"UCT delivered fourth quarter results in line with expectations, reflecting disciplined execution in a dynamic operating environment," said James Xiao, CEO. "As AI adoption gains momentum, we are increasing our ramp-readiness initiatives and accelerating the speed of execution worldwide to align with roadmaps and position UCT to support the sustained, multi-year growth anticipated by our customers. With a strong global manufacturing network and a broad, differentiated Products and Services portfolio, UCT is well positioned to capture an outsized share of the many opportunities ahead."
Fourth Quarter 2025 GAAP Financial ResultsTotal revenue was $506.6 million. Products contributed $442.4 million and Services added $64.2 million. Total gross margin was 15.2%, operating margin was 2.2%, and net loss was $(3.3) million or $(0.07) per diluted share. This compares to total revenue of $510.0 million, gross margin of 16.1%, operating margin of 2.1%, and net loss of $(10.9) million or $(0.24) per diluted share, in the prior quarter.
Fourth Quarter 2025 Non-GAAP Financial ResultsOn a non-GAAP basis, gross margin was 16.1%, operating margin was 4.9%, and net income was $10.0 million or $0.22 per diluted share. This compares to gross margin of 17.0%, operating margin of 5.7%, and net income of $12.9 million or $0.28 per diluted share in the prior quarter.
Full Year 2025 GAAP Financial ResultsTotal revenue was $2,054.0 million. Products contributed $1,799.3 million and Services added $254.7 million. Total gross margin was 15.7%, operating margin was (5.2)%, and net loss was $(181.2) million or $(4.00) per diluted share. This compares to total revenue of $2,097.6 million, gross margin of 17.0%, operating margin of 4.3%, and net income of $23.7 million or $0.52 per diluted share in the prior year. The financial results for fiscal year 2025 reflect a pre-tax, noncash charge of $151.1 million related to goodwill impairments.
Full Year 2025 Non-GAAP Financial ResultsOn a non-GAAP basis, the company reported gross margin of 16.5%, operating margin of 5.3%, and net income of $47.7 million or $1.05 per diluted share. This compares to gross margin of 17.5%, operating margin of 6.9%, and net income of $65.2 million or $1.44 per diluted share in the prior year.
First Quarter 2026 OutlookThe Company expects revenue in the range of $505 million to $545 million. The Company expects GAAP diluted net income (loss) per share to be between $(0.13) and $0.03 and non-GAAP diluted net income per share to be between $0.18 and $0.34.
Conference CallThe call will take place at 1:45 p.m. PT and can be accessed by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required. A replay of the call will be available by dialing 1-888-660-6345 or 1-646-517-4150 and entering the confirmation code 91919#. The Webcast will be available on the Investor Relations section of the Company's website at http://uct.com/investors/events/.
About Ultra Clean Holdings, Inc.Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing. Under its Services Division, UCT offers its customers tool chamber parts cleaning and coating, as well as micro-contamination analytical services. Ultra Clean is headquartered in Hayward, California. Additional information is available at www.uct.com.
Use of Non-GAAP MeasuresIn addition to providing results that are determined in accordance with Generally Accepted Accounting Principles in the United States of America ("GAAP"), management uses non-GAAP gross margin, non-GAAP operating margin and non-GAAP net income to evaluate the Company's operating and financial results. We believe the presentation of non-GAAP results is useful to investors for analyzing our core business and business trends and comparing performance to prior periods, along with enhancing investors' ability to view the Company's results from management's perspective. The presentation of this additional information should not be considered a substitute for results prepared in accordance with GAAP. Tables presenting reconciliations from GAAP results to non-GAAP results are included at the end of this press release.
The Company defines non-GAAP net income as net income (loss) before amortization of intangible assets, stock-based compensation, restructuring charges, legal-related costs, impairment of goodwill, debt refinancing costs, fair value adjustments, VAT settlement, acquisition activity costs, and the tax effects of the foregoing adjustments.
A reconciliation of our guidance for non-GAAP net income per diluted share for the subsequent quarter is not available due to fluctuations in the geographic mix of our earnings from quarter to quarter, which impacts our tax rate and cannot be reasonably predicted or determined. As a result, such reconciliation is not available without unreasonable efforts and we are unable to determine the probable significance of the unavailable information.
Safe Harbor StatementThe foregoing information contains, or may be deemed to contain, "forward-looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "projection," "outlook," "forecast," "believes," "plan," "expect," "future," "intends," "may," "will," "estimates," "see," "predicts," "should" and similar expressions to identify these forward-looking statements. Forward looking statements included in this press release include our expectations about the semiconductor capital equipment market and outlook. All forward-looking statements address matters that involve risks and uncertainties. Accordingly, the Company's actual results may differ materially from the results predicted or implied by these forward-looking statements. These risks, uncertainties and other factors also include, among others, those identified in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations'' and elsewhere in our annual report on Form 10-K for the year ended December 27, 2024, as filed with the Securities and Exchange Commission. Ultra Clean Holdings, Inc. undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise unless required by law.
