Ultra Clean (UCTT) investor relations material

Executive summary

• Q2 2025 revenue was $518.8M, with Products at $454.9M and Services at $63.9M; non-GAAP net income was $12.1M, but a $151.1M goodwill impairment led to a GAAP net loss of $162.0M.

• Gross margin declined to 15.3% GAAP (16.3% non-GAAP), mainly due to higher labor, restructuring, and compensation costs.

• Operating cash flow improved to $57.4M for the first half of 2025, with a quarter-end cash balance of $327.4M.

• Cost reduction initiatives and organizational changes are underway, with further savings expected in future quarters.

• Management remains confident in long-term semiconductor industry growth, supported by AI and advanced technology investments.

Financial highlights

• Q2 2025 revenue: $518.8M; Products: $454.9M, Services: $63.9M; six-month revenue: $1,037.4M.

• GAAP gross margin: 15.3%; non-GAAP: 16.3%; GAAP operating margin: (27.3)%; non-GAAP: 5.5%.

• Net loss attributable to shareholders: $(162.0)M (GAAP); non-GAAP net income: $12.1M; GAAP EPS: $(3.58); non-GAAP EPS: $0.27.

• Cash and equivalents at quarter-end: $327.4M; operating cash flow: $29.2M for Q2, $57.4M for first half.

• Share repurchase: 182,000–200,000 shares for $3.4M in Q2.

Outlook and guidance

• Q3 2025 revenue expected between $480M and $530M; non-GAAP EPS guidance: $0.14–$0.34.

• Management anticipates cost reduction benefits later in 2025 and incremental revenue from new facilities.

• Full-year 2025 revenue projected at $480M–$530M; 2026 WFE market expected to grow 8–12%.

• Existing cash, cash flow, and credit expected to cover obligations for at least the next twelve months.

• End-market trends show investment in advanced packaging, GAA, and memory technology transitions.