Ichor Holdings Q1 2026 Earnings Call - Unconstrained Demand Surges Past $300M as Margin Expansion Accelerates

Operator: As a reminder, this call is being recorded. I would now like to introduce to you your host for today’s conference, Claire McAdams, investor relations for Ichor. Please go ahead.

Claire McAdams, Investor Relations, Ichor Holdings Ltd.: Thank you, operator. Good afternoon, thank you for joining today’s first quarter 2026 conference call. As you read our earnings press release and as you listen to this conference call, please recognize that both contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control and which could cause actual results to differ materially from such statements. These risks and uncertainties include those spelled out in our earnings press release, those described in our annual report on Form 10-K for fiscal year 2025, and those described in subsequent filings with the SEC. You should consider all forward-looking statements in light of those and other risks and uncertainties. Additionally, we will be providing certain non-GAAP financial measures during this conference call.

Our earnings press release and the financial supplement posted to our IR website each provide a reconciliation of these non-GAAP financial measures to their most comparable GAAP financial measures. On the call with me today are Phil Barros, our CEO, and Greg Swyt, our CFO. Phil will begin with an update on our business, and then Greg will provide additional details about our results and guidance. After the prepared remarks, we will open the line for questions. I’ll now turn over the call to Phil Barros. Phil?

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Thank you, Claire, and welcome everyone to our Q1 earnings call. Just a few months into a multi-year growth cycle, we are already delivering upside to our outlook and demonstrating strong earnings leverage. Q1 revenues of $256 million came in at the upper end of our expectations, up 15% from Q4. Gross margins of 12.8% also approached the high end of our guidance, enabling us to more than triple our operating income versus Q4 and deliver our highest earnings per share in three years. The early investments we made in ramping labor headcount and prepositioning inventory are paying off. These are enabling Ichor to deliver strong execution for our customers and achieve growth towards the high end of our demand forecast. Demand across our core markets has further strengthened since our last earnings call.

Our visibility now extends deeper into 2026. Within this very robust demand environment, we expect Ichor to be a top performer, both in terms of growth and earnings leverage. Our Q2 forecast now reflects unconstrained demand exceeding $300 million. This is one of the steepest ramps witnessed in Ichor’s history, representing growth well over 30% in just two quarters. Not only that, but with stronger visibility since our last earnings call, we continue to expect every quarter in 2026 will be a growth quarter for Ichor. We entered the year with increased momentum and a clear strategy. Our higher confidence today reflects Ichor’s critical role within the WFE industry and strong progress towards our strategic objectives. The technology transitions and strategic capacity expansions underway, largely in support of AI hyperscaling, favor etch and deposition applications, which favors Ichor.

A great example of this is the 30% increase in the number of process steps required to produce leading-edge logic with gate-all-around architectures. Increased investments in gate-all-around technology are significant tailwinds for Ichor’s growth. Our objective is to gain share through this cycle, and the steps we have taken to pre-position inventory and ramp labor headcount will allow us to continue to perform for our customers, and this is how we will win. Turning to an update on our strategic initiatives we introduced last quarter. Q2 is shaping up to be a major step forward in our Global Footprint Realignment. As a reminder, this initiative is aimed at driving 3 primary benefits. First, we are structurally eliminating the margin challenges we faced previously in order to drive stronger cross-cycle performance and greater predictability in our business.

Second, we are enabling more efficient, scalable, high-volume manufacturing of our Ichor-branded products, which will get us to our cost targets for these components. Third, by driving higher level of Ichor content within the systems we build, we will deliver significant improvements in gross margin flow-through and earnings leverage as revenues ramp. We have made strong progress, and I’m proud of the team, especially given the scale of the ramp we are operating in. Just a few months into the year, and we have already installed and qualified half of the planned equipment moves, which is ahead of schedule. We are now performing all manufacturing steps for our substrate product line within the same four walls within Mexico. These are the types of efficiency gains that will structurally improve our product margins and drive higher gross margin flow-through within the gas panel manufacturing business.

In our valve product line in Q1, we achieved full customer qualification to manufacture in Mexico. This significantly expands our capacity for this product line, enabling us to source internally and cut our dependence on outside suppliers. We will continue to ramp up capacity through Q2 and expect to be at full production as we exit the quarter. The success and speed of both the moves and qualifications gives us the confidence to reinitiate valve qualifications on one of our major customers, which we had placed on hold due to capacity constraints. As we exit Q2, we will begin to see the gross margin impacts of our footprint realignment into Mexico, with these moves enabling increased levels of proprietary Ichor content in the gas panels we make.

