Key Takeaways Vishay Intertechnology shares fell 4.2% after Q4 EPS came in at a penny, missing estimates.VSH posted $800.9M in Q4 revenues, beating estimates as most segments logged year-over-year growth.Vishay Intertechnology guided Q1 revenues of $800M-$830M, with gross margin seen near 19.9%.Vishay Intertechnology, Inc. (VSH) shares fell 4.2% on Wednesday after the company reported lower-than-expected bottom-line results for the fourth quarter of 2025. VSH reported fourth-quarter earnings of a penny per ...

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]

4Q 2025 Earnings Conference Call February 4, 2026 © VISHAY INTERTECHNOLOGY, INC. ALL RIGHTS RESERVED. NOTES ON FORWARD-LOOKING STATEMENTS Comments in this presentation other than statements of historical fact may constitute forward-looking statements. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. Such statements are based on current expect ...

Summary of Key Points from the Conference Call Industry Overview - Focus on the Asia technology (hardware) sector, particularly the AI supply chain, as a priority investment area for 1H26 due to its significant influence on earnings growth amid concerns over smartphone/PC demand and auto production recovery [2][12] Core Themes and Stock Recommendations 1. **AI Supply Chain Investment**: - Emphasis on investing in the AI supply chain, which is expected to drive earnings growth despite potential slowdowns in other sectors [2][12] - Anticipation of clearer benefits from AI for earnings in 2026, with no signs of slowdown heading into 2027 [12] 2. **Under-the-Radar AI Themes**: - Five notable themes identified: 1. **Power Consumption**: Opportunities in power supply, power rack products, capacitors, and power semiconductors. Companies to watch include Delta Electronics, Panasonic HD, Murata Mfg., Taiyo Yuden, and Renesas Electronics [6][25] 2. **Data Transmission**: Advancements in large-scale data transmission technologies, with companies like Fujikura and Mitsubishi Electric highlighted [6][25] 3. **Niche Components**: Price stabilization and increases in demand for components like MLCCs and substrates, with key players including Murata Mfg. and SEMCO [6][25] 4. **Physical AI Integration**: Companies like Hitachi and Mitsubishi Electric are leading in embedding AI into industrial applications [6][27] 5. **Software/Services Disruption**: Generative AI's potential to improve productivity in Japan's software industry, with Fujitsu and NEC as key players [6][27] 3. **High-Profile Sub-Sectors**: - Continued growth in foundry, memory, semiconductor production equipment, AI servers, and edge AI, with recommended stocks including TSMC, Samsung Electronics, and Hon Hai [30][31] Market Dynamics and Risks - **Top-Down Risks**: - Concerns regarding valuations, implementation risks, over-investment, monetization challenges, and funding sources, particularly with emerging players in the market [13] - **Bottom-Up Perspective**: - Fundamentals differ from the IT bubble of 2000, with a larger scale and longer timeline for AI infrastructure development, and sound supply chain management in Asian hardware [14][16] Technological Advancements - **Power Consumption Trends**: - Significant rise in power consumption for AI servers, with expectations for voltage increases to 800V and beyond, creating business opportunities for power-related products [33][38] - **Data Transmission Innovations**: - Transition to higher communication speeds (800-1.6Tbps) and co-packaged optics (CPO) expected to enhance industry value [58][59] Conclusion - The Asia technology sector, particularly the AI supply chain, presents substantial investment opportunities driven by technological advancements and evolving market dynamics. Key players and themes are positioned to benefit from these trends, while investors should remain cautious of potential risks associated with rapid market changes.

