In the HVAC segment, fourth-quarter revenue grew 16.4% , including 5.5% inorganic growth and a modest foreign exchange tailwind. Organic revenue increased 10.3% , with management citing solid performance in both cooling and heating. Segment income rose $17 million , or 18%, and segment margin improved 40 basis points , which the company attributed primarily to higher volume and operating leverage. Segment backlog ended the quarter at $585 million , up 22% organically year over year.For the fourth quarter, t ...

Vicor (NasdaqGS:VICR) Q4 2025 Earnings call February 19, 2026 05:00 PM ET Company ParticipantsJim Schmidt - CFOJon Tanwanteng - Managing DirectorPatrizio Vinciarelli - CEOPhil Davies - VP of Global Sales and MarketingConference Call ParticipantsJustin Clare - Managing Director and Senior Research AnalystQuinn Bolton - Managing Director and Equity Research AnalystRich Shannon - Senior Research AnalystNone - AnalystNone - AnalystOperatorGood day, and thank you for standing by. Welcome to the Vicor fourth quar ...

Financial Data and Key Metrics Changes - Adjusted EBITDA margin reached 31%, the highest on record, while operating margin was 17%, representing the second strongest annual performance in the company's history [7] - Total revenue for 2025 was $5.4 billion, a 2% increase over 2024, excluding extraordinary non-recurring items [19] - Adjusted EBITDA for the full year reached $1.7 billion with a 31% margin, the highest margin in the company's history [20] - Full year operating income was $928 million, with a 17% margin, the second-best annual performance in the company's history [21] Business Line Data and Key Metrics Changes - Passenger revenue declined 4.4% year-over-year for the full year 2025, but increased by 4.3% year-over-year in the fourth quarter [13][14] - Premium revenue now represents approximately 42% of total revenues, nearly 17 points above pre-pandemic levels [10] - Premium unit revenue growth was 6 points above the main cabin on a year-over-year basis in the fourth quarter [15] Market Data and Key Metrics Changes - Demand strengthened in the second half of 2025, particularly in the last quarter, supported by improving traffic trends across both domestic and international markets [7] - The U.S. market saw passenger unit revenue up 5% year-over-year in the fourth quarter [14] - Corporate and high-income leisure segments continued to perform strongly, contributing to the overall revenue growth [10] Company Strategy and Development Direction - The company plans to grow capacity around 4% with a disciplined approach, focusing on resilient markets and prioritizing profitability [10] - Aeroméxico is selectively expanding its long-haul network, launching new routes to Barcelona and Paris [10] - The company aims to enhance customer experience through investments in technology and infrastructure, including a new app and improved check-in models [8][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changes and capture opportunities, expecting to build on the momentum generated in the second half of 2025 [9] - The Mexican economy is expected to grow between 1.2% and 1.5% in 2026, which supports the company's growth expectations [24] - The company anticipates revenue growth in the range of 7.5%-9.5% for 2026, with adjusted EBITDA margins expected between 28.5% and 30.5% [24] Other Important Information - Aeroméxico was recognized as the world's most on-time airline for the second consecutive year [8] - The company returned over $200 million to shareholders through capital disbursements in 2025 [23] - Cash and cash equivalents totaled $1 billion as of December 31, with total liquidity standing at approximately $1.2 billion [23] Q&A Session Summary Question: Demand impacts related to FX and purchasing power dynamics in Mexico - Management noted that a stronger Mexican peso typically leads to increased demand for travel, with historical trends showing a quick response in bookings [29][31] Question: Opportunities for deleveraging the business - Management indicated that the main opportunity for deleveraging comes from the present value of leases, with expectations of lower leverage through higher EBITDA and amortization of lease debt [33][35] Question: Sale of MRO joint venture and its impact on P&L - The MRO facility was sold to a third party, resulting in a profit of $71 million in the P&L, with maintenance operations continuing under a commercial agreement [40][42] Question: Regulatory situation regarding U.S. routes from Mexico City - Management confirmed that new routes cannot be added until the U.S. government lifts restrictions, but noted that existing capacity has grown significantly in recent years [65] Question: Guidance assumptions for FX and jet fuel prices - The company assumes an average exchange rate of around 18.3 pesos per dollar and a fuel price of approximately $69 per barrel for guidance [58] Question: Premium revenue growth expectations - Management expects continued growth in premium revenue, driven by consumer demand for better experiences and improved sales strategies [79]

