Good, Dan. Thank you for standing by. Welcome to the Vachey Intertechnology First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you need to press star 11 on your telephone. You will then hear an automated message of eyes and your hand is raised. To withdraw your question, please press star 11 again. Please be advised, today's conference is being recorded. I would not like to turn the conference over to your speaker today. Peter Henrice, Head of Investor Relations, please go ahead.

Thank you, Kevin. Good morning and welcome to Visei Intertechnology's first quarter 2026 earnings conference call. I am joined today by Joel Schmeckl, our president and chief executive officer, and by Dave McConnell, our chief financial officer. This morning, we reported results for our first quarter 2026 a copy of our earnings release is available in the investor relations section of our website at ir.vishay.com this call is being broadcast live over the web and can be accessed through our website in addition today's call is being recorded and will be available via replay on our website during the call we will refer to a slide presentation which we also posted on ir.fiche.com you should be aware that during today's conference call we will be making certain forward-looking statements that discuss future events and performance. These statements are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. For discussion of factors that could cause results to differ, please see today's press release and appreciate Form 10-K and Form 10-2 filings with the Securities and Exchange Commission. We are including information in our press release and on this conference call on various gap and non-gap measures we have included a full gap to non-gap reconciliation in our press release and in the presentation posted on ir.cj.com which we believe will be useful when comparing our gap and non-gap results we use non-gap measures because we believe they provide useful information about the operating performance of our businesses and should be considered by investors in conjunction with debt measures. Now, I turn the call over to President and Chief Executive Officer Joel Smekoff.

