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Ultra Clean Holdings, Inc.
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$2.5B
Market Cap
—
P/E
0.62
PEG
4.2%
ROCE
-1.7%
ROE
1.08
D/E
2.8%
OPM
-61.6%
% from 52W High
89
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for UCTT including FX impact
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📈 Price History
Ratio Health
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About

Ultra Clean Holdings, Inc. develops and supplies critical subsystems, components and parts, and cleaning and analytical services for the semiconductor industry in the United States and internationally. The company offers outsourced solutions for the development, design, component sourcing and cleaning, prototyping, engineering, and manufacturing and testing of advanced systems. It also provides a range of gas delivery solutions, such as precision thermal products, valves, connectors, industrial process connectors and valves, pneumatic actuators, manifolds and safety solutions, hoses, pressure gauges, gas lines, and component heaters, as well as complex weldments. In addition, the company offers assemblies, including gas and fluid delivery solutions, wafer transport systems, mechatronic assemblies, process modules, and sub-fab process equipment support racks; weldments and frames with exacting standards; heaters, sensors, and controllers for precise temperature control; integrated device manufacturers and OEMs validated process tool chamber parts cleaning and coating services; and tool part process optimization solutions, analytical verification of process tool chamber part cleaning effectiveness and micro contamination analysis of tool parts, wafers and depositions, chemicals, cleanroom materials, deionized water, and airborne molecular contamination. It primarily serves customers in the semiconductor capital equipment and semiconductor integrated device manufacturing industries, as well as display, consumer, medical, energy, industrial, and research equipment industries. The company was founded in 1991 and is headquartered in Hayward, California.

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🎙 Management Tone Confident Specific ~ Volatile 4 quarters Full tone analysis in Intelligence →
📊 MIXED UCT Q1 2026 revenue $533.7M; sees multi-year AI-driven WFE growth of ~18-20% in 2026.
Revenue & Profitability
Q1 2026 total revenue was $533.7 million, up from $506.6 million in Q4 2025. GAAP net income was $14.5 million, or $0.31 per diluted share, compared to $10.9 million ($0.24) in the prior quarter. Operating income was not explicitly stated; operating margin was 5.1%, up from 4.9% in Q4. Cash flow from operations was negative $33.3 million due to working capital build. Cash and equivalents were $323.5 million.
Outlook
Management sees a multi-year AI-driven upcycle accelerating into the second half of 2026 and beyond. Customer forecasts point to WFE investment of $140-$145 billion in 2026, representing 18-20% year-over-year growth, with 15%+ growth expected in 2027. Memory investments are unlocking constraints, and leading-edge foundry logic, HBM, and advanced packaging are key demand drivers. The near-term environment remains dynamic with potential supply chain constraints and geopolitical risks.
Growth Drivers
Key growth levers include AI infrastructure spending ($600 billion by hyperscalers in 2026), increasing memory capacity, and higher foundry unit demand. UCT benefits from process intensity in deposition and removal (etch and dep), which are growing as a share of WFE. The services business is expected to grow double-digits in 2026, driven by rising wafer starts. China domestic business is less than 5% of revenue and is normalizing to low-20% of worldwide WFE.
Balance Sheet & CapEx
Not discussed in this earnings call. However, management noted that current global footprint supports $3 billion revenue and can scale to $4 billion with modest incremental capital investment, and that they are building inventory to meet near-term demand. No specific capex guidance was provided.
Margins
Q1 2026 total gross margin was 16.5%, up from 16.1% in Q4, driven by better product mix and higher volumes. Product gross margin was 14.6% (vs. 14.1%) and services was 30% (vs. 29.7%). Operating margin was 5.1% (vs. 4.9%). Management expects gross margin to continue improving through the year as revenue grows, though mix and manufacturing region will cause quarterly variances. Operating leverage is expected to strengthen as volumes ramp toward $4 billion capacity.
Key Risks
Management flagged near-term dynamism including variability in customer spending, potential supply chain constraints, and geopolitical factors. The company's Chinese domestic business is less than 5% of revenue, but the broader China exposure normalizes to low-20% of worldwide WFE. Gross margins are sensitive to volume, mix, manufacturing region, and material/transportation costs.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-03
Record Q2 revenue and margin improvements were driven by strong AI-related demand and strategic capacity expansions. Guidance for Q3 is robust, with continued growth expected as capacity ramps and customer diversification increases.
Q1 2026 Q1 2026 2026-04-28
Q1 2026 revenue and earnings exceeded guidance, driven by strong AI-related semiconductor demand and operational execution. Guidance for Q2 projects continued double-digit growth and margin expansion, supported by strategic investments and improved financial flexibility.
Q4 2025 Q4 2025 2026-02-23
Q4 revenue was $506.6M with gross margin at 16.1%, and full-year revenue flat at $2.1B. Sequential growth and margin expansion are expected, with a strong second half of 2026 anticipated as AI-driven demand accelerates WFE spending and services growth.
Q3 2025 Q3 2025 2025-10-28
Q3 2025 saw improved gross margins and operational progress, with revenue at $510M and EPS at $0.28. Guidance for Q4 is $480–$530M revenue and $0.11–$0.31 EPS, amid ongoing macro uncertainty and a strategic shift in China operations.
Q2 2025 Q2 2025 2025-07-28
Q2 revenue was $518.8M, with margin and OpEx improvements from cost actions. China revenue rebounded, new business wins and integration efforts are set to boost Q4 and 2026. Tariff costs and market uncertainty remain risks.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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