Q3 2025 Financial Performance - Net sales reached $216 million, an increase from $202.8 million in Q2 2025 [13] - Adjusted EBITDA increased to $37.2 million, compared to $23.9 million in Q2 2025 [13] - Adjusted EBITDA margin improved significantly to 17.2%, up from 11.8% in the previous quarter [6, 13] - Adjusted earnings per diluted share rose to $0.90, a substantial increase from $0.34 in Q2 2025 [13] Sales by End Market (Q3 2025) - Industrial sector accounted for 28% of sales, showing growth in all regions [12] - Aerospace & Defense (A&D) contributed 16% of sales, driven by North American commercial aerospace demand [12] - E-mobility represented 14% of sales, remaining consistent with the previous quarter [12] - Portable electronics accounted for 9% of sales, experiencing double-digit growth due to normal seasonality [12] Q4 2025 Guidance - The company projects net sales between $190 million and $205 million [23] - Gross margin is expected to be in the range of 30% to 32% [23] - Adjusted earnings per diluted share are forecasted to be between $0.40 and $0.80 [23]

Group 1 - Celestica's stock rose 3.5% on Wednesday, following a strong earnings report, marking a total increase of 14% since the earnings announcement [1] - Celestica specializes in designing and manufacturing complex components for defense, telecom, and medical sectors, previously being a manufacturing unit of IBM [1] - The rising capital expenditures on data centers for artificial intelligence are expected to benefit the entire tech stack of computer gear makers [2] Group 2 - Jabil's composite rating increased to 96, indicating strong performance and growth potential [4] - Several stocks related to AI infrastructure are experiencing significant demand, with some data center stocks seeing a 206% increase [4] - Analysts are favoring stocks with magnificent earnings growth, particularly those related to AI, as they continue to rally [4]