Investment Rating - The report indicates a positive outlook for the semiconductor industry, with preferred picks including TI, Renesas, Infineon, and STMicroelectronics to gain exposure to the recovery [2]. Core Insights - The semiconductor distribution channel has experienced a significant pricing increase of 4-5% month-over-month (m-o-m) for power semiconductor products, following a previous increase of 6-9% [2]. - Nexperia's disruption has led to a notable decline in unit inventories of transistors and diodes, with drops of 48% and 32% respectively, while prices have surged by 114% and 149% [3]. - Average quarterly pricing is projected to increase by 6% quarter-over-quarter (q-o-q) for Q4'25, with inventory down 4% q-o-q [4]. Summary by Sections Pricing Trends - Pricing across various product categories has shown stability, with an average increase of 2% m-o-m and 21% year-over-year (y-o-y) [4]. - The pricing environment remains supportive, with a year-over-year increase of approximately 13% in December compared to 11% in November [5]. Inventory Trends - Unit inventories of MCUs and microprocessors have unexpectedly increased by 13% and 19% m-o-m respectively, primarily driven by Microchip products [4]. - Excluding Nexperia, unit inventories of transistors and diodes have decreased by 18% and 23% since the beginning of October [3]. Company Performance - The report highlights that pricing has been up y-o-y for all companies for two consecutive months, indicating a broad-based recovery in the semiconductor sector [5]. - The data suggests that products not directly impacted by Nexperia have remained stable, indicating limited indirect effects from production delays [4].

Core Viewpoint - Shenzhen-listed Sieyuan Electric is planning a secondary listing in Hong Kong to gain direct access to international capital as it expands into global markets driven by rising demand for grid upgrades, particularly from data centres and artificial intelligence [1]. Group 1: Listing Details - Sieyuan plans to issue new H shares equal to no more than 15% of its total 778 million outstanding shares, but has not disclosed a timetable or fundraising target [2]. - Citibank estimates the listing could occur in the second half of next year, potentially raising up to 20 billion yuan (approximately US$2.84 billion) based on a 5% discount to Sieyuan's A shares and an offer price of about 147 yuan per share [3]. - If realized, this deal would rank as Hong Kong's third-largest initial public offering in the past 12 months, following Contemporary Amperex Technology and Zijin Gold International [4]. Group 2: Financial Performance - Sieyuan's shares have increased by 105% this year, resulting in a market capitalization of 118.4 billion yuan, making it the second largest among mainland-listed grid-equipment makers [5]. - The company's revenue rose nearly 33% year on year to 13.8 billion yuan in the first nine months, while net profit climbed 47% to 2.2 billion yuan [5]. - Offshore sales surged by 89% from the previous year, outpacing domestic revenue growth [5]. Group 3: Global Expansion - Sieyuan has established subsidiaries or invested in over 20 countries and regions, including Brazil, Mexico, Switzerland, and Kenya [6]. - The company has also set up a unit in the United States to address a transformer shortage in the American market [6]. - Sieyuan has supplied grid and gas equipment to railway projects in countries such as Indonesia, Laos, Pakistan, Uzbekistan, and Belarus [7].

Summary of Knowles (NYSE:KN) FY Conference Call Company Overview - Knowles operates in two distinct segments: - **Precision Devices**: Approximately 54% of revenues in 2024, expected to rise to 56-57% in 2025. This segment includes high-performance capacitors and RF filters [3][4]. - **Microphones and Receivers (MSA)**: Primarily focused on hearing health, with about 80% of this segment related to hearing aids [4]. Financial Performance - Historical revenue CAGR from 2017 to 2024 is about 8%, with half from organic growth and half from acquisitions [9]. - EBITDA CAGR during the same period is approximately 11%, driven by margin expansion and operating leverage [9]. - Current EBITDA margins are around 24%, with a target of 30% over the next three to five years [8][11]. Market Segmentation - **Med Tech**: Accounts for about 50% of the business, including hearing health [4]. - **Defense**: Represents about 21% of revenues, with increasing defense budgets globally [4][14]. - **Industrial**: Comprises the remaining third, including energy and electrification applications [4]. Growth Strategy - Focus on organic growth supplemented by M&A opportunities, particularly in the Precision Devices segment, which is highly fragmented [6][17]. - Recent acquisition of Cornell Dubilier for $265 million, enhancing the capacitor business [7]. - Anticipated revenue growth of 8-10% annually, with 4-6% from organic growth and 4% from acquisitions [10][17]. Key Trends and Opportunities - Aging population driving demand for hearing aids, with Knowles holding a 60% market share in this segment [12]. - Increased demand for energy solutions, particularly in alternative energy, supported by AI and automation trends [12][26]. - Significant order of $75 million from a customer in the alternative energy sector, expected to contribute $25 million in growth [12][13][26]. Capital Allocation - Capital investments typically range from 3-5% of revenues, expected to be higher this year due to the energy order [20][21]. - Share buybacks are a priority, with $55 million repurchased this year and over $200 million in the last couple of years [21][22]. - M&A remains a focal point, with a disciplined approach to ensure high returns on investments [22][23]. Challenges and Considerations - The company has exited lower-margin businesses, including a consumer electronics segment heavily reliant on Apple, to focus on higher-margin opportunities [5][6]. - The hearing aid market faces challenges with customer satisfaction and product effectiveness, impacting potential growth [27][28][29]. Conclusion - Knowles is positioned for growth with a strong balance sheet, a focus on high-margin markets, and a disciplined approach to capital allocation and acquisitions. The company is optimistic about its growth prospects, both organically and through strategic acquisitions [30][31].

