reported a net loss of $3.9 million for Q4 and $20.8 million for the entire year, although non-GAAP results reflected a positive net income of $2.8 million for Q4 and $5.9 million for the year.
Key performance indicators highlighted include a gross margin of 11.6% on a GAAP basis for Q4 and a slightly higher non-GAAP margin of 12.0%. The fiscal year gross margin stood at 12.2% on a GAAP basis. The company faced cost headwinds due to ramping up its direct labor force and one-time inventory charges which affected gross margins. However, a significant improvement in gross margin is expected in 2025 as these factors are anticipated to diminish.
Looking ahead, Ichor Holdings projects a strong business environment with continued robust demand for leading edge foundry and logic investments, alongside a recovery in memory investments. The company expects to outgrow the wafer fabrication equipment (WFE) market in 2025, with a significant improvement in gross margin and earnings leverage.
Overall, Ichor Holdings anticipates a positive trajectory into the first quarter of 2025, with revenue expectations ranging from $235 million to $255 million and non-GAAP diluted EPS between $0.20 and $0.32, indicating a potential financial rebound and growth in the coming fiscal period.
