Ultra Clean Holdings Reports 20.9% Revenue Growth to $2.1 Billion for Fiscal Year 2024

Ultra Clean Holdings, Inc. (UCT) reported a significant increase in its financial performance for the fiscal year ending December 27, 2024, with total revenues reaching $2,097.6 million, a 20.9% increase from $1,734.5 million in the previous year. The growth was primarily driven by a 23.4% rise in the Products segment, which generated $1,853.7 million, attributed to heightened customer demand and an overall market improvement in the semiconductor industry. The Services segment also saw a modest increase of 4.7%, totaling $243.9 million. The company’s net income for the year was $23.7 million, a recovery from a net loss of $31.1 million in the prior year.

The company experienced notable changes compared to the previous fiscal period, including the acquisition of HIS Innovations Group in October 2023, which contributed to the revenue growth. This acquisition allowed UCT to expand its offerings in the semiconductor sub-fab segment, enhancing its market position. The company also reported an increase in international revenues, which accounted for 73.0% of total revenues, up from 69.6% in the previous year, reflecting a strategic focus on global markets.

Operationally, UCT's employee headcount rose to 7,505 as of December 27, 2024, with significant contributions from its Asia Pacific and EMEA regions. The company’s manufacturing and service operations are supported by facilities in various countries, including the U.S., China, and Malaysia. The increase in customer demand led to a rise in production volumes, which in turn affected the cost of revenues, totaling $1,741.3 million, up from $1,457.2 million in the previous year. The gross profit margin improved slightly to 17.0%, compared to 16.0% in the prior year, indicating better cost management despite rising material costs.

Looking ahead, UCT remains optimistic about the semiconductor market's growth, driven by advancements in technology and increasing demand for high-performance devices. The company plans to continue leveraging its geographic presence and operational flexibility to respond to market changes. However, it also acknowledged the challenges posed by cyclical demand fluctuations and the need to maintain effective internal controls, as highlighted by the material weaknesses identified in its internal control over financial reporting. UCT is committed to addressing these issues and enhancing its operational efficiency to support future growth.