Earnings Outlook
Q: What drives record earnings confidence?
A: Management highlighted that secular growth, emerging high‐value demand, and a recovery in the electronics market underpin their confidence in record earnings, even with FX headwinds.

Margin Drivers
Q: What drove Q2 margin improvements?
A: Management explained that improved margins were driven largely by a favorable mix and modest cost deflation—with mix contributing most of the benefit—resulting in strong incremental margins.

Free Cash Flow
Q: What underpins H2 free cash flow?
A: Management expects free cash flow in the range of $280–300M, primarily influenced by working capital investments in Asia and a gradual stabilization in conversion later this year.

Semiconductor Long-Term
Q: What is the long-term semiconductor vision?
A: The strategy focuses on advanced wafer-level packaging and semi-assembly, positioning the company to capture significant opportunities in emerging applications over the next 2–3 years.

M&A Focus
Q: What is the focus for future acquisitions?
A: Management described an opportunistic approach aimed at acquiring high-quality businesses that complement their current operations and can be integrated to enhance overall performance.

Power Electronics & Kuprion
Q: How will power electronics evolve with Kuprion?
A: By diversifying its customer portfolio in power electronics, management sees Kuprion enhancing its offering, thereby supporting long-term growth in the expanding EV market.

Smartphones & Seasonality
Q: How crucial are smartphones and seasonality?
A: While smartphones remain an important demand driver, emerging high-value applications are increasingly supporting growth, with the second half historically delivering a 5–10% seasonal uplift, particularly in Q3.

Electronics Organic Split
Q: What drove electronics organic growth?
A: Management noted that electronics organic growth was predominantly volume-driven with a positive mix effect, rather than price increases, reflecting strong underlying demand.

AI/Computing Impact
Q: How is AI influencing computing’s mix?
A: Management highlighted that computing-related content, including data storage and AI elements, is growing disproportionately and is expected to capture a larger share of the mix over time.

Semi Business Performance
Q: How are wafer-level and assembly segments performing?
A: Management observed robust, high-single-digit to double-digit growth in wafer-level packaging, while the semi-assembly segment—related to power electronics—was softer but is anticipated to accelerate in the near term.

EBITDA Guidance
Q: What is the H2 EBITDA quarter split?
A: Management expects roughly $140–145M in Q3, with the remaining balance of EBITDA materializing in Q4, subject to smartphone market dynamics.

Price Cost Impact
Q: What is the outlook for H2 price cost?
A: Management anticipates that the favorable cost deflation experienced in Q2 (approximately $3–4M savings) will become neutral in the second half as year-over-year benefits taper off.

Organic Growth Divergence
Q: Why is Circuitry outperforming assembly?
A: The strong performance in the Circuitry segment is driven by high-margin, emerging applications like AI and EV, whereas assembly is impacted by a sluggish industrial market.

Smartphone Margins
Q: Will new smartphones boost margins?
A: Management expects that emerging, AI-enabled smartphone and related device refreshes will improve margins through both higher unit volumes and enhanced product mixes.

CapEx Priorities
Q: What are key CAPEX initiatives?
A: The focus is on strategic investments—such as a $15M capacity expansion in power electronics and the development of R&D capabilities in key regions like India—to support sustainable long-term growth.