Financial Data and Key Metrics Changes - Adjusted EBITDA margin reached 31%, the highest on record, while operating margin was 17%, representing the second strongest annual performance in the company's history [7] - Total revenue for 2025 was $5.4 billion, a 2% increase over 2024, excluding extraordinary non-recurring items [19] - Adjusted EBITDA for the full year reached $1.7 billion with a 31% margin, and for the fourth quarter, it was $502 million with a margin of 35%, the highest quarterly EBITDA on record [20][21] Business Line Data and Key Metrics Changes - Passenger revenue for the full year declined 4.4% year-over-year, but in the fourth quarter, it increased by 4.3% year-over-year [13][14] - Premium revenue now represents approximately 42% of total revenues, nearly 17 points above pre-pandemic levels [10] Market Data and Key Metrics Changes - Demand strengthened in the second half of 2025, particularly in the last quarter, supported by improving traffic trends across both domestic and international markets [7] - The European market showed particularly strong performance in the fourth quarter, with passenger unit revenue up 5% year-over-year in the U.S. portfolio [14] Company Strategy and Development Direction - The company plans to grow capacity around 4% with a disciplined approach, focusing on resilient markets and prioritizing profitability [10] - Aeroméxico is selectively expanding its long-haul network, launching new routes to Barcelona and Paris [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate changes and capture opportunities, expecting to build on the momentum generated in the second half of 2025 [9] - The Mexican economy is expected to grow between 1.2% and 1.5% in 2026, with revenue growth projected in the range of 7.5%-9.5% [24] Other Important Information - The company maintained industry-leading reliability and was recognized as the world's most on-time airline for 2025 [8] - Aeroméxico returned over $200 million to shareholders through capital disbursements in 2025, demonstrating a commitment to delivering shareholder value [23] Q&A Session Summary Question: Demand impacts related to FX and purchasing power dynamics in Mexico - Management noted that a stronger Mexican peso typically leads to increased demand for travel, with a quick response in booking trends [29][31] Question: Opportunities for deleveraging the business - Management indicated that the primary opportunity for deleveraging comes from the present value of leases, with expectations of lower leverage through higher EBITDA and amortization of lease debt [33][35] Question: Sale of MRO joint venture and its impact on P&L - The MRO facility was sold to a third party, resulting in a profit of $71 million, with minimal impact on maintenance expenses due to existing commercial agreements [40][42] Question: Regulatory situation regarding U.S. routes from Mexico City - Management confirmed that new routes cannot be added until the U.S. government lifts restrictions, but noted that existing capacity has grown significantly in recent years [65][66] Question: Guidance assumptions for FX and jet fuel prices - The company assumes an average exchange rate of around 18.3 pesos per dollar and a jet fuel price of approximately $69 per barrel for guidance [58][59] Question: Premium revenue growth expectations - Management expects continued growth in premium revenue, driven by consumer demand for better experiences and improved sales strategies [79]

Financial Data and Key Metrics Changes - For the full year 2025, total revenue reached $5.4 billion, a 2% increase over 2024, excluding extraordinary non-recurring items [20] - Adjusted EBITDA for the full year was $1.7 billion with a margin of 31%, the highest in the company's history [22] - Operating income for the full year was $928 million, with a 17% margin, marking the second-best annual performance [23] - In Q4 2025, adjusted EBITDA reached $502 million with a margin of 35%, the highest quarterly EBITDA on record [23] Business Line Data and Key Metrics Changes - Passenger revenue for the full year declined 4.4% year-over-year, while passenger unit revenue declined 4.9% due to currency and economic headwinds [14] - In Q4, passenger revenue increased by 4.3% year-over-year, and passenger unit revenue rose by 6.2% [15] - Premium revenue now represents approximately 42% of total revenues, nearly 17 points above pre-pandemic levels [12] Market Data and Key Metrics Changes - The U.S. market saw improvements with passenger unit revenue up 5% year-over-year in Q4 [15] - European performance was particularly strong in Q4, indicating a stretching of demand into traditionally weaker periods [15] Company Strategy and Development Direction - The company plans to grow capacity by around 4% in 2026, focusing on resilient markets and prioritizing profitability [12] - Investments in fleet modernization and customer experience enhancements are ongoing, including the rollout of a new app [9] - The company aims to maintain its position as the only true premium product in Mexico while increasing long-term shareholder value [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong results despite ongoing regulatory constraints affecting U.S. operations [9] - The outlook for 2026 includes expected revenue growth of 7.5%-9.5% and adjusted EBITDA margins between 28.5% and 30.5% [26] - The Mexican economy is projected to grow between 1.2% and 1.5% in 2026, which supports the company's growth expectations [26] Other Important Information - The company was recognized as the world's most on-time airline for the second consecutive year [10] - A significant cash flow generation of $913 million was reported for the full year, providing financial flexibility for investments and debt reduction [24] Q&A Session Summary Question: Impact of FX on Demand - Management noted that a stronger Mexican peso typically leads to increased travel demand, with a quick response in booking trends [30][32] Question: Deleveraging Priorities - The company plans to focus on amortization of lease debt and operational leverage to reduce leverage over time [34][35] Question: Sale of MRO Joint Venture - The MRO joint venture was sold to a third party, with Delta retaining its 50% stake, and the sale resulted in a profit of $71 million [39][41] Question: Regulatory Restrictions on U.S. Routes - Current restrictions prevent adding new routes from Mexico City to the U.S., but management is optimistic about resolving these issues soon [53][55] Question: Guidance Assumptions - The company expects an average exchange rate of 18.3 pesos per dollar and a fuel price of around $69 per barrel for guidance [58] Question: Premium Revenue Growth - Management anticipates continued growth in premium revenue, driven by consumer demand for better experiences and improved sales strategies [78]

