Ultra Clean (NasdaqGS:UCTT) Q4 2025 Earnings call February 23, 2026 04:45 PM ET Company ParticipantsBrian E. Harding - Chief Accounting OfficerJames Xiao - CEORhonda Bennetto - SVP of Investor RelationsSheri Savage - CFOConference Call ParticipantsCharles Shi - Senior AnalystChristian Schwab - Managing Partner and Senior Research AnalystEdward Yang - Stock AnalystKrish Sankar - Managing Director and Senior Research AnalystOperatorGood afternoon, ladies and gentlemen, and welcome to the Ultra Clean Holdings ...

February 17, 2026 CAGNY 2026 Forward-Looking Statements Such forward-looking statements reflect the views of management at the time such statements are made and are subject to a number of risks, uncertainties, estimates, and assumptions, including those outside of Sysco's control. Risks and uncertainties include without limitation: the impact of geopolitical, economic and market conditions and developments, including changes in global trade policies and tariffs and foreign conflicts; risks related to our bu ...

Core Insights - The report titled "2025 Fund Industry Development Status and Investment Trends Research Report" was jointly released by Tsinghua University's Wudaokou School of Finance and several research centers to analyze global fund industry dynamics and assess the financial service efficiency of China's fund industry [1] Group 1: Global Fund Industry Development Analysis - The first part of the report provides a global perspective, systematically reviewing the development status, business characteristics, and future trends of major fund markets including the US, Europe, Singapore, and Japan [1] - It includes an in-depth analysis of public and private funds as well as investor behavior in mainland China and Hong Kong, aiming to offer a comprehensive and objective cross-market comparison and trend judgment [1] Group 2: Global Investment Market Special Analysis - The second part focuses on current frontier issues in the financial market, particularly discussing the synergy between ETF strategies and market ecology, as well as the integration of quantitative investment innovations with AI technology [1] - This section aims to reveal the profound impact of new technologies and asset classes on the global investment landscape, providing forward-looking perspectives and decision-making references for industry participants [1]

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the AI technology sector, particularly in the context of the TMT (Technology, Media, and Telecommunications) industry and its growth potential in 2026, especially around the Chinese New Year and the Two Sessions period [1][2][3]. Core Insights and Arguments - **Market Timing**: The period around the Chinese New Year is statistically significant for tech stocks, with a 70% success rate for gains post-holiday, and a 97% probability for the communications and computing sectors [2]. - **Performance Expectations**: The AI sector is expected to show outstanding performance during the earnings release period in March, with projected growth rates of 150% for overseas computing power and 100% for domestic computing power [1][2]. - **Capital Expenditure (CapEx)**: Major overseas companies are exceeding CapEx expectations, which will translate into orders and performance. Chinese firms like Alibaba and ByteDance are also heavily investing in computing power [1][2]. - **Technological Advancements**: Innovations in CPU technology are addressing power loss and consumption issues, with significant shipments of 1.6T optical modules and advancements in the optical module market [1][4]. - **Optical Fiber Market**: The optical fiber and cable market is experiencing a supply-demand imbalance, with prices expected to rise by 40%-50% over the next two years, benefiting companies like Zhongtian Technology and Hengtong Optic-Electric [5]. Additional Important Insights - **AI Application Growth**: Various applications in video processing and media are showing strong growth, with notable performance from companies in the sector [6]. - **CPU and Optical Module Discussions**: There is a misunderstanding in the market regarding the relationship between optical modules and new CPU technologies, with a focus on the growth potential of optical interconnects [7][8]. - **OpenAI Developments**: OpenAI's Codex product has exceeded expectations, with a 10% month-over-month increase in active users for ChatGPT, indicating rapid demand growth [9][10]. - **Investment Opportunities**: The semiconductor industry presents several investment opportunities, particularly in power semiconductors and storage chips, with a positive outlook for the next couple of years [28][29][30]. Conclusion - The AI technology sector is poised for significant growth, driven by advancements in computing power, capital investments, and a favorable market environment. Companies involved in AI applications, optical technologies, and semiconductor manufacturing are highlighted as key areas for investment.

