Q4 2024 Corning Inc Earnings Call

January 29, 2025

To introduce to you Ann Nicholson, Vice President of Investor Relations.

Speaker Change: Thank you and good morning, welcome to Corning's fourth quarter 2024 earnings call with me today are Wendell weeks, Chairman and Chief Executive Officer, and Ed Schlesinger Executive Vice President and Chief Financial Officer, I'd like to remind you that today's remarks contain forward looking statements that fall within the meaning of the private Securities Litigation Reform Act of 1000.

Speaker Change: 95. These statements involve risks uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the company's financial reports.

Speaker Change: You should also note that we will be discussing our consolidated results using core performance measures unless we specifically indicate our comments relate to GAAP data. Our core performance measures are non-GAAP measures used by management to analyze the business.

Speaker Change: For the fourth quarter, the differences between GAAP and core primarily reflected noncash mark to market adjustments associated with the Companys translated earnings contracts and Japanese yen denominated debt as well as constant currency adjustments and other noncash charges.

Speaker Change: As a reminder, the mark to market accounting has no impact on our cash flow.

Speaker Change: A reconciliation of core results to the comparable GAAP value can be found in the Investor Relations section of our website at <unk> Dot Com you May also access core results on our website with downloadable financials in the interactive analyst Center supporting slides are being shown live on our webcast. We encourage you to follow along they're also available on our web.

Wendell Weeks: Site for downloading and now I'll turn the call over to Wendell.

Wendell Weeks: Thank you Anne and good morning, everyone.

Wendell Weeks: Today, we announced fourth quarter and full year 2024 results.

Wendell Weeks: We had another outstanding quarter.

Wendell Weeks: We grew sales, 18% year over year to a record $3.9 billion and grew EPS, 46% to 57.

Wendell Weeks: We expanded operating margin by 220 basis points to 18, 5%.

Wendell Weeks: We also expanded return on invested capital of 390 basis points to 12, 7%.

Wendell Weeks: Additionally for the full year, we generated strong free cash flow delivering $125 billion for 2024.

Wendell Weeks: 42%.

Wendell Weeks: Overall.

Wendell Weeks: These results capped off.

Wendell Weeks: Terrific first year of springboard.

Wendell Weeks: So I want to review our performance in the context of our springboard Plaid.

Wendell Weeks: As we've laid out for you we are pursuing growth across the company of $8 billion in annualized sales run rate by the end of 2028.

Wendell Weeks: Driven by the convergence of upward cyclical and secular trends in our markets.

Wendell Weeks: And we've taken this internal non risk adjusted plan and created a high confidence plan for investors.

Wendell Weeks: First we focused on a three year time period, which reflects a $5 billion non risk adjusted opportunity by the end of 2026.

Wendell Weeks: Second we probabilistic Lee adjusted for different potential outcomes, including market dynamics.

Wendell Weeks: Timing of secular trends.

Wendell Weeks: Successful adoption of our innovations as well as volume pricing and market share across all of our businesses.

Wendell Weeks: The potential that some of our markets may go through down cycles.

Wendell Weeks: If this is how we formulated our high confidence springboard plan to add more than $3 billion in annualized sales and to achieve operating margin of 20% by the end of 2026.

Wendell Weeks: However, it's important to remember we purposely drew the $3 billion springboard plan as a wedge we weren't trying to guide every quarter for the next 12 quarters.

Wendell Weeks: So as you can see.

Wendell Weeks: We're off to a great start.

Wendell Weeks: Our quarter four sales were $3 $9 billion. So in year, one of the plan, we added $2 $4 billion to our annualized sales run rate from our springboard base.

Wendell Weeks: And on that strong sales growth, we demonstrated the powerful incrementals that are embedded in our plan.

Wendell Weeks: Year over year in the fourth quarter, we expanded operating margin by 220 basis points to 18, 5%. We grew EPS, 46% to 57, we expanded ROIC 390 basis points to 12, 7%.

Wendell Weeks: And we closed out a strong year of free cash flow generation delivering $1 $25 billion in 2024 up 42%.

Wendell Weeks: Okay.

Wendell Weeks: So what's driving our outperformance versus our high confidence plan.

Wendell Weeks: When we introduced springboard. We told you that it was a milestone based plan in 2024, we hit key strategic milestones in display and optical.

Wendell Weeks: In display our springboard plan is centered on maintaining stable U S. Dollar net income.

Wendell Weeks: To achieve this in a weaker yen environment, we raised glass prices in the second half of 2024 to deliver consistent profitability in this segment.

Wendell Weeks: We expect to deliver net income of $900 million to $950 million this year and to deliver net income margin of 25% consistent with the last five years.

Wendell Weeks: Overall, we are providing a strong base in display for our springboard growth.