Financial Data and Key Metrics Changes - The company reported Q4 2025 revenue of $440 million, reflecting an 11% quarter-over-quarter growth and a 14% year-over-year growth, meeting the target for sequential growth [6][36] - Full year revenue for 2025 was $1.566 billion, a $130 million or 9% increase compared to 2024 [7][39] - Q4 net profit was $80 million, representing an 18% net margin, up from 11% in Q1 2025, 13% in Q2 2025, and 14% in Q3 2025 [6][37] - Full year net profit for 2025 was $220 million, or $1.97 basic and $1.94 diluted earnings per share, compared to $208 million in 2024 [39] Business Line Data and Key Metrics Changes - RF infrastructure revenue increased by 75% year-over-year, driven by the adoption of silicon photonics in 800G and 1.6T pluggable transceivers [9] - Silicon germanium and silicon photonics revenues accounted for 27% of corporate revenues, totaling $421 million, up from $241 million in 2024 [10] - Power Management grew by 20% year-over-year, representing 16% of corporate revenues in 2025 [22] - Sensors and displays grew by 10% year-over-year, also representing 16% of corporate revenue [24] Market Data and Key Metrics Changes - RF mobile represented 23% of corporate revenue in 2025, with a 15% year-over-year decline due to a strategic shift towards higher value offerings [19] - The company noted strong demand for silicon photonics, with over 70% of total capacity reserved or in the process of being reserved through 2028 [27] Company Strategy and Development Direction - The company is focusing on expanding its silicon photonics and silicon germanium capacity, with a total CapEx plan of $920 million, including an additional $270 million announced for 2026 [45][27] - The updated financial model targets $2.84 billion in annual revenue by 2028, reflecting a significant increase from 2025 levels [50] - The company aims to achieve a gross margin of approximately 40% and a net profit of $750 million by 2028 [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting future demand, citing strong customer partnerships and a robust operational execution plan [78][85] - The company acknowledged potential concerns regarding memory shortages in the mobile market but emphasized proactive planning to mitigate risks [90][92] - Management highlighted the importance of maintaining strong relationships with both customers and suppliers to ensure operational success [86] Other Important Information - The company has successfully ramped silicon photonics production in multiple fabs and is on track for significant capacity increases [12][27] - Utilization rates for various fabs were reported, with Fab 3 at 85% and Fab 7 fully utilized, indicating strong operational efficiency [28] Q&A Session Summary Question: Clarification on NVIDIA collaboration - Management clarified that the partnership with NVIDIA involves output parameters for photonics and drivers, not direct shipping to NVIDIA [56] Question: Impact of increased silicon photonics capacity - Management confirmed that the 5x capacity increase is in response to total demand, including from NVIDIA [57] Question: Concerns about high voltage capabilities for AI servers - Management stated that while they do not currently have an 800-volt platform on an IC, they have higher voltage IC capabilities [61] Question: Clarification on shipping to NVIDIA - Management confirmed that they do not ship directly to NVIDIA but through module makers [64] Question: Timeline for CapEx rollout - Management indicated that the majority of the $920 million CapEx should be online by the third quarter of 2026, with qualification processes ongoing [70] Question: Expectations for silicon photonics contribution - Management expressed confidence in meeting demand and operational execution for silicon photonics in 2026 and 2027 [78][85] Question: Concerns about memory shortages - Management acknowledged concerns regarding memory shortages but emphasized proactive planning to mitigate potential impacts [90][92]

