Financial Data and Key Metrics Changes - The company reported consolidated revenue of $783 million for Q3 2025, representing a 7.1% increase compared to the same quarter last year and a 6.3% increase on an organic basis [12][5] - Adjusted EBITDA grew 18.6% year-over-year to $217 million, with an adjusted EBITDA margin of 27.7%, up 270 basis points from the previous year [12][13] - Adjusted net income for Q3 was $119 million, reflecting a 14.4% increase from the prior year, with adjusted diluted earnings per share rising to $0.56 from $0.49 [13][14] Business Line Data and Key Metrics Changes - In the industrial segment, revenues increased by 8.2% to $343 million, with a 7.3% organic growth driven by certification testing and ongoing services [15] - The consumer segment saw revenues of $340 million, up 5.9% overall and 5.3% organically, with strong demand for non-certification testing in consumer technology [16] - The software and advisory segment reported revenues of $100 million, a 7.5% increase overall and 6.5% organically, with advisory revenue growing by 8.8% [17] Market Data and Key Metrics Changes - The company experienced balanced growth across all geographic markets, with notable strength in the U.S., Greater China, and ASEAN regions, particularly in data center-related services [39][40] - There was significant growth in Vietnam, Thailand, and India, while traditional markets like Germany, Japan, and Taiwan showed slight contractions [33] Company Strategy and Development Direction - The company is focusing on transformative industry trends such as energy transition, electrification, and digital transformation to drive sustainable growth [4][9] - A restructuring initiative was announced to streamline operations, reduce expenses, and focus on core growth areas, which is expected to generate annual run-rate savings and margin expansion [10][19] - The launch of Landmark Artificial Intelligence Safety Certification Testing aims to build public trust in AI technologies, reflecting the company's commitment to innovation [22] Management's Comments on Operating Environment and Future Outlook - Management noted that customer demand remains resilient despite geopolitical uncertainties, with ongoing investments expected to drive future growth [10][21] - The full-year 2025 guidance was strengthened, with expectations for consolidated organic revenue growth now in the range of 5.5%-6.0% [19][20] - The company anticipates a modest headwind to organic revenue growth in 2026 due to exiting non-strategic service lines, but overall growth rates for core businesses are expected to remain stable [76][78] Other Important Information - The company generated $317 million in free cash flow year-to-date, up 47% from the previous year, and held $255 million in cash and cash equivalents as of September 30 [17][18] - A new credit facility was established to enhance financial flexibility and support ongoing investments [18] Q&A Session Summary Question: Impact of macroeconomic conditions in China on business - Management acknowledged ongoing uncertainty due to tariffs but noted a shift towards a new normal where customers are adapting to the situation and diversifying supply chains [26] Question: Performance of the software and advisory segment - The strong performance was attributed to the completion of several advisory projects, leading to high staff utilization, though future quarters may not maintain the same level of performance [29] Question: Growth dynamics across regions - Growth was observed in all regions, with particular strength in the U.S. and Greater China, especially in data center-related services [39] Question: Details on the restructuring plan - The restructuring will involve exiting non-strategic service lines, which represent about 1% of total revenue, allowing the company to focus on higher quality growth areas [37][46] Question: Pricing contribution in Q3 - Pricing contributed significantly to revenue growth, particularly in ongoing certification services, with a balanced contribution from both price and volume [55] Question: Outlook for organic growth despite restructuring - The company expects to maintain overall growth rates, with the restructuring creating a temporary organic headwind due to exiting certain service lines [78]