Ultra Clean Holdings, Inc. (Nasdaq: UCTT) announced its financial results for the fourth quarter and full year ended December 26, 2025, showcasing a mix of resilience and challenges in a dynamic market landscape. CEO James Xiao highlighted the company's disciplined execution during a period marked by increasing AI adoption and its subsequent impact on operational readiness.

1. Fourth Quarter 2025 Financial Highlights

GAAP Results

Total Revenue: $506.6 million, slightly down from $510.0 million in the previous quarter.

Products Revenue: $442.4 million, while Services contributed $64.2 million.

Gross Margin: 15.2%, down from 16.1% in Q3 2025.

Operating Margin: 2.2%, a slight increase from 2.1% in the prior quarter.

Net Loss: $(3.3) million, or $(0.07) per diluted share, improving from a loss of $(10.9) million, or $(0.24) per diluted share, in Q3 2025.

Non-GAAP Results

Gross Margin: 16.1%, compared to 17.0% in the prior quarter.

Operating Margin: 4.9%, down from 5.7%.

Net Income: $10.0 million, or $0.22 per diluted share, compared to $12.9 million, or $0.28 per diluted share, in Q3 2025.

2. Full Year 2025 Financial Overview

GAAP Results

Total Revenue: $2,054.0 million, a decrease from $2,097.6 million in 2024.

Products Revenue: $1,799.3 million, while Services generated $254.7 million.

Gross Margin: 15.7%, down from 17.0% year-over-year.

Operating Margin: (5.2)%, a decline from 4.3% in 2024.

Net Loss: $(181.2) million, or $(4.00) per diluted share, significantly worsened from net income of $23.7 million, or $0.52 per diluted share, in 2024. This loss includes a pre-tax, non-cash charge of $151.1 million for goodwill impairments.

Non-GAAP Results

Gross Margin: 16.5%, down from 17.5% in the previous year.

Operating Margin: 5.3%, compared to 6.9% in 2024.

Net Income: $47.7 million, or $1.05 per diluted share, down from $65.2 million, or $1.44 per diluted share, in 2024.

3. Outlook for Q1 2026

Looking ahead, Ultra Clean Holdings anticipates revenue to be in the range of $505 million to $545 million for the first quarter of 2026. The company expects GAAP diluted net income (loss) per share to fall between $(0.13) and $0.03, while non-GAAP diluted net income per share is projected to be between $0.18 and $0.34.

4. Strategic Focus and Market Position

CEO James Xiao emphasized the company’s commitment to ramp-readiness initiatives and the acceleration of execution capabilities globally. With a robust manufacturing network and a diverse product portfolio, Ultra Clean is positioning itself to seize growth opportunities in the semiconductor sector and beyond.

“AI adoption is gaining momentum, and we are aligning with our customers' roadmaps to support the sustained, multi-year growth they anticipate,” Xiao stated, signaling a proactive approach to market dynamics.

5. Conference Call Information

Ultra Clean Holdings will host a conference call to discuss these results in more detail at 1:45 p.m. PT. Participants can join by dialing 1-800-836-8184 or 1-646-357-8785. A replay of the call will be available shortly after the event.

6. About Ultra Clean Holdings, Inc.

Ultra Clean Holdings, Inc. specializes in developing and supplying critical subsystems and components for the semiconductor industry, alongside offering ultra-high purity cleaning and analytical services. Headquartered in Hayward, California, the company is known for its integrated solutions that enhance design-to-delivery timelines and manufacturing efficiency.

In summary, while Ultra Clean Holdings faced challenges in 2025, it demonstrated resilience in its operations and strategic focus on future growth opportunities, particularly in the evolving semiconductor market amidst rising AI adoption.

Original press release