Wendell Weeks: In optical communications, our springboard plan is about revenue growth.

Wendell Weeks: As upward cyclical and secular trends converge to drive demand for our unique capabilities.

Wendell Weeks: We introduced new Gen AI products in June of 2024, and we said we expected to grow our enterprise business at a 25% compound annual growth rate through 2027.

Wendell Weeks: Demand for our new Gen AI products grew each quarter and sales in the enterprise portion of our optical business grew 93% year over year in the fourth quarter.

Wendell Weeks: And for the full year enterprise grew to a record $2 billion up 49% year over year.

Wendell Weeks: That growth reflects the gen AI opportunity inside the data center.

Wendell Weeks: We've also introduced a set of innovations to help our customers build a new network.

Wendell Weeks: Interconnect AI enabled data centers between the cities.

Wendell Weeks: As part of an agreement with <unk> technologies, which reserves, 10% of our global fiber capacity for 2025 and 2026.

Wendell Weeks: We launched the first outside plant deployment of Corning's, new Gen AI fiber and cable system that enables lumen to fit anywhere from two to four times the amount of fiber into their existing conduit.

Wendell Weeks: And just this month, we started shipping.

Wendell Weeks: Alumina has begun deploying our new data center interconnect products.

Wendell Weeks: Overall strong customer response to our new products drove sales of one $4 billion in optical in the fourth quarter, reflecting 51% year over year growth.

Okay.

We've also introduced a set of innovations to help our customers build a new network.

Interconnect AI enabled data centers between the cities.

Wendell Weeks: And we expect continued growing demand in optical in 2025 and beyond.

As part of an agreement with luminous technologies, which reserves, 10% of our global fiber capacity for 2025 and 2026, we launched the first outside plant deployment of Corning's, new Gen AI fiber and cable system.

Wendell Weeks: So I have highlighted just two of the key milestones that are contributing to the outperformance of our springboard plan in year one.

Wendell Weeks: We're pursuing a rich opportunity set that extends across our portfolio, including solar automotive and mobile consumer electronics.

That enables lumen to fit anywhere from two to four times the amount of fiber into their existing conduit.

And just this month, we started shipping.

Wendell Weeks: And the progress we've made increases the probability that our sales will be above our high confidence sales run rate by the end of 2026.

Illumina has begun deploying our new data center interconnect products.

Overall strong customer response to our new products drove sales of one $4 billion in optical in the fourth quarter, reflecting 51% year over year growth.

Wendell Weeks: As a result, we are planning to upgrade our $3 billion springboard plan at our March Investor event.

Wendell Weeks: So let's take a moment to help you understand how we're thinking about it.

And we expect.

<unk> growing demand in optical in 2025 and beyond.

Wendell Weeks: First.

Wendell Weeks: I've already shared with you that our businesses are collectively pursuing a non risk adjusted plan to add $8 billion in annualized sales run rate by the end of 2028 and $5 billion by the end of 2026.

So I've highlighted just two of the key milestones that are contributing to the outperformance of our springboard plan in year one.

We're pursuing a rich opportunity set that extends across our portfolio, including solar automotive and mobile consumer electronics.

Wendell Weeks: Now, we've just completed our strategy planning cycle.

Wendell Weeks: And we remain comfortable that those targets are appropriate.

And the progress we've made increases the probability that our sales will be above our high confidence sales run rate by the end of 2026.

Wendell Weeks: So we're not changing our non risk adjusted plan at this time.

Wendell Weeks: Of course, our internal plans won't be exactly right on everything.

Wendell Weeks: Including timing because that's just not how the future works.

As a.

Salt, we are planning to upgrade our $3 billion springboard plan at our March investor event.

Wendell Weeks: But the benefit of our balanced portfolio is we know many of our exciting opportunities will come to fruition.

So let's take a moment to help you understand how we're thinking about it.

Wendell Weeks: We translated our non risk adjusted plan into a high confidence investable thesis for you by accounting for multiple potential outcomes and we provided you our high confidence plan to add more than $3 billion in annualized sales by the end of 2026.

First.

I've already shared with you that our businesses are collectively pursuing a non risk adjusted plan to add $8 billion in annualized sales run rate by the end of 2028 and $5 billion by the end of 2026.

Wendell Weeks: <unk>.

Wendell Weeks: So where do we stand today.

Now, we've just completed our strategy planning cycle.

Wendell Weeks: Even though we're only one year into the three year high confidence plan, our progress against key milestones increases the potential for positive outcomes and therefore, our likelihood of success for.

And we remain comfortable that those targets are appropriate.

So we're not changing our non risk adjusted plan at this time.

Of course, our internal plans won't be exactly right on everything.

Wendell Weeks: For example, the tremendous response to our Gen AI products puts us on the positive side of that distribution.

