Summary of Foxconn Industrial Internet (FII) Conference Call Company Overview - **Company**: Foxconn Industrial Internet (Ticker: 601138.SS) - **Industry**: Technology, specifically focusing on AI servers and networking solutions Key Financial Highlights - **3Q25 Net Income**: Increased by 51% QoQ, reaching Rmb10.373 billion, which is 10% ahead of Goldman Sachs estimates and 7% ahead of Bloomberg consensus [1][4] - **Revenue**: Totaled Rmb243.172 billion in 3Q25, a 21% increase QoQ and a 43% increase YoY, although it was 10% below Bloomberg consensus [1][4] - **Gross Profit (GP)**: Rose to Rmb17.020 billion, a 31% increase QoQ and 43% YoY, exceeding Goldman Sachs estimates by 9% [1][4] - **Operating Profit (OP)**: Increased by 52% QoQ to Rmb12.763 billion, reflecting strong operational execution [1][4] - **Margins**: Gross Margin (GM) remained stable at 7.0%, while Operating Margin (OPM) improved to 5.2% [4] Revenue Breakdown - **Cloud Computing (AI Servers)**: Revenues surged over 75% YoY in 3Q25, driven by the ramp-up of next-generation rack-level AI servers [1] - **GPU AI Servers for CSPs**: Revenues increased more than 90% QoQ, indicating strong demand and effective R&D [1] - **Switch Revenues**: Doubled YoY, benefiting from the AI infrastructure cycle and product upgrades towards 800G [1] Operational Efficiency - **Opex Ratio**: Improved due to disciplined cost control while scaling up revenue from AI server production [1] - **Market Share**: FII is expected to capture approximately 60% of the global market share in AI servers by 2027E [9] Future Outlook - **Target Price (TP)**: Raised to Rmb95.5, reflecting a P/E multiple of 31.3x for 2026E [1][11] - **Earnings Revision**: 2026-27E net income estimates increased by 7% and 9% respectively, driven by higher revenues and improved margins [9] - **Revenue Growth**: Expected to accelerate with a CAGR of 52% from 2025-27E, compared to 8% from 2022-24A [11] Risks and Challenges - **Demand Fluctuations**: Potential for worse-than-expected demand in the AI server market [17] - **Competition**: Strong competition in the iPhone component business could hinder growth [17] - **Capacity Issues**: Slower-than-expected ramp-up in new factory capacities may impact production [17] - **iPhone Shipments**: Lower-than-expected shipments could affect revenues, as FII supplies components for iPhones [17] Conclusion - **Investment Recommendation**: Maintain a "Buy" rating on FII, supported by strong financial performance, robust growth in AI server revenues, and an optimistic outlook for future earnings growth [1][11]

Q3 2025 Quarterly Earnings Results October 29, 2025 Disclaimers Forward-Looking Statements This communication may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to the future business outlook, events, and expected performance of TTM Technologies, Inc. ("TTM", "we" or the "Company"). The words "anticipate," "believe," "plan," "forecast," "foresee," "estimate," "project," "expect," "seek," "target," "intend," "goal" ...

