Financial Data and Key Metrics Changes - The company achieved sales of $774.3 million in Q4 2025, a 19% year-on-year increase, exceeding the high end of the guided range [9][15] - Non-GAAP EPS reached $0.70 per diluted share, marking an all-time quarterly record high for the company [9][22] - Adjusted EBITDA margin was 16.3% in Q4 2025, up from 14.7% in the prior year, reflecting improved execution [9][22] - Cash flow from operations was $63 million, or 8.1% of sales, bringing total cash flow for fiscal 2025 to $292 million, or 10% of sales [9][15] Business Line Data and Key Metrics Changes - Aerospace and defense represented 41% of Q4 2025 sales, with a 5% year-on-year growth for the quarter and 13% for the full year [10][11] - Data center computing accounted for 20% of Q4 2025 sales, experiencing a 57% year-on-year growth [11][12] - The networking end market represented 8% of Q4 2025 sales, with a 23% year-on-year growth [11][12] - Medical, industrial, and instrumentation accounted for 14% of Q4 2025 sales, with a 28% year-on-year growth [12][13] Market Data and Key Metrics Changes - The overall book-to-bill ratio was 1.35 for Q4 2025, with the aerospace and defense segment at 1.46 [14] - The company expects sales from the aerospace and defense market to represent 42% of total sales in Q1 2026 [10][11] - The combined sales for data center and networking would have represented 36% of total sales in Q4 2025, expected to be 37% in Q1 2026 [11][12] Company Strategy and Development Direction - The company focuses on Advanced Interconnect technologies and aims to move up the value chain into complex modules and subsystems [4][5] - The strategy includes capital investment to support growth in artificial intelligence and defense markets, which account for approximately 80% of net sales [6][7] - The company aims to grow revenues by 15%-20% per year for the next three years and to double earnings from 2025 to 2027 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet growth targets, citing strong demand in key markets [6][7] - The company is well-positioned to support growth across end markets and is investing in capacity expansion [7][8] - Management highlighted the importance of technological innovation and customer alignment in product development [5][6] Other Important Information - The company plans to participate in upcoming industry conferences, including the Citi Industrial Tech and Mobility Conference and the JPMorgan Leveraged Finance Conference [25] Q&A Session Summary Question: Capacity addition in China and Syracuse - Management confirmed good progress in extending capacity in both China and the U.S., with no issues anticipated in supply chain or equipment [28] - Syracuse facility is on track, with first revenues expected in the second half of the year [29] Question: Gross margin improvement and Penang headwinds - Management noted a headwind of about 180 basis points from Penang, with improvements expected throughout the year [31][32] Question: Eau Claire facility plans - Eau Claire is the largest PCB site in the U.S., with plans to tool up the facility over the next 18-24 months [36] Question: Book-to-bill ratio and order visibility - Management indicated that visibility for commercial business remains at six to nine months, while defense backlog is significant and spans multiple years [41] Question: CapEx and growth targets - The company plans additional capital expenditures of $200 million-$300 million for data center capacity in China over the next two to three years [46] Question: Impact of copper prices - Management does not expect significant impacts from copper price volatility, as pricing adjustments can be passed through to customers [58]

Financial Data and Key Metrics Changes - The company achieved sales of $774.3 million in Q4 2025, a 19% year-over-year increase from $651 million in Q4 2024, driven by strong demand in various end markets [9][15] - Non-GAAP EPS reached $0.70 per diluted share, marking an all-time quarterly record high for the company [9][22] - Adjusted EBITDA margin improved to 16.3% in Q4 2025 from 14.7% in the prior year, reflecting better operational execution [9][22] - Cash flow from operations was $63 million, or 8.1% of sales, bringing total cash flow for fiscal 2025 to $292 million, or 10% of sales [9][15] Business Line Data and Key Metrics Changes - The aerospace and defense end market represented 41% of Q4 2025 sales, growing 5% year-over-year [10] - Data center computing sales grew 57% year-over-year in Q4 2025, representing 20% of total sales [11] - The medical, industrial, and instrumentation end market saw a 28% year-over-year growth in Q4 2025, accounting for 14% of total sales [12] - Automotive sales represented 9% of Q4 2025 sales, with a focus on higher-value products expected to decrease to 8% in Q1 2026 [13][14] Market Data and Key Metrics Changes - The overall book-to-bill ratio was 1.35 for Q4 2025, with the aerospace and defense segment at 1.46 [14] - The company expects sales from the aerospace and defense market to represent 42% of total sales in Q1 2026 [10] - The combined sales for data center and networking markets would have represented 36% of total sales in Q4 2025, expected to rise to 37% in Q1 2026 [11][12] Company Strategy and Development Direction - The company focuses on Advanced Interconnect technologies and aims to move up the value chain into complex modules and subsystems [4][5] - The strategy includes investing in capacity expansion to support growth in AI and defense markets, with a revenue growth target of 15%-20% per year for the next three years [6][7] - The company is positioned to leverage its global footprint across 24 sites to meet increasing demand for complex technology solutions [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential driven by megatrends in AI and defense, with 80% of net sales related to these areas [6][7] - The company anticipates continued strong demand in data center computing and networking markets, particularly for AI applications [11][12] - Management highlighted the importance of technological innovation and capacity expansion to seize growth opportunities [6][7] Other Important Information - The company plans to participate in upcoming industry conferences, including the Citi Industrial Tech and Mobility Conference and the JPMorgan Leveraged Finance Conference [25] Q&A Session Summary Question: Capacity addition in China and Syracuse - Management confirmed good progress in extending capacity in both China and the U.S., with no issues in supply chain or equipment [28] - Syracuse facility is on track, with first revenues expected in the second half of the year [29] Question: Gross margin improvement and Penang headwinds - Management noted a headwind of about 180 basis points from Penang, with improvements expected throughout the year [31][32] Question: Eau Claire facility plans - Eau Claire is the largest PCB site in the U.S., with plans to tool up the facility over the next 18-24 months [36] Question: Book-to-bill ratio and order visibility - Management indicated that visibility for ongoing commercial business is about 6-9 months, with a significant backlog in defense [41] Question: CapEx and growth targets - The company plans additional capital expenditures of $200 million-$300 million for data center capacity in China over the next two to three years [46] Question: Impact of copper prices - Management does not expect significant impacts from copper price volatility, as they can pass costs through to customers [58]