Financial Data and Key Metrics Changes - In Q4 2025, revenue increased by 9.9% to $1.5 billion, while adjusted EBITDA rose by 15.9% to $335.6 million [14] - For the full year 2025, revenue grew by 10.5%, driven by 6% discharge growth and pricing growth, with EBITDA increasing by 14.9% [6][11] - Bad debt expense for Q4 was 2.1%, flat year-over-year, and premium labor costs declined by $5.8 million from Q4 2024 [14][15] Business Line Data and Key Metrics Changes - The company added 517 beds in 2025, with 390 from new hospitals and 127 from existing hospitals [7] - The full-year discharge to community rate was 84.6%, with discharge to acute care at 8.6% and discharge to SNF at 6.1%, all favorable compared to industry averages [6][7] Market Data and Key Metrics Changes - The company experienced strong fee-for-service growth in Q4, although challenges were noted with Medicare Advantage, particularly with one national payer [26][27] - The VA program represented 19% of managed care volume, with a discharge growth of over 20% in Q4 [30] Company Strategy and Development Direction - The company plans to augment its capacity expansion strategy with small format hospitals starting in 2027, facilitating a hub and spoke strategy [7][8] - The company is actively engaging with CMS regarding regulatory changes and believes it is well-prepared for the expansion of RCD into Texas and California [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to regulatory changes and maintain growth, citing a strong demand for IRF services [10][11] - The initial guidance for 2026 includes net operating revenue of $6.365 billion to $6.465 billion and adjusted EBITDA of $1.34 billion to $1.38 billion [17] Other Important Information - The company allocated $158 million to share repurchases and returned over $70 million in cash dividends in 2025, maintaining a strong balance sheet with a net leverage ratio of 1.9 times [11][16] - The company is implementing an admit and appeal strategy for Medicare Advantage denials, aiming to ensure compliance with Medicare coverage requirements [29][30] Q&A Session Summary Question: Volume evolution and comp issues for 2026 - Management noted that Q4 faced challenging comps due to strong prior year performance and unit consolidations impacting discharge rates [20][21][23] Question: Payer mix and Medicare Advantage challenges - Fee-for-service growth was strong, but there were significant challenges with one national Medicare Advantage payer, leading to a drop in conversion rates [26][27][28] Question: TEAM pilot program implications - Management explained that past pilot programs have had mixed outcomes, with some leading to national implementation while others did not [37][39] Question: Labor costs and staffing improvements - Management attributed lower labor costs to a softening labor market and improved staffing practices, with a notable decrease in turnover rates [50][52][55] Question: RCD experience in Alabama - The company reported a 93% affirmation rate in Alabama, with ongoing appeals for non-affirmed claims showing good success [63][66] Question: Small format hospitals strategy - Management discussed the advantages of small format hospitals, including cost-effectiveness and the ability to meet market demand without extensive new construction [90][92]

Financial Data and Key Metrics Changes - In Q4 2025, revenue increased by 9.9% to $1.5 billion, while adjusted EBITDA rose by 15.9% to $335.6 million, driven by a 5.3% growth in discharges and a 4.1% increase in net revenue per discharge [13][5][11] - For the full year 2025, revenue grew by 10.5%, and EBITDA increased by 14.9%, with premium labor costs declining by over $21 million compared to 2024 [5][11] Business Line Data and Key Metrics Changes - The company added 517 beds in 2025, with 390 from new hospitals and 127 from existing hospitals, reflecting ongoing investments in capacity [6][11] - The full-year discharge to community rate was 84.6%, discharge to acute care was 8.6%, and discharge to skilled nursing facilities (SNF) was 6.1%, all favorable compared to industry averages [5][6] Market Data and Key Metrics Changes - The company experienced strong fee-for-service growth in Q4, although challenges were noted with Medicare Advantage, particularly with one national payer that saw a significant drop in conversion rates [28][27] - The Veterans Affairs (VA) program represented 19% of managed care volume, with a 22% growth for the year, indicating strong performance in this segment [30][11] Company Strategy and Development Direction - The company plans to implement small format hospitals starting in 2027 as part of a hub and spoke strategy to address market demand [6][11] - The company is actively engaging with regulatory bodies to ensure compliance and adapt to changes in the IRF industry, including the implementation of the TEAM model [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to regulatory changes and maintain growth, citing a strong demand for IRF services [10][11] - The company anticipates continued growth in 2026, with guidance for net operating revenue between $6.365 billion and $6.465 billion and adjusted EBITDA between $1.34 billion and $1.38 billion [16][11] Other Important Information - The company maintained a strong balance sheet with a year-end net financial leverage of 1.9 times, allowing for continued investments and shareholder distributions [11][15] - Significant investments were made in operations, including $158 million in share repurchases and over $70 million in cash dividends [11][15] Q&A Session Summary Question: Volume evolution and comp issues for 2026 - Management noted that the back half of 2025 faced challenging comps due to strong performance in the previous year, with new hospitals contributing to volume growth [20][21] Question: Payer mix and Medicare Advantage challenges - Fee-for-service growth was strong, but there were challenges with Medicare Advantage, particularly with a national payer that saw a drop in conversion rates [27][28] Question: TEAM pilot program and its implications - Management explained that the TEAM pilot program is similar to previous models and does not represent new risks, with expectations of continued growth despite regulatory changes [39][40] Question: Labor costs and staffing improvements - Management attributed improvements in labor costs to a softening labor market and effective staffing strategies, resulting in lower premium labor costs [51][52] Question: RCD experience in Alabama - The company reported a 93% affirmation rate in Alabama, with ongoing appeals for non-affirmed claims, indicating a strong position in managing regulatory challenges [66][69]

