After gradually building backlog over the first nine months of 2025, Smejkal said fourth-quarter backlog grew nearly 14% , with both semiconductors and passives contributing. Vishay ended the quarter with a book-to-bill ratio of 1.2 , up from a previously discussed run rate of 1.15 at the end of October. Segment-level book-to-bill ratios were 1.27 for semiconductors and 1.13 for passives.Management highlighted the visibility of its “Vishay 3.0” initiatives in orders and customer engagement. Smejkal said fou ...

Vishay Intertechnology (NYSE:VSH) Q4 2025 Earnings call February 04, 2026 09:00 AM ET Company ParticipantsDave McConnell - CFOJoel Smejkal - CEOPeter Henrici - Head of Investor RelationsPeter Peng - Equity Research AssociateShawn Holland - Financial Advisor and Portfolio ManagerConference Call ParticipantsRuplu Bhattacharya - VP and Senior Equity Research AnalystOperatorGood day, and thank you for standing by. Welcome to the Vishay Intertechnology Fourth Quarter 2025 earnings call. At this time, all partici ...

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $801 million, slightly above the midpoint of guidance and a 1.3% increase from Q3 [4] - Revenue increased by 12% compared to Q4 2024, driven by an 11% increase in volume and a favorable foreign currency impact of 3% [18] - Gross profit was $157 million, resulting in a gross margin of 19.6%, which is modestly above both the midpoint of guidance and Q3 [18][19] - GAAP earnings per share was $0.01, compared to a loss of $0.06 in Q3 and a loss of $0.49 in Q4 2024 [20] Business Line Data and Key Metrics Changes - Automotive revenue decreased by 3.4% versus Q3, while Asia automotive revenue grew in a seasonally strong quarter [9] - Industrial power revenue increased by 3.2%, driven by shipments of high voltage DC power capacitors and inventory replenishment [10] - Aerospace and defense revenue was slightly down by 1.2%, reflecting U.S. government shutdown impacts [12] - Healthcare revenue was flat compared to Q3, with Europe experiencing its strongest quarter in three years [13] - Other category revenue grew by 10.6%, primarily due to AI power management applications [13] Market Data and Key Metrics Changes - Revenue growth for the quarter came entirely from Asia, which grew by 3.6%, while the Americas and Europe were flat due to year-end holiday slowdowns [16] - Book-to-bill ratio was 1.2, indicating strong order growth across all regions and channels [7] - Backlog at quarter end was $1.3 billion, representing 4.9 months of supply [8] Company Strategy and Development Direction - The company is executing a five-year strategic plan aimed at driving faster revenue growth and enhancing capital returns [28] - Significant investments are being made in capacity expansion, particularly at the 12-inch fab, with expected CapEx of $400 million to $440 million in 2026 [28][29] - The company is focusing on innovation, including the release of new products and solutions, particularly in silicon carbide technology for automotive applications [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining competitive lead times and securing customer trust, positioning the company for revenue growth in 2026 [32] - The company anticipates continued demand in key growth segments, with customer program visibility improving [32] - Management expects revenue for Q1 2026 to be between $800 million and $830 million, with sequential increases in all key growth segments [25] Other Important Information - The company generated $149 million in operating cash for Q4, with total CapEx for the quarter at $95 million [22] - The cash conversion cycle improved to 125 days, down from 130 days in Q3 [22] - The company plans to maintain its dividend policy, returning at least 70% of free cash flow to shareholders [27] Q&A Session Summary Question: What is the current view on industry growth expectations? - Management maintains a view of mid to high single-digit growth across key segments, including industrial power and automotive [35][36] Question: How are gross margins expected to trend? - Management indicated that annual contractual negotiations have resulted in less historical ASP decline, with price increases implemented due to higher material costs [38][39] Question: What is the outlook for automotive demand? - Management noted gains in market share and increasing volumes, particularly in technology areas such as electrification and ADAS [44][45] Question: Can you elaborate on CapEx and OpEx plans? - Management outlined a CapEx plan of $400 million to $440 million for 2026, focusing on capacity expansion and targeted projects [54][55] Question: Is M&A being considered? - Management confirmed that M&A is always on the table, with a focus on optimizing the company's footprint and exploring opportunities in both passive and active segments [62]

