Core Insights - Applied Digital (APLD) and Vertiv Holdings (VRT) are positioned in the data center infrastructure market, focusing on AI-driven facilities and critical power systems respectively [1][6] - The global Data Center Infrastructure Management market is expected to grow from $4.29 billion in 2026 to $9.99 billion by 2031, with a CAGR of 18.43% [2] Applied Digital (APLD) - APLD is strategically positioned to benefit from the growth of AI-focused data centers, emphasizing energy-efficient design and scalable power architecture [3] - The company has contracted 600 megawatts across Polaris Forge 1 and 2, representing approximately $16 billion in potential lease revenues [4] - APLD's fiscal 2026 loss is estimated at 36 cents per share, indicating a year-over-year improvement of 55% [5] Vertiv Holdings (VRT) - VRT provides essential power and thermal management solutions for data centers, serving customers in 130 countries [6] - The company is co-developing an 800-volt DC power architecture with NVIDIA, ensuring its solutions remain relevant as power requirements increase [7] - VRT has a backlog of $15 billion and a book-to-bill ratio of approximately 2.9x, indicating strong revenue visibility [9] Stock Performance and Valuation - Over the past six months, VRT shares have increased by 88.7%, while APLD shares have surged by 118.7% [11] - VRT is trading at a forward price-to-sales ratio of 6.95x, significantly lower than APLD's 19.95x, suggesting a more attractive valuation for VRT [14] - VRT is currently rated as a Zacks Rank 1 (Strong Buy), while APLD holds a Zacks Rank 3 (Hold) [19]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose to $0.87, up 13% year-over-year, reflecting strong execution [4][10] - Adjusted gross profit totaled $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, with adjusted operating income improving to $233 million and adjusted operating margin at 7.2% [11] - Agility Solutions revenue totaled $3.8 billion, up 6% year-over-year, with adjusted operating income at $239 million and adjusted operating margin unchanged at 6.3% [11][12] Market Data and Key Metrics Changes - Strong growth in data center-related end markets was noted, driven by increasing demand for power and compute solutions [5][11] - Health Solutions saw robust demand for medical devices, while Core Industrial experienced growth in warehouse automation and robotics [7] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for leading brands, helping them navigate complexity and improve performance [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of data centers and the overall business, with expectations for continued strong performance in the coming quarters [10][15] - The company anticipates revenue for the fiscal year to be between $27.2 billion and $27.5 billion, with adjusted EPS guidance between $3.21 and $3.27 [15][16] Other Important Information - Cash flow for the quarter was $275 million, with inventory levels up 5% year-over-year [12][13] - The company repurchased approximately $200 million of stock during the quarter [13] Q&A Session Summary Question: Opportunities in Data Center Growth - Management highlighted strong growth in both power and compute segments, with investments focused on both areas [20][21] Question: Operating Margin Ceiling - Management indicated that margins are expected to continue improving, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Both segments are experiencing strong growth, with Embedded Power benefiting from a technology shift [32][33] Question: Agility Solutions Revenue Guidance - Management noted that growth in Agility is strong, driven by data center-related infrastructure, despite softness in consumer markets [36] Question: Impact of Amazon Warrant Deal - The Amazon warrant deal is not expected to materially impact FY 2026, with growth anticipated to scale over time [40][41] Question: Reliability Segment Margins - Strong margins in the reliability segment are attributed to mix impacts and growth in the power business [42][43] Question: Memory Prices Impact - Management stated that memory price increases are not significantly affecting demand in consumer markets, which are already soft [64]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose 13% year-over-year to $0.87, reflecting strong execution [4][10] - Adjusted gross profit was $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, with adjusted operating margin at 7.2%, up 50 basis points [11] - Agility Solutions revenue totaled $3.8 billion, up 6% year-over-year, with adjusted operating margin remaining at 6.3% [11][12] - Strong growth in data center-related markets was noted, while consumer-related markets showed softness [11][36] Market Data and Key Metrics Changes - The data center market is experiencing strong growth driven by AI workloads, with Flex positioned to support this demand through integrated solutions [5][6] - Health Solutions and core industrial markets are also seeing robust demand, particularly in medical devices and warehouse automation [7][8] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for brands, helping them navigate complexities and improve performance [9] - The company is shifting towards higher-value, more complex product categories to drive margin improvement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of data centers and the overall business, with expectations for continued strong performance [20][21] - The company anticipates further investments in compute capacity due to upcoming AI programs, while maintaining a balanced approach to power and compute investments [20][21] - Management highlighted the importance of speed, flexibility, and resilience in adapting to market changes [8] Other Important Information - The company expects full-year revenue to be between $27.2 billion and $27.5 billion, with adjusted EPS guidance of $3.21 to $3.27 per share [15] - Cash flow for the quarter was $275 million, with a commitment to maintaining an investment-grade balance sheet [13][14] Q&A Session Summary Question: Opportunities in Data Center Growth - Management noted strong growth in both power and compute segments, with a focus on investments in both areas [20][21] Question: Operating Margin Ceiling - Management indicated that margins are expected to continue improving, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Both segments are experiencing strong growth, with embedded power benefiting from technology shifts [32][33] Question: Agility Solutions Revenue Guidance - Management clarified that growth in agility is strong, driven by data center-related infrastructure, despite softness in consumer markets [36] Question: Impact of Amazon Warrant Deal - Management stated that the Amazon warrant deal is not expected to materially impact FY 2026 results [40][41] Question: Reliability Segment Margins - Strong margins in the reliability segment are attributed to mix impacts and growth in power and core industrial businesses [42][43] Question: U.S. Manufacturing Trends - Management refuted claims of U.S. manufacturing retreat, citing ongoing investments and customer demand [55][56] Question: Automotive Market Trends - Stabilization in the automotive sector is noted, with growth driven by investments in compute platforms rather than unit volume [60][61] Question: Effects of Rising Memory Prices - Management indicated that memory price increases are not significantly affecting demand in consumer markets, as procurement is handled by customers [63][64]

