Ultra Clean Holdings Reports Q1 2025 Financial Results

Ultra Clean ( (UCTT) ) has released its Q1 earnings. Here is a breakdown of the information Ultra Clean presented to its investors.

Ultra Clean Holdings, Inc. is a prominent developer and supplier of critical subsystems, components, and ultra-high purity cleaning and analytical services, primarily serving the semiconductor industry. The company is headquartered in Hayward, California, and offers integrated outsourced solutions and high-precision manufacturing under its Products division, along with tool chamber parts cleaning and micro-contamination analytical services under its Services division.

In the first quarter of 2025, Ultra Clean Holdings reported a total revenue of $518.6 million, with a net loss of $0.5 million or $0.11 per diluted share on a GAAP basis. The company faced challenges due to softening demand as customers reassessed spending amidst an uncertain business environment. Despite these challenges, Ultra Clean remains focused on executing customer commitments while managing costs and maximizing efficiency.

Key financial metrics for the quarter included a gross margin of 16.2% and an operating margin of 2.5% on a GAAP basis. On a non-GAAP basis, the gross margin was slightly higher at 16.7%, with an operating margin of 5.2% and a net income of $12.7 million or $0.28 per diluted share. Compared to the previous quarter, the company experienced a decline in revenue and profitability, reflecting the broader market conditions.

Looking ahead, Ultra Clean Holdings anticipates second-quarter revenue to range between $475 million and $525 million. The company expects a GAAP diluted net loss per share between $(0.06) and $(0.26), while non-GAAP diluted net income per share is projected to be between $0.17 and $0.37. Management remains cautiously optimistic, focusing on strategic execution and cost management to navigate the volatile market landscape.