Core Insights - ComEd made significant advancements in 2025 to meet the energy needs of over 9 million people in northern Illinois, focusing on renewable energy resources and customer financial assistance programs [1][3][4] Group 1: Reliability and Affordability - ComEd was ranked No. 1 in reliability among similar utilities in a 2025 benchmark study, receiving the ReliabilityOne award for Outstanding Reliability Performance [4] - The average residential electricity cost in ComEd's territory was 15.34 cents per kilowatt hour (kWh), remaining 22% below the national average [4] - ComEd connected over 220,000 customers to more than $108 million in financial assistance, including a $10 million Customer Relief Fund [4][5] Group 2: Infrastructure Investments - In 2025, ComEd replaced over 4,700 utility poles and reinforced over 8,400 poles to enhance grid resiliency [9] - ComEd announced a $1 billion multi-year capital investment for transmission upgrades to support economic growth and increase reliability [9] - The grid modernization plan approved by the Illinois Commerce Commission in 2024 created hundreds of new jobs in 2025 [9] Group 3: Renewable Energy and Energy Efficiency - ComEd interconnected over 1.4 GW of distributed energy resources (DER) through more than 2,000 commercial and 75,000 residential solar systems [9][13] - The Energy Efficiency Program surpassed $12 billion in total customer bill savings, providing over $300 million in rebates in 2025 [9] - ComEd funded over 4,000 heat pump installations and completed its 100,000th free energy assessment for small businesses [9] Group 4: Electric Vehicles and Community Engagement - ComEd launched the EV Ambassador program and has distributed over $150 million in EV rebates, with 80% going to low-income customers [10][12] - The company provided educational opportunities to over 350 students in 2025 and awarded $300,000 in scholarships to STEM students [11] - ComEd's community initiatives included nine Powering Lives Resource Fairs, connecting over 2,600 families to support services [11]

Core Insights - Crumly & Associates Inc. has disclosed a new position in the First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID), acquiring 49,139 shares valued at approximately $7.52 million [1][2] - The fund targets companies involved in smart grid and energy infrastructure, utilizing a rules-based, index-tracking approach [6][9] - GRID has shown strong performance, with a 33.7% increase in share price over the past year, outperforming the S&P 500 by 14.4 percentage points [3][10] Fund Overview - The First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund has total assets under management (AUM) of $5.26 billion [4] - As of the latest report, GRID shares are priced at $156.56, with a dividend yield of 1.0% [4] - The fund's investment strategy focuses on companies engaged in smart grid technologies, electric meters, and energy management systems [9] Investment Implications - Crumly & Associates' investment may indicate a long-term view on the importance of electrification and grid modernization across economic cycles [10] - The smart grid theme has proven successful, with GRID's performance driven by investments in companies related to transmission and power management rather than solely renewable energy [10] - The fund's underlying holdings include major companies like ABB, Schneider Electric, and Eaton, which are positioned to benefit from multi-year capital spending [10][11]

Core Insights - The smart grid sector in the A-share market has shown strong performance, with several stocks experiencing significant gains today [1] Company Performance - Zhongneng Electric (300062) increased by 15.76%, with a total market capitalization of 59.39 billion and a year-to-date increase of 81.12% [2] - Jiadian Co., Ltd. (000922) rose by 10.01%, with a market cap of 10.2 billion and a year-to-date increase of 31.70% [2] - Zhejiang Chint Electric (601877) saw a 10% increase, with a market cap of 69.9 billion and a year-to-date increase of 42.84% [2] - Baobian Electric (600550) increased by 9.99%, with a market cap of 20.1 billion and a year-to-date increase of 38.85% [2] - China Western Power (601179) rose by 9.67%, with a market cap of 