Financial Data and Key Metrics Changes - Revenue for the second quarter was $6.8 billion, representing a 4% year-over-year growth [5][12] - Operating margin was 6%, maintaining this level for four consecutive quarters, with adjusted EPS of $0.79, up 23% year-over-year [6][12] - Gross profit totaled $632 million, with a gross margin improvement to 9.3%, up 80 basis points [12] Business Line Data and Key Metrics Changes - In the Reliability Solutions segment, revenue was $3 billion, up 3% year-over-year, driven by strong growth in power and moderate growth in health solutions [12][13] - Agility Solutions revenue totaled $3.8 billion, an increase of 4% year-over-year, primarily due to robust cloud demand [13] - Operating income for Reliability Solutions improved to $197 million, with a segment margin expansion to 6.5% [13] Market Data and Key Metrics Changes - The data center business is expected to grow at least 35% this year, reflecting strong demand in cloud and power sectors [7][8] - Medical device demand remains steady, with expectations for improvement in medical equipment later this year [10] - The automotive market is stabilizing, with new compute deals validating investments in software-defined vehicles [10] Company Strategy and Development Direction - The company is strategically shifting its portfolio towards higher-margin, technology-driven businesses, particularly in AI and data center infrastructure [8][9] - Flex unveiled a new AI infrastructure platform aimed at enhancing data center deployment efficiency [9] - The company is committed to rebuilding operations in Ukraine following facility damage, emphasizing resilience and support for employees [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate a dynamic tariff landscape and maintain strong top-line momentum [15] - The company raised its full-year revenue guidance to between $26.7 billion and $27.3 billion, reflecting strong performance despite challenges [15][16] - Management highlighted the importance of partnerships with leading technology companies to drive future growth [46][47] Other Important Information - Free cash flow for the quarter increased to $305 million, with net CapEx totaling $148 million [13][14] - The company repurchased $297 million of stock, approximately 5.6 million shares [14] Q&A Session Summary Question: Why was there no upside to data center revenues despite strong performance? - Management clarified that data center growth is not updated quarterly, but they expect at least 35% growth for the year, which is strong compared to industry standards [22] Question: How does the mix of custom silicon versus merchant silicon impact the cloud business? - Management indicated that they benefit significantly from hyperscale growth and will provide updated guidance in May regarding the mix of custom versus merchant silicon [26][27] Question: What is driving margin improvements in the second half? - Management noted that growth in products and services businesses, which have higher margins, is expected to drive margin improvements [33][34] Question: How does the company view the automotive market's growth potential? - Management stated that they are cautiously optimistic about stabilizing growth in the automotive sector, with a focus on long-term commitments [55] Question: What is the outlook for data center capacity and potential supply constraints? - Management expressed confidence in capacity and capability across regions, with plans for significant CapEx investments to support growth [70][71] Question: How is AI and automation being utilized in operations? - Management highlighted ongoing efforts to deploy AI and robotics to enhance efficiency and productivity in manufacturing and logistics [76][77]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $6.8 billion, representing a 4% year-over-year growth [5][12] - Operating margin was 6%, maintaining this level for four consecutive quarters [6][12] - Adjusted EPS increased by 23% to $0.79, marking a record for the company [6][12] - Gross profit totaled $632 million, with gross margin improving to 9.3%, an increase of 80 basis points [12] Business Line Data and Key Metrics Changes - In the Reliability Solutions segment, revenue was $3 billion, up 3% year-over-year, driven by strong growth in power and moderate growth in health solutions [12] - Agility Solutions revenue totaled $3.8 billion, an increase of 4% year-over-year, primarily due to robust cloud demand [12][13] - Operating income for Reliability Solutions improved to $197 million, with segment margin expanding by 105 basis points to 6.5% [13] - Operating income for Agility Solutions was $227 million, with operating margin slightly down to 6% [13] Market Data and Key Metrics Changes - The data center business is expected to grow at least 35% this year, reflecting strong demand in cloud and power sectors [6][10] - Medical device demand is steady, with anticipated improvements in medical equipment later this year [10] - The automotive market is stabilizing compared to prior quarters, with new compute deals validating investments in software-defined vehicles [10] Company Strategy and Development Direction - The company is strategically shifting its portfolio towards higher-margin, technology-driven businesses [6][10] - Flex is positioned to benefit from the AI-driven infrastructure buildout, partnering with leading technology companies to enhance data center capabilities [7][9] - The company is committed to rebuilding operations in Ukraine following facility damage, emphasizing resilience and support for employees [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to maintain strong top-line momentum in the second half of FY2026, with an acceleration expected in Q4 [15] - The company raised its