As we move through the remainder of the year, we will be ramping Malaysia, which will drive a richer mix of machining revenues. Driving higher volumes of machining revenues and completing cost reduction initiatives in our footprint realignment are the final 2 steps in achieving our near-term gross growth margin targets of at least 15%. As a reminder, while we complete the ramp-up of Mexico, we are temporarily increasing external supply to ensure strong, consistent delivery in our integration business. Taking all of this into account, today we are guiding Q2 revenues of approximately $300 million ±$10 million, and sequential improvement in gross margin from Q1 to expected range of 13%-14%. Beyond Q2, we continue to expect approximately 100 basis points per quarter in gross margin expansion as we complete our transitions into the second half.

This level of gross margin expansion continues to support our expectation that gross profit dollars will grow around twice the rate of revenues as we move through the second half. On today’s call, I will reaffirm our stated target to exit 2026 delivering 35% Ichor-branded content within the systems we build. As a reminder, we exit 2025 delivering systems with 25% Ichor-branded content, up from 15% in 2024. Our next step function increase in Ichor-branded content is in flow control, which is progressing to plan. We see 2026 as a qualification year, with first meaningful flow control revenues in 2027.

We expect that bringing the capacity online in both Mexico and Malaysia, along with flow control qualifications, will enable us to reach our goal to be capable of providing up to 75% of Ichor-branded content within the systems we build by year-end. Finally, I will take the opportunity to reiterate our strategic priority to leverage our machining capabilities into high-growth markets outside of semiconductor. This business represents less than 10% of our revenues today, but we anticipate this will grow at a rate faster than our WFE this year, driven by a number of key positions in commercial space and defense markets. To close, we have made significant progress on our strategic initiatives and all within a backdrop of rapidly growing demand. We remain confident that Ichor is well-positioned to capitalize on the ramp and deliver strong earnings leverage through this cycle.

With that, I will now hand it off to Greg.

Greg Swyt, Chief Financial Officer, Ichor Holdings Ltd.: Thanks, Phil. Before I begin, I would like to emphasize that the P&L metrics discussed today are non-GAAP measures. These measures exclude the impact of share-based compensation, amortization of acquired intangible assets, non-recurring charges, and discrete tax items and adjustments. There is a useful financial supplement available on the investor section of our website that summarizes our GAAP and non-GAAP financial results, as well as a summary of the balance sheet and cash flow information for the last several quarters. First quarter revenues of $256.1 million came in at the upper end of our guidance range, up 15% sequentially, reflecting continued demand momentum and strong execution as volumes ramped throughout the quarter.

Gross margin increased to 12.8%, up 110 basis points sequentially and 30 basis points above the midpoint of guidance, driven primarily by incremental factory leverage on the higher revenue levels in our integration business. Operating Expenses in the quarter were aligned with our forecast at $24.1 million. Operating income for Q1 more than tripled compared to Q4 to $8.7 million or 3.4% of revenue, demonstrating meaningful operating leverage as volumes ramped. With both interest and tax aligned with expectations, earnings for the quarter were near the high end of guidance at $0.15 per diluted share based on 35.3 million diluted shares outstanding. Positive cash flow generation from the P&L increased significantly in the quarter, with EBITDA of nearly $14 million.

In the early stages of what we expect will be a sustained multi-year ramp, we are making incremental investments in inventory in support of our customers. As a result, cash from operations was a use of $2.9 million. Capital expenditures for the quarter were $7.1 million. We are managing our CapEx investments towards approximately 3% of revenue, so we expect this CapEx level to trend up modestly as we move into the second half of the year. Which brings us to the balance sheet. Given our current levels of investments in inventory and CapEx, cash and equivalents totaled $89.1 million at the end of the quarter, a decrease of $9.2 million from Q4. DSOs increased modestly to 33 days, and inventory turns improved to 3.7, reflecting improved throughput as volumes increased.