Core Viewpoint - The Bank of England's Monetary Policy Committee (MPC) decided to maintain the benchmark interest rate at 3.75%, marking the sixth consecutive time the rate has remained unchanged, with a previous rate cut occurring in August 2024 [1] Inflation Trends - The UK's CPI inflation rate is projected to be 3.4% by December 2025, still above the 2% target but down 0.4 percentage points from the peak in September [2] - Inflation is expected to accelerate its decline starting in April 2025, potentially reaching 2.1% by the second quarter of 2026, driven by energy subsidies and falling wholesale gas prices [2] - Key measures contributing to the decline in inflation include energy bill reductions and extended fuel tax cuts [2] Economic Growth - The UK economy is experiencing persistent weakness, with potential GDP growth of only 0.1% in the fourth quarter of 2025, significantly impacted by tightened monetary policy and uncertainty [3] - A slight recovery in growth is anticipated in the first quarter of 2026, with an expected increase to 0.2%, although household consumption and business investment remain weak [3] - The savings rate continues to be higher than pre-pandemic levels [3] Labor Market - The unemployment rate is stable at 5.1%, with a further loosening of the labor market indicated by a decrease in job vacancy rates [4] - Private sector wage growth has slowed to 3.6%, while public sector wage growth remains high at 7.9% [4] - The unemployment rate is projected to rise to 5.3% by mid-2026 [4] Policy Direction and Risk Balance - The MPC emphasizes that the core goal of monetary policy is to ensure inflation not only returns to 2% but remains stable at that level in the medium term [5] - While the risk of sticky inflation has significantly decreased, weak demand and a loose labor market may still pose risks of inflation falling below the target [5] - Future interest rate cuts are possible but will be approached with caution, depending on inflation outlook; rapid or excessive cuts could lead to sticky inflation, while insufficient cuts may exacerbate economic downturn risks [5] - Factors such as AI technology application, global trade policy changes, and energy price fluctuations will be key variables affecting future inflation and economic growth, with the Bank of England monitoring these risks closely [5]

Core Insights - The number of billion-yuan private equity firms in China has reached 118 as of January 26, 2026, marking a net increase of 5 firms since the end of 2025, indicating industry expansion [2] - Notably, 4 firms exited the billion-yuan category while 9 firms either returned or newly entered, with the number of foreign billion-yuan private equity firms increasing to 2 and insurance capital private equity firms to 3 [2] - The expansion is driven by several factors, including the recovery of the A-share market, AI technology enhancing investment and risk control, a concentration of funds towards leading private equity firms, and dual support from funding and policy [2] Industry Composition - Among the 118 billion-yuan private equity firms, quantitative strategies dominate with 55 firms, accounting for 46.61%, while subjective strategy firms number 48, making up 40.68%, and mixed strategy firms total 12, representing 10.17% [3] - In January, the 9 newly added billion-yuan private equity firms included 4 subjective firms, 2 quantitative firms, and 2 mixed strategy firms, with one firm yet to disclose its investment model [3]

Core Insights - EssilorLuxottica will have a new leader for its wearable segment starting January, as Rocco Basilico, the current chief wearables officer, is set to exit after six years of developing smart eyewear collections [1][2] Group 1: Leadership Transition - Rocco Basilico has decided to leave the company to pursue personal interests, departing at a time when EssilorLuxottica's position as a category leader in wearables is well established [2] - Basilico joined Luxottica in 2013 and has held multiple roles, culminating in his appointment as president of Oliver Peoples in 2016, where he expanded the brand's global retail presence [2][3] Group 2: Brand Expansion and Collaborations - Under Basilico's leadership, Oliver Peoples opened new boutiques in Paris, Abu Dhabi, Amsterdam, and Milan, increasing the brand's total store count to 46 as of June [3] - Basilico was instrumental in securing key collaborations, including partnerships with Roger Federer and Khaite, as well as launching a capsule collection with Brunello Cucinelli in 2021 [4] Group 3: Strategic Partnerships - Basilico played a significant role in establishing EssilorLuxottica's partnership with Meta, which has been extended to develop the next generation of smart eyewear products following the success of Ray-Ban Meta smartglasses [5][6] - The collaboration with Meta began in 2019, leading to the launch of smartglasses featuring AI technology for both Ray-Ban and Oakley [6] Group 4: Ownership and Family Ties - Basilico holds a 12.5 percent stake in Delfin Sarl, the family investment vehicle of Luxottica's founder, which controls approximately 32 percent of EssilorLuxottica [6][7] - Recent media attention has focused on Delfin and its potential involvement in the sale of shares in the wake of Giorgio Armani's death, as the will named EssilorLuxottica as a potential buyer for a portion of the designer's company [7]

