Ultra Clean Holdings Inc
NASDAQ:UCTT
Ultra Clean Holdings Inc
Ultra Clean Holdings, Inc., a company that sits at the confluence of innovation and precision, is a key player in the complex semiconductor industry. Founded in 1991 and headquartered in Hayward, California, Ultra Clean has become an integral part of the technology value chain by providing highly engineered systems and mission-critical components that are essential to the manufacturing processes of semiconductors. In an environment where precision is paramount and margins for error are infinitesimally small, Ultra Clean designs and delivers the tools that enable semiconductor manufacturers to push the boundaries of technology. This includes an array of products and services ranging from gas delivery systems and chemical delivery modules to various fabrication services that support the production of advanced semiconductors.
Ultra Clean makes money through intricate collaboration with semiconductor manufacturers, capitalizing on its expertise in both design and production. The company thrives by leveraging its sophisticated supply chain and manufacturing processes to deliver products that meet the exacting standards of its clients. By offering solutions that not only enhance efficiency but also ensure reliability and quality, Ultra Clean has cultivated robust relationships with leading semiconductor producers. This positions the company to benefit from the persistent demand for faster, smaller, and more efficient semiconductor devices, a world driven by the continuous march of technological progress. The company's growth trajectory is thus inextricably linked to the evolutionary heartbeat of the semiconductor sector, driven by its vital role in a digital economy hungry for innovation.
Ultra Clean Holdings, Inc., a company that sits at the confluence of innovation and precision, is a key player in the complex semiconductor industry. Founded in 1991 and headquartered in Hayward, California, Ultra Clean has become an integral part of the technology value chain by providing highly engineered systems and mission-critical components that are essential to the manufacturing processes of semiconductors. In an environment where precision is paramount and margins for error are infinitesimally small, Ultra Clean designs and delivers the tools that enable semiconductor manufacturers to push the boundaries of technology. This includes an array of products and services ranging from gas delivery systems and chemical delivery modules to various fabrication services that support the production of advanced semiconductors.
Ultra Clean makes money through intricate collaboration with semiconductor manufacturers, capitalizing on its expertise in both design and production. The company thrives by leveraging its sophisticated supply chain and manufacturing processes to deliver products that meet the exacting standards of its clients. By offering solutions that not only enhance efficiency but also ensure reliability and quality, Ultra Clean has cultivated robust relationships with leading semiconductor producers. This positions the company to benefit from the persistent demand for faster, smaller, and more efficient semiconductor devices, a world driven by the continuous march of technological progress. The company's growth trajectory is thus inextricably linked to the evolutionary heartbeat of the semiconductor sector, driven by its vital role in a digital economy hungry for innovation.
Revenue: Q4 revenue was $506.6 million, roughly flat compared to $510 million in the prior quarter. Full-year revenue was $2.1 billion, also about flat with 2024.
Margins: Gross margin declined to 16.1% in Q4 from 17% in Q3 due to product mix, but management expects sequential improvement through 2026 as utilization rises.
EPS: Q4 earnings per share were $0.22, down from $0.28 in Q3; full-year EPS was $1.05 versus $1.44 the year prior.
Guidance: Q1 2026 revenue is expected between $505 million and $545 million with EPS guidance of $0.18 to $0.34.
AI-Driven Growth: Management highlighted a structural expansion in wafer fab equipment spend driven by AI infrastructure and expects a "step function" increase in demand, especially in the second half of 2026.
Utilization & Capacity: Current capacity can support $3 billion in revenue; utilization averaged 65%, with plans to shift more capacity to Asia to align with customer needs.
Memory Market: Management sees a multi-year memory upturn, with AI-specific memory demand forecasted to grow at a much higher rate than traditional memory.
