Versigent PLC Ordinary Shares

Good day, and welcome to the Versagent's Q1 earnings call. Today's conference is being recorded. At this time, I would like to turn the conference over to Annalisa Bloom. Please go ahead.

Thank you, and good afternoon, everyone. I'm joined today by Joe Liatini, our Chief Executive Officer, and Doug Osterman, our Chief Financial Officer. Today's call includes forward-looking information reflecting our current view of future financial performance and may be materially different for reasons that we cite in our Form 10Q, earnings materials, and other filings with the Securities and Exchange Commission, including the risk factor section of our registration statement on Forms 10 and 12B and A, filed on March 6, 2026. Our guidance reflects management's current expectations and should not be relied upon as a guarantee of future performance. We undertake no obligation to update these statements except as required by law. We may also reference non-GAAP financial measures during the call. Reconciliations to the most directly comparable GAAP measures are included in today's earnings release and are available on our investor relations website. I will now turn the call over to Joe.

Thank you, Annalisa, and good afternoon, everyone. Today marks an important moment On April 1st, we entered the public market with clarity about who we are, how we compete, and how we create value. Versagent launched from a position of strength, generating close to $9 billion in annual revenue, not as a concept, but as a scaled, profitable, and disciplined business. And I'm pleased to be here speaking with you today on our first earnings call as an independent company. Before we get into the numbers, I want to take a moment to thank the hundreds of customers, thousands of suppliers, and our incredible employees nearly 140,000 of them around the world, who made this historic moment possible. As we begin, I want to take a moment to outline how we will spend our time this afternoon. I'll start by describing what Versigent does and the problem we solve, then walk through how our business model drives sustained growth and margin expansion, outline our strategic imperatives as a standalone company, and then provide a brief update on how the first quarter unfolded. Doug will then walk you through the financials in more detail. As a reminder, the financial information we will discuss today reflects results from a period when Versagen operated as part of Aptiv and is presented on a carve-out accounting basis. Versagen exists to solve a challenge that is intensifying across many sectors, including mobility, industrial, and energy systems. Today's innovations are trading products with more autonomy, more connectivity, and more features, resulting in increased power demands increased sensing capabilities, and much more sophisticated and complex products. Customers need to deliver these innovations while still finding ways to reduce complexity and create productivity opportunities. That's where Versagent comes in. Power and data distribution are critical to unlocking advanced functionality. It is the nervous system of modern products, and that shift plays directly to our strengths. At its core, Versagent designs, manufactures, and delivers low and high voltage power, signal, and data distribution architectures. Each architecture is unique. These advanced systems connect and power the critical components that enable modern vehicles and equipment to function safely and reliably. Increasing complexity means these architectures must be carefully designed early, optimized holistically, and executed consistently at scale. That is where Versigent operates. What differentiates Versagent is not just scale, but how we apply it. Our systems are embedded in design of leading OEM programs globally, and we work with every major auto manufacturer, including growing automotive leaders in China. More than 75% of our revenue comes from solutions our engineers influence, often early in the program lifecycle when architecture decisions matter most. While Versagent is often categorized alongside other automotive suppliers, We operate as a highly engineered, design-driven company supported by an intelligent and proprietary design and engineering tool suite. These tools allow us to model, simulate, and optimize complex electrical architectures, helping customers reduce weight, cost, and risk, while accelerating development and improving quality and the efficient manufacturability of these products. Importantly, they are deeply integrated into our engineering workflows. and customer engagements, creating a sustained competitive advantage. Our unique engineering capabilities provide expertise that differentiate us from others. As architectures evolve, simplified systems remove pass-through content such as copper and increase the value of optimization with elegant systems and digital design capabilities. That is where Versigent leads and why our new architectures are margin accretive over time. This shift toward greater capabilities plays directly into our operating model. We combine design influence, proprietary tools, discipline manufacturing, and automation to drive structural margin improvement through execution. Versigent is fundamentally resilient. Our growth is content-driven, supported by long-term secular tailwinds, including electrification, connectivity, and software-enabled functionality. We are platform agnostic. whether customers deploy ICE, hybrid, or battery electric architectures. The complexity of these programs continues to rise, and versagent benefits. We also see attractive opportunities beyond automotive. Adjacent markets face many of the same pressures we already solve for, more content and features, greater reliability, and tighter tolerances. We are approaching these adjacencies selectively, extending proven capabilities into areas such as commercial vehicles, energy storage, and selected industrial applications without changing our operating model, our execution discipline, or our technical expertise. As we begin this next chapter, Versagen enters the market with clear priorities. Strengthen our market leading position by leveraging our full service capabilities. Continue optimizing our cost structure through automation and footprint discipline. Deliver consistent financial results through execution. allocate capital in a disciplined manner to drive long-term shareholder value. These priorities reflect how we operate as an independent company, focused, accountable, and execution driven. With those priorities as our foundation, the first quarter provided clear evidence of how they are taking shape in the business. The progress we delivered across launches, customer wins, and quality reflects disciplined execution and reinforces our positioning with leading OEMs and global programs. During the first quarter, our teams executed across a broad set of programs globally with a high level of launch activity and complexity. We successfully delivered multiple launches across regions and programs, including complex premium and high-content vehicle programs requiring advanced electrical architectures in close coordination with OEM engineering teams, all with stable ramps with more than 99% quality and more than 99% on-time performance. We also continue to build go-to-market momentum through new program wins and extensions with leading OEM customers. These awards span regions and programs and reflect continued demand for Versagen's low and high voltage solutions as electrical content and system integration requirements increase. Quality and delivery remained a clear differentiator in the quarter. Customer recognition and quality awards reinforced Versagen's reputation as a partner that executes consistently. particularly on complex global platforms where reliability and performance are critical. In addition, we made tangible progress in non-automotive markets, beginning on an energy-related power program. This program expands our served applications beyond traditional vehicle architectures while leveraging the same engineering, manufacturing, and systems capabilities that underpin our automotive leadership. Together, these execution outcomes the volume growth achieved in the quarter and demonstrate how our priorities are translating into results. From a financial standpoint, the quarter was a strong start to the year for Versagen. Revenue increased 9% year-over-year to $2.2 billion, with 3% adjusted growth, adjusting for foreign currency and commodity pass-through, reflecting solid underlying volume performance across the business. Doug will walk through the financial details in more depth. but at a high level, the results reflect strong execution and demand across the business. In addition, we had a strong start to the year, with 2.6 billion in new bookings this quarter, and the start of 24 new programs, putting us on track for the most new major launches in our history, including the production on an energy storage program. Regionally, performance was strong in the Americas, where adjusted growth was 6% year over year. supported by higher volumes on key programs and new business wins. In Asia Pacific, adjusted revenue growth of 12% was driven by new platform launches, including the Greenfield program in India, and continued momentum with both global and regional OEMs. In EMEA, revenue was down 12% on an adjusted basis, consistent with a softer production environment. though we continue to see progress through incremental program wins and successful launch of a premium vehicle mid-cycle refresh. Overall, the regional results reinforce the strength of Versagen's global footprint and customer relationships, with the volume growth driven by launches, program execution, and expanding content on key programs. Taken together, the quarter reflects a solid operational and financial performance as we move into the rest of the year and reinforces our confidence. As Versagen enters the next phase, we do so to unlock greater value. We are highly engineered, globally scaled, and cash generative industrial company, supported by clear priorities, strong execution capabilities, and disciplined capital allocation. With that, I turn the call over to Doug Osterman, our Chief Financial Officer, to walk through the financial details of the quarter and our outlook for 2026.