full-year revenue guidance to between $26.7 billion and $27.3 billion, reflecting a $500 million improvement from previous estimates [15][16] - Management highlighted the importance of partnerships, particularly with Amazon, in driving long-term growth in the data center space [48][49] Other Important Information - Free cash flow for the quarter increased to $305 million, with net CapEx totaling $148 million [13][14] - The company repurchased $297 million of stock, approximately 5.6 million shares [14] - The impact of the Ukraine facility shutdown is estimated to be slightly over $100 million in revenue for the back half of the year [45] Q&A Session Summary Question: Why was there no upside to data center revenues despite strong performance? - Management clarified that data center growth is not updated quarterly, but they expect at least 35% growth for the year, which is strong compared to industry standards [21][22] Question: How does the mix of custom silicon versus merchant silicon affect the cloud business? - Management indicated that they benefit significantly from hyperscale growth and will provide updated guidance in May regarding the mix of custom versus merchant silicon [26][27] Question: What is driving margin improvements in the second half? - Management noted that growth in products and services businesses, which have higher margins, is expected to drive margin improvements [35][36] Question: How does the company view the automotive market's growth potential? - Management expressed cautious optimism, noting that they are platform agnostic and continue to see compute wins across various platforms [60][61] Question: What is the company's capacity to support data center growth? - Management confirmed strong capacity in EMEA and North America, with plans for significant CapEx investments to support growth in data centers [74][75] Question: What innovations are being pursued with AI and automation? - Management highlighted a partnership with Nvidia to deploy modular infrastructure for data centers and emphasized ongoing efforts to enhance factory efficiency through AI and robotics [76][80]

Q2 FY26 Earnings Presentation Quarter End: September 26, 2025 Earnings Announcement: October 29, 2025 Risks and non-GAAP disclosures This presentation contains forward-looking statements within the meaning of U.S. securities laws, including statements related to our future financial results and our guidance for future financial performance (including expected revenues, operating income, margins and earnings per share). These forward-looking statements are based on current expectations, forecasts and assumpt ...

Summary of Key Points from the Conference Call Industry Focus - The conference call primarily discusses the **US-China trade relations** and the implications of **tariff policies** on global trade patterns, particularly focusing on **Asian economies** and their trade dynamics with the US. Core Insights and Arguments 1. **Impact of Government Shutdown on Data**: The lack of data due to the government shutdown complicates the measurement of US effective tariff rates, leading to a focus on trade trends between the US and China instead [7] 2. **Supply Chain Strain Hypothesis**: The hypothesis that product complexity, rather than tariff levels, is the primary driver of trade patterns is supported by recent data [7] 3. **US-China Trade Equilibrium**: A more stable US-China trade equilibrium is expected to be established in 2026, with Chinese market share of US imports stabilizing around **10%** due to China's leadership in key supply chains [12] 4. **Tariff Dynamics**: The US is likely to maintain higher tariffs on China compared to the rest of the world, with rates in the **20-45%** range, as part of a strategy to de-risk from key supply chains [10] 5. **Negotiation Framework**: Progress in US-China negotiations is expected on various topics, including maritime logistics, agricultural trade, and export controls, aligning with the anticipated negotiation framework [11] 6. **Supply Chain Reorientation**: The shift in supply chains has been categorized into three phases, with the current phase (2022-2025) focusing on regional production bases globally due to rising labor costs and supply chain risk mitigation [20] 7. **Tariff Effects on Trade Patterns**: The initial response to tariffs has been a diversion of trade around Asia rather than to the US or Mexico, indicating a significant impact of tariffs on trade dynamics [22] 8. **Product Complexity as a Trade Driver**: Analysis shows that product complexity is a better predictor of trade shifts than tariff levels, with less complex products experiencing a greater contraction in imports [25] Additional Important Insights 1. **Market Share Shifts**: There have been notable shifts in US imports from China to countries like India and Vietnam, particularly in sectors like smartphones and laptops, indicating a potential mean reversion in trade data [14][19] 2. **Long-term Supply Chain Challenges**: The success of onshoring production to the US will take time due to high labor costs and the lack of a comprehensive supply chain ecosystem in the US [21] 3. **Chinese Export Capacity**: China accounts for over **50%** of global capacity for approximately one-third of US imports, making it challenging for the US to diversify away from reliance on Chinese goods [30] 4. **Tariff Convergence**: As Chinese tariffs converge with broader Asian tariffs, the incentives for trade diversion are expected to diminish, emphasizing the need for supply chain efficiencies [27] This summary encapsulates the key points discussed in the conference call, highlighting the ongoing complexities and dynamics of US-China trade relations and their broader implications for global trade.