Financial Data and Key Metrics Changes - In Q1 2026, Woodward reported net sales of $996 million, a 29% increase year-over-year, and earnings per share of $2.17, up from $1.42, reflecting a 54% increase [12][4] - Free cash flow for the first quarter was $70 million, significantly higher than the previous year's $1 million [19][12] - The company raised its full-year sales and earnings guidance based on strong Q1 performance [20][11] Business Line Data and Key Metrics Changes - Aerospace segment sales increased to $635 million, a 29% rise, driven by a 50% increase in commercial services sales [13][12] - Industrial segment sales reached $362 million, up 30%, with core industrial sales (excluding China On-Highway) increasing by 22% [16][12] - The aerospace segment achieved a margin of 23.4%, up from 19.2%, while the industrial segment's margin improved to 18.5% from 14.4% [15][17] Market Data and Key Metrics Changes - Demand in the aerospace sector was robust, particularly in commercial services and defense OEM, with commercial services exceeding forecasts [6][4] - Industrial growth was strong across power generation, transportation, and oil and gas, with marine transportation sales increasing by 38% and oil and gas sales by 28% [7][16] - China On-Highway sales were $32 million, higher than planned, indicating volatility in this market segment [16][17] Company Strategy and Development Direction - The company plans to wind down its China On-Highway product lines by the end of the fiscal year, aligning with its long-term growth strategy [9][18] - Woodward is focusing on expanding service capacity and improving turnaround times, including facility enhancements in Prestwick, Scotland, and Rockford [8][10] - The R&D focus is shifting towards customer value demonstration on selected technologies to increase content on next-generation platforms [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across markets and the ability to meet OEM growth, despite some supply chain challenges [11][42] - The company anticipates continued benefits from operational excellence and supply chain stabilization, although inventory levels may remain higher than desired [19][21] - Management highlighted the importance of addressing supplier challenges and maintaining production levels to meet customer demand [42][84] Other Important Information - Non-segment expenses for Q1 2026 were $37 million, compared to $22 million in the previous year [18] - Capital expenditures for the quarter were $44 million, with expectations for increased spending in the remaining quarters due to facility buildouts [19] Q&A Session Summary Question: Will the $245 million of commercial aftermarket sales in Q1 be the low point for the year? - Management indicated that it is hard to predict, but they expect increasing repair and spare part sales despite not anticipating the same level of spare LRUs shipping [23] Question: What are the drivers behind the growth acceleration in oil and gas and marine transportation? - Growth was driven by both OEM and services, with high utilization of existing fleets leading to increased overhaul activity [32] Question: How does the profitability of the commercial aerospace OE business compare to the segment average margin? - The commercial aerospace OE business is considerably below the blended margin, with opportunities for improvement through consistent higher rates and supply chain alignment [85] Question: What are the expected costs related to the wind-down of the China On-Highway business? - Expected costs are between $20 million and $25 million, primarily related to personnel and contract cancellations [90] Question: How does the company view the potential impact of the $1.5 trillion NDAA package on spare parts? - Management noted uncertainty regarding the impact, as visibility into current inventory levels is limited [93]

Core Viewpoint - Micron stock (NASDAQ: MU) experienced a surge of over 4% as investors reacted positively to the company's announcement of a $24 billion capacity expansion in Singapore [1] Group 1 - The $24 billion investment is aimed at expanding Micron's production capacity, which is expected to enhance its market position [1] - The market's optimistic response indicates strong investor confidence in Micron's growth strategy and future profitability [1] - This capacity expansion is part of a broader trend in the semiconductor industry, where companies are increasing investments to meet rising demand [1]