Financial Data and Key Metrics Changes - Fourth quarter revenue grew 15% year-over-year to $391.6 million, with full year revenue increasing 13% to $1.5 billion [5][10] - Gross profit for the fourth quarter was $121.9 million, representing 31.1% of revenue, compared to 32.7% in the prior year quarter [11] - GAAP net income for the fourth quarter was $10.2 million, or $0.22 per diluted share, up from $8.2 million, or $0.18 per diluted share in the prior year [14][15] - Free cash flow increased to $137.2 million for the full year, up from $46.4 million in 2024 [20] Business Line Data and Key Metrics Changes - Revenue from the computing market grew 25% for the full year, primarily driven by AI server-related applications [6][30] - Automotive revenue increased 20% for the full year, with a 6% sequential growth in the fourth quarter [27] - Industrial revenue was flat sequentially but increased 13% for the full year [29] - Consumer market revenue was down 5% sequentially but up 8% for the full year [33] Market Data and Key Metrics Changes - Asia represented 78% of revenue, Europe 12%, and North America 10% in the fourth quarter [26] - The automotive and industrial markets combined accounted for 42% of product revenue, a 1% increase from the previous quarter [26] - Channel inventory decreased, indicating a recovery in demand across markets [25] Company Strategy and Development Direction - The company aims to achieve $2.5 billion in revenue and $1 billion in gross profit by focusing on automotive, industrial, and AI server-related applications [8][9] - A three-year interim target of $2 billion in annual revenue with approximately $700 million in gross profit has been introduced [8] - Continued investment in product mix improvements and manufacturing efficiency is prioritized to drive margin expansion [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about market demand improving in 2026, particularly in key segments [40] - The company anticipates a strong first quarter 2026 with revenue guidance of approximately $395 million, representing a 19% year-over-year increase [22] - Management highlighted the importance of maintaining a strong backlog and booking ratio, indicating a positive outlook for recovery [56] Other Important Information - The effective income tax rate for the fourth quarter was approximately 14.9%, with an expected rate of 18% for 2026 [14] - Total debt at the end of the fourth quarter was approximately $56 million, with cash and equivalents totaling around $382 million [20] Q&A Session Summary Question: Can you walk us through the targets and how you see getting there? - Management emphasized commitment to achieving long-term goals and highlighted the importance of driving share in key market segments [37] Question: Is the gross margin improvement due to operational efficiencies? - Management confirmed that improvements in cost structure and manufacturing efficiency are contributing to gross margin enhancements [39] Question: Should the interim goal be contemplated for calendar 2028? - Management confirmed that the interim goal is indeed targeted for achievement by 2028 [44] Question: What is the impact of manufacturing services agreements ending this year? - Management indicated that the end of these agreements is expected to positively impact gross profit margins starting next year [48] Question: How is the company addressing potential seasonality from the Lunar holiday? - Management acknowledged the typical impact of the holiday but noted strong backlog and bookings, leading to a positive outlook for Q1 [56]

Diodes (NasdaqGS:DIOD) Q4 2025 Earnings call February 10, 2026 05:00 PM ET Company ParticipantsBrett Whitmire - CFOEmily Yang - SVP of Worldwide Sales and MarketingGary Yu - President and CEOLeanne Sievers - PresidentConference Call ParticipantsDavid Williams - Equity Research AnalystWilliam Stein - Managing Director and Senior AnalystOperatorGood afternoon, everyone, and welcome to Diodes Incorporated's fourth quarter and full year 2025 financial results conference call. At this time, all participants are ...