Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $153 million, representing a 7% year-over-year increase, while EPS was $0.33, up 22% year-over-year [4][11] - Cash from operations was $29 million, exceeding the midpoint of the guidance range [4][11] - Year-to-date revenue growth was 5% and EPS growth was 15% year-over-year [8] Business Line Data and Key Metrics Changes - MedTech and specialty audio revenue was $65 million, up 2% year-over-year, with gross margins at 53% [5][11] - Precision Devices segment revenue was $88 million, up 12% year-over-year, with gross margins at 41.5% [5][12] - The company expects MedTech and specialty audio revenue growth to be in the range of 2%-4% for 2025, while Precision Devices is expected to grow at the high end of 6%-8% [5][7] Market Data and Key Metrics Changes - The defense market showed particularly strong growth, with design wins outpacing other end markets [6][12] - Channel inventories are now at normalized levels, matching orders to end market demand [7] Company Strategy and Development Direction - The company is focused on leveraging unique technologies to design custom-engineered solutions and deliver them at scale [4][10] - There is a strong emphasis on organic growth, with expectations for growth rates at the high end of 4%-6% for the total company in 2026 [8][9] - The company is pursuing synergistic acquisitions while maintaining a disciplined approach to M&A [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue growing revenue in the fourth quarter and beyond, supported by a healthy backlog of orders [8][9] - The company anticipates strong revenue and EPS growth in the second half of 2025, driven by new design wins and robust demand across all markets [8][9] Other Important Information - The company purchased $20 million in shares and reduced outstanding bank borrowings by $15 million during the quarter [9][13] - The net leverage ratio based on trailing 12 months adjusted EBITDA was 0.6 times, with liquidity exceeding $350 million [14] Q&A Session Summary Question: Update on specialty film capacity and demand outlook - Management indicated that specialty film revenue is expected to be in the $25 million-$30 million range this year, with potential growth to $55 million-$60 million next year due to increased capacity [20][21] Question: Design activity and growth expectations - Management expects MedTech and specialty audio growth in 2026 to be in the 2%-4% range, while Precision Devices may exceed the high end of the 6%-8% growth range [23][24] Question: M&A environment and opportunities - The M&A environment has improved, with more assets available and lower interest rate expectations, but the company remains disciplined in its approach [33][34] Question: Impact of palladium prices on gross margins - Management has pre-buys in place to mitigate the impact of rising palladium prices, and does not foresee a negative impact on gross margins at this time [38][39] Question: Specialty film gross margin improvements - Management expects sequential improvement in specialty film gross margins, with significant benefits anticipated by late Q2 2026 as production ramps up [45][46]