Thank you, Peter. Good morning, everyone. We are excited that you have joined our Q1 earnings call to hear the further progress of BISHE 3.0. On today's call, I'll begin with a review of our first quarter revenue and business performance, and Dave will take you through a detailed review of our first quarter financial results and our guidance for the second quarter of 2026. After that, I'll update you on the strategic levers we are pulling under our five-year strategic plan, and then we'll open it up for questions. For the first quarter, we are reporting revenue of $839 million, above our guidance range of $800 to 830 million, 4.8% higher than the fourth quarter, and 17.3% higher than last year's first quarter. Revenue is growing across the board in all of our end markets, in all of our channels, and in all three regions. Increased consumption, inventory replenishment, and Viché market share gain drove a 5.8% increase in volume, with gains in both semis and passives. Many customer programs in multiple end markets have now started to ramp, while demand for AI-related applications remain strong. Industrial demand is accelerating. Order growth momentum was also broad-based, covering all regions, all channels, and in each of our technologies and in all end markets. Clearly, the Bechet 3.0 transformation and our growth strategy is working. The growth initiatives that began three years ago are paying off. To expand capacity of high-growth, high-margin product lines, we put heavy CapEx investment in place and added subcontractors for many technologies to increase our manufacturing flexibility and also to add part numbers to our product portfolio in semiconductors and passes. To move more closer to the customer, to listen to their product technology needs and their growth direction for Vashay to scale with them and to gain market share. To become a more technically supporting supplier with increased FAE involvement for design support and also to offer Vashay reference designs and solutions. Total company booked to bill at quarter end was 1.34, up from 1.2. For semis, book-to-build was 1.47, and for passives, it was 1.23. As a result, backlog increased 21% to $1.6 billion at quarter end, or 5.7 months. Customers are beginning to proactively place orders based on longer visibility. Some one-year forecast for Boucher to scale with them. We're also seeing customers building safety stock, like in Asia, for AI-related applications, as well as in all regions for automotive and industrial demand. Having positioned Bichet 3.0 to be a reliable supplier to more customers, to be a supplier with expanded capacity ready to scale with them, we intend to live up to our commitment of being a leading growth supplier. For this reason, we are intently focused on turning the backlog faster so that we participate in the market upcycle much more substantially and aggressively than in the past, while also maintaining competitive lead time. We have no intention of backsliding to the business approach of Bechet 2.0. Historically, at this point in the business upcycle, much of Bechet 2.0 capacity would have been sold out on allocation and with lead times longer than one year. And because it took too long to fulfill orders, Bechet missed repeat opportunities, and we were no longer a reliable supplier to the customers. Today, as the market upcycle takes hold, we are increasing quarter revenue at a steeper rate to drive margin improvement and realize enhanced returns on our capital investment. Today, OEMs and Tier 1s are collaborating with Viché on technology roadmaps and forward demand planning and giving us the opportunity to scale with them. Previously inactive and underserved automotive and industrial customers are placing orders with us, following our efforts to reconnect with them. So now let's turn to a review of the Q1 revenue, starting with revenue by end market on slide three. Automotive revenue increased 2.7% quarter over quarter, mostly reflecting solid OEM demand in the Americas and Europe. as customers continue to increase electronic content and start hybrid and EV programs. In Asia, revenue was weighed down a bit by Lunar New Year, and also customers had started to increase production in the second half of last year to get ahead of the U.S. tariffs. Order intake increased due to our Vachey 3.0 business approach to support the production ramp up of new vehicle programs in Europe and China and to be responsive to customer concerns about industry leading lead time. We're seeing a lot of success from our efforts to position Bechet with automotive OEMs and tier one. For example, Bechet is now the top supplier of resistors to multiple OEMs launching new EV platforms and we are committed to supplying these customers as they step up production each year through the planned peak in 2028. Design activity continued to focus on drivetrains for hybrid EV and ICE vehicles, ADOS, battery management, and electronic power steering systems, also smart cockpit. Industrial power revenue increased by 6.5% for the fifth consecutive quarter of sequential gains. Demand continued to grow primarily for electrical power transmission and power management, renewable energy and smart metering, factory automation, and security systems. In the Americas, customers are ramping up production for new projects, supporting AI infrastructure. And in Europe and China, we continue to supply smart grid programs. Bookings were up sharply in the Americas and Europe due to greater consumption and due to lower inventories, while customers increase efforts to establish supply assurance. In Europe, orders were exceptionally strong from smart grid customers for capacitors, and we won two new grid development projects in the UK. Design activity remained focused on power, power transmission, power management, power supplies for industrial servers, next-generation AI power supplies, power monitoring and control systems, high-voltage energy infrastructure, energy storage, and also smart meters. We're also working on designs for 800-volt power management for data centers and other applications. Aerospace defense revenue increased 14.1% versus Q4 and 16.8% versus last year's Q1 on strong demand from the U.S. government with spending approved to replenish munitions programs and with production ramping up in allied countries in Asia. With funding now available, U.S. defense contractors have just began to increase orders to support their higher demand, in particular for resistors, capacitors, and custom magnetics. Book to Bill in the Americas at quarter end was 1.4 and has continued to build in Q2. Design activity and the first production ramp-ups are beginning to drive an increase in orders from Europe and continued order intake in Asia. As countries expand defense budgets and as new multi-year programs start this year, we see a long run to drive growth in this end market. On the design front, we are focused on U.S. Department of Defense programs involving drones, low-Earth orbit satellites, radar systems, next-generation communications, and hypersonic missiles. Healthcare sales increased 4.5 percent quarter over quarter and 11.1 percent year over year on demand from long-standing customers, particularly in the Americas. We are continuing to see success from our efforts to leverage the breadth of our portfolio, cross-selling semis and passives to these customers. Much of the design work here during the quarter remained around wearables, patient monitoring and implantables such as cardioverter defibrillators and micro implantables for glucose and temperature monitoring. In the other category, which includes telecom, computing, and consumer, revenue overall was flat versus Q4, but up 25.8% versus last year's Q1. Demand in China for AI-related applications was flat, reflecting the impact of the Lunar New Year and some shipments that were pulled in into Q4. However, we did continue to receive orders for quick delivery in Asia, mainly for high voltage MOSFETs used in AI power applications. Customers are continuing to add our passive technologies in AI power management solutions, including polymer capacitors, power inductors, and current sense resistors. We keep sharpening our design components while continuing to work on the next-generation design opportunities in the areas of server power, optical communication modules, and in high-bandwidth network switches. With the Viché 3.0 expanded capacity, we are seeing demand from telecom and consumer customers, which Viché did not historically support in volume. For example, in the Americas, we are seeing increasing activity from telecom customers supporting AI optical communication network switches, both 800 gigabits and 1.6 terabits. In Europe, telecom sales increased 33%, with customers forecasting higher demand for 2026 versus 2025. Demand is also tied to 5G expansion, and we're starting to receive requests for components for 6G networks. Let's turn to slide four for a review of Q1 revenue by channel. OEM revenue increased 7.1% and 14.4% over Q1 last year. Strong shipments to large automotive, medical, aerospace defense customers were the primary drivers of this increase, along with some high demand from industrial OEMs in Europe. Sales from OEMs in China declined due to the impact of Lunar New Year and shipments, again, that were pulled into Q4. EMS sales grew 14% versus Q4 and 21.6% versus Q1 last year. This increase demonstrates the success of our strategy to leverage our expanded capacity to maintain competitive lead times and reliable supply. Then we can enjoy demand momentum from more aerospace defense and industrial and customer business. EMS is now the fastest growing channel in Europe and booked a bill in the Americas through 1.45 at quarter end. Sales to distribution were up 2.2% on volume gains in each region while up 18.9% year over year. Distribution is seeing higher consumption from industrial, transportation, and aerospace defense customers. They also see inventory replenishment by some of their end customers. The pace of bookings growth picked up in the Americas and Europe. In Asia, distributors are increasing backlogs in anticipation of further demand growth, lead time extensions, especially for AI-related products. Distribution inventory overall decreased to 20 weeks at quarter end from 22 weeks, and POS increased 10.7% and 24.9% versus Q1 last year, with growth in each region. You may recall over the last two years, we were deliberately increasing our SKU count and inventory levels at the distributors, resulting in an increase in inventory to our target of 26 weeks in Q1 of 2025. This inventory has supported strong demand led by Europe, with some customers now replenishing inventories as business conditions improve. The Americas saw a sharp increase in POS as consumption increased in industrial, automotive, aerospace defense, and medical segments. In Asia, POS increased for industrial power and strong demand for AI products. Customers are increasingly turning to distribution for supply assurance and to meet short-term needs. Turning to our geographical mix on slide five, Europe-led revenue growth for the quarter, increasing 15.3%, and the Americas grew 8.6% due to significant aerospace defense demand for capacitors, in addition to strengthening industrial demand. In Asia, revenue grew, excuse me, revenue fell 4.9%, primarily during the impact of Lunar New Year, offset in part by strong AI product demand. Before turning the call over to Dave, I'd like to thank the Bichet employees for their hard work to achieve the quarter's strong results and for their commitment to driving revenue and profitable growth as the industry's recovery continues to gain momentum. But Shade 3.0 has firmly taken hold across the organization and with our external reps, everyone is aligned with our new business approach and energized to increase customer engagement. Dave, I'll now pass it over to you.