50 billion and a year-to-date increase of 30.41% [2] - Caneng Electric (920299) increased by 8.43%, with a market cap of 2.433 billion and a year-to-date increase of 179.47% [2] - Shenma Electric (603530) rose by 7.59%, with a market cap of 22.6 billion and a year-to-date increase of 115.95% [2] - Beijing Keri (002350) increased by 7.32%, with a market cap of 4.93 billion and a year-to-date increase of 20.14% [2] - Baiyun Electric (603861) rose by 7.05%, with a market cap of 7.638 billion and a year-to-date increase of 59.40% [2] - TBEA Co., Ltd. (600089) increased by 6.47%, with a market cap of 129.7 billion and a year-to-date increase of 105.62% [2] - Shun Steel (000533) rose by 6.17%, with a market cap of 5.824 billion and a year-to-date increase of 39.11% [2] - Shuangjie Electric (300444) increased by 5.06%, with a market cap of 8.298 billion and a year-to-date increase of 49.93% [2] - Xuji Electric (000400) rose by 4.78%, with a market cap of 30.1 billion and a year-to-date increase of 9.46% [2] - Zhongtian Technology (600522) increased by 4.58%, with a market cap of 59.2 billion and a year-to-date increase of 23.75% [2] - Hangzhou Kelin (688611) rose by 4.33%, with a market cap of 7.209 billion and a year-to-date increase of 97.61% [2] Market Trends - The MACD golden cross signal has formed, indicating a positive trend for these stocks [1]

Market Performance - The market experienced a rebound throughout the day, with all three major indices closing in the green. The Shanghai Composite Index rose by 0.23%, the Shenzhen Component Index increased by 0.37%, and the ChiNext Index gained 1.03% [1] - The total trading volume in the Shanghai and Shenzhen markets was 1.87 trillion, a decrease of 45.3 billion compared to the previous trading day [1] Stock Trends - Small and micro-cap stocks have shown significant strength recently, while large-cap stocks have fallen below their 20-day moving averages [3] - Electric power supply has become a major obstacle for AI development, with projections indicating that by 2027, the power consumption of AI servers will be 50 times that of cloud servers five years ago [4] Sector Performance - Electric grid equipment stocks saw a rapid recovery after a significant drop, with companies like Shenneng Power, TBEA, and Jinpan Technology hitting historical highs, and nearly 20 stocks reaching their daily limit or increasing by over 10% [4] - Stocks related to energy storage, which are essential for AI data centers, also performed well, with companies like Hopu Co. and Aters reaching their daily limit, contributing to a rebound in the lithium battery supply chain [4] Notable Sectors - The top-performing sectors included smart grids, free trade zones in Hainan, and energy storage, with significant activity in the lithium battery and AI-related stocks [5]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $791 million, a sequential increase of 4% and 2% above the midpoint of guidance [4][18] - Year-over-year revenue growth was 8%, driven by an 8% increase in volume and a 2% positive foreign currency impact [18] - Gross profit was $154 million, resulting in a gross margin of 19.5%, slightly below the midpoint of guidance [19] - Book-to-bill ratio for the quarter was 0.97, with a backlog of $1.2 billion [18][19] Business Line Data and Key Metrics Changes - Automotive revenue increased by 7% quarter-over-quarter, driven by higher volume in the Americas and Europe [8] - Industrial segment revenue grew by 2%, supported by shipments to smart grid infrastructure projects [9] - Aerospace defense revenue decreased by 2% quarter-over-quarter due to slow funding releases [11] - Medical segment revenue grew by 2%, reflecting increased activity from longstanding customers [11] Market Data and Key Metrics Changes - Orders were up 19% year-over-year, indicating improvements in automotive, smart grid infrastructure, aerospace defense, and AI-related power requirements [6] - Asia saw the greatest growth, particularly from automotive customers and sales to distributors [4][5] - Distribution revenue increased by 4%, with most growth coming from Asia [15] Company Strategy and Development Direction - The company is executing its five-year strategic plan, Vishay 3.0, focusing on capacity investments and expanding product offerings [4][28] - Significant investments in capacity expansion are ongoing, with $179 million spent year-to-date and expectations to spend $300 million-$350 million for the year [28] - The company aims to improve margins by addressing operational