Industry Insights - The build-out of artificial intelligence (AI) infrastructure is facing significant energy constraints, with data center electricity consumption projected to grow from approximately 448 terawatt-hours (TWh) in 2025 to around 980 TWh by 2030, and AI-optimized servers expected to account for 21% of total data center electricity usage in 2025, potentially rising to 44% by 2030 [1] - Thermal management is becoming as critical as power delivery in modern AI data centers due to the heat generated by AI chips, necessitating efficient cooling systems to prevent hardware damage and performance issues [2] Company Performance - Vertiv's revenue increased by 29% year over year to $2.68 billion in the third quarter, with adjusted diluted earnings per share (EPS) rising 63% to $1.24 [4] - The company reported a book-to-bill ratio of 1.4, with orders up 60% year over year, and exited the third quarter with a backlog of $9.5 billion, reflecting a 30% year-over-year increase and providing strong revenue visibility into 2026 [4][6] - Vertiv is positioned to benefit from the 59% increase in global data center capital expenditures and the 85% expansion of the direct liquid cooling market, as it offers critical power distribution, thermal management solutions, and software services for complex AI workloads [3][6] Future Outlook - Vertiv anticipates significant benefits from its services platform, which includes remote monitoring, predictive analytics, thermal mapping, power quality analysis, and energy optimization, as data center racks become denser and systems more complex [5]

Third Quarter 2025 Earnings October 29, 2025 Click Here to Edit Title Cautionary Statement Click Here to Edit Title This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, the Company's fourth quarter 2025 and full year 2025 outlook including expected sales, expected organic sales, expected earnings per share, expected adjusted earnings per share, expected revenue, esti ...

Core Insights - Qnity Electronics, Inc. is positioned as a leading technology solutions provider in the rapidly expanding semiconductor market [1] - The company offers comprehensive product integration across the semiconductor value chain, including chip manufacturing, advanced packaging, and thermal management solutions [1] Company Overview - Qnity Electronics, Inc. is recognized for its end-to-end horizontal product integration in the semiconductor industry [1] - The company is set to host its inaugural Investor Day, indicating a commitment to engaging with investors and stakeholders [1]

Company Overview - Egide Group is a worldwide provider of hermetic packages and connectors, as well as thermal management solutions for sensitive electronic components [2][8] - The company operates in cutting-edge markets with strong technology barriers to entry across critical industry segments such as Thermal Imaging, Optronics, High-Frequency, and Power Units [8] General Meeting Details - A Combined General Meeting is scheduled for September 10, 2025, at 11:00 am at the Company's headquarters in Bollène, France [2] - Shareholders can attend the meeting via Teams video-conference, but they will not be able to participate in debates or vote on resolutions [3] Documentation and Participation - The agenda and proposed resolutions were published on August 4, 2025, in the Bulletin des Annonces Légales et Obligatoires and on the company's website [4] - Preparatory documents required by the French Commercial Code will be available on the company's website and at its headquarters [5] - Shareholders can request documents and information until September 5, 2025, preferably via email [6] Shareholder Requirements - Shareholders holding bearer shares must provide proof of their status by submitting a certificate of account registration [7]