Ultra Clean (UCTT) Earnings Call Transcript

The Motley Fool

by newsfeedback@fool.com (Motley Fool Transcribing)

February 23, 2026

AI-Generated Deep Dive Summary

Ultra Clean Holdings (UCTT) reported its fiscal Q4 2025 earnings, revealing a slight dip in revenue and margins but signaling optimism about future growth. The company generated $506.6 million in total revenue, down sequentially from $510 million, with products contributing $442.4 million and services bringing in $64.2 million. Gross margins declined to 16.1% due to a shift in product mix, while operating expenses fell slightly to $56.6 million, representing 11.2% of revenue. Net income came in at $10 million, translating to an EPS of $0.22, down from $0.28 in the prior quarter. The company’s leadership highlighted a structural upturn in the semiconductor cycle driven by accelerating AI infrastructure investment and end-market demand. CEO James Xiao emphasized that this growth is not cyclical but tied to the inflection point created by AI technology. UCTT expects the WFE (Wafer Fab Equipment) market to grow 15-20% year-over-year, with the company well-positioned to capitalize on this trend. The firm’s installed capacity currently operates at 65%, leaving room for future order growth and aligning with customer shifts toward Asia, where 50% of its capacity is already located. Looking ahead, UCTT provided guidance for Q1 2026, projecting revenue between $505 million and $545 million and EPS between $0.18 and $0.34. The company also outlined its long-term strategic vision, referred to as "UCT 3.0," which focuses on efficient capacity utilization, margin improvements, and readiness for high-volume demand inflections. Xiao expressed confidence in the company’s ability to meet these goals, citing its well-planned extra capacity that can address up to $3 billion in annual revenue. This earnings call underscores UCTT’s strategic positioning in a rapidly evolving semiconductor industry, where AI-driven demand is reshaping traditional cycles. Investors should take note of the company’s balanced financial

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Originally published on The Motley Fool on 2/23/2026