Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $801 million, slightly above the midpoint of guidance and a 1.3% increase from the previous quarter [4][18] - Gross profit was $157 million, resulting in a gross margin of 19.6%, which is modestly above both the midpoint of guidance and the third quarter [18][19] - GAAP earnings per share was $0.01, compared to a loss of $0.06 in the third quarter and a loss of $0.49 in the fourth quarter of 2024 [21] Business Line Data and Key Metrics Changes - Automotive revenue decreased by 3.4% compared to the third quarter, while industrial power revenue increased by 3.2% [9][10] - Revenue in the healthcare segment was flat compared to the third quarter, with Europe experiencing its strongest quarter in three years [12][13] - The "other" category saw a revenue growth of 10.6% due to increased production for 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 essentially flat due to year-end holiday slowdowns [16] - The book-to-bill ratio was 1.2, up from 1.15 at the end of October, indicating strong order growth across all regions and channels [7][8] - Backlog at quarter end was $1.3 billion, equating to approximately 4.9 months of sales [8] Company Strategy and Development Direction - The company is executing a five-year strategic plan aimed at driving faster revenue growth, raising profitability, and enhancing capital returns [30] - Significant investments are being made in capacity expansion, particularly at the 12-inch fab, with expected CapEx between $400 million and $440 million for 2026 [30][31] - The company is focused on maintaining capacity readiness, growing share at existing customers, and attracting new customers [34] Management's Comments on Operating Environment and Future Outlook - Management expects mid to high single-digit growth across key market segments, including industrial power, automotive, aerospace defense, AI, and healthcare [38] - The company is optimistic about the demand for power requirements in its five growth segments and anticipates revenue increases each quarter in 2026 [34] - Management highlighted the importance of customer engagement and the positive impacts of Vishay 3.0 on revenue generation [5][34] Other Important Information - The company generated $149 million in operating cash for the fourth quarter, including $62 million from the securitization of accounts receivable [23] - Total CapEx for the quarter was $95 million, with $75 million designated for capacity expansion projects [24] - The company plans to maintain its dividend policy, returning at least 70% of free cash flow to stockholders, despite expecting negative free cash flow due to capacity expansion plans [28][62] 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 various market segments, with specific expectations for automotive being flat to mid-single digit due to electronic content [38] Question: How are gross margins expected to trend? - Management indicated that annual contractual negotiations resulted in less historical ASP decline, and they have started increasing prices due to higher material costs [40][41] Question: What is the outlook for automotive demand? - Management noted gains in share through negotiations and highlighted four key technology developments driving design activity in the automotive sector [46][52] Question: Can you elaborate on CapEx and OpEx plans? - Management expects CapEx to be in the range of $400 million to $440 million, with significant investments in the 12-inch fab and other targeted projects [56][60] Question: Is M&A being considered? - Management stated that M&A is always on the table, with a focus on both passive and active segments, but no specific plans were disclosed at this time [62][63]