#USA #Hayward #Semiconductor Industry #Ultra Clean Holdings #UCTT

Ultra Clean Holdings Reports Q2 2025 Financial Performance

On July 28, 2025, Ultra Clean Holdings, Inc. (Nasdaq: UCTT) unveiled its financial outcomes for the second quarter, which concluded on June 27, 2025. The report reflects a period marked by fluctuations and challenges across a diverse customer base and product offerings.

Clarence Granger, the Chairman and Interim CEO, commented on the results stating, "Our second-quarter performance illustrates the impact of a dynamic environment. We expect revenue to remain stable in the short term, and our measures to trim operating costs are progressing, anticipated to yield benefits as this year unfolds. We are confident in our ability to excel beyond the broader semiconductor industry's growth, pivoting to navigate changes while enhancing our market share and innovating our product lines to support our sustained growth strategy."

Financial Overview

For the second quarter, total revenue reached $518.8 million. The product line accounted for $454.9 million, while the service sector contributed $63.9 million. The gross margin stood at 15.3% and operating margin was reported at (27.3%), with a net loss of $(162.0 million) or $(3.58) per diluted share. Comparatively, the previous quarter recorded total revenue of $518.6 million with a gross margin of 16.2%, an operating margin of 2.5%, and a net loss of $(5.0 million) or $(0.11) per diluted share.

It is crucial to note that the financial results for this quarter reflect a non-cash charge of $151.1 million from goodwill impairments.

Non-GAAP Insights

Examining the results from a non-GAAP perspective, the gross margin was 16.3% and an operating margin of 5.5% translated to a net income of $12.1 million or $0.27 per diluted share. This shows a slight decrease from the previous quarter where the gross margin was 16.7%, operating margin was 5.2%, and net income was $12.7 million or $0.28 per diluted share.

Future Outlook

Looking forward to the third quarter of 2025, Ultra Clean anticipates revenue ranging between $480 million and $530 million. The company also expects the GAAP diluted net loss per share to fall between $(0.09) and $(0.29), alongside a non-GAAP diluted net income expectation of $0.14 to $0.34.

Conference Call Details

A conference call regarding these results is set to occur at 1:45 p.m. PT. Interested parties can join by calling 1-800-836-8184 or 1-646-357-8785, with no passcode needed. A playback of the call will also be accessible at 1-888-660-6345 or 1-646-517-4150 using the confirmation code 48157#. For those preferring online access, the event will be available on the Investor Relations section of Ultra Clean's website.

Company Information

Ultra Clean Holdings, Inc. specializes in providing critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, mainly serving the semiconductor industry. Their products division offers integrated solutions to improve subassembly delivery cycles and manufacturing designs. The services division focuses on tool chamber cleaning and micro-contamination analytical services. Headquartered in Hayward, California, more information is available at www.uct.com.

Conclusion

The recent financial performance of Ultra Clean Holdings, Inc. underscores the prevalent challenges in the semiconductor market but also highlights the strategic initiatives the company is undertaking to enhance efficiency. With an eye on stability and growth, stakeholders will keenly observe how the company navigates the evolving landscape of this critical industry.