UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ Form 10-Q __________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 27, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____________to Commission file number 000-50646 __________ ...

Group 1 - The core issue for Ultra Clean Holdings (NASDAQ: UCTT) is the lagging margins despite recovering sales, which negatively impacts overall profitability [1] - The company has been making diversification efforts to improve its financial performance [1] Group 2 - The investment group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports [1] - The group provides coverage of approximately 10 major events each month to find the best investment opportunities [1]

Company Performance - Ultra Clean Holdings (UCTT) reported quarterly earnings of $0.27 per share, matching the Zacks Consensus Estimate, but down from $0.32 per share a year ago [1] - The company posted revenues of $518.8 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 3.45% and slightly up from $516.1 million year-over-year [2] - Over the last four quarters, Ultra Clean has surpassed consensus revenue estimates three times [2] Stock Movement and Outlook - Ultra Clean shares have declined approximately 33.4% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for understanding future stock performance, with current consensus EPS estimates at $0.19 for the upcoming quarter and $0.99 for the current fiscal year [7] Industry Context - The Electronics - Manufacturing Machinery industry, to which Ultra Clean belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable position [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Ultra Clean's stock performance [5]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $518.8 million, slightly up from $518.6 million in the previous quarter [15] - Revenue from products decreased to $454.9 million from $457 million, while services revenue increased from $61.6 million to $63.9 million [15] - Total gross margin for Q2 was 16.3%, down from 16.7% in Q1, with product gross margin at 14.4% compared to 14.9% [15] - Operating expenses decreased to $56.1 million from $59.4 million, reflecting a reduction in operating expenses as a percentage of revenue from 11.5% to 10.8% [16] - Earnings per share for the quarter were $0.27, down from $0.28 in the prior quarter [18] Business Line Data and Key Metrics Changes - The services business showed solid growth with revenues increasing to $63.9 million from $61.6 million [15] - Product gross margin decreased, while services margin slightly increased to 29.9% from 29.8% [15] Market Data and Key Metrics Changes - China revenue increased significantly from $21 million in Q1 to $35 million in Q2, representing about 7% of total revenue [24] - The company expects ongoing revenue from China to stabilize between $40 million to $50 million per quarter [25] Company Strategy and Development Direction - The company is focusing on new product introductions and component qualifications, particularly in the Czech Republic, which is expected to contribute to revenue in Q4 [5] - Efforts to flatten the organization and reduce overall size are aimed at improving efficiency and reducing operating expenses [6] - The integration of acquisitions and implementation of a company-wide SAP business system are ongoing to enhance operational efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about Q4, anticipating improvements due to cost reductions and new business opportunities [27] - The company remains confident in the long-term fundamentals of the semiconductor industry, particularly with increasing investments in AI [12][13] - There is ongoing uncertainty regarding tariffs, but management has not seen changes in customer demand related to tariffs [11][19] Other Important Information - The company has repurchased 182,000 shares at a cost of $3.4 million as part of its repurchase program [19] - A goodwill impairment charge was noted due to a decline in stock price, but management remains bullish about the underlying businesses [50][51] Q&A Session Summary Question: What contributed to the Q2 revenue exceeding guidance? - Management noted an increase in shipments from the Austin site and a rise in services revenue as key contributors [21][22] Question: Is the expectation for China revenue still positive? - Management confirmed that China revenue is expected to stabilize and improve in the second half of the year [23][25] Question: What is the outlook for Q4 revenue? - Management indicated a cautious optimism for Q4, with potential upward bias due to new business wins and cost reductions [27] Question: Are there concerns about AI regulations affecting revenue from China? - Management expressed confidence in their existing relationships and did not foresee significant risks from potential regulations [30][32] Question: How does the company view the inventory situation among customers? - Management indicated that customers are working down their inventory, which may lead to increased orders in the near future [60] Question: What is the status of tariff reimbursements from customers? - Management clarified that while there are delays in payments, they are confident that customers will eventually pay the outstanding amounts [44][48] Question: What drove the goodwill impairment charge? - The charge was triggered by a decline in stock price relative to the carrying value of goodwill, but management remains optimistic about future performance [50][51]

