Core Insights - 2025 was marked by commercial and political tensions affecting all market sectors, leading to a cautious approach from customers and a decrease in investments [5][6] - The company has successfully transitioned towards a SaaS model, with recurring revenues representing 75% of total revenues and a significant growth in SaaS subscriptions [7][14] Financial Performance - Total revenues for 2025 were €506.7 million, a decrease of 2% compared to 2024, with recurring revenues up by 2% [14][16] - Annual Recurring Revenue (ARR) reached €97.2 million, reflecting a 14% increase [15][16] - EBITDA before non-recurring items was €79.7 million, down 8%, with an EBITDA margin of 15.7% [16][18] - Net income for the year was €25.6 million, a decline of 14% [16][18] Fourth Quarter Highlights - In Q4 2025, revenues decreased by 2%, with recurring revenues increasing by 1% [10][11] - The backlog for perpetual software licenses and equipment decreased by €11.8 million compared to the start of the year [11] - EBITDA for Q4 was €18.1 million, down 8%, with a margin of 14.7% [11][12] Strategic Roadmap - The Lectra 4.0 strategy aims to position the company as a key player in Industry 4.0 by 2030, focusing on premium positioning and customer integration [20][21] - The company plans to maintain high R&D investments at around 12% of annual revenues to enhance AI and big data integration [21][22] - The strategic roadmap includes targeted acquisitions to strengthen skills and enhance the solution portfolio [28][29] Future Outlook - The company targets an increase in EBITDA margin by 120 to 180 basis points per year, assuming stable equipment orders [27] - Lectra aims for average annual growth in SaaS ARR of around 15%, contributing to recurring contract revenue growth of 5% to 8% [33]

Core Insights - Edge Total Intelligence Inc. (edgeTI) has formed a partnership with Najad Shield Military Industries Holding Co. (NSMICO) to explore the deployment of real-time operational intelligence and decision-support technologies in defense and critical infrastructure across the Middle East and Africa [1][9]. Group 1: Partnership Details - The partnership aims to evaluate and demonstrate technologies such as digital twin and real-time operational intelligence to support defense and government initiatives [1][9]. - NSMICO is recognized as a leading supplier of military and security products in Saudi Arabia, contributing to the Kingdom's Vision 2030 by providing innovative solutions [4][6]. Group 2: Market Context - The collaboration responds to the growing interest in Industry 4.0 in the Middle East, driven by government initiatives like Saudi Vision 2030 and mega-projects such as NEOM, focusing on AI, IoT, and robotics for economic diversification [3][9]. - Key consumption areas identified include smart manufacturing, automation, and digital transformation in sectors like oil & gas, with significant growth expected in aerospace and advanced manufacturing due to state-led investments [3]. Group 3: Company Profiles - EdgeTI specializes in real-time operational intelligence and Digital Twin platforms for government and defense operations, aiming to meet the rising demand in the Middle East and North Africa [5][8]. - NSMICO is committed to global quality standards and innovation, focusing on research and development to localize technology and systems in collaboration with specialized companies worldwide [7]. Group 4: Event Participation - EdgeTI is showcasing its defense technology platforms at the World Defense Show in Riyadh, which previously hosted 773 exhibitors and attracted 106,000 trade visitors, facilitating deals worth 26 billion Saudi Riyals [5][9].