Including timing because that's just not how the future works.

But the benefit of our balanced portfolio is that we know many of our exciting opportunities will come to fruition.

Wendell Weeks: Our display pricing also puts us on the positive side.

Wendell Weeks: And you're seeing that positive momentum in our numbers.

We translated our non risk adjusted plan into a high confidence investable thesis for you by accounting for multiple potential outcomes and we provided you our high confidence planned to add more than $3 billion in annualized sales by the end of 2026.

Wendell Weeks: So as I just shared with you as a result of our progress across our portfolio, we will upgrade our $3 billion high confidence plan at our March investor event.

<unk>.

So where do we stand today.

Wendell Weeks: Before I turn things over to add here's what I'd like to leave you with today.

Even though we're only one year into the three year high confidence plan, our progress against key milestones increases the potential for positive outcomes and therefore, our likelihood of success for.

Wendell Weeks: Quarter, four was an outstanding quarter that capped off a terrific first year of our springboard plan.

Wendell Weeks: We added $2 $4 billion to our annualized sales run rate in quarter four.

For example, the tremendous response to our Gen AI products puts us on the positive side of that distribution.

And as we grow sales, we're growing profitability at a significantly faster rate.

Wendell Weeks: Overall, we positioned our businesses to benefit from a convergence of cyclical and secular trends to drive growth across the company through 2026 and beyond.

Our display pricing also puts us on the positive side.

And youre seeing that positive momentum in our numbers.

Wendell Weeks: We've got many more milestones ahead and I look forward to sharing more detail with you on the strong progress, we're making when we get together in March.

So as I just shared with you as a result of our progress across our portfolio, we will upgrade our $3 billion high confidence plan at our March investor event.

Ed Schlesinger: With that I'll turn it over to Ed.

Ed Schlesinger: Thank you Wendell and good morning, everyone.

Before I turn things over to Ed Here's what I'd like to leave you with today.

Ed Schlesinger: As you just heard we had another outstanding quarter and completed a strong first year of our springboard plant sick.

Quarter, four was an outstanding quarter that capped off a terrific first year of our springboard plan.

Ed Schlesinger: Cyclical and secular trends are driving demand for our products.

We added $2 4 billion to our annualized sales run rate in quarter four.

Ed Schlesinger: Have the capacity and technical capabilities in place to add more than $3 billion in annualized sales by the end of 2026.

And as we grow sales, we're growing profitability at a significantly faster rate.

Ed Schlesinger: And the cost and capital are already reflected in our financials.

Overall, we positioned our businesses to benefit from a convergence of cyclical and secular trends to drive growth across the company through 2026 and beyond.

Ed Schlesinger: So this means that as we grow we expect to grow profit significantly faster than sales.

Ed Schlesinger: And Thats exactly what you saw in the fourth quarter sales grew 18% year over year to $3 $9 billion in EPS and 46% to 57.

We've got many more milestones ahead and.

I look forward to sharing more detail with you on the strong progress, we're making when we get together in March.

Ed Schlesinger: More than two times the rate of sales.

Ed: With that I'll turn it over to Ed.

Ed Schlesinger: Operating margin expanded 220 basis points to 18, 5%, marking strong progress on the targets we've shared to achieve 20% operating margin by the end of 2026.

Ed: Thank you Wendell.

Ed: Everyone.

Ed: As you just heard we had another outstanding quarter and completed a strong first year of our springboard plan.

Ed: Cyclical and secular trends are driving demand for our products, we have the capacity and technical capabilities in place to add more than $3 billion in annualized sales by the end of 2026.

Ed Schlesinger: Overall, it was a terrific quarter and we expect our momentum to continue in 2025 in the first quarter, we expect sales to grow 10% year over year to approximately $3 6 billion with core EPS growing approximately 30% to eight.

Ed: And the cost and capital are already reflected in our financials.

Ed: So this means that as we grow we expect to grow profit significantly faster than sales.

Ed Schlesinger: Range of 48 to 52.

Ed: And that's exactly what you saw in the fourth quarter sales grew 18% year over year to $3 $9 billion in EPS and 46% to 57.

Ed Schlesinger: Based on our strong performance, we continue to track ahead of our springboard plant. So this morning, I want to share more details and perspective on our quarter and full year results.

Ed Schlesinger: For the full year, we grew sales, 7% to $14 $5 billion at the same time EPS grew 15% to $1 96 gross margin expanded 190 basis points to 38, 2% and operating.

Ed: More than two times the rate of sales.

Ed: Operating margin expanded 220 basis points to 18, 5%, marking strong progress on the target we've shared to achieve 20% operating margin by the end of 2026.

Ed Schlesinger: <unk> expanded a full percentage point to 17, 5%.

