Ichor (ICHR) Conference presentation summary

Strategic positioning and market trends

• Focused on cost transformation through efficiency, automation, and regional capacity alignment to enhance competitiveness and agility.

• Well-positioned in etch and deposition, segments expected to grow at a 14-16% CAGR, driven by AI and vertical scaling.

• Leveraging strong secular tailwinds in advanced packaging and vertical scaling, with significant market expansion opportunities.

• Pursuing strategic differentiation via innovation, 10x SAM expansion, and vertical integration.

• Targeting leadership in gas control and active process control segments.

Product and market expansion

• Expanded SAM nearly 10x from 2015 to 2025 by broadening capabilities, launching new products, and making strategic acquisitions.

• Moving from ~10% to ~75% proprietary products, emphasizing high-value, differentiated IP and customer-driven development.

• Leveraging expanded SAM and new market segments to outgrow the market, especially in sub-assemblies, machining, and components.

• Focused on design wins, strategic product differentiation, and vertical integration to drive revenue and margin expansion.

• Targeting 75% vertical capabilities and 15% material and manufacturing cost reduction.

Financial performance and outlook

• Q3'26 revenue guidance of $330M +/- $15M, with gross margin expected at 15% +/- 0.5% and non-GAAP EPS at $0.45 +/- $0.05.

• Target model aims for gross margin above 20%, operating margin above 13%, and EBITDA margin above 14%.

• Path to 20% gross margin includes market share gains, increased non-semi mix, and vertical integration.

• Key strategies include growing share in higher-margin components, increasing proprietary IP content, and driving incremental cost reductions.

• Maintaining tight control of operating expenses and capital efficiency to drive significant free cash flow.