Total debt at quarter end was $122 million, and our net debt coverage ratio stands at 1.6. Now turning to our guidance for Q2 2026. As Phil mentioned, we are anticipating a steeper revenue ramp for Q2 compared to our expectations a quarter ago. We anticipate revenues in the range of $290 million-$310 million, which at the midpoint represents sequential growth of 17% and a year-over-year increase in revenue volumes of 25%. Our gross margin guidance for Q2 is a range of 13%-14%. As Phil noted earlier, we continue to expect gross margin improvement of 100 basis points per quarter through the second half of 2026. Our guidance for Operating Expenses this year is largely unchanged from last quarter.

We continue to drive disciplined cost management across the organization in support of higher revenue volumes. We are managing to a target of only 5%-6% OpEx growth for the full year. This reflects a relatively consistent run rate of approximately $25 million beginning in Q2, slightly up from Q1’s level as a result of higher variable compensation forecasts on the improved outlook for the year. The midpoint of our guidance for revenues, gross margin, and operating expenses in the current quarter indicate the highest level of operating income reported since fiscal 2022 and an increase of nearly 80% from Q1, reinforcing the strong earnings leverage expected as we continue to ramp revenues. Expectations for interest and tax this year are unchanged since last quarter.

We anticipate approximately $2 million per quarter in total interest and other income and expense, and our assumed effective tax rate continues to be in the range of 20%-25%. Finally, our EPS range for Q2 of $0.25-$0.35 reflects our expectation for a diluted share count of 35.5 million shares. In summary, Q1 reflects improving profitability, strong operating leverage, and disciplined cost control as volumes accelerate, and we believe we are well positioned for continued progress through the remainder of 2026.

Operator: Thank you. We will now be conducting a question-and-answer session. The first question is from Brian Chin from Stifel. Please go ahead.

Brian Chin, Analyst, Stifel: Hi there. Good afternoon. Thanks for letting us ask a couple questions. This first question, impressive job in terms of the sequential growth Q1 and then the outlook, maintaining sort of a mid-to-high teens sequential ramp at this point. Maybe can you walk us through sort of the, some of the puts and takes in the second half of the year in terms of ramping Malaysia, in terms of product mix, and kinda how that distills down to what level you can sort of sustain sequential growth into the back half of the year?

Greg Swyt, Chief Financial Officer, Ichor Holdings Ltd.: Yeah. If you follow our customers, they’re forecasting, say, a 25% growth year-over-year. We’re gonna project that at this point, in terms of how much we think we’re gonna grow for 2026 over 2025. What I would say is, at this point last quarter, I would have guided 26-27 or $265 million-$270 million for Q2. Now we’re guiding $290 to $310. As you can imagine, we’re seeing a lot of growth, a lot of movement and a lot of, you know, puts and takes, if you will. We are seeing a lot of movement in our forecast.

I would say my visibility today is stronger today than it was a quarter ago, and it’ll be stronger, I believe, a quarter from now than it is today.

Brian Chin, Analyst, Stifel: Great. That’s helpful. Thinking about the margin, gross margin progression in the back half of the year, when you think about the 100 basis points Q3, 100 basis points Q4, can you maybe sort of walk through how much of that is volume related, how much is mix inclusive of increased vertical content?

Greg Swyt, Chief Financial Officer, Ichor Holdings Ltd.: Yeah. In terms of percentages, what I would say is in general, think of our gross margin growth as coming from, you know, it’s as much event-driven as it is volume-driven. I talk about the global footprint realignment, that’s a big driver of our of our cost savings as well as our margin accretion as we move through the year. I would say they’re pretty closely equally weighted in terms of gross margin impact. I would say that volume leverage is about 50% of it and our cost reductions are about 50% of it.

Brian Chin, Analyst, Stifel: Great. Great. Thank you.

Greg Swyt, Chief Financial Officer, Ichor Holdings Ltd.: Thank you.

Operator: The next question is from Craig Ellis from B. Riley Securities. Please go ahead.

Craig Ellis, Analyst, B. Riley Securities: Thanks for taking the questions, and congratulations on the good resultant guidance. Phil Barros, I wanted to start with more of a qualitative question on where Brian Chin left off. It was the beginning of the year when you outlined a four-point plan to really drive much better gross margins to 15%, and it sure seems like the business is solidly on track for that. Can you talk about how happy you are with where you see the business executing in the different company controllable areas that you’re focused on? Where are you happier? Where do you need to get better performance to be real confident in that 100% per quarter in the back half of the year?

