Ultra Clean | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 510 M

Revenue: As of FY2025 Q3, the actual value is USD 510 M, beating the estimate of USD 505.23 M.

EPS: As of FY2025 Q3, the actual value is USD -0.24, beating the estimate of USD -0.27.

EBIT: As of FY2025 Q3, the actual value is USD 19.4 M.

Segment Revenue

• Products: Revenue for the three months ended September 26, 2025, was $445.0 million, a decrease of 7.1% compared to $479.0 million for the same period in 2024. For the nine months ended September 26, 2025, revenue was $1,356.9 million, a slight increase of 0.5% from $1,350.2 million in 2024.
• Services: Revenue for the three months ended September 26, 2025, was $65.0 million, an increase of 5.9% compared to $61.4 million for the same period in 2024. For the nine months ended September 26, 2025, revenue was $190.4 million, up 3.4% from $184.1 million in 2024.

Operational Metrics

• Gross Margin: Total gross margin for the three months ended September 26, 2025, was 16.1%, down from 17.3% in the same period in 2024. For the nine months ended September 26, 2025, gross margin was 15.9%, compared to 17.2% in 2024.
• Operating Profit: For the three months ended September 26, 2025, operating profit was $10.6 million, a decrease of 57.9% from $25.2 million in 2024. For the nine months ended September 26, 2025, there was an operating loss of -$118.3 million, compared to an operating profit of $65.3 million in 2024.
• Net Income: The net loss for the three months ended September 26, 2025, was -$8.1 million, compared to a net income of $0.3 million in 2024. For the nine months ended September 26, 2025, the net loss was -$171.0 million, compared to a net income of $14.5 million in 2024.

Cash Flow

• Operating Cash Flow: For the nine months ended September 26, 2025, net cash provided by operating activities was $57.5 million, compared to $47.9 million in 2024.
• Free Cash Flow: Not explicitly stated, but net cash used in investing activities was -$37.0 million, primarily due to purchases of property, plant, and equipment.

Unique Metrics

• Goodwill Impairment: A goodwill impairment charge of $151.1 million was recorded in the second quarter of 2025, affecting the Fluid Solutions and Services reporting units.

Future Outlook and Strategy

• Core Business Focus: The company anticipates that its existing cash and cash equivalents balance and operating cash flow will be sufficient to service its indebtedness and meet its working capital requirements for at least the next twelve months.
• Non-Core Business: The company has entered into factoring agreements to sell certain accounts receivables under non-recourse agreements to improve liquidity.