Universal Display Corporation

Good day, ladies and gentlemen, and welcome to Universal Display Corporation's fourth quarter and full year 2025 earnings conference call. My name is Sherry, and I will be your conference moderator for today's call. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Darius Liu, Senior Director of Investor Relations. Please proceed.

Thank you and good afternoon, everyone. Welcome to Universal Display's fourth quarter earnings conference call. Joining me on the call today are Steve Abramson, President and Chief Executive Officer, and Brian Millard, Chief Financial Officer and Treasurer. Before Steve begins, let me remind you today's call is a property of Universal Display. Any redistribution, retransmission, or rebroadcast of any portion of this call in any form without the express written consent of Universal Display is strictly prohibited. Further, this call is being webcast live and will be made available for a period of time on Universal Display's website. This call contains time-sensitive information that is accurate only as of the date of the live webcast of this call, February 19, 2026. During this call, we may make forward-looking statements based on current expectations. These statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. These risks and uncertainties are discussed in the company's periodic reports bond with the SEC, and should be referenced by anyone considering making any investments in the company's securities. The universe of the slave disclaims any obligation to update any of these statements. Now, I would like to turn the call over to Steve Abramson.

Thanks, Barris, and welcome to everyone on today's call. We are pleased to report record 2025 revenue of $651 million. Operating income was $249 million, and net income was $242 million, or $5.08 per diluted share. The results reflect strong execution across the business and the continued expansion of OLED adoption throughout the industry. Brian will share additional financial details shortly. In 2025, we continue to drive value as OLEDs proliferated across the consumer electronics landscape, including wearables, smartphones, tablets, laptops, monitors, and TVs. At the same time, we remain focused on the long term. We expanded our R&D efforts, strengthened our intellectual property framework, broadened our global infrastructure, and deepened engagement with customers across the OLED ecosystem. These investments are designed to support the next phase of growth for both the OLED industry and for us. As we look to 2026 and beyond, it's worth reflecting on how the OLED industry has evolved and how Universal Display has helped shape that evolution. For decades, the industry was largely centered around a single dominant architecture, single stack OLEDs. Universal Display has played a defining role in this technology's advancement. Our phosphorescent materials unlock higher efficiency, longer lifetime, and better performance, helping to enable OLEDs to scale into mass market products and transform display technology worldwide. Today, the OLED industry is entering a new phase, marked by broader applications, higher performance expectations, and a more diverse set of device architectures. We remain at the forefront of this evolution. Our materials and technologies continue to play a central role in OLED innovation, supporting scale and helping define the performance benchmarks that will shape the industry's next chapter. While single-stack OLED is the dominant commercial architecture today, the roadmap is becoming increasingly multidimensional. Performance targets continue to rise, and energy efficiency matters more than ever. New applications from foldable devices to automotive and IT displays introduce new requirements. As a result, multiple device architectures are now being explored and deployed across the industry, including tandem OLED structures, phosphorescentized fluorescents, or PSF-based approaches, and other emerging hybrid architectures. Across all these architectures, one element is foundational, the phosphorescent material. In PSF and other hybrid architectures, our phosphorescent materials are designed to work alongside fluorescent emitters within the OLED stack. This design helps balance efficiency, lifetime, and color performance while giving manufacturers greater flexibility in meeting application-specific requirements. As OLED structures grow more complex and efficiency demands intensify, our full-end materials, along with our long-term technology leadership and deep know-how, become increasingly central to enabling performance, scalability, and the next wave of OLED innovations. that leadership is grounded in decades of deep materials and device-level expertise, as well as a long history of exploring architectural concepts at the leading edge of technology. Early research included SOLID, our stacked OLED concept, as well as PSF-based architectures, which expanded our technical foundation. More recently, we completed the acquisition of intellectual property assets for Merck KGAA that included PSF and related OLED technology. Collectively, these efforts broaden our technology platform and expand the architectural design space within our portfolio as OLED design continues to evolve. At the core of our company is an R&D platform that has been built, refined, and scaled over decades. And today, that platform is more active and more critical than ever. Across red, green, and blue emissive layer materials, our pipeline is exceptionally robust. reflecting the expanding OLED industry roadmap. As applications proliferate and architectures diversify, the performance envelope continues to be pushed forward. Different form factors, different lifetime and efficiency targets all require continuous materials and device innovation. One of the most important evolutions in our R&D platforms is our increased investment in our in-house materials discovery, device modeling, and characterization capabilities. anchored by a deeply experienced R&D team. This hands-on foundation remains the engine of our innovation, whether advancing next-generation reds and greens or moving blue along the path to commercialization. In concert, AI and machine learning tools are emerging as powerful accelerators for our research engine. By combining AI-driven insights with our proprietary data, device expertise, and decades of OLED know-how, we can explore broader design spaces more efficiently, shorten development cycles, and make better, faster, smarter decisions about where to focus our efforts. Together, these capabilities strengthen our platform to support multiple architectures, customer roadmaps, and end markets, while continuing to push the boundaries of performance. One area where this platform approach is gaining particular traction is blue. With strongly growing interest in our phosphorescent blue, we are deeply engaged with multiple customers and collaborating across the industry to support multiple architectural and strategic paths. Our confidence in blue remains unwavering. Breakthroughs of this magnitude are rarely linear. Once adopted, we believe our phosphorescent blue can enable up to a 25% improvement in OLED panel energy efficiency, delivering a meaningful step change benefit for customers, consumers, and the industry. Looking ahead to 2026 and beyond, the opportunities for OLED continue to broaden. The market is evolving from being primarily mobile and TV-centric to more diversified landscapes. IT applications emerging as one of the strongest drivers of near and midterm growth. According to Omnia market research, global OLED shipments are projected to surpass 1.4 billion units by 2030, driven in part by accelerating adoption across tablets, notebooks, and monitors. OLED smartphone shipments are expected to grow from 810 million units in 2025 to 967 million units by 2030. while OLED IT shipments are forecasted to more than triple, from 27 million to 92 million units over that same period. In automotive, OLED is emerging as a strategic enabler of both design freedom and brand positioning. Adoption is gaining momentum along luxury OEMs and Chinese new energy vehicle manufacturers as displays play a growing role in shaping the in-vehicle experience. Omdia projects automotive Olin shipments will increase from 3 million in 2025 to 14 million units by 2030. At the same time, foldables are poised for renewed momentum as leading OEMs prepare to introduce a new wave of products. Olin-enabled form factor innovation is becoming a powerful catalyst for differentiation, expanding user experience and driving architectural advancements across multiple product categories. Market forecasts indicate that 2026 marks the beginning of a broader reflection point with foldable OLED unit volumes expected to increase more than 250% from 19 million units in 2025 to 71 million units by 2030. From a manufacturing perspective, the OLED industry has entered into a new multi-year phase of capacity expansion. Between year-end 2023 and year-end 2025, installed OLED capacity measured in square meters increased by approximately 10%. Looking ahead, we expect an additional 10% increase in installed capacity between the end of 2025 and the end of 2027, driven primarily by the introduction of Gen 8.6 capacity to support expanding IT and automotive OLED adoption. Importantly, 2026 marks a significant industry milestone, with the world's first Gen 8.6 OLED facilities, Samsung Display in Korea and BOE in China, entering mass production. As utilization tightens and new applications scale, we anticipate additional OLED FAB investment announced, further expanding industry capacity and reinforcing the long-term growth trajectory of all of us. On that note, let me turn the call over to Brian.