Ultra Clean (UCTT) investor relations material

Executive summary

• Q2 2026 revenue reached $644.9 million, up 24.3% year-over-year, driven by strong AI-related demand and semiconductor industry growth.

• Non-GAAP net income was $32.3 million ($0.70 per diluted share), while GAAP net income was $8.7 million ($0.19 per diluted share), reflecting improved operations and absence of prior goodwill impairment.

• Strategic capacity expansions in Malaysia, Singapore, and Czech Republic are underway to support a $4 billion annualized revenue run rate by mid-2027, with plans for $5 billion capacity by 2028.

• Leadership transition announced as Sheri Savage retires and Mike Keogh steps in as CFO.

• Recent financing activities included issuance of $600 million convertible notes, repayment of term loan, and repurchase of 0.7 million shares for $40.3 million.

Financial highlights

• Q2 2026 total revenue was $644.9 million, up from $533.7 million in Q1; Products revenue was $572.7 million, Services revenue $72.2 million.

• Non-GAAP gross margin was 16.7%, operating margin 7.0%, and net income $32.3 million; GAAP gross margin was 16.1%, operating margin 4.6%, and net income $8.7 million.

• Non-GAAP EPS for Q2 2026 was $0.70, up from $0.31 in Q1; GAAP EPS was $0.19.

• Cash and equivalents at quarter-end were $255.9 million, down from $323.5 million in Q1 and $311.8 million at year-end 2025.

• Operating cash flow was negative $41.1 million for Q2 and negative $74.4 million for the first half, reflecting inventory investments.

Outlook and guidance

• Q3 2026 revenue projected at $700–$750 million; GAAP EPS guidance is $0.67–$0.87, non-GAAP EPS $0.83–$1.03.

• Gross margin expected to trend toward 17% through year-end, with a long-term goal of 20% at $4 billion run rate.

• Management expects continued growth driven by semiconductor industry demand, AI, and machine learning applications.

• Sufficient liquidity and capital resources to fund operations and strategic initiatives for at least the next 12 months.