After gradually building backlog over the first nine months of 2025, Smejkal said fourth-quarter backlog grew nearly 14% , with both semiconductors and passives contributing. Vishay ended the quarter with a book-to-bill ratio of 1.2 , up from a previously discussed run rate of 1.15 at the end of October. Segment-level book-to-bill ratios were 1.27 for semiconductors and 1.13 for passives.Management highlighted the visibility of its “Vishay 3.0” initiatives in orders and customer engagement. Smejkal said fou ...

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 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]

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 ...

Core Viewpoint - The semiconductor industry has faced significant challenges over the past year, particularly for companies lacking exposure to growth markets such as AI and data centers [1] Group 1: Industry Challenges - Companies that provide diversified components like MOSFETs, resistors, capacitors, and diodes have experienced slow growth due to the lack of meaningful exposure to high-growth sectors [1]

Core Viewpoint - The semiconductor industry has faced significant challenges over the past year, particularly for companies lacking exposure to growth markets such as AI and data centers [1] Group 1: Industry Challenges - Companies that provide diversified components like MOSFETs, resistors, capacitors, and diodes have experienced slow growth due to the lack of meaningful exposure to high-growth sectors [1]

Core Insights - Alpha and Omega Semiconductor Limited reported a record quarterly revenue of $182.5 million for fiscal Q1 2026, reflecting a 3.4% sequential increase and a slight 0.3% year-over-year growth [2][22] - The company is transitioning to an 800-volt DC power architecture, which is expected to enhance efficiency and open new design opportunities in high-performance computing and data centers [5][20] - The computing segment showed strong performance with a 27.1% year-over-year increase, contributing 53.2% of total revenue, although a decline of nearly 20% is anticipated for December due to seasonal factors [7][10] Financial Performance - Non-GAAP gross margin for the quarter was 24.1%, down from 25.5% a year ago, primarily due to higher operational costs [22][23] - Non-GAAP EPS was reported at $0.13, compared to $0.21 in the same quarter last year [23] - Operating cash flow improved to $10.2 million, up from negative $2.8 million in the prior quarter [23] Segment Analysis - The computing segment revenue increased significantly, driven by demand from PCs and AI platforms, while the consumer segment saw a decline of 25.8% year-over-year [11][12] - The communication segment experienced a 21.4% sequential growth but a 7.8% year-over-year decline, attributed to weaker demand from Chinese smartphone customers [12][13] - Power supply and industrial segment revenue accounted for 15.3% of total revenue, down 12.4% year-over-year, but growth is expected in December driven by power tools [14][15] Strategic Initiatives - The company is focusing on expanding its market presence in high-performance computing and AI, leveraging its investments in technology and engineering talent [6][19] - A significant portion of the capital from the recent joint venture equity sale, approximately $94 million, is being allocated to strategic investments in technology and talent [6][40] - The shift to 800-volt architecture is seen as a critical opportunity for Alpha and Omega to enhance its product offerings and capture new market segments [5][20] Future Outlook - Revenue guidance for December is projected to be around $160 million, with expectations of a decline in several segments due to seasonal trends [26] - The company anticipates steady growth through 2026, with a stronger upturn expected in 2027 as new programs transition into volume production [20][50] - Investments in R&D are planned to support growth in AI and other high-performance applications, indicating a commitment to innovation and market leadership [19][49]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $791 million, a sequential increase of 4% and 2% above the midpoint of guidance [4][18] - Year-over-year revenue growth was 8%, driven by an 8% increase in volume and a 2% positive foreign currency impact [18] - Gross profit was $154 million, resulting in a gross margin of 19.5%, slightly below the midpoint of guidance [19] - Book-to-bill ratio for the quarter was 0.97, with a backlog of $1.2 billion [18][19] Business Line Data and Key Metrics Changes - Automotive revenue increased by 7% quarter-over-quarter, driven by higher volume in the Americas and Europe [8] - Industrial segment revenue grew by 2%, supported by shipments to smart grid infrastructure projects [9] - Aerospace defense revenue decreased by 2% quarter-over-quarter due to slow funding releases [11] - Medical segment revenue grew by 2%, reflecting increased activity from longstanding customers [11] Market Data and Key Metrics Changes - Orders were up 19% year-over-year, indicating improvements in automotive, smart grid infrastructure, aerospace defense, and AI-related power requirements [6] - Asia saw the greatest growth, particularly from automotive customers and sales to distributors [4][5] - Distribution revenue increased by 4%, with most growth coming from Asia [15] Company Strategy and Development Direction - The company is executing its five-year strategic plan, Vishay 3.0, focusing on capacity investments and expanding product offerings [4][28] - Significant investments