Thank you, Joe, and good morning, everyone. Let's start a review of the first quarter results with the highlights on slide six. First quarter revenue was $839 million, exceeding our guidance range and increasing 5% sequentially, driven by strong volume growth of 6% with only a 1% decline in average selling prices. Compared to the first quarter of 2025, revenue increased 17%, driven primarily by a 14% increase in volume. Favorable foreign currency, mainly from the euro, provided an additional 4% benefit, partially offset by a one percent decline in average selling prices. Moving on to the next slide presenting the income statement highlights. Gross profit was $177 million, delivering a gross margin of 21.0 percent and exceeding both our guidance and the prior quarter. Higher volumes drove margin expansion, helping to offset ongoing metals and material cost pressures. We exited the quarter with Newport at gross profit neutral. Depreciation expense was $55 million, relatively flat versus quarter fourth. SG&A expenses were $154 million compared to $142 million for the fourth quarter and in line with our guidance. The sequential increase is primarily due to higher stock and bonus compensation expenses. GAP operating margin was 2.6% compared to 1.8% in the fourth quarter and 0.1% in the first quarter of 25. EBITDA for the quarter was $78 million for an EBITDA margin of 9.3% up from 8.8% in the fourth quarter. Our GAP effective tax rate remains elevated at low levels of pre-tax income, as items such as U.S. taxation of foreign earnings and repatriation taxes have a disproportionate impact on the effective tax rate. Q1 tax expense exceeded our guidance range as pre-tax earnings exceeded expectations. Gap earnings per share was $0.05 compared to $0.01 per share in the fourth quarter, and a loss of $0.03 in the first quarter of 25. Moving on to slide 8, provides a summary table detailing revenue, gross margin, and book-to-bill ratios across our reportable segments for quick reference. As a reminder, Newport's results are reported in the MOSFET segment's gross margin. All reportable segments delivered revenue growth quarter over quarter, except for inductors, which was relatively flat. Turning to slide 9, our cash conversion cycle. In the first quarter, our cash conversion cycle improved to 116 days from 125 days in Q4, in part due to our continued disciplined working capital management. In addition, during the quarter, we further utilized our accounts receivable securitization program as a means of providing efficient funding to support our immediate 12-inch FAB equipment purchase needs, which contributed to our DSO improvement from 48 days in Q4 to 41 days at the end of quarter one. Inventory days outstanding improved to 106 days due to increased volume in sales. Overall inventory increased to $791 million. Finished goods were relatively flat, while raw materials and WIP increased due to the impact of rising metal prices. And we've built buffer stock to ensure supply to our customers given geopolitical uncertainties. Continuing to slide 10, you can see we generated $64 million in operating cash for the first quarter, which included an additional $63 million from the securitization of our accounts receivable. We continue to deploy cash for capacity expansion projects. Total cap X for the quarter was $111 million, including approximately $87 million for our new 12-inch fab in Germany. On a trailing 12-month basis, capital intensity was 10.1%, which is a decrease from the 11.3% in the prior year. Free cash flow for the quarter was negative $47 million, reflecting the high cap X, compared to $55 million in the fourth quarter. Stockholder returns for the first quarter consisted of our $13.6 million quarterly dividend. We did not repurchase any shares during the quarter. At the end of the quarter, our global cash and short-term investment balance was $480 million, and we remain in a net borrowing position in the U.S. with $250 million outstanding on our revolver. As discussed in the past, dividends, any share repurchases, and required debt service are funded through available U.S. liquidity sources. We have $307 million accessible on our revolving credit facilities at the current EBITDA levels. We expect to continue to draw on our revolver to fund U.S. cash needs. Moving on to the guidance on slide 11. For the second quarter of 2026, revenues are expected to be between $875 and $905 million. First margin is expected to be in the range of 22.0% plus or minus 50 basis points, inclusive of increased logistics costs and expected continuing higher input costs, specifically higher metals and material costs, as well as inefficiencies due to ramping up of new direct labor heads. Depreciation expense is expected to be approximately $54 million for the second quarter and $216 million for the full year 26. As G&A expenses are expected to be $155 million, plus or minus $3 million, we're continuing to invest in R&D and customer-facing activities as the overall business environment improves. Our GAAP effective tax rate remains elevated at low levels of pre-tax income or loss. We expect the effective tax rate to become more predictable and in the range of our historical average as earnings grow. For the second quarter of 26, we expect effective tax rate to be between 40 and 50%. Finally, our stockholder return policy calls for us to return at least 70% of our free cash flow to stockholders in the form of dividends and stock repurchases. For 2026, we once again expect negative free cash flow due to our capacity expansion plans. I'll now turn the call back to Joel.