Ed: Overall, it was a terrific quarter and we expect our momentum to continue in 2025 in the first quarter, we expect sales to grow 10% year over year to approximately $3 6 billion with core EPS growing approximately 30%.

Ed Schlesinger: We increased free cash flow by $373 million versus the prior year to 1.25 billion.

Ed Schlesinger: Okay.

Ed Schlesinger: Moving to the segments.

Ed Schlesinger: In optical communications fourth quarter sales were $1 $3 7 billion up 51% year over year.

Ed: To a range of 48 to 52 cents based on our strong performance. We continue to track ahead of our springboard plant.

Ed Schlesinger: Full year sales grew 16% to $466 billion.

Ed: So this morning, I want to share more details and perspective on our quarter and full year results.

Ed Schlesinger: Our enterprise business sales were $686 million for the quarter.

Ed: For the full year, we grew sales 7% to $14 5 billion at the same time EPS grew 15% to $1 96 gross margin expanded 190 basis points to 38, 2% and operating margin.

Ed Schlesinger: 93% year over year, driven by the continued strong adoption of our new Gen AI products.

Ed Schlesinger: This marks another record quarter of growth in this business and for the full year enterprise grew 49% to $2 billion.

Ed: Expanded a full percentage point to 17, 5% we.

Ed Schlesinger: We also grew year over year in our carrier business in the fourth quarter as customers continued to buy closer to their rates of deployment.

Ed: We increased free cash flow by $373 million versus the prior year to one 5 billion.

Ed Schlesinger: Net income for the full year and fourth quarter reflected strong incremental profit on higher volume for the fourth quarter net income for the optical communications segment grew 120, 120% year over year to $194 million and for the full year net income grew 28%.

Ed: Yes.

Ed: Moving to the segments.

Ed: In optical communications fourth quarter sales were 137 billion up 51% year over year.

Ed: Full year sales grew 16% to $4 six 6 billion.

Ed Schlesinger: Sent to $612 million.

Ed: Our enterprise business sales were $686 million for the quarter.

Ed Schlesinger: Overall, we expect our unique capabilities in optical communications to drive continued growth in 2025 and beyond and carrier, we expect deployments to increase in 2025 as indicated by carrier customer conversations and public announcements.

Ed: Up 93% year over year, driven by the continued strong adoption of our new Gen AI products.

Ed: This marks another record quarter of growth in this business and for the full year enterprise grew 49% to $2 billion.

Ed Schlesinger: We also expect growing demand for our connectivity products Virgin AI and we're just beginning to ship, our new data center interconnect products to women in the first quarter.

Ed: We also grew year over year in our carrier business in the fourth quarter as customers continued to buy closer to their rates of deployment.

Ed: Net income for the full year and fourth quarter reflected strong incremental profit on higher volume for the fourth quarter net income for the optical communications segment grew 120, 120% year over year to $194 million and for the full year net income grew 28%.

Moving to display technologies fourth quarter sales were $971 million up 12% year over year net income was $262 million full.

Ed Schlesinger: Full year sales grew 10% to 387 billion net income was up 19%.

Ed: <unk> to $612 million.

Ed Schlesinger: The retail and glass market grew year over year as measured in square feet driven by larger average screen size.

Ed: Overall, we expect our unique capabilities in optical communications to drive continued growth in 2025 and beyond and carrier, we expect deployments to increase in 2025 as indicated by carrier customer conversations and public announcements.

Ed Schlesinger: Late in the quarter panel makers increased their utilization rates as set makers upped their orders driven by government stimulus in China we.

We expect panel makers to continue at these utilization rates in the first quarter of 2025.

Ed: We also expect growing demand for our connectivity products Virgin AI and we're just beginning to ship, our new data center interconnect products to human in the first quarter.

Ed Schlesinger: As we shared with you in September and on our third quarter earnings call. We raised glass prices to deliver consistent profitability. In this segment, we have successfully implemented double digit price increases in the second half of 2024 to ensure we can meet.

Ed: Moving to display technologies fourth quarter sales were $971 million up 12% year over year net income was $262 million.

Ed Schlesinger: <unk> stable U S. Dollar net income weaker yen environment, we continue to expect to deliver net income of $900 million to $950 million in 2025, and net income margin of 25% consistent with the last five years.

Ed: Full year sales grew 10% to 387 billion net income was up 19%.

Ed: The retail and glass market grew year over year as measured in square feet driven by larger average screen size.

Ed Schlesinger: Turning to specialty materials in the fourth quarter sales were $515 million up 9% year over year and down 6% sequentially full.

Ed: Late in the quarter panel makers increased their utilization rates as set makers upped their orders driven by government stimulus in China.

Ed: We expect panel makers to continue at these utilization rates in the first quarter of 2025.