efficiencies and passing on increased metal costs to customers [49] Management's Comments on Operating Environment and Future Outlook - Management noted that conditions are improving across several market segments, with expectations for mid-single-digit to high-single-digit growth in 2026 [47][48] - The company is focused on supporting automotive OEMs and tier one suppliers to prevent production line downs [64] - Management expressed optimism about the potential for revenue growth driven by government spending in aerospace defense and smart grid infrastructure [46] Other Important Information - The company generated $28 million in operating cash for Q3, with total CapEx of $52 million [23] - Free cash flow for the quarter was -$24 million, reflecting ongoing capacity expansion investments [23] - The company plans to maintain its dividend policy while managing liquidity needs [26] Q&A Session Summary Question: Did Vishay see any benefit from the export restrictions on Nexperia in the automotive segment? - Management indicated ongoing discussions with OEMs and tier ones, noting opportunities but not including them in Q4 revenue guidance due to current shortages [36] Question: What factors impacted gross margin in Q3? - Management cited elevated metals prices and operational issues as key factors affecting gross margin, with plans to pass costs onto customers [39][40] Question: What is the outlook for revenue growth and margin expansion in 2026? - Management expressed confidence in achieving revenue growth aligned with consensus estimates, driven by multiple positive market segments [48][49] Question: Can you elaborate on the capital return strategy? - Management emphasized the importance of maintaining dividends while prioritizing liquidity needs over share buybacks at this time [50]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $791 million, a sequential increase of 4% and 2% above the midpoint of guidance, with a year-over-year increase of 8% [4][18] - Gross profit was $154 million, resulting in a gross margin of 19.5%, slightly below the midpoint of guidance and flat compared to Q2 [19] - Book-to-bill ratio for the quarter was 0.97, with a backlog of $1.2 billion, flat from the previous quarter [18][19] Business Line Data and Key Metrics Changes - Automotive revenue increased by 7% quarter-over-quarter, driven by higher volume in the Americas and Europe [8] - Industrial segment revenue grew by 2%, supported by shipments to smart grid infrastructure projects [9] - Medical market segment revenue rose by 2%, reflecting increased activity from larger customers [11] - Revenue from computing, consumer, and telecom markets increased by 4%, driven by demand for AI servers [12] Market Data and Key Metrics Changes - Orders were up 19% year-over-year, indicating improving conditions in automotive, smart grid infrastructure, aerospace defense, and AI-related power requirements [6] - Asia saw the greatest growth in sales, particularly from automotive customers and distributors [4][5] - Distribution revenue increased by 4%, with most growth coming from Asia [15] Company Strategy and Development Direction - The company is executing its five-year strategic plan, Vishay 3.0, focusing on capacity expansion and innovation [4][28] - Significant investments in capacity expansion are ongoing, with $179 million spent year-to-date and an expected total of $300 million to $350 million for the year [28] - The company aims to improve margins and returns on capital through operational efficiencies and passing on increased metal costs to customers [49] Management Comments on Operating Environment and Future Outlook - Management noted that conditions are improving across several market segments, with expectations for mid-single-digit to high-single-digit growth in 2026 [48] - The company is focused on addressing customer needs and preventing production line downs, particularly in the automotive sector [64] - Management expressed confidence in the company's ability to meet quick-turn delivery requests while maintaining competitive lead times [7][32] Other Important Information - The company reported a negative free cash flow of $24 million for the quarter, with a focus on maintaining dividends despite ongoing capacity expansion [23][26] - The effective tax rate remains low due to minimal pre-tax income, with expectations for normalization as profitability returns [21][25] Q&A Session Summary Question: Did Vishay see any benefit from the export restrictions on Nexperia in the automotive segment? - Management