All right. Thank you, Dave. Let's turn to slide 12 for an update on the strategic levers we're pulling as we execute our five-year growth plan and set the stage for Bichet's future growth. Slide 12. We are holding to our CapEx plan to spend between $400 million and $440 million during 2026. As a reminder, about half of this year's spend is allocated to the investments we are making at our 12-inch fab in Germany. Nearly all of the 12-inch fab investment will be spent during the first half of 2026, at which point we will reach the capital intensity peak of our five-year capacity expansion plan. Starting with semiconductor projects at our Newport facility, we continued to ramp up wafer production, and we completed four audits with Tier 1 automotive customers as planned. and have two additional side audits planned for Q2. Following these side audits, the automotive customers need to approve their programs using the Newport MOSFETs. At our 12-inch fab in Germany, we've started to install equipment during the quarter and plan to finish in the second quarter. Our goal is to start non-automotive production in mid-2027. At SK Key Foundry, we are working towards releasing two products to production in the third quarter, which will add capacity to meet demand for AI-related application. To supplement our investments in capacity expansion, we qualify two additional subcontractors, one for rectifiers and the other for aluminum capacitors. Through the subcontractor initiative, we continue to place more part numbers on distributor shelves to increase our share of our customers' bill of materials. Turning to our silicon carbide strategy, we released to production the 750-volt Gen 2 planter MOSFETs, both the automotive and industrial platforms. We also plan to release the 1,700-volt platforms over the next couple of quarters. With respect to the 1,200-volt trench MOSFET, which we released last quarter using an external fab, we have now started to set up Newport to be an 8-inch wafer fab for silicon carbide. Our Q2 guidance reflects the broadening opportunities we have created for Bechet through the strong execution of our growth levers and the increasingly positive direction of our high growth and markets. We are doing what Bechet 3.0 was designed to do, to position Bechet to serve more customers, take full advantage of markets' upcycles, and lay the foundation for long-term revenue and earnings growth. With the strengthening book-to-bill and increasing rate of revenue growth, we are showing that we are participating much more so than in the past in the demand momentum leveraging our capacity investment to drive margin expansion and enhance returns. Kevin, we're now ready to open the call for questions.

Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press star 11 on your telephone. If your question has been answered or do you wish to move yourself from the queue, please press star 1-1 again. We'll pause for a moment while we compile our Q&A roster. Our first question comes from Rupu Bhachar with Bank of America. Your line is open.

Hi, thanks for taking my questions. Joel, I have two or three questions. First one is on the current quarter that you just reported. In automotive, did you see benefit from share gains against Nexperia, Xperia and how much was the benefit from that in the quarter? And one on margins, did the Newport fab, was that still a negative and what was the impact on gross margins in the quarter? And I think you heard that it's gotten to break even. So are we expecting any negative impact from that

fab in the second quarter? Hi, Ruklo. Could you repeat your question? We missed out on the first part the second half was perfectly clear okay sure just the question was that for

the current reported quarter in the automotive segment did you see any share gains against the next area and how much was a revenue how much did revenue benefit from such share gain and then on margins was the newport fab still a negative to gross margins and how much was the

the impact in the quarter? Regarding the share gain, yes, we're gaining share. We've been working very closely on automotives as well as OEMs to make sure there's multi-sources on programs where there may have been previously. There is share gain. We continue to position supplying product out of it's a hope and these qualifications that we speak about in newport are also driven by that the four side audits that we had in q1 are driven because of the expansion of newport but also further share gain to support those automatic automotive accounts then two more audits coming in Q2. So I would say we gain share based on sites we were approved, and we're going to gain more share as we get Newport approved on these programs to become an additional source on their bill of materials from sole source. Second part of the Newport profit. Go ahead.