Ed Schlesinger: Full year sales grew 8% to $2 billion as we advanced our more Corning content strategy and both gorilla.

As we shared with you in September and on our third quarter earnings call, we raised glass prices to deliver consistent profitability in the segment.

Ed Schlesinger: And advanced optics.

Ed Schlesinger: Net income grew 40% year over year in the fourth quarter to $81 million and was up 29% for the full year to $260 million, reflecting strong incrementals on higher volumes as well as strong demand for our premium glass innovations.

Ed: We have successfully implemented double digit price increases in the second half of 2024 to ensure we can maintain stable U S. Dollar net income weaker yen environment. We continue to expect to deliver net income of $900 million to $950 million in 2025 and net income.

Ed Schlesinger: In environmental technologies, our fourth quarter sales were 397 million.

Ed Schlesinger: Down 7% year over year, driven by weaker light duty and heavy duty markets in Europe.

Ed: Margin of 25% consistent with the last five years.

Ed Schlesinger: Full year sales were down 6% year over year as we continued to experience weaker global heavy duty markets, particularly in Europe.

Ed: Turning to specialty materials in the fourth quarter sales were $515 million up 9% year over year and down 6% sequentially full.

Ed Schlesinger: Net income of $81 million for Q4 was down 17% year over year, reflecting lower volume net.

Ed: Full year sales grew 8% to $2 billion as we advanced our more Corning content strategy and both gorilla.

Ed Schlesinger: Net income for the full year was $358 million down 7% on lower sales.

Ed: And advanced optics.

Ed Schlesinger: In 2025 industry analysts expect the global light duty market to remain flat.

Ed: Net income grew 40% year over year in the fourth quarter to $81 million and was up 29% for the full year to $260 million, reflecting strong incrementals on higher volumes as well as strong demand for our premium glass innovations.

And for the heavy duty market to be down slightly primarily in North America.

Speaker Change: In life Sciences fourth quarter sales were $250 million up 3% year over year and net income grew 6% year over year.

Ed: In environmental technologies, our fourth quarter sales were 397 million.

Speaker Change: Full year sales were $979 million up 2% as the market stabilized throughout the year net income grew 26% significantly faster than sales.

Ed: <unk>, 7% year over year, driven by weaker light duty and heavy duty markets in Europe.

Ed: Full year sales were down 6% year over year as we continued to experience weaker global heavy duty markets, particularly in Europe.

Speaker Change: And finally in hemlock and emerging growth businesses fourth quarter sales were $373 million up 5% year over year full year sales were $1 $8 billion.

Ed: Net income of $81 million for Q4 was down 17% year over year, reflecting lower volume.

Speaker Change: As you can see.

Ed: Net income for the full year was $358 million down 7% on lower sales.

Speaker Change: We're making strong progress on springboard.

Speaker Change: And as we enter 2025, we expect our momentum to continue.

Ed: In 2025 industry analysts expect the global light duty market to remain flat.

Speaker Change: In the first quarter, we expect sales to grow 10% year over year to approximately $3 6 billion with core EPS growing approximately 30% to a range of 48 to 52.

Ed: And for the heavy duty market to be down slightly primarily in North America.

Ed: In life Sciences fourth quarter sales were $250 million up 3% year over year and net income grew 6% year over year.

Speaker Change: Additionally, we have hedged our yen exposure for 2025 and 2026.

Ed: Full year sales were $979 million up 2% as the market stabilized throughout the year net income grew 26% significantly faster than sales.

Speaker Change: Also have hedges in place.

Speaker Change: <unk> 2026.

Speaker Change: In 2025, we will be resetting our yen core rate to $1 20 yen to the dollar.

Ed: And finally in hemlock and emerging growth businesses fourth quarter sales were $373 million up 5% year over year full year sales were $1 8 billion.

Speaker Change: Consistent with our hedge rate.

Speaker Change: We have reflected the 120 yen core rate in our Q1 guidance.

Ed: As you can see.

Speaker Change: We do not plan to recast our 2020 for financials, because we expect to maintain the same profitability and display at the new Corey.

Ed: We're making strong progress on springboard.

Ed: And as we enter 2025, we expect our momentum to continue.

Ed: In the first quarter, we expect sales to grow 10% year over year to approximately $3 6 billion with core EPS growing approximately 30% to a range of 48 to 52.

Speaker Change: And as I said earlier in display we expect to deliver net income of 900 million to $950 million in 2025, and net income margin of 25% consistent with the last five years.

Ed: Additionally, we have hedged our yen exposure for 2025 and 2026.

Speaker Change: Now I'd like to spend a minute on capital allocation.

Speaker Change: I've told you that we have the capacity and technical capabilities in place to add more than $3 billion in annualized sales by the end of 2026.

Ed: We also have hedges in place beyond 2026.

