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Ultra Clean Holdings, Inc., ( UCT , the Company or We ) is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services primarily for the semiconductor industry. UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, p…
The business is unprofitable at the operating level (-5.23% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 2.1% YoY. Margins deteriorated 9.6pp alongside, both lines moving the wrong way.
ROIC dropped from 4.60% to -5.83%, capital efficiency is deteriorating. Net debt of $346M represents 22.6x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$2.07B
▼ -2.1% YoY
Net Income (TTM)
-$194M
▼ -864.6% YoY
Op. Margin
-5.26%
▼ -9.6pp YoY
ROIC
-7.56%
▼ -10.4pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$43M
▲ +920.0% YoY
Op. Cash Flow (TTM)
$4M
▲ +0.9% YoY
Net Debt
$457M
Cash & Equiv.
$324M
5Y CAGR: +8.0%
5Y CAGR: -24.1%
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