Group 1 - The ATS segment is significant, contributing approximately 25% to the company's current revenue, and there is potential for growth despite current slower performance [1] - The company operates in four key sectors: aerospace and defense, semiconductor capital equipment, health tech, and industrial, with a focus on improving margins through engineering engagements, expecting a year-over-year margin increase of about 70 basis points by year-end [2] - There is a belief that the current market moment is crucial, with companies that are actively building and innovating likely to achieve substantial profits rather than losses [3] Group 2 - AI has transitioned from being a "nice to have" to a necessity for companies, as it is essential for staying competitive in drug development and supply chain optimization, with the company positioning itself to support this infrastructure [4]

Core Insights - Celestica's CEO Rob Mionis emphasized the company's role in supporting the AI infrastructure, stating that the technology has transitioned from a "nice to have" to a "must have" [1] - The company reported earnings that exceeded estimates and raised its full-year outlook, resulting in a stock increase of over 8% and a year-to-date rise of 253.68% [1] Business Strategy - Celestica has shifted its focus from commodity markets to design and manufacturing, a decision that Mionis claims has significantly benefited the company [2] - The emphasis on design and manufacturing allows Celestica to execute consistently at scale [2] Data Center Operations - The company specializes in high-speed networking and storage systems for hyperscalers and digital native companies [3] - Celestica has a strategic partnership with semiconductor maker Broadcom, utilizing Broadcom's silicon in many of its designs [3] Product Development - When Broadcom launches new silicon products, such as the Tomahawk 6 with 1.6 terabytes, Celestica collaborates to develop products that are supplied to major hyperscalers [4]

Core Insights - Celestica Inc. reported strong third-quarter 2025 results with adjusted earnings and revenues exceeding Zacks Consensus Estimates, driven by growth in the Connectivity & Cloud Solutions segment and management's focus on innovation and AI advancements [1][8] Financial Performance - Quarterly net income reached $267.8 million or $2.31 per share, a significant increase from $89.5 million or 75 cents per share in the same quarter last year, reflecting nearly threefold growth in GAAP earnings due to top-line improvement [2] - Non-GAAP net earnings rose to $183.1 million or $1.58 per share, up from $123.8 million or $1.04 per share year-over-year, beating the Zacks Consensus Estimate by 11 cents [2] Revenue Analysis - Total revenues for the quarter were $3.19 billion, marking a 27.8% year-over-year increase, driven by strong demand in the CCS segment, surpassing management's guidance and Zacks Consensus Estimate by $170 million [3][8] - CCS segment revenues improved by 43.2% year-over-year to $2.41 billion, accounting for 76% of total revenues, primarily due to robust demand in the Communications end market [4] - Revenues from the Enterprise end market declined by 23.9% year-over-year to $470.1 million, while Communications end market revenues surged by 82% to $1.94 billion, supported by hyperscale customer demand for networking products [5] Segment Performance - Advanced Technology Solutions segment revenues were $781 million, down 4.1%, contributing 24% to total revenues, with operating income increasing by 6.7% year-over-year to $42.8 million [6] Cash Flow & Liquidity - Operating cash flow for the quarter was $126.2 million, slightly up from $122.8 million in the previous year, with free cash flow at $88.9 million compared to $76.8 million year-over-year [7] - As of September 30, 2025, the company held $305.9 million in cash and cash equivalents against long-term debt of $756.7 million [7] Future Guidance - For Q4 2025, Celestica anticipates revenues between $3.325 billion and $3.575 billion, with non-GAAP earnings per share expected in the range of $1.65 to $1.81 [9] - Full-year revenue projection has been raised to approximately $12.2 billion, up from the previous estimate of $11.55 billion, with non-GAAP adjusted earnings expected to be $5.90 per share [10]