Ed: In 2025, we will be resetting our yen core rate to $1 20 yen to the dollar.

Speaker Change: So we expect to deliver strong incremental profit.

Speaker Change: And cash flow as we capture the sales growth opportunity outlined in our springboard play.

Ed: Consistent with our hedge rate.

Ed: We have reflected the 120 yen core rate in our Q1 guidance.

Speaker Change: One proof point from the first year of the plan is that we grew free cash flow by 42% in 2024 to $1 $5 billion.

Ed: We do not plan to recast our 2020 for financials, because we expect to maintain the same profitability and display at the new Corey.

Speaker Change: And as our execution of springboard continues we expect to generate significant cash in 2025.

Ed: And as I said earlier in display we expect to deliver net income of $900 million to $950 million in 2025, and net income margin of 25% consistent with the last five years.

Speaker Change: Our capital allocation priorities remain the same we prioritize investing for organic growth opportunities. We believe this creates the most value for our shareholders over the long term in 2025, we expect our capital expenditures to be approximately 1.3.

Ed: Now I'd like to spend a minute on capital allocation.

Ed: I told you that we have the capacity and technical capabilities in place to add more than $3 billion in annualized sales by the end of 2026.

Speaker Change: We also seek to maintain a strong and efficient balance sheet were.

Speaker Change: We're in great shape here, we have one of the longest debt tenders any S&P 500, our current average debt maturity is about 23 years with only about $1 2 billion in debt coming due over the next five years and we have no significant debt coming due in any given year.

Ed: So we expect to deliver strong incremental profit.

Ed: And cash flow as we capture the sales growth opportunity outlined in our springboard play.

Ed: One proof point from the first year of the plan is that we grew free cash flow by 42% in 2024 to $1 $2 $5 billion.

Speaker Change: And finally, we expect to continue our strong track record of returning excess cash to shareholders. We started to buy back shares in the second quarter and we have continued to do so throughout 2024.

Ed: And as our execution of springboard continues we expect to generate significant cash in 2025.

Ed: Our capital allocation priorities remain the same we prioritize investing for organic growth opportunities. We believe this creates the most value for our shareholders over the long term in 2025, we expect our capital expenditures to be approximately one three.

Speaker Change: So.

Speaker Change: As I wrap up today I'd like to reiterate that we had an outstanding fourth quarter that capped off a strong first year of springboard.

Speaker Change: Compared with Q4 2023, our starting point for springboard.

Speaker Change: Sales grew 18% year over year to $3 $9 billion EPS grew 46% to <unk> 57.

Ed: We also seek to maintain a strong and efficient balance sheet were.

Ed: We're in great shape here, we have one of the longest debt tenders any S&P 500, our current average debt maturity is about 23 years with only about $1 2 billion in debt coming due over the next five years and we have no significant debt coming due in any given year.

Speaker Change: And operating margin expanded 220 basis points to 18, 5%.

Speaker Change: Marking strong progress on the target we've shared to achieve 20% operating margin by the end of 2026.

Speaker Change: Looking ahead, we expect 10% year over year sales growth in the first quarter with EPS growing about three times faster.

Ed: And finally, we expect to continue our strong track record of returning excess cash to shareholders. We started to buy back shares in the second quarter and we have continued to do so throughout 2024.

Speaker Change: And we expect to sustain our momentum throughout 2025.

In total we're tracking ahead of our high confidence plan to add more than $3 billion in annualized sales by the end of 2026 and.

Ed: So.

Ed: As I wrap up today I'd like to reiterate that we had an outstanding fourth quarter that capped off a strong first year of springboard.

Speaker Change: And we look forward to our March Investor event, when we plan to provide you with an update to our high confidence springboard plant.

Ed: Compared with Q4 2023, our starting point for springboard.

Ed: Sales grew 18% year over year to $3 $9 billion EPS grew 46% to 57.

Ann: Thank you, everyone and with that I'll turn it back over to Ann.

Ann: Thanks, Ed Okay, operator, we're ready for the first question.

Ed: And operating margin expanded 220 basis points to 18, 5%.

Speaker Change: Thank you as a reminder to ask a question. Please press star one wondering your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Ed: Marking strong progress on the target we've shared to achieve 20% operating margin by the end of 2026.

Our first question comes from the line of Nick <unk> with Jpmorgan. Your line is now open.

Ed: Looking ahead, we expect 10% year over year sales growth in the first quarter with EPS growing about three times faster.

Speaker Change: Hi, Thanks for the question. This is Joe Cardoso on for <unk> I guess, maybe just for my one question.

Ed: And we expect to sustain our momentum throughout 2025.

