Detailed Narrative
CFO Transition and Continuity
Bernie Blegen announced his retirement after 15 years at MPS, including 10 as CFO, marking his 40th earnings call. Rob Dean, Corporate Controller for 9 years, will succeed him as interim CFO, continuing a company tradition of internal promotion to ensure continuity. Bernie Blegen will remain with the company to support a successful transition, and Rob Dean expressed gratitude and commitment to the company's growth.
Strategic Diversification and Innovation
MPS achieved its 14th consecutive year of growth in 2025, with full-year revenue of $2.8 billion, up 26.4%. This performance was driven by strong execution and innovation, particularly in non-Enterprise Data end markets, which grew over 40% year-over-year. The company is positioning for a shift to solutions, exemplified by sampling an 800-volt power solution for data centers and launching 48-volt and zonal architecture solutions for automotive, including a fully integrated 48-volt e-fuse.
Capacity Expansion and Supply Chain Management
MPS has secured over $4 billion in geographically balanced capacity and is continuously adding supply chain partners to support future growth and adapt to market changes. The company has established robust supply chain management for semiconductors, silicon carbides, gallium nitrides, and module components. This proactive approach addresses customer concerns about capacity constraints and ensures the ability to meet increasing demand, particularly in high-growth areas like AI.
Enterprise Data and AI Momentum
The company observed a significant step-up in ordering patterns in Q4 2025, with a book-to-bill ratio well in excess of 1, leading to backlog extending into Q2 and Q3 2026. This increased visibility has led to an upgraded 2026 Enterprise Data growth outlook to a floor of 50%, driven by numerous new design wins across multiple large customers for AI power supply solutions. The blurring lines between AI/GPU and traditional CPU data centers mean MPS is trending well in both categories.
Module and System Evolution
MPS is actively migrating its product offerings from silicon to modules and complete systems, aiming to provide higher value to customers by simplifying their design and manufacturing efforts. This strategy is expected to increase net profit and enhance company efficiency. The company has successfully adapted its R&D to incorporate new skill sets like digital engineering, software, and advanced packaging, maintaining efficiency while expanding its product portfolio.
Optical Transceiver and Automotive Growth Drivers
Optical modules have experienced significant growth over the past 1.5 years and are expected to continue expanding with the 1.6 ramp, contributing to the communications segment's growth in 2026. The automotive segment grew 43% year-over-year in 2025, with future growth anticipated from Zonal and 48-volt architectures, as well as ADAS, as carmakers adopt new technologies. MPS is engaged with carmakers to provide complete power supply chipsets and software.