Financial Data and Key Metrics Changes - Revenue for fiscal 2025 was $1.058 billion, marking the third consecutive quarter of sequential growth and approaching the high end of guidance [6][7] - Non-GAAP EPS for fiscal 2025 was $2.14, exceeding guidance due to favorable discrete tax items, with a non-GAAP operating margin of 5.8% [6][25] - Free cash flow for fiscal 2025 was $154 million, significantly exceeding projections, with a total of $495 million generated over the past two fiscal years [7][25] Business Line Data and Key Metrics Changes - Aerospace and Defense sector revenue decreased 6% sequentially in Q4, with flat revenue for fiscal 2025 due to delays in new product launches [16][17] - Healthcare Life Sciences sector revenue increased 1% sequentially in Q4, with a 5% increase for fiscal 2025 driven by imaging and monitoring subsectors [18][19] - Industrial sector revenue was up 11% sequentially in Q4, but flat for fiscal 2025, with strong wins of $165 million in Q4 [20][21] Market Data and Key Metrics Changes - The funnel of qualified manufacturing opportunities increased 2% sequentially to $3.7 billion, with a record high in aerospace and defense sector opportunities [22][23] - The company expects mid-single-digit revenue growth in the Aerospace and Defense sector for Q1, driven by new program ramps [17] - The Healthcare Life Sciences sector is expected to see high single to low double-digit growth in Q1, supported by ongoing program ramps [18] Company Strategy and Development Direction - The company aims for revenue growth in excess of end markets, targeting a 9% to 12% growth goal for fiscal 2026 [6][13] - Investments will continue in talent, technology, and facilities to support long-term operational efficiency and revenue growth [13][28] - The company is focused on diversifying engineering solutions and expanding market share in key sectors [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth potential, citing substantial new program ramps and modest improvements in end markets [38][40] - The company is monitoring the impact of government shutdowns but has not seen any indications of slowdown in major market verticals [50][51] - There is optimism regarding the defense sector, with expectations of increased military spending in the U.S. and Europe [141] Other Important Information - The company achieved a 40 basis point expansion in non-GAAP operating margin and 30% non-GAAP EPS growth compared to fiscal 2024 [5][7] - The cash cycle improved to 63 days, the best result in five years, with significant reductions in gross inventory [27][28] - The company plans to maintain capital spending in the range of $90 million to $110 million for fiscal 2026 [32][116] Q&A Session Summary Question: Growth trajectory and confidence in future investments - Management indicated increased confidence in growth trajectory due to substantial new program ramps and modest market improvements [36][38] Question: AI opportunities and new product developments - The company is seeing opportunities in AI, particularly in power generation and thermal management, with new AI-powered products being developed [42][45] Question: Impact of government shutdown on major market verticals - No indications of slowdown due to the government shutdown have been observed, and customer conversations remain stable [50][51] Question: Strength in semicap and energy sectors - The company expects similar growth in semicap for fiscal 2026, with significant share gains anticipated [56][57] Question: Healthcare Life Sciences sector performance - Strength in the Healthcare Life Sciences sector is attributed to both new program ramps and the resolution of inventory overhang [60][62] Question: Customer visibility and market stability - Visibility from customers is stable, with programs ramping well and markets trending upwards [76][78] Question: Margin expansion and investment impacts - Management expects to overcome near-term margin drags from investments and continue driving productivity improvements [125][126]