Core Insights - Vishay Intertechnology has launched a new series of 150 W low profile, space-grade planar transformers optimized for 28 V input forward converters in avionics, military, and space applications, marking the industry's first such devices [1][2] Product Features - The SGTPL-28 series transformers are designed for high reliability switch mode power supplies and can power multiple 12 V or 5 V channels, featuring a rugged package that operates in harsh environments with high temperature tolerance up to +130 °C [2][3] - These transformers provide up to 40% greater winding fill compared to traditional planar devices, resulting in a smaller package size that saves PCB space and enhances efficiency and power density [3] - The transformers are customizable to meet specific design requirements, with strategic inventory management allowing for short lead times and typically no non-recurring engineering charges for customization [3] Technical Specifications - The SGTPL-28 series offers an input voltage range from 18 V to 36 V, a dielectric withstand voltage of 1250 VDC, and a leakage inductance of 0.5 µH [4] - Six screening options are available for the transformers, including P level for design validation testing and L level for low Earth orbit applications [4] Availability - Samples and production quantities of the SGTPL-28 series are currently available, with lead times varying from eight weeks for P level screening to 26 weeks for S level screening [5]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $625 million, representing a 10% increase year-over-year and a 7% organic growth, with the Dortmund acquisition contributing 2% and foreign exchange providing a 1% tailwind [15][16] - Adjusted EBITDA margin was 21.5%, down 20 basis points, while adjusted diluted earnings increased by 9% to $2.95 [16] - Operating cash flow was $147 million, generating $131 million in free cash flow, with a year-to-date free cash flow of $246 million and a conversion rate of 145% [16] Business Line Data and Key Metrics Changes - **Electronics Segment**: Sales increased by 18% year-over-year and 12% organically, with passive products up 19% and semiconductor products up 5% [17] - **Transportation Segment**: Sales were flat year-over-year, with organic sales down 2%, but favorable FX contributed 2% to growth. Adjusted EBITDA margin decreased to 16.8%, down 220 basis points [18] - **Industrial Segment**: Sales grew 4% organically, driven by energy storage, renewables, and data center growth, but faced softer HVAC demand [19] Market Data and Key Metrics Changes - The company reported strong growth in the data center market, with design wins up more than 50% year-to-date, indicating significant traction in this area [10][31] - The transportation segment experienced softer end market demand, particularly in commercial vehicles, which decreased by 3% organically [18] Company Strategy and Development Direction - The acquisition of Basler Electric is a strategic priority aimed at enhancing capabilities in power generation and distribution markets, expected to be accretive to adjusted EPS in 2026 [14][15] - The company is focusing on operational excellence and enhancing its semiconductor business, with a new leader appointed to drive growth in this area [11][12] - A realignment of the sales structure has been implemented to better serve customers and leverage the full technology portfolio [9][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for solid revenue and earnings growth in the first quarter of 2026, supported by a 20% increase in bookings compared to the third quarter of 2024 [5] - The company anticipates typical seasonality in the fourth quarter, with guidance for sales between $570 million and $590 million, reflecting a 5% organic growth at the midpoint [20][21] Other Important Information - The company ended the quarter with $815 million in cash and a net debt to EBITDA leverage of 0.9x, indicating a strong balance sheet [16] - The company returned $19 million to shareholders via cash dividends during the quarter [16] Q&A Session Summary Question: Update on Power Semiconductor Outlook - Management acknowledged sequential improvement in the power semiconductor business, despite year-over-year softness, and emphasized the strategic importance of this segment [24][26] Question: Impact of Stock Compensation - The $0.40 impact from stock compensation is primarily due to variable compensation resetting to target levels, with expectations for normalization in 2026 [27][29] Question: Data Center Opportunities - Management highlighted significant momentum in the data center market, with design wins doubling year-to-date and ongoing engagement with hyperscalers and cloud companies [30][32] Question: Industrial Segment Growth - The industrial segment has shown solid year-to-date growth of 12%, driven by strong demand in energy storage and renewables, despite softer HVAC and construction markets [42][44] Question: Transportation Segment Performance - The core passenger vehicle business performed reasonably well, while sensor products continue to face challenges, indicating a realignment strategy in progress [59]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $625 million, representing a 10% increase year-over-year and a 7% organic growth, with the Dortmund acquisition contributing 2% and FX providing a 1% tailwind [15][16] - Adjusted EBITDA margin was 21.5%, down 20 basis points, while adjusted diluted earnings increased by 9% to $2.95 [16] - Operating cash flow was $147 million, generating $131 million in free cash flow, with a year-to-date free cash flow of $246 million and a conversion rate of 145% [16] Business Line Data and Key Metrics Changes - **Electronics Segment**: Sales increased by 18% year-over-year and 12% organically, with passive products up 19% and semiconductor products up 5% [17] - **Transportation Segment**: Sales were flat year-over-year, with organic sales down 2%, but FX contributed 2% to growth. Adjusted EBITDA margin decreased to 16.8%, down 220 basis points [18] - **Industrial Segment**: Sales grew 4% organically, driven by energy storage, renewables, and data center growth, but faced softer HVAC demand [19] Market Data and Key Metrics Changes - The company reported strong growth in the data center market, with design wins up more than 50% year-to-date, indicating significant traction in this area [10][32] - The transportation segment experienced softer demand in commercial vehicles, with a 3% organic sales decrease [18] Company Strategy and Development Direction - The acquisition of Basler Electric for approximately $350 million is aimed at enhancing capabilities in power generation and distribution markets, aligning with the company's strategic priority of safe and efficient electrical energy transfer [4][13] - The company is focusing on operational excellence and enhancing its semiconductor business, with a new leader appointed to drive this initiative [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in solid revenue and earnings growth for Q1 2026, supported by a 20% increase in bookings compared to Q3 2024 [5] - The company anticipates typical seasonality in Q4, with guidance for sales between $570 million and $590 million, reflecting a 5% organic growth at the midpoint [20] Other Important Information - The company is realigning its sales structure to better serve customers and enhance engagement, transitioning from product-centric to customer-centric sales teams [9][48] - The company expects the Basler Electric acquisition to be accretive to adjusted EPS in 2026, targeting double-digit returns in year five post-close [14] Q&A Session Summary Question: Update on Power Semiconductor Outlook - Management acknowledged sequential growth in power semiconductors but noted year-over-year softness, emphasizing the strategic importance of this segment [23][24] Question: Impact of Stock Compensation - Management clarified that the $0.40 impact from stock compensation is primarily due to variable compensation resetting to target levels, which should normalize in 2026 [27][29] Question: Data Center Opportunities - Management highlighted significant momentum in the data center market, with design wins doubling year-over-year and ongoing engagement with hyperscalers and cloud companies [30][32] Question: Transportation Segment Performance - Management explained the flat performance in passenger vehicle fuses and the decline in sensors, indicating a realignment strategy for the sensor business [55] Question: Tariff Impact - Management discussed the timing of tariffs, indicating a neutral impact for Q4 and a stabilization in market dynamics [51][53]