Speaker Change: I'm trying to get ahead of the Investor event, but maybe Wendell can you just flesh out your comments a bit more around an upgrade or the potential upgrade to the risk. Adjusted plan. However, you are still feeling comfortable around the non risk adjusted plan. Obviously the implications there is that the upgrade could land somewhere between those two plans at least.

Ed: In total we're tracking ahead of our high confidence plan to add more than $3 billion in annualized sales by the end of 2026 and.

Ed: And we look forward to our March Investor event, when we plan to provide you with an update to our high confidence springboard plant.

Speaker Change: For the year 2026 targets that you provided and if so maybe can you just help us think about the lingering risks are the major risks from your perspective that Corning is still looking to navigate to achieved and then the non risk adjusted plan at least relative to the 2026 targets. Thank you.

Ann: Thank you, everyone and with that I'll turn it back over to Ann.

Ann: Thanks, Ed Okay, operator, we're ready for the first question.

Ann: Thank you as a reminder to ask a question. Please press star one wondering your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Speaker Change: Okay.

Speaker Change: So thanks for the question, Joe I think actually.

In your question.

Operator: Our first question comes from the line of Nick Chatterji with Jpmorgan. Your line is now open.

Speaker Change: You had.

Speaker Change: The answer which is yes, you understand exactly what we're saying when we go through our full strategic review.

Operator: Hi, Thanks for the question. This is Joe Cardoso on for Sonic I guess, maybe just for my one question.

Speaker Change: We work our way through all of those various scenarios and where we came back is that.

Operator: I'm trying to get ahead of the Investor then maybe Wendell can you just flesh out your comments a bit more around an upgrade or the potential upgrade to the risk. Adjusted plan. However, you are still feeling comfortable around the non risk adjusted plan. Obviously the implications there is that the upgrade could land somewhere between those two plans at least.

Speaker Change: That long term plan to generate $8 billion that target.

Speaker Change: <unk> quite appropriate.

Speaker Change: And that what's happened is that if you take a look at the full distribution.

Operator: For year 2026 targets that you provided and if so maybe can you just help us think about the lingering risks are the major risks from your perspective that Corning is still looking to navigate to achieved and then the non risk adjusted plan at least relative to the 2026 targets. Thank you.

Speaker Change: Potential.

Speaker Change: Outcomes.

Speaker Change: That the probability has shifted towards higher numbers being more probable.

Speaker Change: With underneath between that eight.

Operator: Okay.

Speaker Change: And.

Operator: So thanks for the question, Joe I think actually.

Speaker Change: Our risk adjusted plan. So we'll have a number of it'll be between those two and we'll fill that out in <unk>.

Operator: In your question.

Operator: You had.

Operator: The answer which is yes, you understand exactly what we're saying when we go through our full strategic review.

Speaker Change: In March.

Speaker Change: And at that time, what we'll also do is we will talk some about the milestones that are.

Operator: <unk>.

Speaker Change: Ahead.

Operator: We work our way through all of those various scenarios and where we came back is that.

Joan: Does that answer clear or did I make it more confusing Joan.

Joan: No no very clear I guess, what I was just trying to get out more is just around like the risks that you still see ahead I think at the time, alright, and even in the call itself. Today, you mentioned that obviously optical is tracking ahead and I think the risks back in June you talked about timing around projects getting done and then display obviously was another one of the bigger risks relative.

Operator: That long term plan to generate $8 billion that target.

Operator: Remained quite appropriate.

Operator: And that what's happened is that if you take a look at the full distribution.

Operator: Potential.

Operator: Outcomes.

Operator: That the probability has shifted towards higher numbers being newer probable.

Joan: To the plan. So as you think about today and now starting to get ahead of some of those are those check marks around some of those risks being in the rearview mirror I guess, how do you think about the plan, which are the major risks that are still ahead that you think are still left to navigate.

Operator: With underneath between that eight.

Operator: And.

Operator: Our risk adjusted plan. So we will have a number of it'll be between those two we will fill that out and.

Joan: So I would think about a little less risk and more as milestones. So for instance.

Operator: In March.

Dan: It's Dan I'll talk for a moment.

Operator: And at that time, what we'll also do is we'll talk some about the milestones that are.

Dan: We see carrier growing year over year as their deployment rates.

Operator: Ahead.

Dan: <unk>.

Joe Cardoso: Does that answer clear or did I make it more confusing Joe.

Dan: As their purchases from us are now approaching their deployment rates, so as part of our cyclical trend there.

Joe Cardoso: No no very clear I guess, what I was just trying to get out more is just around like the risks that you still see ahead I think at the time, alright, and even in the call itself. Today, you mentioned that obviously optical is tracking ahead and I think the risks back in June you talked about timing around projects getting done and then display obviously was another one of the bigger risks relative.

Dan: We said is that.

Dan: Carriers have overdone inventory relative to deployment and those two things would come into line and then we'd start to see recovery, we see the beginning of that right, but wed like to see more.