SUMMER2025 INVESTOR PRESENTATION Safe Harbor This presentation contains, or may be deemed to contain, "forward- looking statements" (as defined in the US Private Securities Litigation Reform Act of 1995) which reflect our current views with respect to future events and financial performance. We use words such as "anticipates," "projection," "outlook," "forecast," "believes," "plan," "expect," "future," "intends," "may," "will," "estimates," "see," "predicts," "should" and similar expressions to identify the ...

Exhibit 99.1 Press Release Source: Ultra Clean Holdings, Inc. Ultra Clean Reports Second Quarter 2025 Financial Results HAYWARD, Calif., July 28, 2025 /PRNewswire/ Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the second quarter ended June 27, 2025. "UCT's second quarter results reflect the impact of a highly dynamic environment across a diverse customer base and product portfolio," said Clarence Granger, Chairman and Interim CEO. "Although we expect near-term revenue t ...

HAYWARD, Calif., July 28, 2025 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today reported its financial results for the second quarter ended June 27, 2025."UCT's second quarter results reflect the impact of a highly dynamic environment across a diverse customer base and product portfolio," said Clarence Granger, Chairman and Interim CEO. "Although we expect near-term revenue to remain relatively stable, our actions to reduce operating expenses are well underway, and we anticipate realizing th ...

Company Overview - Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services, primarily for the semiconductor industry [3] - The company offers an integrated outsourced solution for major subassemblies, improved design-to-delivery cycle times, design for manufacturability, prototyping, and high-precision manufacturing under its Products division [3] - In its Services Division, Ultra Clean provides tool chamber parts cleaning and coating, as well as micro-contamination analytical services [3] - The company is headquartered in Hayward, California [3] Upcoming Financial Results - Ultra Clean Holdings, Inc. will release its second quarter 2025 financial results on July 28, 2025, after market close [1] - A conference call and webcast will be hosted on the same day at 1:45 p.m. PT [2] - The call can be accessed by dialing 1-800-836-8184 or 1-646-357-8785, with no passcode required [2]

Company Leadership Transition - Bill Bentinck, President of UCT's Service Division, will retire on August 15, 2025, after a 40-year career in the semiconductor industry [1][2] - Clarence Granger, Chairman of the Board, praised Bill's leadership and contributions, highlighting his commitment to operational excellence and mentorship [2] - Sam Johnson will take over as SVP and General Manager of UCT's Service Division, bringing experience in creating value across industrial operating companies [2] Company Overview - Ultra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components, parts, and ultra-high purity cleaning and analytical services for the semiconductor industry [3] - The Products division offers integrated outsourced solutions for major subassemblies, improved design-to-delivery cycle times, and high-precision manufacturing [3] - The Services Division provides tool chamber parts cleaning, coating, and micro-contamination analytical services [3]

Core Insights - The article compares Ultra Clean Holdings (UCTT) and Entegris (ENTG) to determine which stock offers better value for investors [1][3]. Valuation Metrics - UCTT has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while ENTG has a Zacks Rank of 5 (Strong Sell) [3]. - UCTT's forward P/E ratio is 22.85, compared to ENTG's 28.64, suggesting UCTT is more attractively priced [5]. - UCTT has a PEG ratio of 0.65, indicating better value relative to its expected earnings growth, while ENTG's PEG ratio is 1.87 [5]. - UCTT's P/B ratio is 1.09, significantly lower than ENTG's P/B ratio of 3.38, further highlighting UCTT's relative undervaluation [6]. - Based on these metrics, UCTT holds a Value grade of B, while ENTG has a Value grade of F, making UCTT the preferred choice for value investors [6].