Greg Swyt, Chief Financial Officer, Ichor Holdings Ltd.: Yeah. Well, 100% would be great. I think you said 100 basis what you meant. Yeah, I would say that in general, I am very happy with the progress the team’s making. I would say, we’re on track, if not ahead of schedule in most of the initiatives. That’s tough to do in this type of environment, obviously, as we’re ramping up.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: revenues at the same time as doing a strategic transformation, it’s very impressive for me to see the team really execute at this level. I would say in general, I’m very confident and very happy with where the team’s at. If you looked at where I had risk in terms of the transformation in the Q1 timeframe, it was getting customer qualifications in Mexico, and it was getting e-beam welding up and running in Mexico. Both of those are behind us. I’m at a much stronger, much more confident position than I would have said about a quarter ago.

Craig Ellis, Analyst, B. Riley Securities: That’s really helpful. Just looking ahead to what sounds like a really strong view for the second half of the year, and I think most everybody’s really constructive for robust calendar 2027 year-over-year growth. Can you just talk about your comfort with capacity upside beyond the level that you’re guiding to in the second quarter so we can get comfortable that as demand continues to improve, Ichor’s going to be able to meet that demand? Thank you, Phil.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: I would say that the two major drivers or pacers for our output right now would be supply chain, number one, and labor headcount, number two. I would say we are well-positioned brick-and-mortar wise and clean room wise and infrastructure wise, which to me are the, you know, kind of the long lead items, if you will. I would say from a supply chain standpoint, we have boots on the ground that are, you know, there’s always multiple suppliers that pop up in these types of ramp periods. We have boots on the ground as well as increased inventory levels in certain areas where we saw risk. I feel pretty good about that. In terms of ramping up headcount, I would say we are well along the path there.

I feel very good about where we are in terms of headcount as well. I would say in general, we have the ability to ramp. What I would say is, in terms of brick-and-mortar, in terms of headroom and room for us to grow, we could more than double what we did last year in terms of brick-and-mortar, so I’m not worried there. Like once again, it’s gonna be headcount and supply chain that’s gonna pace us going forward.

Craig Ellis, Analyst, B. Riley Securities: Thank you.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Thank you.

Operator: The next question is from Christian Schwab, from Craig-Hallum Capital Group. Please go ahead.

Christian Schwab, Analyst, Craig-Hallum Capital Group: Great. Thanks for taking my question. Just to follow up on that last statement, it, you know, more than double revenue as far as, you know, given your global, you know, realignment in manufacturing. So in aggregate, do you believe that you have the potential, if the end market demand, you know, remains robust, as expected on a multi-year basis that, you would, you know, have, you know, $1.8 billion to roughly $2 billion in revenue capacity on a yearly basis? Did I hear that kind of correctly?

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Yeah. I would say from a brick-and-mortar and kind of fixtures and equipment standpoint, I would say we have some areas where we need to make investment. There’s some equipment in the second half of the year that we’re gonna be positioning to grow to those types of levels. What I would say is the long lead items like clean room, overhead, you know, building space, brick-and-mortar, we’re in a very good position there, especially with our new facility put in place in Malaysia that we turned on last quarter.

Christian Schwab, Analyst, Craig-Hallum Capital Group: Great. Then congrats on the gross margin progression expected throughout the course of the year. As you increase your branded products or your vertically integrated products, however you wanna refer to them, into your gas boxes, do you have a yet an aspirational goal of where you’d like to end gross margins at the end of 2027?

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: We haven’t drawn out the model to at the end of 2027 at this point. I would. It’s a little bit early to do that, as you would know, as we enter or, you know, one quarter into 2026, it’s a little early to guide 2027 ’cause a lot of that’s gonna be volume driven as well, as you know. I do expect 27 to be a growth year, but even with that, I’m gonna be a little bit shy on guiding 2027 at this point.

Christian Schwab, Analyst, Craig-Hallum Capital Group: My last question, just on the sequential progression, I know the mix of business of you and your largest public competitor are different. Do you anticipate, you know, after such a very strong start in the first half of the year and 17% sequential mid, you know, guidance at the midpoint from March to June, would you expect double-digit sequential growth as we go forward, or would you assume that that would potentially be more high single digit?

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: I would say we could see double-digit growth in the second half, in total. I would say at this point it’s gonna be our supply chain that’s really gonna gate us, in terms of revenue growth. I’m a little bit cautious on the second half at this point until we have good visibility there. What I would say is, we’re executing really well. The reason I wanna say that is I think that’s why we’re seeing, a very big pickup in Q2, is we’re not leaving a lot of revenue behind, if you know what I mean.

