Ultra Clean Holdings Reports Financial Performance for Q4 and Year-End 2025

Financial Results Overview

Ultra Clean Holdings, Inc. (Nasdaq: UCTT) recently released its financial report for the fourth quarter and full year ending December 26, 2025. Despite facing a dynamic operating environment, the company showcased its ability to maintain key performance metrics. CEO James Xiao remarked that the results were in line with the company’s expectations, highlighting the disciplined execution that has become a hallmark of its operational strategy. As adoption of artificial intelligence continues to grow, Ultra Clean is ramping up initiatives to enhance its execution speed and align with industry roadmaps.

Fourth Quarter Results

The company's total revenue for the fourth quarter amounted to $506.6 million, with the products segment contributing $442.4 million, and the services segment adding $64.2 million. Gross margins for the quarter stood at 15.2%, with an operating margin of 2.2%. Notably, Ultra Clean reported a net loss of $3.3 million, equating to $0.07 per diluted share. This was an improvement from the previous quarter’s net loss of $10.9 million, or $(0.24) per diluted share. This improvement is attributed to revenue management strategies and cost controls implemented throughout the quarter.

From a non-GAAP perspective, the gross margin was reported at 16.1%, and the company achieved a net income of $10.0 million, translating to $0.22 per diluted share. This highlights a strong operational performance despite a backdrop of industry challenges.

Full Year Summary

For the full fiscal year 2025, Ultra Clean posted a total revenue of $2,054.0 million, with the products segment contributing significantly at $1,799.3 million. This represents a slight decrease compared to 2024, where revenue was $2,097.6 million. This year, the gross margin was reported at 15.7%, with an operating loss of $181.2 million, or $(4.00) per diluted share, largely impacted by a one-time goodwill impairment charge totaling $151.1 million. In contrast, the previous fiscal year showed a net income of $23.7 million, or $0.52 per diluted share.

When analyzing the results on a non-GAAP basis, the company saw a gross margin improvement to 16.5% and a net income of $47.7 million, equating to $1.05 per diluted share. This showcases the underlying strength of the company’s business model, particularly in a challenging market.

Outlook for the First Quarter of 2026

Looking ahead, Ultra Clean anticipates stable revenue figures for the first quarter of 2026, projecting between $505 million and $545 million. The expectation for GAAP diluted net income per share is set between $(0.13) and $0.03, while non-GAAP diluted net income per share is expected to range between $0.18 and $0.34.

Conference Call Information

The management will host a conference call to discuss the financial results at 1:45 PM PT. Participants can access the call by dialing 1-800-836-8184 or 1-646-357-8785. No passcode is required, and a replay will be available for those unable to attend the live event.

About Ultra Clean Holdings

Ultra Clean Holdings, Inc. is recognized as a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, predominantly within the semiconductor sector. The company partners with clients to deliver integrated outsourced solutions aimed at improving design processes and manufacturing efficiencies. For more detailed information, visit Ultra Clean Holdings.