Contact:Rhonda BennettoSVP Investor Relations[email protected]
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share data)
Three Months Ended
Twelve months ended
December 26, 2025
December 27, 2024
December 26, 2025
December 27, 2024
(In millions, except per share amounts)
Revenues:
Products
$ 442.4
$ 503.5
$ 1,799.3
$ 1,853.7
Services
64.2
59.8
254.7
243.9
Total revenues
506.6
563.3
2,054.0
2,097.6
Cost of revenues:
Products
383.0
428.5
1,547.0
1,569.7
Services
46.3
43.0
184.1
171.6
Total cost revenues
429.3
471.5
1,731.1
1,741.3
Gross margin
77.3
91.8
322.9
356.3
Operating expenses:
Research and development
8.8
7.1
32.0
28.3
Sales and marketing
15.7
14.4
61.2
57.3
General and administrative
41.9
44.4
186.0
179.5
Impairment of goodwill
—
—
151.1
—
Total operating expenses
66.4
65.9
430.3
265.1
Income (loss) from operations
10.9
25.9
(107.4)
91.2
Interest income
0.9
0.9
3.9
4.8
Interest expense
(8.4)
(10.7)
(38.3)
(46.5)
Other income (expense), net
(1.4)
8.4
(3.9)
17.7
Income (loss) before provision for income taxes
2.0
24.5
(145.7)
67.2
Provision for income tax
2.6
4.5
25.9
32.7
Net income (loss)
(0.6)
20.0
(171.6)
34.5
Less: Net income attributable to noncontrolling interests
2.7
3.7
9.6
10.8
Net income (loss) attributable to UCT
$ (3.3)
$ 16.3
$ (181.2)
$ 23.7
Net income (loss) per share attributable to UCT common stockholders:
Basic
$ (0.07)
$ 0.36
$ (4.00)
$ 0.53
Diluted
$ (0.07)
$ 0.36
$ (4.00)
$ 0.52
Shares used in computing net income (loss) per share:
Basic
45.4
45.1
45.3
44.9
Diluted
45.4
45.4
45.3
45.3
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
December 26,2025
December 27,2024
ASSETS
Current assets:
Cash and cash equivalents
$ 311.8
$ 313.9
Accounts receivable, net of allowance for credit losses
208.8
241.1
Inventories
390.9
381.0
Prepaid expenses and other current assets
48.2
34.1
Total current assets
959.7
970.1
Property, plant and equipment, net
324.6
325.9
Goodwill
114.2
265.3
Intangible assets, net
156.8
184.9
Deferred tax assets, net
3.5
3.1
Operating lease right-of-use assets
157.2
161.0
Other non-current assets
13.0
9.6
Total assets
$ 1,729.0
$ 1,919.9
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank borrowings
$ 9.9
$ 16.0
Accounts payable
194.9
212.5
Accrued compensation and related benefits
51.1
50.1
Operating lease liabilities
20.2
18.6
Other current liabilities
24.6
38.4
Total current liabilities
300.7
335.6
Bank borrowings, net of current portion
467.0
476.5
Deferred tax liabilities
13.8
16.1
Operating lease liabilities
156.6
149.2
Other liabilities
6.8
6.7
Total liabilities
944.9
984.1
Equity:
UCT stockholders' equity:
Common stock
0.1
0.1
Additional paid-in capital
578.7
558.4
Common shares held in treasury
(48.4)
(45.0)
Retained earnings
189.2
370.4
Accumulated other comprehensive loss
(8.6)
(10.3)
Total UCT stockholders' equity
711.0
873.6
Noncontrolling interests
73.1
62.2
Total equity
784.1
935.8
Total liabilities and equity
$ 1,729.0
$ 1,919.9
ULTRA CLEAN HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
Twelve months ended
December 26,2025
December 27,2024
(In millions)
Cash flows from operating activities:
Net income (loss)
$ (171.6)
$ 34.5
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
47.9
45.7
Amortization of intangible assets
28.1
30.4
Stock-based compensation
19.2
17.4
Amortization of debt issuance costs
2.7
3.0
Impairment of goodwill
151.1
—
Loss (gain) on sale of property, plant and equipment
0.7
1.2
Change in the fair value of financial instruments
(0.1)
(29.2)
Deferred income taxes
(2.7)
(3.0)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable
32.3
(60.3)
Inventories
(9.9)
(6.5)
Prepaid expenses and other current assets
(8.3)
(3.2)
Other non-current assets
(1.9)
1.3
Accounts payable
(17.6)
26.4
Accrued compensation and related benefits
1.0
2.4
Income taxes payable
(13.5)
1.0
Operating lease assets and liabilities
12.9
2.6
Other liabilities
(4.7)
1.3
Net cash provided by operating activities
65.6
65.0
Cash flows from investing activities:
Purchases of property, plant and equipment
(50.3)
(63.5)
Other investing activities
3.3
—
Net cash used in investing activities
(47.0)
(63.5)
Cash flows from financing activities:
Proceeds from bank borrowings
59.3
67.7
Extinguishment of bank borrowings
(59.3)
(44.2)
Proceeds from issuance of common stock
2.2
2.0
Principal payments on bank borrowings
(18.2)
(10.2)
Payment of debt issuance costs
(0.6)
(2.5)
Employees' taxes paid upon vesting of restricted stock units
(1.1)
(2.5)
Payments of dividends to a joint venture shareholder
(0.1)
(0.5)
Repurchase of shares
(3.4)
—
Net cash provided by (used in) financing activities
(21.2)
9.8
Effect of exchange rate changes on cash and cash equivalents
0.5
(4.4)
Net increase (decrease) in cash and cash equivalents
(2.1)
6.9
Cash and cash equivalents at beginning of period
313.9
307.0
Cash and cash equivalents at end of period
$ 311.8
$ 313.9
ULTRA CLEAN HOLDINGS, INC.
REPORTABLE SEGMENTS
GAAP TO NON-GAAP RECONCILIATION
(Unaudited; dollars in millions)
GAAP
Non-GAAP
