Ultra Clean Holdings Stock Earnings Reports

UCT delivered a stronger-than-expected Q1 2026 with revenue of $533.7M (up from $506.6M in Q4) and non-GAAP EPS of $0.31. Product revenue was $465.7M and services $68M; gross margin improved to 16.5% driven by better mix and higher volumes. Management sees week-by-week momentum tied to a multiyear, AI-driven expansion of WFE (customers cited $140–$145B WFE in 2026) with particularly strong demand for leading-edge foundry logic, HBM, etch/deposition and advanced packaging. UCT emphasizes its UCT 3.0 strategy (ramp readiness, MPX/new product introduction, and digital transformation) to capture share, accelerate ramps, and scale operations. The company says its current global footprint supports roughly $3B in revenue today and can scale to ~$4B with modest capital; an incremental ~$1B could be added with modest additional capex and 6–9 months build time. Management expects services revenue to grow with wafer starts and to be a double-digit contributor, and gross margins to continue improving through the year with upside into Q4. Financial moves: UCT issued $600M zero-coupon convertible notes, used proceeds to repay Term Loan B (reducing annual interest expense by ~ $30M), and upsized/refinanced the revolver to $250M, which management says will materially lower borrowing costs (WAC from ~6.2% to ~1.4%). Operating cash flow was negative $33.3M in Q1 due to inventory builds to support ramps; cash was $323.5M. Guidance for Q2: revenue $565M–$605M, EPS $0.44–$0.60. Additional notable: CFO Sheri Brumm announced her planned retirement and will remain engaged through the transition.