Summary of Celestica Q3 2025 Financial Results Conference Call Company Overview - **Company**: Celestica - **Industry**: Technology platform solutions, focusing on data center infrastructure and advanced technology solutions Key Financial Metrics - **Q3 2025 Revenue**: $3.19 billion, up 28% year-over-year, exceeding guidance [6][12] - **Non-GAAP Operating Margin**: 7.6%, up 80 basis points, highest in company history [6][12] - **Adjusted Earnings Per Share (EPS)**: $1.58, an increase of 52% year-over-year [6][12] - **Adjusted Gross Margin**: 11.7%, up 100 basis points [6][12] - **Adjusted Return on Invested Capital (ROIC)**: 37.5%, up 850 basis points year-over-year [7][12] - **Cash Flow**: Generated $89 million in free cash flow for Q3, totaling $302 million year-to-date [10][12] Segment Performance - **Advanced Technology Solutions (ATS)**: - Revenue: $781 million, down 4% year-over-year [8][12] - Segment margin: 5.5%, up 60 basis points [9][12] - **Connectivity and Cloud Solutions (CCS)**: - Revenue: $2.41 billion, up 43% year-over-year [8][12] - Segment margin: 8.3%, up 70 basis points [10][12] - Communications end market revenue increased by 82% [9][12] Market Dynamics - **Demand Drivers**: Strong demand in data center networking, particularly for 800G switch programs [9][12] - **Enterprise Market**: Revenue decreased by 24% due to a technology transition in AI/ML compute [9][12] - **Customer Concentration**: Three customers accounted for 30%, 15%, and 14% of total revenue [10][12] Guidance and Outlook - **Q4 2025 Revenue Guidance**: Projected between $3.325 billion and $3.575 billion, representing 36% growth at midpoint [12][13] - **Adjusted EPS Guidance**: Expected between $1.65 and $1.81, implying a 56% increase at midpoint [13][15] - **2025 Financial Outlook**: Revenue expected to reach $12.2 billion, up from $11.55 billion, reflecting 26% year-over-year growth [15][16] Strategic Initiatives - **Investment in Technology**: Focus on next-generation technology roadmaps and advanced capabilities [17][18] - **Operational Excellence**: Emphasis on quality, reliability, and on-time delivery across global sites [24][28] - **Customer Engagement**: Deepening relationships with customers through engineering services and tailored solutions [55][56] Market Opportunities - **AI Infrastructure**: Significant investments in AI infrastructure expected to drive demand for data center technologies [39][40] - **Networking Solutions**: Anticipated revenue of $7 billion in 2025 from networking solutions, with strong growth in 800G and 1.6T programs [40][41] - **Custom ASIC Platforms**: Focus on custom ASIC platforms expected to grow significantly, with a projected TAM of nearly $500 billion by 2029 [50][51] Capital Allocation and Financial Management - **Capital Expenditures**: Expected to rise to 2.0% - 2.5% of revenue, funded by operational cash flow [67][68] - **Free Cash Flow Target**: Projected at $500 million for 2026 [64][68] - **Return on Invested Capital**: Adjusted ROIC expected to remain strong, currently at 35% year-to-date [68][68] Conclusion - **Overall Performance**: Celestica is experiencing strong financial performance, driven by robust demand in key segments, particularly in AI and data center solutions, with a clear strategy for sustainable growth and operational excellence [20][28]