Amphenol Corp (APH)

AI Contribution to Growth
Q: How much of growth came from AI vs non-AI?
A: More than half of our year-over-year growth in IT datacom was from AI-related products, with AI contributing similarly to sequential growth. The underlying IT datacom market also showed very strong growth. -

Record Margins and CIT Impact
Q: What led to margin strength this quarter, and how is CIT performing?
A: Operating margins reached a record high due to strong execution and maximizing profitability on robust growth. CIT's margins are still improving and were not a significant contributor to margin improvement this quarter, but we are confident they will reach company average over time. -

Elevated CapEx Levels
Q: How long will elevated CapEx levels continue?
A: Elevated CapEx will continue for the next couple of quarters to support significant growth in IT datacom and defense markets. We target CapEx at 3%-4% of sales over the medium and long term, and nothing structurally has changed regarding our capital spending needs. -

AI Customer Base Breadth
Q: Discuss your customer base breadth in AI deployments.
A: We have an outstanding breadth of offerings into AI across the entire stack, working with web service providers, OEMs, and chip companies. This comprehensive approach positions us strongly to capture more than our fair share of AI-related opportunities. -

Order Visibility and Duration
Q: How much visibility do you have around these orders?
A: We have seen very strong book-to-bill ratios, particularly in IT datacom, with some order aperture extending a bit longer to give us comfort in making necessary investments. The vast majority of orders are fulfilled within a couple of quarters. -

Automotive Business Outlook
Q: Is the market constraining your automotive growth potential?
A: Despite dynamic market conditions, we continue to outperform by gaining content and enabling new applications. Though Europe faces challenges, we see robust growth in Asia and North America, and we are confident in our position to drive growth above market levels. -

Mobile Devices Market
Q: What drives high single-digit growth in mobile devices?
A: Our team has done a fabulous job, with content in products expanding. Innovations in connectors, antennas, and mechanisms contribute to growth. However, the market remains volatile and dynamic, and we are cautious in forecasting future quarters. -

Industrial Market Outlook
Q: Are there any further green shoots in industrial markets?
A: We saw some sequential growth, with strong performance in North America and Asia, but Europe has moderated due to challenges in demand, particularly tied to the automotive industry. Our team is navigating these dynamics and focusing on opportunities in other geographies. -

Andrew Acquisition Update
Q: Does earlier closing mean no antitrust issues?
A: We never thought there would be any meaningful antitrust issues, but we're encouraged by how the process is going, allowing us to expect closing in the first quarter instead of the first half. -

Managing Cycles and AI Investments
Q: Can AI investments scale to other markets, and how do you prepare for slowdowns?
A: Our culture emphasizes agility and flexibility, always looking to expand technologies into new applications. We maximize performance during strong cycles and moderate impact during downturns, ensuring stability across market fluctuations. -

Aerospace Guidance and Strike Impact
Q: Does aerospace guidance include strike impact?
A: Our guidance incorporates all information from customers, including any impacts from ongoing strikes in the aerospace market. -

Organic Orders by Verticals
Q: Comment on organic orders and vertical strengths.
A: We don't specifically discuss organic orders by verticals. Our book-to-bill reflects the total performance, including acquisitions, and we focus on overall execution across all businesses. -