Rob Jamieson

Rob Jamieson sought an update on Belden's data center gray area opportunity and pilot for automating power and cooling, including progress with hyperscalers and the overall sizing and growth potential of this market.

Answer

CEO Ashish Chand described the integrated white space/gray space opportunity for AI data centers as significant, noting a 2-3x expansion of the dedicated team. He reported that the initial pilot expanded into a larger commercial relationship for multiple data centers, with negotiations underway. Belden has since engaged with half a dozen more accounts, booking orders and revenue in Q4, and sees the pipeline as 3-4 times larger, expecting more positive news in the first half of 2026.

Rob Jamieson requested an update on the data center gray area opportunity and pilot, specifically concerning automation of power and cooling, conversations with hyperscalers, and the potential sizing and growth of this opportunity. He also asked for the embedded FX assumption in the Q1 2026 top-line guidance.

Answer

CEO Ashish Chand described the integrated white space/gray space opportunity for AI data centers as significant and a top growth area, with the team expanding 2-3x. He reported that the initial pilot went very well and has expanded into a larger commercial relationship for multiple data centers, with negotiations underway. Belden has since worked with half a dozen more large accounts, booking orders and revenue in Q4, and the pipeline is 3-4 times larger, with positive news expected in H1 2026. CFO Jeremy Parks stated that FX is expected to be a benefit year-over-year for Q1 2026, roughly 2% of revenue.

Rob Jamieson asked about Keysight's R&D investment, which approached 19% of sales this year, inquiring about the heaviest investment areas (AI, data center, 5G advanced) and how R&D intensity will evolve with the integration of Spirent, Optical Solutions Group, and PowerArtist, given their software nature. He also asked about the drivers of strong free cash flow and the outlook for conversion in 2026, particularly regarding the 90%+ long-term target amidst acquisition-related cash expenses.

Answer

President and CEO Satish Dhanasekaran explained that Keysight is in a refresh phase of R&D investment across its cohesive portfolio, with new product introductions in wireless, defense technology, and AI driving increased spending to outperform markets. He noted that software assets typically run north of the company average. CFO Neil Dougherty added that while integration focuses on go-to-market and back-office leverage, there may be opportunities to align and share some R&D costs. For free cash flow, Neil Dougherty expects continued good conversion of non-GAAP net income, acknowledging that additional integration-related expenses will put some pressure but are a relatively small proportion of the total, thus still expecting strong free cash flow conversion next year.

Rob Jamieson, VP of Industrial Technology Research at Vertical Research Partners, asked IDEX to provide a framework for thinking about 2026, particularly regarding the company's historic mid-single-digit organic growth algorithm and the key risks and opportunities to consider for the upcoming year.

Answer

Eric Ashleman, President and CEO, outlined that 2026 performance would largely depend on the nature of base-level industrial entitlement (monitoring bellwether businesses for inflection in Q4), pricing dynamics (offsetting inflation versus policy-driven increases), and momentum in areas where IDEX is 'creating its own luck' through its growth platforms. He emphasized that while the latter is within IDEX's control, the first two factors are more subject to the broader macro environment.

Rob Jamieson from Vertical Research Partners inquired about the details driving Sensata's strong free cash flow conversion, including working capital improvements and cash discipline, and the sustainability of this level. He also asked about early improvements from internal benchmarking initiatives.

Answer

Stephan von Schuckmann, Sensata Technologies' Chief Executive Officer, explained that internal benchmarking has led to significant cost reductions per product, with ongoing progress. Andrew Lynch, Sensata Technologies' Chief Financial Officer, attributed strong free cash flow primarily to lower capital expenditures due to increased CapEx discipline, committing to greater than 80% conversion while noting that current low CapEx levels might not be indefinite.

Rob Jamieson inquired about the drivers behind Sensata Technologies' strong free cash flow conversion, including working capital improvements and cash discipline, and the sustainability of these levels. He also asked about early improvements from internal manufacturing benchmarking initiatives.

Answer

Stephan von Schuckmann, Sensata Technologies' Chief Executive Officer, discussed continuous progress in internal benchmarking, leading to significant cost reductions per product, with ongoing efforts to meet external benchmarks. Andrew Lynch, Sensata Technologies' Chief Financial Officer, attributed strong free cash flow primarily to lower capital expenditures driven by increased discipline, especially amid EV production uncertainties. He committed to maintaining a free cash flow conversion rate greater than 80%.

Rob Jamieson of TD Cowen sought to clarify if the company has seen actual project delays or just general customer hesitance, and when visibility might improve. He also asked for the potential revenue and profitability impact of the Photoneo acquisition.

Answer

CEO William Burns stated they have not seen specific project delays yet, but the lack of visibility stems from broad uncertainty around trade policy, which is causing customers to be cautious. CFO Nathan Winters noted the Photoneo acquisition is expected to add about 30 basis points of incremental revenue for the year, assuming it closes late in Q1.