Financial Data and Key Metrics Changes - Adjusted earnings per share increased by 18% year-over-year, reaching $3.33, aligning with the midpoint of guidance [5][16] - Segment margins hit a quarterly record of 24.9%, up 20 basis points year-over-year [5][16] - Organic growth for Q4 was 9%, driven by Aerospace, Electrical Americas, and Electrical Global, partially offset by weaknesses in vehicle and eMobility [16] Business Line Data and Key Metrics Changes - Electrical Americas segment achieved organic sales growth of 15%, primarily driven by data center demand, which was up about 40% [16][17] - Aerospace segment reported organic sales growth of 12%, with operating margin expanding by 120 basis points to 24.1% [19][20] - Vehicle segment declined by 13% on an organic basis, primarily due to weaknesses in North America [21] - eMobility business revenue decreased by 15% [21] Market Data and Key Metrics Changes - Orders in Electrical Americas increased by 16% on a trailing 12-month basis, with total quarterly orders up more than 50% [17][12] - Aerospace orders increased by 11% on a rolling 12-month basis, driven by defense OEM and aftermarket [19][20] - Megaproject backlog grew by 30% year-over-year to $3 trillion, with data centers representing 54% of year-to-date announcements [11] Company Strategy and Development Direction - The company plans to spin off the Mobility business into a separate publicly traded entity, aiming to sharpen strategic focus and optimize the portfolio [7][9] - Investments of $13 billion announced for 2025, including acquisitions to enhance growth trajectory [5][6] - The strategy emphasizes leading, investing, and executing for growth, particularly in Electrical and Aerospace markets [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in double-digit growth in data center markets, supported by strong order trends and backlog [35][36] - The company anticipates continued strong demand and structural organic growth rates through 2030 [12][24] - Management acknowledged temporary headwinds from capacity ramp-up costs but remains optimistic about long-term growth potential [58][60] Other Important Information - The company expects 2026 revenue growth between 7%-9%, with segment margins projected at 24.6%-25% [25][24] - Cash flow guidance for 2026 is set at $3.9 billion-$4.3 billion, reflecting a 14% increase at the midpoint [25] Q&A Session Summary Question: Confidence in double-digit growth in data center markets - Management highlighted strong market indicators, including a 200% year-over-year increase in industry announcements and backlog, supporting optimism for future growth [35][36] Question: Recent market developments in liquid cooling technology - Management noted that liquid cooling is growing faster than the average market, emphasizing the importance of innovative solutions in this area [40][41] Question: Quarterly cadence of the 2026 EPS guide - Management explained that the first half of 2026 is expected to show lower growth due to ramp-up costs, with a stronger performance anticipated in the second half [50][51] Question: Challenges related to capacity expansion - Management acknowledged temporary headwinds from capacity expansion but expressed confidence in the long-term growth potential of the business [56][58] Question: Electrical Americas' margin expectations - Management indicated that the ramp-up costs would impact margins more heavily in the first half of 2026, with expectations for improvement in subsequent quarters [68][85]