Financial Data and Key Metrics Changes - The company reported fourth quarter sales of $4.75 billion, growing 17% year-over-year and 11% organically, exceeding guidance [7] - Full year sales reached a record $17.3 billion, up 9% on a reported basis and 6% organically [9] - Adjusted earnings per share (EPS) for the fourth quarter was $2.44, a 25% increase compared to the previous year [7] - Adjusted operating margins were 20%, an increase of 130 basis points year-over-year [8] - Free cash flow for the fourth quarter was $1.2 billion, contributing to a total of over $3 billion for the full year [9] Business Line Data and Key Metrics Changes - The industrial segment saw reported growth of 24%, with organic growth of 18%, driven by demand in artificial intelligence and energy infrastructure applications [8] - Transportation orders increased by 9% year-over-year, with auto growth in all regions [10] - The Digital Data & Devices segment grew 80% year-over-year, reflecting strong demand from hyperscaler platforms [13] Market Data and Key Metrics Changes - Orders for the fourth quarter totaled $4.7 billion, a 22% increase year-over-year [7] - Organic order growth was observed across all regions, with significant contributions from automotive and energy sectors [10] - The company expects global auto production to remain stable at 87 million-88 million units in fiscal 2026, with content growth driven by electrification and data connectivity [11] Company Strategy and Development Direction - The company aims to continue executing its long-term value creation model, with a focus on operational resilience and strategic positioning in growth sectors [6] - The upcoming Investor Day event is expected to provide further insights into growth opportunities and the company's value creation model [5][22] - The company is making changes to its non-GAAP reporting to better reflect cash profitability, which may influence future M&A strategies [21][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong performance despite an uneven macro environment, with expectations for double-digit growth in the first quarter of fiscal 2026 [6][9] - The company anticipates continued momentum in AI and cloud-related revenues, with a projected run rate of $1.5 billion [60] - Management noted that while there are challenges in certain markets, overall demand trends appear to be stabilizing [41][44] Other Important Information - The company returned over $2 billion to shareholders and invested $2.6 billion in bolt-on acquisitions during the year [9][20] - Adjusted effective tax rates are expected to be approximately 22% for the first quarter of fiscal 2026 [18] Q&A Session Summary Question: AI revenue growth and future forecasts - Management confirmed AI sales reached over $900 million in fiscal 2025, with expectations for continued growth driven by strong orders and design wins [27] Question: Capital expenditures for fiscal 2026 - Management indicated that capital expenditures would likely remain in line with previous years, supporting growth initiatives [36] Question: Trends in end markets and demand changes - Management noted stability in transportation orders and consistent growth in industrial segments, with some regional disparities [41][44] Question: Margins and profitability concerns - Management addressed concerns about margins, indicating that operational performance remains strong despite some noise from tariff pricing [90] Question: Market share dynamics in AI - Management emphasized the importance of technology and co-designing with customers to capture market share in the competitive AI landscape [95]