We’re not rolling a lot of revenue from quarter over to quarter. That’s gonna show a growth profile that kind of leads our customers and goes ahead of our customers because we deliver before our customers receive.

Christian Schwab, Analyst, Craig-Hallum Capital Group: Great. Thank you. No other questions.

Operator: The next question is from Charles Shi from Needham & Company. Please go ahead.

Charles Shi, Analyst, Needham & Company: Hi. Thanks for taking my question, Phil and Greg. First, congrats on the very strong Q2 guide, but obviously, you know, a lot of people in my seats are gonna ask you what’s your capacity, max capacity right now. I think you previously mentioned about potentially getting to that 20% gross margin at $400 million per quarter. To me, that’s a read of, you’re implying maybe $1.6 billion capacity. I don’t know if you need incremental CapEx to get to that, but what’s the thought on getting beyond $1.6 billion capacity? What would be the next milestone, and how much CapEx do you think are you gonna need? That’s the first question. Thank you.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Yeah. Let me just be clear that we believe we have enough brick-and-mortar capacity today to go well above $2 billion. Just to be clear, it’s not just the $1.6. After that, it becomes very driven by kind of equipment. If you look at the Ichor-branded products, obviously, there’s a lot of equipment that’s required to build those. That would be the one area where we’d need to invest CapEx. That’s what we’ve kind of alluded to when we said it’s gonna be a second half CapEx heavy. That’s coming in as we fill out the machining capability within Malaysia. That’s really what’s driving that.

Once we, like Greg talked about during his prepared remarks, we’re really driving towards that kind of 3% of revenue CapEx rate.

Greg Swyt, Chief Financial Officer, Ichor Holdings Ltd.: For this year.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: For this year.

Charles Shi, Analyst, Needham & Company: Got it. Is it fair to say that to get to, like, maybe $1.6 billion, the capacity is already in place. Like, it’s more about above $2 billion that we’re, you know, you’re gonna need more equipment, et cetera, or maybe I misunderstood some of the commentary? Thanks.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Yeah. What I would say is, in order to get, you know, to keep the 35%-75%, Ichor-branded content within a $1.6 billion, we need a little more equipment. From a brick-and-mortar, from an overhead, from a cleanroom perspective, I would say we’re well positioned for that, to be around $2 billion.

Charles Shi, Analyst, Needham & Company: Got it. Got it. May I ask you about the demand signal? One thing I noticed when you talk about Q2, you’re talking about demand. Unconstrained demand is already above $300 million. What kind of visibility you have right now? How much are the, like, a PO back, let’s say, hard commits already from your customers? Like, how many quarters you can see that? You know, the forecast, where do you see the end of your visibility as we speak right now? Thank you.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Yeah. I always say that we have good visibility for about 6 months. I’d say we have hard PO coverage for about a full quarter, and about 6 months of great visibility. What I can tell you is that our customers do give us kind of soft guidance or, you know, kind of soft visibility in past that. I would say that right now, as they’ve signaled to you, they’re signaling growth into 2027. We’re preparing ourselves to capitalize on that growth into 2027.

Charles Shi, Analyst, Needham & Company: Got it. Maybe, maybe last question from me. I noticed from the financial soft segment, the revenue from Europe was a little bit light in the quarter. I wanna, with that data point, would like to ask you what’s the latest you see on the lithography side of the business, what’s the, what’s the expectation this year in terms of growth? Understandably, you talked a lot more about dep and etch, but I wanna get the thoughts on the litho side of the business. Thanks.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Yeah. Yeah. I would definitely say, etch and dep are growing faster. They’re kind of leading the league right now. I’d say that they’re ahead of the litho business. We talked about last quarter how our customer has some level of inventory they need to burn through. We do see them burning through that inventory in Q3. We start to see a pickup in the, in the fourth quarter. I would say it’s a little bit of a headwind in Q3, kind of a tailwind in Q4, is the way I would think about it. Once again, that’s more on the level of inventory that they’re holding versus anything to do with their business in particular.

Charles Shi, Analyst, Needham & Company: Thank you, Phil. Appreciate.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: No problem. Thank you.

Operator: The next question is from Krish Sankar from TD Cowen. Please go ahead.