I'll take that one. So at the end of the last quarter, we had said we would exit the quarter as something close to neutral, right? So we can say that our gross profit is neutral exiting the quarter. But obviously, January, February, we still had costs, okay? So it's not zero for the first quarter and the results. The issue, not the issues, but the item that we've talked about is that the Newport results themselves now are commingled with the rest of Viché, right? We have back end elsewhere in Viché. We have other costs we're adding. So the Newport costs by themselves are not so easily separated anymore. So we're going to stop giving specific guidance on the Newport impact and talking generalities, okay? As Joel said, going in second quarter, I think your question to follow up was that we need the automotive

qualifications to fill the fab, right? Okay. Okay. That's helpful. Just going back to the 2024 analyst day, right? If we look at your five-year plan that you presented at that time, Between 2023 and 2028, you had an expectation of growing revenues at the 10% CAGR at the midpoint, I think, and then getting to gross margin of 31% and off margin of 20% at the midpoint. And that would imply something like $5 plus EPS. Given that you're at breakeven now at Newport and markets are improving and you have a healthy backlog, Joel, can you tell me, like, are those targets still reasonable? Can you still do like five and a half billion of revenue in with the footprint that you now have or that you've planned till 2028? And what is like, are those margin expectations valid and should investors think that you can do that kind of earnings?

Yeah, the targets are still there. Those are the targets. The timing of the targets was impacted by the inventory digestion that took longer into the first quarter of 2025, and then it was followed quickly thereafter by Liberation Day tariffs. So, Ruplu, the book-to-bill that we saw in Q4 of 1.2 and now the book-to-bill of 1.34 is what we expected to see earlier in 2025. We're confident in our position. We have the capacity in place and being approved. We talk about Newport. We talk about the 12-inch fab coming on board. So we're moving to be able to have in-house capacity to increase our revenue on semiconductors, MOSFETs in particular. There's another step that's later called restructuring that is part of supporting the gross margin. The revenue, we are very, very confident the margin is going to be achieved following a restructuring project that is next after we get through this high CapEx investment. So to answer your question, yes, the target of revenue is still there. Gross margin, yes, still there. The timing of it is delayed a little bit because of inventory digestion and the tariff. Right now, we feel, as we said in the last call, 2026 is our quarter and our year to take off.

Okay. No, that's helpful. I appreciate the details there. And then, Dave, can I ask, you know, given this environment of potential share gains and growth and you're getting to break even and the Newport Fab, how should we think about capital allocation, right? I mean, how much, you know, you have a dividend. How should we think about increasing the dividend at the share price? I mean, how inclined are you to buy back shares? And then how should we think about CapEx as we go forward? Is there still, you know, some spend to be done? So just tell us how you, when you look out over the next 12 months, how you're thinking about capital allocation in all of these different buckets. Thank you. Thanks for taking my questions.

That's a good question. We've obviously started talking internally about this. I think as Joel mentioned, though, we still have some runway to go to finish our CapEx, right? And the cash is down to $480 million. After we're done with the insta-host spending, it's going to be lower than that. So we have to finish the FAB. We also have to pay for a restructuring plan. So I don't think right now at the share prices right now, we'd obviously be wanting to look at buying back stock the dividend is set the dividend won't be won't be touched whether the board decides to increase it or not is is a is still a decision to be made okay and then lastly you know we've been fairly quiet on the m a front the last couple years and that's unusual for us in our history so i think we would like to revisit some of the options possibly in that uh portion of the

allocation strategy. Okay. Thank you. One moment for our next question. Our next question comes from Peter Peng with JPMorgan. Your line is open. Hey, guys. Good job on the execution. Thanks for

taking my question. Just on the gross margin front, you talked about some of the higher material costs and also expedites. What kind of impact does that have on your second quarter

guide. So, that's a good question, Peter. Right now, what we have built into the 22 is our best estimate. I would say the material prices and the ASPs are pretty much cancel each other out.