Financial Data and Key Metrics Changes - Fourth quarter sales reached $4.75 billion, growing 17% on a reported basis and 11% organically year over year [6] - Full year sales were a record $17.3 billion, growing 9% on a reported basis and 6% organically [8] - Adjusted earnings per share (EPS) for the fourth quarter was $2.44, increasing 25% versus the prior year [6] - Adjusted operating margins were 20%, increasing 130 basis points year over year [7] - Free cash flow for the fourth quarter was $1.2 billion, contributing to a total of over $3 billion for the full year [9] Business Line Data and Key Metrics Changes - In the industrial segment, reported growth was 24%, with organic growth at 18%, driven by demand for AI and energy infrastructure applications [8] - Transportation orders increased 9% year over year, with auto sales growing 2% organically in the fourth quarter [10][11] - Digital Data & Devices segment grew 80% year over year, reflecting strong demand from hyperscaler platforms [12][13] - Energy business sales grew 83%, with organic growth at 24% driven by investments in grid hardening and renewable applications [15] Market Data and Key Metrics Changes - Orders increased to $4.7 billion, a 22% year-over-year increase [6] - Organic order growth was seen across all regions, with notable increases in automotive and energy sectors [10] - The company expects global auto production to remain stable at 87 to 88 million units in fiscal 2026 [11] Company Strategy and Development Direction - The company aims to continue executing its long-term value creation model, with a focus on growth opportunities in AI and energy sectors [5][9] - A change in non-GAAP reporting will exclude amortization expense on intangible assets, starting in fiscal 2026 [3][21] - The company is committed to returning capital to shareholders while also pursuing bolt-on acquisitions to support growth [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong momentum and operational resilience despite an uneven macro environment [5] - The outlook for the first quarter of fiscal 2026 includes expected sales of $4.5 billion, reflecting a 17% year-over-year increase [9] - Management noted that order levels support a positive outlook for double-digit growth in the first quarter [9] Other Important Information - The company will hold an Investor Day event on November 20, where further details on growth opportunities will be shared [4][22] - Adjusted effective tax rate for the first quarter of fiscal 2026 is expected to be approximately 22% [19] Q&A Session Summary Question: AI revenue growth and future expectations - The company generated over $900 million in AI sales in 2025, tripling revenue from the previous year, with expectations for continued growth in 2026 [26][27] Question: Capital expenditures for 2026 - Capital expenditures are expected to increase slightly, supporting AI and cloud programs, with a focus on maintaining a growth rate in line with historical averages [36] Question: Trends by end market and demand changes - The company noted stability in transportation orders and consistent growth in energy, with some challenges in North America [40][43] Question: Gross margin potential and accounting changes - The company is targeting continued margin expansion, with expectations for adjusted operating margins to remain strong [52][55] Question: Market share dynamics in AI - The company aims to compete effectively in a concentrated market, focusing on technology and customer collaboration to gain market share [93]

Core Insights - The electronic information manufacturing industry in China achieved a revenue of 12.5 trillion yuan in the first three quarters of 2023, marking an 8.8% year-on-year growth [1] - Total profit reached 493.8 billion yuan, reflecting a 12% increase compared to the same period last year [1] - The industry's added value grew by 10.9% year-on-year, with a notable 11.3% growth in September alone [1] Revenue and Profit Analysis - The industry's revenue profit margin stood at 3.95%, an increase of 0.1 percentage points from January to August [1] - Operating costs amounted to 10.9 trillion yuan, which is an 8.8% increase, aligning with the revenue growth rate [1] Production and Export Data - Integrated circuit production reached 381.9 billion units, up 8.6% year-on-year [1] - The total production of mobile phones was 1.11 billion units, a decrease of 4.8%, while smart phone production increased by 1% to 881 million units [1] - Exports of integrated circuits totaled 265.3 billion units, a significant increase of 20.3% [1] Regional Performance - Eastern regions generated 8.88 trillion yuan in revenue, a 10.1% increase [2] - Central regions reported 2.07 trillion yuan, with a growth of 10.6% [2] - Western regions saw a slight decline of 0.2% in revenue, totaling 1.48 trillion yuan [2] - The Northeast region experienced a 4.3% decrease, with revenue at 636 billion yuan [2] Investment Trends - Fixed asset investment in the electronic information manufacturing sector decreased by 2.1%, which is 2 percentage points lower than the previous period [2] - This decline is 8.5 percentage points lower than the growth rate of industrial investment during the same timeframe [2]

Group 1 - The PET copper foil sector is experiencing a significant upward trend, with Copper Crown Copper Foil's "20cm" reaching the daily limit increase [1] - Other companies such as Longyang Electronics, Zhongyi Technology, Dongcai Technology, Jiayuan Technology, and Fangbang Co., Ltd. are also seeing gains in their stock prices [1]

Financial Performance - Q3 2025 - Net sales reached $656 million, a 2% year-over-year increase[9] - Electronics net sales grew by 11% year-over-year, reaching $465 million[9] - Industrial & Specialty net sales decreased by 16% year-over-year to $191 million[9] - Adjusted EBITDA increased by 3% year-over-year to $147 million, with a margin of 22.4%[9] - Adjusted EPS increased by 5% year-over-year to $0.41[9] - Adjusted free cash flow was $84 million[7] Strategic Initiatives and Outlook - The company expects Micromax to contribute approximately $40 million to adjusted EBITDA on a full-year basis in 2025[8] - The company anticipates a low single-digit million-dollar FX tailwind in Q4[21] - The company is on track for adjusted EBITDA between $545 million and $550 million for the full year[21] - The company projects adjusted EPS of approximately $1.45 for the full year[21]