Ultra Clean Holdings Inc. Reports First Quarter 2025 Financial Results
April 28, 2025 – Hayward, California – Ultra Clean Holdings, Inc. (Nasdaq: UCTT) has announced its financial results for the first quarter ended March 28, 2025, revealing a challenging period marked by a decline in demand as customers adjusted spending amid a turbulent business landscape.
1. Executive Commentary
Clarence Granger, Interim CEO of Ultra Clean, commented on the financial results, stating, “UCT's first quarter results were impacted by softening demand late in the quarter as customers reassessed their spending in reaction to an increasingly uncertain and volatile business environment.” Granger highlighted the company's focus on executing for its customers while managing costs and maximizing efficiency during these challenging times.
2. First Quarter 2025 GAAP Financial Results
Ultra Clean reported total revenue of $518.6 million for the first quarter of 2025. The breakdown of revenue sources showed that product sales accounted for $457.0 million, while service revenues contributed $61.6 million. The company's gross margin stood at 16.2%, with an operating margin of 2.5%. The net loss for the quarter was $(0.5) million, translating to $(0.11) per diluted share.
In comparison, the previous quarter saw total revenue of $563.3 million, with a gross margin of 16.3%, an operating margin of 4.6%, and a net income of $16.3 million or $0.36 per diluted share.
3. First Quarter 2025 Non-GAAP Financial Results
On a non-GAAP basis, Ultra Clean reported a gross margin of 16.7%, an operating margin of 5.2%, and net income of $12.7 million, equivalent to $0.28 per diluted share. This reflects a decline from the prior quarter, which recorded a gross margin of 16.8%, an operating margin of 7.0%, and a net income of $22.9 million, or $0.51 per diluted share.
Key Financial Metrics
| Metric | Q1 2025 | Q4 2024 |
|---|---|---|
| Total Revenue | $518.6 million | $563.3 million |
| Gross Margin | 16.2% | 16.3% |
| Operating Margin | 2.5% | 4.6% |
| Net Income (Loss) | $(0.5) million | $16.3 million |
| Non-GAAP Net Income | $12.7 million | $22.9 million |
4. Second Quarter 2025 Outlook
Looking ahead, Ultra Clean anticipates revenue for the second quarter of 2025 to be in the range of $475 million to $525 million. The company expects a GAAP diluted net loss per share to fall between $(0.06) and $(0.26) and non-GAAP diluted net income per share to range from $0.17 to $0.37.
5. Conference Call
Investors and analysts are invited to join a conference call scheduled for today at 1:45 p.m. PT. Participants can access the call by dialing 1-800-836-8184 or 1-646-357-8785. A replay of the call will be available for later access.
6. About Ultra Clean Holdings, Inc.
Ultra Clean Holdings, Inc. is a prominent developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily catering to the semiconductor industry. The company is headquartered in Hayward, California, and offers integrated outsourced solutions, improving design-to-delivery cycle times and high-precision manufacturing.
7. Conclusion
As Ultra Clean navigates a challenging market environment with fluctuating demand, their focus on operational efficiency and customer service will be pivotal. Investors will be closely watching how the company adapts to these conditions in the upcoming quarters.