Industry Overview - The Zacks Electronics – Testing Equipment industry includes companies providing advanced instruments, electronic testing equipment, thermal management systems, and various test solutions, serving markets such as consumer electronics, automotive, industrial, aerospace, healthcare, semiconductors, and communications [2] - Industry players are experiencing growth from 5G-related opportunities, automation trends, and the adoption of software-enabled testing instruments [1][5] Current Trends - The adoption of motion control and test systems is increasing, particularly in aerospace, automation, medical, and military markets, which is a positive trend for the industry [3] - The pharmaceutical market is benefiting from the use of electrical instruments and software for biological research, driving growth for industry participants [4] - The deployment of 5G is creating demand for testing solutions, with a positive outlook for companies involved in high-speed internet services and data centers [5] Macroeconomic Challenges - The industry faces challenges from a difficult global macroeconomic environment, including end-market volatility, unfavorable foreign exchange rates, and geopolitical tensions [1][6] - The automotive sector is experiencing sluggishness due to declining investments in electric vehicles, impacting industry participants [1] Industry Performance - The Zacks Electronics – Testing Equipment industry ranks 88, placing it in the top 36% of over 250 Zacks industries, indicating bright near-term prospects [7][8] - The industry has underperformed the S&P 500 and broader sector over the past year, with a growth of 6.6% compared to the S&P 500's 16.8% and the sector's 21.8% [10] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 26.12X, higher than the S&P 500's 22.98X and the sector's 25.91X [13] Company Highlights - **Fortive (Zacks Rank 2)**: Benefiting from a diversified portfolio and expects 2026 adjusted earnings between $2.90 and $3.00 per share, indicating 9% year-over-year growth at the midpoint [17][19] - **AMETEK (Zacks Rank 3)**: Strong order growth with a record backlog of $3.58 billion, expecting 2026 sales to increase mid- to high single digits [22][23] - **Cognex (Zacks Rank 3)**: Expanding clientele with AI-enabled products, shares have climbed 10.8% in a year, and the earnings estimate for 2025 remains steady at 96 cents per share [26][27]

Core Viewpoint - Belden Inc. has appointed Jeff Winter as Vice President of Commercial Strategy to enhance its commercial strategy and technical capabilities in core markets [1] Group 1 - Jeff Winter will lead the development of Belden's commercial strategy [1] - Winter's expertise in Industry 4.0 will contribute to Belden's technical capabilities and credibility [1] - Belden is recognized as a leading provider of complete connection solutions [1]

Core Insights - Microchip Technology reported strong financial results for the December quarter, exceeding prior guidance with net sales of $1.186 billion, a 4% sequential increase, and non-GAAP EPS of $0.44, which was $0.04 above the high end of previous guidance [3][4][7] Financial Performance - On a GAAP basis, the gross margin was 59.6%, with net income attributable to common shareholders at $34.9 million, or $0.06 per share [1] - Non-GAAP gross margin was reported at 60.5%, with operating expenses at 32% of sales and non-GAAP operating income at 28.5% of sales [2] - Cash flow from operations was $341.4 million, and adjusted free cash flow was $305.6 million, with total debt declining by $12.1 million sequentially [8] Inventory and Capital Management - Inventory levels normalized, with distributor inventory at about 28 days, and the company ended the quarter with $1.058 billion in inventory, down $37.6 million from the previous quarter [7][5] - The company is prioritizing debt reduction, with net debt to adjusted EBITDA ratio decreasing to 4.18 from 4.69 [8][5] Market and Product Developments - Management highlighted strong momentum in automotive and industrial connectivity, including a strategic collaboration with Hyundai Motor Group and design wins in PCIe Gen 6 expected to generate significant revenue [6][12][18] - The company is experiencing a broad-based recovery, with improving channel conditions and a narrowing gap between distribution sell-in and sell-through [15][14] Future Outlook - For the March quarter, Microchip guided net sales to be $1.26 billion ± $20 million, implying a 6.2% sequential growth and 29.8% year-over-year growth, with non-GAAP EPS guidance of $0.48 to $0.52 [19][23] - Management noted that while inventory reserve charges are expected to normalize, underutilization charges will persist, indicating a gradual process to improve margins [19][20]