indicated ongoing discussions with OEMs and tier ones, noting opportunities but not including them in Q4 revenue guidance due to current shortages [36] Question: What factors impacted gross margin in Q3? - Management cited elevated metals prices and operational issues as key factors affecting gross margin, with plans to pass costs onto customers [39][40] Question: How does the company view growth and margin expectations for fiscal 2026? - Management expressed optimism about growth driven by five key market segments, aligning with consensus estimates for revenue growth of around 7% [48][49] Question: Can you elaborate on the capital return strategy? - Management emphasized the importance of dividends and indicated no plans for share buybacks at this time due to current liquidity needs [50]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $791 million, a sequential increase of 4% and 2% above the midpoint of guidance, with many market segments showing growth [5][19] - Year-over-year revenue increased by 8%, reflecting an 8% increase in volume and a 2% positive foreign currency impact [19] - Gross profit was $154 million, resulting in a gross margin of 19.5%, slightly below the midpoint of guidance and flat compared to Q2 [20] - Adjusted earnings per share for Q3 2025 was $0.04, compared to a net loss per share of $0.07 in Q2 2025 [22][23] Business Line Data and Key Metrics Changes - Automotive revenue increased by 7% versus Q2, driven by higher volume in the Americas and Europe [9] - Industrial segment revenue grew by 2%, primarily due to shipments of capacitors for smart grid infrastructure projects [10] - Aerospace defense revenue decreased by 2% quarter-over-quarter due to slow funding releases from the U.S. Department of Defense [12] - Medical market revenue grew by 2%, supported by increased activity from longstanding customers [12] Market Data and Key Metrics Changes - Asia achieved the greatest growth in Q3, particularly from automotive customers and sales to distributors [5][6] - Distribution revenue increased by 4%, with nearly all growth coming from Asia [16] - Book-to-bill ratio for the quarter was 0.97, with a run rate of 1.15 for October, indicating improving order conditions [19][6] Company Strategy and Development Direction - The company is executing its five-year strategic plan, Vishay 3.0, focusing on capacity investments and expanding product offerings [5][28] - Investments in capacity expansion are expected to be between $300 million and $350 million for the year, with a significant portion allocated to high-growth products [28] - The company aims to enhance customer engagement and cross-sell products across its portfolio [33] Management's Comments on Operating Environment and Future Outlook - Management noted that market signals remain directionally positive, with increasing demand from automotive, AI servers, smart grid infrastructure, and medical sectors [31] - The company expects revenue growth in 2026, driven by five key market segments showing positive signs [42] - Management is focused on improving gross margins and operational efficiencies, with plans to achieve margin neutrality at the Newport facility by the end of Q1 2026 [43] Other Important Information - The company generated $28 million in operating cash for Q3, with total CapEx for the quarter at $52 million [24] - Free cash flow for the quarter was negative $24 million, but improved from negative $73 million in Q2 [24] - The company plans to maintain its dividend policy while managing liquidity and capital needs [27] Q&A Session Summary Question: Did Vishay see any benefit from the export restrictions on Nexperia in the automotive segment? - Management indicated ongoing discussions with OEMs and tier ones, noting opportunities arising from the situation, but did not include it in Q4 revenue guidance due to the dynamic nature of the market [34] Question: What factors impacted gross margin in Q3? - Management cited elevated metals prices and operational issues as key factors affecting gross margin, with plans to pass costs onto customers [35][36] Question: What is the outlook for revenue growth and margin expansion in 2026? - Management expressed confidence in achieving revenue growth aligned with consensus estimates, supported by positive market drivers and customer engagements [42] Question: How is the capital return strategy prioritized? - Management emphasized the importance of maintaining dividends while managing liquidity, indicating no current plans for share buybacks [45]