Rob Jamieson

CFO confirmed unchanged priorities: organic investment first (capacity and R&D for AI markets), then balance buybacks and M&A. Immediate M&A focus on capturing value from recent acquisitions while rebuilding deal pipeline.

CEO confirmed still largely US hyperscaler-driven. Sovereign AI investments internationally and AI intersecting other business segments still ahead. Long-term acceleration of technology adoption expected to continue.

CFO expects continued strong FCF conversion of non-GAAP net income. Some integration-related expense pressure in FY26 but relatively small proportion of total.

CEO noted physical layer portfolio refresh driving slight R&D increase with strong new product introductions over next 18 months. Software assets run above company R&D average; leverage expected in go-to-market and back office.

CEO noted 3GPP Prague plenary reinforced 5G-to-6G evolution. Customers exploring various 6G facets but rollout still years away. R&D activity will continue to grow.

CEO framed optical as complement to RF-EDA leadership. Power efficiency critical to customers. Both fit long-term direction and create synergies within existing portfolio.

CEO highlighted double-digit simulation business growth. ESI acquisition and potential Synopsys/Ansys add-ons bolstering presence. Software percentage may dip as core recovers but long-term upside remains.

CEO emphasized this is mission-critical testing, not just cable test. Interconnects are failure points in AI clusters. Software emulation for AI data center performance optimization also growing.

CEO noted Keysight has been agile with compliance and pivot; potential offset from companies reshoring from China to Southeast Asia.

CEO characterized government funding as incremental, not material. Keysight benefits more from R&D side and new logo attraction through go-to-market expansion.

Robert said industrial businesses are moving up with full-year growth as high as mid-single digits, semiconductor inspection strong while some life-science markets stay flat on China trade headwinds.

FCF expected over $1B again, targeting $1.1B. CapEx projected at $150M (up YoY). Investing in inventory (China supply chain hedging), germanium machining facilities. H1 slower, H2 catch-up.

George Bobb responded. Acquisition playbook: buy at reasonable valuations, improve. Qioptiq and MicroPact showing margin improvement. Also benefited from avionics spares and hi-rel semiconductor mix.

High-end oscilloscopes strong (auto, motor/power control for data centers). Internet traffic generators growing (1.6 terabit range). Protocol analyzers facing slower start in 2026 due to chip supplier delays, will even out through the year.

George responded. MV cameras and sensors both grew single digits in Q4. ISV expected up low single digits in FY2026. Semi mask/wafer inspection and electronic component inspection driving growth. X-ray/dental expected flat in 2026, no recovery built in.

Short-cycle performance is the swing factor. T&M and environmental showing growth. If short-cycle holds, high end achievable. Long-cycle visibility provides floor.

George Bobb: Protocol sales drove Q2 growth (PCI Express, high-speed communications). Oscilloscopes slightly higher (power/motor drive analyzers). Third consecutive quarter of YoY growth. Expected up low single digits for full year. AI-driven traffic growth benefits protocol business.

Buybacks only when stock significantly undervalued ($100 in 2015-16, $350-355 recently, stopped at $400). M&A always preferred over buybacks. Fixed-rate debt at 2.4% average, paying down would be suboptimal vs. market rates. Leverage heading to 1.2x by year-end, 0.5x by next year without action.

Oscilloscopes down, protocols up, Ethernet generators growing fast ($15M to $30M). Unique offering: protocol analyzers utilizing own oscilloscopes. Capital equipment sensitive to economic downturns. High-margin business.

Naga strongly affirmed that Nordson's precision dispensing is a cost-savings proposition in inflationary environments, material savings, efficiency, and application help when customers switch materials.

Dan confirmed CapstanAG is ~$13M annual revenue with $5-6M incremental in H2. On semiconductor cycle positioning, Naga simply affirmed early stages.

CEO confirmed some but not significant exposure to traditional memory, noting Nordson would benefit from any capacity additions in the memory space.

CFO identified medical as stable mid-single-digit (limited upside), with general industrial/automotive inflection and continued ATS strength as the key drivers to the high end. CEO added ATS lumpiness from customer delivery timing as a wildcard.

CFO identified two bridges: stronger organic growth above 3.5% midpoint and potential acquisitions not factored into current guidance. Noted the 10-12% long-term target includes both organic and inorganic contributions.

CFO confirmed working capital improvements are sustainable with additional opportunity ahead, calling it a targeted focus area with teams doing strong initial work that positions for continued strong cash flow.

CFO confirmed CapEx increase unchanged from guide, overweight toward HST. No one or two big ticket items; spread across variety of businesses. Allowing more growth CapEx to support demand. Still relatively low intensity. CEO added 8020 helps by freeing capital from pruned business lines to fund faster-growing applications.

CEO highlighted space and defense as top opportunity with IDEX positioned from beginning. Optics technologies tie naturally to the space. MSS platform provides jump-off point into virtually every advantaged market. Continuing to expand through bolt-on tuck-in M&A. Increasing presence enables bringing in additional capabilities.

CEO outlined three inputs for 2026: base industrial entitlement from bellwether monitoring, pricing dynamics dependent on policy, and momentum across five growth platforms. Two of three inputs are externally driven. Looking for signs of inflection through Q4.

Burns said venture investments are small but keep pulse on machine vision and physical AI innovation. ISV relationships, Qualcomm, Google, and channel partners form a critical ecosystem. Frontline AI Suite meets customers at any point in their journey, Enablers for self-build, Blueprints for packaged solutions, Companion for full applications. Won new T&L proof-of-delivery opportunity. Still early stages with multiple customer pilots.

Burns confirmed no actual delays or pushouts, just lower visibility than usual at this point. More trade policy clarity would help unlock customer confidence.

Winters quantified Photoneo as approximately 30bps of incremental revenue for the year, a small addition relative to the total portfolio.

Strong pipeline with variety of deal sizes across existing end markets. Over $2B capacity. Plans to use operational excellence and M&A capability together to differentiate performance over next few years.

Corrected characterization from short-cycle to mid-cycle. Upward trend established. Automation, medtech, and A&D all solid. Too early to guide 2026 but momentum is clear.