Rob Mertens, Analyst (on behalf of Krish Sankar), TD Cowen: Hi, this is Rob Mertens online for Krish. Thanks for taking my questions, and congrats on the strong quarter and guidance. Maybe first off, I’ll just piggyback on Charles Shi’s question and ask if there’s any changes in your view in terms of silicon carbide demand or from aerospace and defense customers compared to a quarter ago.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Yeah. I would say aerospace and defense are growing very well. If you can imagine, conflict and things of that sort, unfortunately do drive increase in need for defense spending. We’re seeing some impacts of that. Obviously our other commercial space business is also growing. What I would say is a lot of the R&D work that we were doing for that commercial space business is now converting into hard POs, we’re seeing some strong growth through this quarter. Looking pretty good there. I would say silicon carbide is pretty light, I would say we’re not seeing a major return in that as we speak today. I would say that’s been pretty steadily down since it was last year.

Rob Mertens, Analyst (on behalf of Krish Sankar), TD Cowen: Okay. Thank you. That, that’s helpful. I know some of this had been asked before, but I just wanted to dig into the strength you’re seeing from your largest customers. I mean, you mentioned visibility has improved, and that sales should grow sequentially through the back half of the year. Would you expect the mix shift to shift towards more of your high margin components and in-source products through the back half? Or could there be some near term impact due to the high growth of the gas panels this year?

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: I would say that the reason that we will see growth in gross margin sequentially from quarter to quarter is we’re gonna be able to ramp up and fulfill some of our own internal source parts and a higher percentage of those. Right? As we move into the second half of the year, I expect us to fulfill more of our Ichor-branded products within our gas boxes that we build. That will be a good tailwind as we get into the second half of the year. That’s, you know, all predicated on ramping up our global footprint realignment and what we’re doing in Mexico and Malaysia. We do expect that to come online in the second half and be fully running in the second half of the year.

Rob Mertens, Analyst (on behalf of Krish Sankar), TD Cowen: Got it. Thank you.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: No problem.

Operator: The next question is from Edward Yang from Oppenheimer. Please go ahead.

Edward Yang, Analyst, Oppenheimer: Hey, Phil. Thanks for the time. The first question’s more of a clarification question. Did you say that you expect 2026 year-over-year revenue growth of 25%? If that’s the case, you know, that would imply a bit less than double digit sequential growth in the second half, but just wanted to clarify that.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: No, we’re definitely looking at double-digit sequential growth in the second half of the year for sure.

Edward Yang, Analyst, Oppenheimer: Okay. That’s helpful. Thanks. You know, given that the industry’s supply constraint, are you pretty much, you know, set in terms of your 2026 growth outlook? Or are there still bottlenecking opportunities that could provide you revenue upside?

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: What I would say is that there is definitely bottlenecking opportunities that can give us revenue upside, where we are seeing some constraints, some noise in the supply chain as we move through from Q1 into Q2. With that said, I would say that we’ve got a good handle on it. I think we’re well-positioned in terms of inventory in order for us to execute, and I think we’ve been executing at a high level for our customers.

Edward Yang, Analyst, Oppenheimer: Okay. Just final one on your innovation pipeline. You know, could you speak to any new product or module wins, you know, beyond, you know, up cycle opportunities?

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Yeah. What I would say is that we’re making great progress in the flow control, and one of the things I wanna just highlight here is I think there could be questions of whether or not we can get flow control qualified during a ramp like this. What I do wanna say is a ramp like this is the perfect opportunity to get qualified. If you look at some of the constraints we’re running into, it happens to be in the flow control space. I think there’s an open window for us to capture share. We need to be ready, and we need to be available for that window of opportunity that I’m talking about.

Edward Yang, Analyst, Oppenheimer: Thank you.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Okay.

Operator: There are no further questions at this time. I would like to turn the floor back over to Phil Barros for closing comments.

Phil Barros, Chief Executive Officer, Ichor Holdings Ltd.: Yeah. Thank you, operator, and thank you, everyone, for joining our call today. I wanna once again thank our employees who have taken on this ramp and our strategic transformation all at the same time and executing at a very high level. I have complete faith in the team’s ability to execute and could not be more proud to be leading this team along this journey. You can feel the momentum and the energy within Ichor. I look forward to our next update at our Q2 call in August. In the meantime, please reach out to Claire to arrange any follow-up requests for meetings. Operator, you may conclude the call.

Operator: Thank you. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.