Financial Data and Key Metrics Changes - Net sales for the December quarter were $1.186 billion, up 4% sequentially and 15.6% year-over-year, exceeding original guidance [6][18] - Non-GAAP gross margin was 60.5%, up 379 basis points sequentially, while GAAP gross margin was 59.6% [7][19] - Non-GAAP net income was $252.8 million, with earnings per diluted share at $0.44, exceeding guidance by $0.04 [7][8] - Total operating expenses were $555.2 million, representing 32% of sales, with operating income at 28.5% of sales [6][8] - Cash flow from operating activities was $341.4 million, with adjusted free cash flow at $305.6 million [10] Business Line Data and Key Metrics Changes - Sales from microcontroller and analog businesses were flat sequentially, while growth was driven by networking, data center, FPGA, and licensing business units [18] - Distribution sell-through was $11.7 million higher than sell-in, indicating a reduction in distributor inventory [18] - The adjusted EBITDA for the December quarter was $402 million, representing 33.9% of net sales [10] Market Data and Key Metrics Changes - Net sales growth was observed in the Americas and Europe, while sales in Asia remained flat [18] - The strongest sales performance was noted in the aerospace and defense sector, along with networking data center solutions [19] Company Strategy and Development Direction - The company is focusing on modernizing connectivity solutions in automotive and industrial markets, particularly through Ethernet-based architectures [12][14] - A strategic collaboration with Hyundai Motor Group was announced to integrate 10BASE-T1S solutions into next-generation vehicle platforms [14] - The company aims to leverage its comprehensive Ethernet portfolio to capture opportunities in Industry 4.0 and automotive modernization cycles [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of end markets, including automotive, industrial, communication, data center, aerospace and defense, and consumer sectors [19] - The company anticipates net sales for the March quarter to be $1.26 billion ±$20 million, representing a 6.2% sequential growth and up 29.8% year-over-year [24] - Management noted challenges with lead times and substrate availability, but overall demand remains strong [22][23] Other Important Information - The company expects to maintain a non-GAAP tax rate of about 10% for fiscal year 2026 [9] - Total debt decreased by $12.1 million sequentially, with net debt down by $26 million [10] - Capital expenditures for fiscal year 2026 are expected to be at or below $100 million [11] Q&A Session Summary Question: How should the continued strength versus seasonality be viewed? - Management indicated that distribution inventory is largely corrected, with strong backlog and bookings supporting growth into typically strong quarters [27] Question: Update on inventory reserve and underutilization charges? - Management expects inventory reserves to normalize, with underutilization charges continuing to decline gradually as factories ramp up [29] Question: Clarification on December's microcontroller and analog segment performance? - The upside in December was primarily driven by stronger performance in product segments, despite microcontroller and analog being flat [34] Question: Thoughts on customer inventory behavior? - Management noted that while customers are not restocking yet, they are buying at consumption rates as inventories correct [44][46] Question: Insights on backlog for the June quarter? - Management reported strong bookings in January, indicating a higher backlog for the June quarter compared to the March quarter [51]