Got it. Okay. And I think there's a lot of tightness in the passive side and then also on some of the AI must-set sides. And we've been hearing about, you know, pricing increases. And some of your analog and mixed air control appears are starting to, you know, increase prices. Wondering, how are you thinking about pricing for this year?

Peter, we started increasing pricing in the fourth quarter of last year, dependent on the metal impact product by product. We've got six main technologies. Some were impacted by metals more so than others. So we had price increases that were announced late fourth quarter, early first quarter, and then became effective based on the terms of contracts. So we had a small benefit of price ASP improvement in Q1. It was small. Q2 is better, Dave. The ASP in Q2, about 1.5% ASPs being effective in Q2, and then further effective in Q3. It was all about the timing. So we have raised pricing on a number of the technologies. it's announced, it's effective, and you'll see that improving in Q2 and Q3.

Got it. Perfect. Helpful. And then just on the AI data center, can you just level set us on what your total AI data center exposure is on both the semiconductor and then on the passive side, and what are kind of your expectations for revenue growth this year?

uh last year we said we were under a hundred million dollars and this year we'll be well above that i don't want to put a number on it at the moment there's some plot supply concerns by some of our competitors where we're gaining a nice step up in growth in 2026 semiconductors MOSFETs, diodes, for sure. And then the passives, as I mentioned, polymer tantalum, the current sense resistors, and magnetics products. So we're positioning. We are connected to the ODMs in Asia. We see the programs where Brashe is on the bill of materials, and we're enjoying business there. But we're also backtracking where we see programs that we may be missing a technology or two that's not on the bill of materials. We're backtracking to the design house to get Viché on the bill of materials. So there's a lot of work going multi-direction to make sure Viché is further increasing our participation in AI.

And then just a last question for me is, I think, was it 90 days ago, you guys still continue to see like see a mid to high single digit i think obviously things started to accelerate maybe if you can provide an updated view on what what are you thinking in terms of

industry growth for this year industry growth uh because of the multi-market segments we're in uh well over double digit growth in ai and that's going to continue to be very powerful segment and we see it's about quick delivery now who has competitive or leading lead times and product ready to go. So that's definitely high double digit there, maybe 20% for AI. That's going to grow. Automotive car count we see is pretty stable, but content's going up. So automotive mid-single digits. Industrial, we're seeing that above 10% with the product mix we have. Passives, we mentioned this a year ago. Passives was kind of leading the upturn. And I think this is what makes Viché unique, being a hybrid supplier of passives and semis. We were speaking about the industrial upturn in the fourth quarter of 2024, and we're realizing that quarter by quarter, the book to bill that we're seeing here is heavily supported by all segments, but industrial is a big part of it. Aerospace defense, that's going to be a high growth market segment as well. At this point, the orders for defense are just beginning to come in. So we've got a book-to-bill of 1.34 for the company, and the defense orders are in the very early innings. So that book-to-bill strength is, we're positioning ourselves to be even greater in gaining orders from the customers. And then health care. healthcare is positive for us because we've added more materials and that's mid single digit. So I think we see it broad based across the board. If you were throwing a number at it, it's high single digit overall. And our plans from the beginning have been to outgrow the market and gain

share. Perfect. Thank you guys. Peter, thanks. Nice talking to you. And I'm not showing any further questions this time. I'd like to turn the call back over to Joel for any further remarks.

All right, Kevin, thank you very much. Thank you to everyone for joining our first quarter earnings call. As I mentioned in the fourth quarter call, 2026 is the year for Vachey 3.0 to take off. We're invested heavily in expanding our capacity and moving closer, much closer to the customers. We're starting to realize the returns on our investment. Also, I want to mention that next week on the 18th, we will be at the J.P. Morgan Conference, 18th and 19th. We look forward to seeing any investors there. We'll talk to you again in August. Thank you again for following Viché, and we'll then report our second quarter results. Thank you very much. Have a nice day.

Thank you, ladies and gentlemen. That's going to conclude today's presentation. We thank you for your participation. You may now disconnect and have a wonderful day.