ICHOR HOLDINGS recently released its 10-Q report. Ichor Holdings, Ltd. designs, engineers and manufactures fluid delivery subsystems and components for semiconductor capital equipment, with operations in Singapore, the United States, Europe and other international markets. Its main products are gas delivery subsystems, which deliver and control process gases, and chemical delivery subsystems, which blend and dispense liquid chemistries used in semiconductor manufacturing; it also sells precision-machined components, weldments and related proprietary parts to semiconductor equipment OEMs.
In Item 2, management said the semiconductor capital equipment market remained cyclical but stronger in early 2026, with spending in 2025 up from 2024 and first-quarter 2026 demand described as robust in etch and deposition. Net sales for the three months ended March 27, 2026 rose to $256.1 million from $244.5 million a year earlier, an increase of $11.6 million, or 4.7%. Management tied the gain to higher customer demand and increased spending in semiconductor manufacturing capacity and advanced process technologies.
Gross profit increased to $32.3 million from $28.5 million, and gross margin improved to 12.6% from 11.7%. The company said the margin improvement reflected the absence of $1.1 million of severance charges recorded in the prior-year quarter and higher factory utilization. Cost of sales rose to $223.8 million from $215.9 million.
Operating income turned positive at $2.1 million, compared with an operating loss of $1.2 million in the prior-year quarter. Research and development spending declined 5.9% to $5.5 million from $5.9 million, while selling, general and administrative expense rose 3.8% to $22.6 million from $21.7 million, driven by $1.3 million of higher employee-related costs and $0.7 million of restructuring and facility exit costs, partly offset by lower facility, severance and outside service costs. Amortization of intangible assets held steady at $2.1 million.
Interest expense, net was $1.7 million, up slightly from $1.6 million, as weighted average borrowings fell to $123.5 million from $127.6 million and the weighted average borrowing rate declined to 5.95% from 6.24%. Other expense, net increased to $323,000 from $81,000, mainly from currency exchange rate fluctuations on foreign payables.
Before taxes, income was $84,000, compared with a loss of $2.9 million a year earlier. Income tax expense increased to $2.6 million from $1.7 million, which management attributed to taxes on foreign income, the end of the Singapore tax holiday at the end of the first quarter of 2026, and a valuation allowance against U.S. deferred tax assets. The quarter ended with a net loss of $2.5 million, narrower than the $4.6 million loss in the prior-year period, and diluted EPS of $(0.07) versus $(0.13).
Management also said it continued a geographic footprint rationalization and restructuring plan begun in 2025, including transitions of certain manufacturing activities and relocation of machining assets to higher-volume facilities. The company said the global trade environment remained volatile, with tariff uncertainty and export controls on advanced semiconductor technology in China cited as factors that could affect material costs, pricing, demand and supply chains. As a result of these announcements, the company's shares have moved -9.38% on the market, and are now trading at a price of $63.18. Check out the company's full 10-Q submission here.
