Nova Ltd.

Good day and welcome to the NOVA LTD fourth quarter and full year 2025 financial results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Mary Sagal, CEO of MSIR. Please go ahead.

Thanks, Operator, and good day, everyone. I would like to welcome all of you to NOVA's conference call. With us on the line today are Gabby Weissman, President and CEO, and Guy Kisner, CFO. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forelooking statements, and the Safe Harbor Statement outlined in today's earnings release also pertains to this call. If you have not received the copy of the release, please view it in the investor relations section of the company's website. Gabby will begin the call with a business update, followed by Guy with an overview of the financials. We will then open the call for the question and answer session. I will now turn the call over to Gabby Weissman, NOVA's President and CEO. Gabby, please go ahead.

Thank you, Miri, and thank you all for joining us today. I will start the call by summarizing our fourth quarter and full year performance highlights. Following my commentary, Guy will review the quarterly and annual financial results in detail. 2025 was an exceptional year for Nova, delivering record performance across our business and strong execution in a rapidly expanding semiconductor landscape. We delivered record annual revenue of $880.6 million, up 31% year-over-year, along with record gap and non-gap profitability, with earnings per share growing 29% year-over-year. Fourth quarter revenue exceeded the midpoint of our guidance, reaching $222.6 million up 14% year over year. This performance highlights the depth of our portfolio, solid customer demand, our leading market position, and our disciplined operational focus. It underscores NOVA's strategic alignment with key vectors in the industry and strengthens our foundation as we move into another year of growth. We entered 2026 with a robust investment cycle translating into accelerating demand for leading-edge nodes and steady investments in mature ones. It has manifested in capacity additions, higher yield pressures, and a need to maximize device performance. Rising design complexity is increasing the number of process steps and accelerating adoption of new integration methods such as backside power delivery and hybrid bonding. Coupled with faster time to market and yield requirements, it is broadening the need for precise metrology. Some manufacturers have already announced an increase in CAPEX plans, contributing to the positive outlook. We are confident that our operational agility, flexibility, and grit enable us to address our customer needs. An emerging segment fueled by the AI area is silicon photonics, a technology that uses light photons instead of electrons to transfer data, enabling ultra-fast data transmission at lower power consumption. It requires very high accuracy measurements of optical structures, such as waveguides and modulators, necessitating precise alignment and 3D characterization, which opens new opportunities for NOVA. These market and technology dynamics are reinforcing our strategic alignment with the fastest growing and most technically demanding segments of our industry. We are engaged with our customers to address their high value challenges and are well positioned to capitalize on the opportunities they pose. We expect positive momentum to propel our performance in the coming quarters. One of the highlights of the fourth quarter was when a global leading logic customer selected Nova's integrated metrology portfolio for CMP applications across gate-all-around processes. Following a comprehensive evaluation, the customer adopted our full CMP product suite, extending their earlier backend deployment into front-end high-volume manufacturing. Multiple orders have already been placed for 2026, with additional orders expected as capacity ramps. This win reflects our close collaboration with customers to accelerate time to market, support the technology roadmaps, and enhance yields. Another highlight is our services organization delivering record quarterly and annual revenues. This performance was driven by capacity installation, adoption of our value-added services to support yield improvement, and a focus on shifting from time and materials towards annual service contracts. We are especially proud that our teams earned multiple service excellence awards from leading customers in Asia, underscoring our deep commitment to customer success. Nova's growth this year was broad-based. In gate all around processes, we are now firmly established as a foundational partner in the industry's transition to next-generation architectures and expect to see demand increase further in 2026. In advanced packaging, revenue rose more than 60% year-over-year, representing approximately 20% of product revenue. We saw strong traction across both dimensional and chemical metrology platforms and broad adoption of our dedicated products. And in memory, we saw record results driven primarily by DRAM applications where manufacturers expanded adoption of the materials and chemical metrology offering. NOVA's advanced metrology solutions secured multiple strategic qualifications across leading global manufacturers, reinforcing our position as a trusted partner for next-generation technology inflections. A few examples include the Ellipson Materials Metrology Solution, which was selected as tool of record by a leading foundry for advanced gate-all-around production and recent adoption of the Matrion platform for gate-all-around as well as advanced Friedenand and DRAM device manufacturing. At the same time, ANOVA WMC optical metrology system gained traction in advanced packaging and high bandwidth memory. On the technology front, We continue to invest in R&D, including a novel metrology solution that leverages our optical and materials metrology core competencies, amplified by NOVA's unique strengths in modeling and signal analysis. This new solution is designed to address emerging challenges associated with technology inflections such as gate-all-around, CFET, and advanced memory. NOVA's unique strengths in physical and AI-driven modeling will come together in this new solution, enabling precise measurement of individual nanoscale structures, improved parameter de-correlation for complex architectures, and coverage of critical gaps left by existing metrology technologies. Looking ahead to 2026, we are entering the year with increasing confidence in the market environment. we see favorable trends across logic, advanced packaging, and memory applications. Current order patterns point to another growth year for Nova, with momentum expected to build through the first half and accelerate in the second half of the year. Our priorities for 2026 remain clear. Continue to expand our leadership in advanced nodes, proliferate our materials metrology platform, deepen our share in advanced packaging ecosystem, and scale our operations to support increasing customer requirements. To that end, we are strengthening our operational foundation for the next phase of expansion, including the launch of a new state of the art ERP system to manage growing volume of business with greater efficiency and scalability. We are also expanding our global manufacturing footprint by building new production capacity in Asia, enhancing cost efficiency, while positioning us closer to key customers and supply chain partners. We remain focused on executing with discipline, capturing opportunities, and outperforming WFC. I'm thankful to our employees for their dedication and commitment, and to our customers and partners for their trust in NOVA. For more details on the financial Let me hand over the call to Guy.