in capacity expansion are ongoing, with $179 million spent year-to-date and expectations to spend $300 million-$350 million for the year [28] - The company aims to improve margins by addressing operational efficiencies and passing on increased metal costs to customers [49] Management's Comments on Operating Environment and Future Outlook - Management noted that conditions are improving across several market segments, with expectations for mid-single-digit to high-single-digit growth in 2026 [47][48] - The company is focused on supporting automotive OEMs and tier one suppliers to prevent production line downs [64] - Management expressed optimism about the potential for revenue growth driven by government spending in aerospace defense and smart grid infrastructure [46] Other Important Information - The company generated $28 million in operating cash for Q3, with total CapEx of $52 million [23] - Free cash flow for the quarter was -$24 million, reflecting ongoing capacity expansion investments [23] - The company plans to maintain its dividend policy while managing liquidity needs [26] Q&A Session Summary Question: Did Vishay see any benefit from the export restrictions on Nexperia in the automotive segment? - Management indicated ongoing discussions with OEMs and tier ones, noting opportunities but not including them in Q4 revenue guidance due to current shortages [36] Question: What factors impacted gross margin in Q3? - Management cited elevated metals prices and operational issues as key factors affecting gross margin, with plans to pass costs onto customers [39][40] Question: What is the outlook for revenue growth and margin expansion in 2026? - Management expressed confidence in achieving revenue growth aligned with consensus estimates, driven by multiple positive market segments [48][49] Question: Can you elaborate on the capital return strategy? - Management emphasized the importance of maintaining dividends while prioritizing liquidity needs over share buybacks at this time [50]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $791 million, a sequential increase of 4% and 2% above the midpoint of guidance, with a year-over-year increase of 8% [4][18] - Gross profit was $154 million, resulting in a gross margin of 19.5%, slightly below the midpoint of guidance and flat compared to Q2 [19] - Book-to-bill ratio for the quarter was 0.97, with a backlog of $1.2 billion, flat from the previous quarter [18][19] Business Line Data and Key Metrics Changes - Automotive revenue increased by 7% quarter-over-quarter, driven by higher volume in the Americas and Europe [8] - Industrial segment revenue grew by 2%, supported by shipments to smart grid infrastructure projects [9] - Medical market segment revenue rose by 2%, reflecting increased activity from larger customers [11] - Revenue from computing, consumer, and telecom markets increased by 4%, driven by demand for AI servers [12] Market Data and Key Metrics Changes - Orders were up 19% year-over-year, indicating improving conditions in automotive, smart grid infrastructure, aerospace defense, and AI-related power requirements [6] - Asia saw the greatest growth in sales, particularly from automotive customers and distributors [4][5] - Distribution revenue increased by 4%, with most growth coming from Asia [15] Company Strategy and Development Direction - The company is executing its five-year strategic plan, Vishay 3.0, focusing on capacity expansion and innovation [4][28] - Significant investments in capacity expansion are ongoing, with $179 million spent year-to-date and an expected total of $300 million to $350 million for the year [28] - The company aims to improve margins and returns on capital through operational efficiencies and passing on increased metal costs to customers [49] Management Comments on Operating Environment and Future Outlook - Management noted that conditions are improving across several market segments, with expectations for mid-single-digit to high-single-digit growth in 2026 [48] - The company is focused on addressing customer needs and preventing production line downs, particularly in the automotive sector [64] - Management expressed confidence in the company's ability to meet quick-turn delivery requests while maintaining competitive lead times [7][32] Other Important Information - The company reported a negative free cash flow of $24 million for the quarter, with a focus on maintaining dividends despite ongoing capacity expansion [23][26] - The effective tax rate remains low due to minimal pre-tax income, with expectations for normalization as profitability returns [21][25] Q&A Session Summary Question: Did Vishay see any benefit from the export restrictions on Nexperia in the automotive segment? - Management indicated ongoing discussions with OEMs and tier ones, noting opportunities but not including them in Q4 revenue guidance due to current shortages [36] Question: What factors impacted gross margin in Q3? - Management cited elevated metals prices and operational issues as key factors affecting gross margin, with plans to pass costs onto customers [39][40] Question: How does the company view growth and margin expectations for fiscal 2026? - Management expressed optimism about growth driven by five key market segments, aligning with consensus estimates for revenue growth of around 7% [48][49] Question: Can you elaborate on the capital return strategy? - Management emphasized the importance of dividends and indicated no plans for share buybacks at this time due to current liquidity needs [50]