Core Insights - AudioEye, Inc. has been recognized as a winner in the 2025 SaaS Awards for its innovative and results-driven software-as-a-service solutions that enhance compliance and reduce legal risk [1][2]. Group 1: Company Recognition - The recognition highlights AudioEye's use of responsible, outcome-driven AI technology to help organizations ensure compliance and monitor accessibility in real time [2]. - AudioEye was acknowledged alongside other leading SaaS innovators such as Gong, PagerDuty, and BambooHR [1]. Group 2: Technology and Impact - AudioEye's digital accessibility platform combines 24/7 automation, expert human testing, and custom code fixes, providing up to 400 percent greater legal protection compared to other market solutions [3]. - The platform executes 1.3 billion automated fixes daily and identifies up to 350 percent more accessibility issues, aiding organizations in maintaining ongoing compliance [3]. Group 3: Industry Leadership - The SaaS Awards recognition reflects the growing demand for partners who can deliver measurable and lasting compliance as legal and regulatory enforcement expands [4]. - AudioEye's technology and expertise are positioned to help organizations reduce legal risk and build long-term confidence in their digital accessibility programs [4]. Group 4: Company Overview - AudioEye serves over 123,000 customers, including notable brands like Samsung, Calvin Klein, and Samsonite, ensuring they meet and exceed compliance standards [6]. - The company holds 25 US patents and offers a comprehensive solution that includes 24/7 accessibility monitoring, automated WCAG issue testing and fixes, expert testing, developer tools, and legal protection [6].

Core Insights - The company reported a revenue of approximately 4.047 billion, representing a year-on-year growth of 33% [1] - Profit attributable to owners reached about 519.5 million, showing a year-on-year increase of 54% [1] - Adjusted EBITA was approximately 550 million, reflecting a year-on-year decrease of 14% [1] Company Developments - On May 21, 2025, the company announced a comprehensive upgrade of the DaMai APP, establishing an AI-driven entertainment consumption service system characterized by speed, comprehensiveness, accuracy, and proximity [1] - The platform's user base has reached 300 million, maintaining a leading position in the global industry [1] - The company covers over 40 subcategories, including movies, concerts, music festivals, dramas, stand-up comedies, exhibitions, sports, and tourism, with access to over 12,000 cinemas and 20,000 venues [1]

Financial Data and Key Metrics Changes - Third quarter sales reached $3.1 billion, reflecting a 6% organic growth [5][12] - Operating EBITDA was $840 million, an increase of 6% year-over-year, resulting in an operating EBITDA margin of 27.3% [6][12] - Adjusted EPS for the quarter was $1.09, flat compared to the previous year, with a higher tax rate impacting results [15][20] Business Line Data and Key Metrics Changes - Industrials Co. net sales were $1.8 billion, up 5% year-over-year, with organic growth of 4% [15][16] - Electronics Co. net sales increased to $1.3 billion, an 11% rise year-over-year, driven by 10% organic growth [17] - Healthcare and water technologies saw high single-digit organic growth, while diversified industrials experienced low single-digit growth [16][17] Market Data and Key Metrics Changes - North America and Asia-Pacific regions reported organic growth of 7%, while Europe saw a 6% increase year-over-year [14] - The construction market remains weak, with expectations of a 4% decline in the shelter business for the year [82] Company Strategy and Development Direction - The company is focused on driving above-market organic growth and maintaining a balanced capital allocation model [8][11] - A new quarterly dividend of $0.20 per share was declared, alongside a $2 billion share repurchase authorization [7][20] - The company aims for 3%-4% organic growth from 2026 to 2028, with a focus on healthcare and water technologies [11][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving medium-term targets, despite current market challenges [92] - The healthcare and water segments are expected to grow at around 5% organically, while the diversified industrials segment is projected to remain flat [32][92] - The company is actively pursuing M&A opportunities, particularly in the healthcare sector [42][57] Other Important Information - The successful completion of the CUNY separation was highlighted, with $4.2 billion received to reduce debt [18] - The company is implementing enhanced KPIs to drive operational excellence and continuous improvement [9][46] Q&A Session Summary Question: Inquiry about end market trends and timing benefits - Management explained that the timing benefit was customer-driven, with orders accelerated into Q3 due to a planned blackout period [28][30] Question: Thoughts on exit rates and market conditions for 2026 - Management expects healthcare and water to align with medium-term targets, while the construction market is anticipated to stabilize [31][32] Question: Balance sheet plans and potential M&A activity - The company aims to maintain a pro forma debt below 2x EBITDA and is open to both share buybacks and M&A opportunities [39][42] Question: Discussion on operational excellence initiatives - A new Chief Operations Officer has been hired to enhance operational efficiency and implement a continuous improvement culture [44][46] Question: Strategic rationale for the RO acquisition in China - The acquisition was primarily for capacity expansion to meet local demand, without adding new technology [97] Question: Performance in the healthcare business and medical device space - The healthcare segment is expected to grow mid to high single digits, with strong performance in medical packaging and biopharma [79][80]