Financial Data and Key Metrics Changes - Net sales for the December quarter were $1.186 billion, up 4% sequentially and 15.6% year-over-year, exceeding original guidance [5][16] - Non-GAAP gross margins were 60.5%, up 379 basis points sequentially, while GAAP gross margins were 59.6% [6][17] - Non-GAAP net income was $252.8 million, with earnings per diluted share at $0.44, which was $0.04 above the high end of guidance [6][7] - Total operating expenses were $555.2 million, with non-GAAP operating income at 28.5% of sales [7][9] - Cash flow from operating activities was $341.4 million, with adjusted free cash flow at $305.6 million [9] Business Line Data and Key Metrics Changes - Sales from microcontroller and analog businesses were flat sequentially, while growth came from networking, data center, FPGA, and licensing business units [16] - Distribution sell-through was $11.7 million higher than sell-in, indicating a reduction in distributor inventory [16] - The adjusted EBITDA for the December quarter was $402 million, representing 33.9% of net sales [9] Market Data and Key Metrics Changes - Net sales growth was observed in the Americas and Europe, while sales in Asia were flat [16] - The strongest sales performance was noted in the aerospace and defense sector, as well as in networking data center solutions [17] Company Strategy and Development Direction - The company is focusing on modernizing connectivity in automotive and industrial markets, with a strategic collaboration with Hyundai Motor Group to integrate 10BASE-T1S solutions [12][13] - The company aims to capture opportunities in Industry 4.0 and automotive Ethernet, with a comprehensive portfolio of Ethernet solutions [14][15] - The company is positioned to benefit from significant growth in the automotive and industrial Ethernet connectivity markets, projected to be worth tens of billions by 2030 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of end markets, including automotive, industrial, communication, data center, aerospace and defense, and consumer sectors [17] - The company anticipates net sales for the March quarter to be $1.26 billion ±$20 million, representing 6.2% sequential growth and 29.8% year-over-year growth [22] - Management noted challenges with lead times and substrate availability, but overall demand remains strong [20][21] Other Important Information - The company expects to maintain a non-GAAP tax rate of about 10% for fiscal year 2026 [8] - Total debt decreased by $12.1 million sequentially, with net debt down by $26 million [9] - The company plans to prioritize debt reduction over share buybacks until a more favorable debt leverage ratio is achieved [105][106] Q&A Session Summary Question: How should the continued strength versus seasonality be viewed? - Management indicated that distribution inventory is largely corrected, with strong backlog and bookings for the current quarter, leading to confidence in growth [25] Question: Update on inventory reserve and underutilization charges? - Management expects inventory reserves to normalize, with underutilization charges continuing to decrease gradually as factories ramp up [27][28] Question: Clarification on microcontroller and analog segments? - The upside in December was primarily driven by stronger performance in product segments, while licensing growth was anticipated [32] Question: Customer inventory behavior and restocking signs? - Management noted that while customers are still drawing down inventories, some products are starting to be purchased at consumption rates, but restocking has not yet begun [42][43] Question: Backlog for the June quarter? - Management reported that January bookings were strong, and the June quarter backlog is higher than the March quarter backlog at the same point in time [48] Question: Thoughts on the aerospace and defense segment? - Management highlighted strong growth driven by increased defense budgets and commercial airplane production, benefiting the company significantly [74][75] Question: Growth in FPGA business? - Management indicated that FPGA is experiencing significant growth and gaining market share, although specific numbers are not disclosed [85]

Financial Data and Key Metrics Changes - Net sales for the December quarter were $1.186 billion, up 4% sequentially and 15.6% year-over-year, exceeding original guidance [4][15] - Non-GAAP gross margin was 60.5%, up 379 basis points sequentially, while GAAP gross margin was 59.6% [5][16] - Non-GAAP net income was $252.8 million, with earnings per diluted share at $0.44, which was $0.04 above the high end of original guidance [5] - Total operating expenses were $555.2 million, with non-GAAP operating income at 28.5% of sales [5][16] - Cash flow from operating activities was $341.4 million, with adjusted free cash flow at $305.6 million [7][8] Business Line Data and Key Metrics Changes - Sales growth primarily came from networking, data center, FPGA, and licensing business units, while microcontroller and analog businesses were flat sequentially [15] - Distribution sell-through was $11.7 million higher than sell-in, indicating a reduction in distributor inventory [15] Market Data and Key Metrics Changes - Net sales increased sequentially in the Americas and Europe, while remaining flat in Asia [15] - The strongest sales performance was noted in the aerospace and defense sector, as well as networking data center solutions [16] Company Strategy and Development Direction - The company is focusing on modernizing connectivity solutions in automotive and industrial markets, particularly through Ethernet-based architectures [10][12] - A strategic collaboration with Hyundai Motor Group was announced to integrate 10BASE-T1S solutions into next-generation vehicle platforms [12] - The company aims to leverage its comprehensive Ethernet portfolio to capture opportunities in Industry 4.0 and automotive modernization cycles [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery across most end markets, including automotive, industrial, communication, and data center sectors [16] - The company anticipates net sales for the March quarter to be $1.26 billion ±$20 million, representing a 6.2% sequential growth and up 29.8% year-over-year [20] - Management noted challenges with lead times and substrate availability but remains optimistic about future growth [19] Other Important Information - The company expects to maintain a non-GAAP tax rate of about 10% for fiscal year 2026 [6] - Total debt decreased by $12.1 million sequentially, with net debt down by $26 million [8] - Capital expenditures for fiscal year 2026 are expected to be at or below $100 million [9] Q&A Session Summary Question: How should the continued strength versus seasonality be viewed? - Management indicated that distribution inventory is largely corrected, with strong backlog and bookings contributing to confidence in growth [24] Question: Update on inventory reserve and underutilization charges? - Management expects inventory reserves to normalize, with underutilization charges continuing to decline gradually [26] Question: Clarification on December's microcontroller and analog segments? - The upside in December was primarily driven by stronger performance in product segments, not licensing [30] Question: Thoughts on customer inventory behavior? - Management noted that while customers are not restocking yet, they are buying at consumption rates as inventories normalize [40] Question: Backlog for the June quarter? - Management reported that January bookings were strong, and the June quarter backlog is higher than the March quarter backlog at the same point in time [46] Question: FPGA business growth? - The FPGA segment is experiencing significant growth, with the company gaining market share [83]

