Financial Data and Key Metrics Changes - Revenue for the first quarter was $6.6 billion, an increase of 4% year over year [5][14] - Adjusted operating margin was 6%, with adjusted EPS reaching a record $0.72, reflecting a more than 40% increase [5][14] - Gross profit totaled $596 million, with gross margin improving to 9.1%, up 130 basis points [14] Business Line Data and Key Metrics Changes - Reliability Solutions revenue was $2.9 billion, down 2% year over year, impacted by macro pressures in Automotive and Renewables, but operating income improved to $172 million [15] - Agility Solutions revenue reached $3.7 billion, up 10% year over year, driven by strong cloud and AI demand, with operating income at $240 million [16] Market Data and Key Metrics Changes - Americas revenue rose to 49% in fiscal year 2025, up from 38% in fiscal year 2020, while Asia declined to 30%, down from 41% [11] - The company operates over 49 million square feet globally, with significant manufacturing footprints in North America [10] Company Strategy and Development Direction - The company is focusing on high-growth end markets such as data centers and power, aiming to transform from a contract manufacturer to a strategic end-to-end partner [12][13] - Investments are being made in advanced manufacturing capabilities, including AI and automation, to enhance productivity and meet evolving customer needs [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite market uncertainties, highlighting a strong start to fiscal year 2026 [12][19] - The updated fiscal year 2026 revenue guidance is between $25.9 billion and $27.1 billion, reflecting an increase in the midpoint by approximately $600 million [21] Other Important Information - Free cash flow for the quarter was $268 million, representing a conversion rate of 98% [16] - The company acquired a new manufacturing site in Poland to double its power capacity in Europe [18] Q&A Session Summary Question: Margin outlook for the year - Management maintained a margin guidance of 6% to 6.1%, citing tariff impacts and investments as factors affecting margin performance [27][28] Question: Data center revenue trends - Management confirmed a strong outlook for data center growth, with expectations of 35% year-over-year growth, driven by both cloud and power segments [31][32] Question: Market evolution and internal investments by hyperscalers - Management views the trend of hyperscalers investing in their own capabilities positively, emphasizing the importance of integrated solutions [36][38] Question: Full year guidance context - Management clarified that while Q1 results were strong, the full year guidance reflects a cautious approach and ongoing investments in growth [39][41] Question: Capacity constraints and investments - Management acknowledged capacity constraints but expressed confidence in new investments to meet demand, particularly in AI infrastructure [48][50] Question: Tariff impact on guidance - Management indicated that tariffs are largely pass-through costs and will not materially impact revenue growth rates, though they do affect margin performance [59][61] Question: Segment growth expectations - Management expects automotive and consumer markets to remain weak, while healthcare and industrial sectors are projected to grow [64][66]

Core Insights - TECO Electric & Machinery Co., Ltd. has made significant strides in the hyperscale data center sector following its acquisition of Malaysian MEP engineering company NCL Energy, securing projects in Selangor and Johor Bahru with a combined capacity of 178MW and a total value exceeding MYR 170 million (approximately TWD 1.17 billion) [1][2] Group 1: Project Developments - The company is undertaking the Elmina Business Park project in Selangor, focusing on server room installations and hyperscale fiber-optic communication infrastructure [3] - In Johor Bahru, the Sedenak Tech Park project will similarly emphasize fiber-optic solutions for hyperscale data centers [3] - TECO's total installed capacity for data center projects across Taiwan and Southeast Asia has surpassed 700MW [6] Group 2: Technical Capabilities - TECO's Intelligence Energy Business Group is executing a data center MEP project in Singapore, which includes the installation of the world's first 13,864-core hyperscale fiber-optic cable [4] - The company is recognized as an industry expert in fiber connectivity for hyperscale data centers and is dedicated to structured cabling and connection solutions [3][5] Group 3: Strategic Positioning - TECO aims to leverage its international project expertise and strong local teams to deliver reliable, efficient, and flexible one-stop solutions, establishing itself as a leading brand in smart energy and integrated MEP engineering [6] - The company is positioned to capitalize on the growing demand for hyperscale data centers in Southeast Asia, as major global tech giants accelerate their deployment in the region [3]