Core Insights - Vishay Intertechnology, Inc. reported third-quarter 2025 earnings of 4 cents per share, matching the Zacks Consensus Estimate, but down from 8 cents in the same quarter last year [1][8] - Revenues for the quarter were $790.6 million, exceeding the Zacks Consensus Estimate by 2% and reflecting a year-over-year increase of 7.5% [1][8] Revenue Breakdown - Revenues from MOSFETs, which account for 21.1% of total revenues, were $167.1 million, up 13.6% year over year, with a book-to-bill ratio of 0.86 [3] - Diodes generated $149.6 million in revenues, representing an increase of 3% year over year, with a book-to-bill ratio of 1.07 [3] - Optoelectronics revenues were $55.6 million, down 12% year over year, with a book-to-bill ratio of 0.93 [4] - Resistors brought in $195.7 million, up 8.2% year over year, with a book-to-bill ratio of 0.92 [4] - Inductors generated $92 million, reflecting a 1.9% year-over-year increase, with a book-to-bill ratio of 0.99 [4] - Capacitors saw revenues of $130.6 million, up 20.1% year over year, with a book-to-bill ratio of 1.07 [5] Financial Performance - Adjusted EBITDA for the third quarter was $76 million, a 6.3% increase year over year, while the adjusted EBITDA margin contracted by 10 basis points to 9.6% [5] - The operating margin improved to 2.4% from a negative 2.5% in the year-ago quarter [5] Balance Sheet and Cash Flow - As of September 27, 2025, cash and cash equivalents were $444.1 million, down from $473.9 million as of June 28, 2025 [6] - Long-term debt increased to $919.7 million from $914.5 million [6] - Net cash provided by operating activities was $27.6 million, while the company reported a negative free cash flow of $24.3 million for the quarter [6] Q4 Guidance - For the fourth quarter, Vishay Intertechnology expects revenues of approximately $790 million, with earnings projected to improve to 7 cents per share [7][9]

Financial Performance - 3Q 2025 revenues reached $790.6 million[26], compared to $762.3 million in 2Q 2025 and $735.4 million in 3Q 2024[27, 66] - Gross margin was 19.5%[26, 66], including a negative impact of approximately 150 bps related to Newport[26, 29] - Adjusted EPS was $0.04[26, 29], while EPS was $(0.06)[26, 29] - EBITDA margin was 9.6%[29] Segment Results - MOSFETs revenues were $167.1 million with a gross margin of 10.1%[32] - Diodes revenues were $149.6 million with a gross margin of 20.3%[32] - Resistors revenues were $195.7 million with a gross margin of 20.1%[33] - Capacitors revenues were $130.6 million with a gross margin of 20.1%[33] Revenue Mix and Sales Channel - Distribution accounted for 57% of revenue, OEM 37%, and EMS 6%[21] - Distribution revenue increased 4% QoQ and 10% YoY, driven by growth in Asia related to AI servers and smart grid infrastructure[20] - OEM revenue increased 6% QoQ and 6% YoY, driven by increased volume from automotive and industrial customers[20] Regional Performance - Asia's revenue increased 7% QoQ and 18% YoY[23], representing 43% of the total revenue[24] - Europe's revenue increased 1% QoQ and 1% YoY[23], accounting for 33% of the total revenue[24] - Americas' revenue increased 2% QoQ and 1% YoY[23], making up 24% of the total revenue[24] Guidance - The company projects 4Q 2025 revenue of $790 million, with a variance of plus or minus $20 million[47] - Gross margin for 4Q 2025 is expected to be 19.5%, with a variance of plus or minus 50 bps, including a negative Newport impact of 150-175 bps[47]