Investor Presentation Fiscal Third Quarter 2026 A Leading Provider of Smart, Connected and Secure Embedded Solutions SAFE HARBOR Forward Looking Statement Safe Harbor: During the course of this presentation, we will make projections or other forward-looking statements regarding the future financial performance of the company (including our guidance) or future events, including our strategy, growth drivers, enhanced profitability, shareholder value creation, scalable bandwidth, enabling disaggregate compute, ...

Financial Data and Key Metrics Changes - Blue Bird reported Q1 revenue of $333 million, a 6% increase from the previous year, driven by pricing actions including tariffs [6][12] - Adjusted EBITDA for the quarter was $50 million, $4 million higher than last year, reflecting a 15% margin [12][16] - Free cash flow reached a record $31 million, up $9 million from the prior year [13][18] - The company ended the quarter with a liquidity position of $385 million, a $106 million increase compared to a year ago [18] Business Line Data and Key Metrics Changes - The company sold 2,135 buses in Q1, with bus net revenue at $308 million, up $20 million year-over-year [14][15] - EV sales accounted for 121 units, representing 6% of unit volume, with a backlog of 855 EVs pushing into 2027 [8][14] - Parts sales totaled $25 million for the quarter, remaining strong due to increased demand from aging buses [15] Market Data and Key Metrics Changes - Order intake for Q1 was up 45% from the first quarter of 2025, resulting in a backlog of 3,400 units [4][6] - The average selling price for buses increased by nearly $8,800 per unit year-over-year, influenced by tariff recovery [7][15] - The market fundamentals remain strong, with an aging fleet and a heavy replacement cycle anticipated [7][10] Company Strategy and Development Direction - Blue Bird aims to maintain its leadership in the All Power segment, focusing on EVs and propane buses as part of its long-term strategy [4][5] - The company is investing in automation and manufacturing efficiencies to improve cost structures and margins [5][26] - The new assembly plant scheduled to launch in 2028 is a key part of the company's strategy to enhance production capabilities and support growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong order intake and a favorable market environment for school buses [7][10] - The company is navigating tariff volatility effectively, aiming for a margin-neutral outcome [5][10] - The outlook for EVs remains positive, with expectations of 800 EV unit sales for fiscal 2026 [8][19] Other Important Information - The company confirmed a $80 million contract with the DOE for funding towards the new plant, which will create 400 jobs [10] - Blue Bird's long-term revenue target is projected to reach $2 billion, with adjusted EBITDA of $320 million by 2029 and beyond [21][22] Q&A Session Summary Question: Margin dynamics and pricing impact - Management indicated that approximately two-thirds of margin improvement came from pricing, while one-third was due to efficiency gains [30] Question: EV market share and diesel trends - The company reported a strong EV backlog and noted that diesel sales remained robust, with potential pre-buy activity due to upcoming emission regulations [36][38] Question: Propane market trends - Management highlighted that propane remains a preferred option for school districts due to its total cost of operation and ease of infrastructure conversion [42] Question: Capital allocation strategy - The company is focused on strategic growth opportunities and vertical integration, with a strong balance sheet enabling flexibility in capital allocation [48][56] Question: Automation impact on margins - Management confirmed that ongoing automation initiatives are expected to provide favorable returns and support margin improvements over the long term [52][53]