Dan: Similarly in our solar math right, we have several milestones that we'd like to see be completed for that business to become the scale of the opportunity that you see reflected in our non risk adjusted plan. Similarly, we have some major renovations.

Joe Cardoso: Two the plan so as you think about today and now.

Joe Cardoso: To get ahead of some of those are those check marks around some of those risks being in the rearview mirror I guess as you think about the plan, which are the major risks that are still ahead that you think are still left to navigate.

Joe Cardoso: So I would think about a little less risk and more as milestones. So for instance.

Dan: In mobile consumer electronics that drive more Corning in.

Joe Cardoso: Let's stay on <unk> for a moment.

Dan: Two.

Joe Cardoso: We see carrier growing year over year as their deployment rates.

Dan: Our into that relatively stable market is as the market adopts more and more of our innovations. Similarly in automotive both our automotive glass, there's key milestones to hit as well as adoption of the GPS technology.

Joe Cardoso: <unk>.

Joe Cardoso: As their purchases from us are now approaching their deployment rates, so as part of our cyclical trend there.

Joe Cardoso: What we said is that.

Joe Cardoso: Carriers have overdone inventory relative to deployment and those two things would come into line and then we'd start to see recovery, we see the beginning of that right, but wed like to see more.

Dan: In the U S market. So that just gives you. An example of some of the key milestones that are still ahead for us to hit the full non risk adjusted plan.

Joe Cardoso: Similarly in our.

Joe Cardoso: Was that helpful. Joe.

Joe Cardoso: Our solar math right, we have several milestones that we'd like to see be completed for that business to become the scale of the opportunity that you see reflected in our non risk adjusted plan. Similarly, we have some major innovations in mobile consumer electronics.

Joe Cardoso: Yes, Wendell. Thank you that's great appreciate the color.

Joe Cardoso: Great next question.

Speaker Change: Our next question comes from the line of Mehdi Hosseini with Susquehanna. Your line is now open.

Joe Cardoso: Okay.

Joe Cardoso: Yeah.

fashion: Hi, congrats on the quarter and this is fashion filling in for Mehdi.

Speaker Change: So you expect carrier deployments to increase in 2025.

Joe Cardoso: The drive more Corning in.

Joe Cardoso: Two.

fashion: Growing demand of connectivity products.

Joe Cardoso: Our into that relatively stable market is the market adopt more and more of our innovations. Similarly in automotive both our automotive glass, there's key milestones to hit as well as adoption of the GPS technology.

Speaker Change: Is that ex lumen. So my first question and my second question is could you maybe give us a little bit of color on where you. What are you guiding on those 10% year on year sales growth.

Speaker Change: If you could get a little bit of color on if you're still seeing enterprise being strong.

Speaker Change: And.

Joe Cardoso: In the U S market. So that just gives you. An example of some of the key milestones that are still ahead for us to hit the full non risk adjusted plan.

Speaker Change: As well if you could touch a little bit on the display market.

Speaker Change: Yeah. Thank you for those questions. So first on carrier. So yes, we did start shipping lumen.

Joe Cardoso: Was that helpful. Joe.

Speaker Change: Right here just now in the first quarter and that will ramp as we go through the year. When we talk about carrier deployments, increasing I would say, it's broader than lumen, but I would also say that the number one indicator is what we see in our order book, So we're not necessarily starting.

Yes, Wendell. Thank you that's great appreciate the color.

Joe Cardoso: Great next question.

Speaker Change: Our next question comes from the line of Mehdi Hosseini with Susquehanna. Your line is now open.

fashion: Hi, Congrats on the corner and this is fashion filling in for Mehdi.

Speaker Change: So you expect carrier deployments to increase in 2025.

Speaker Change: Outright here expecting a big ramp in carrier deployments in the first half of <unk>.

Speaker Change: Growing demand of connectivity products.

Speaker Change: 2025, so we expect.

Is that ex lumen. So my first question and my second question is could you maybe give us a little bit of color on where.

Speaker Change: Carriers other than loom into increased deployments, but not so much early in the year.

Speaker Change: Are you what are you guiding on those 10% year on year sales growth. If you could get a little bit of color on if you're still seeing enterprise being strong.

Speaker Change: And then to your enterprise question, we definitely expect our momentum to continue into 2025 and certainly in the first quarter our year over year guide implies a strong.

Speaker Change: And.

Speaker Change: As well if you could touch a little bit on the display market.

Speaker Change: Enterprise segment in the first quarter.

Speaker Change: Yes. Thank you for those questions. So first on carrier. So yes, we did start shipping lumen.

Speaker Change: And then.

Speaker Change: Your last part of your question was on the display market.

Speaker Change: I'd say on display is.

Speaker Change: We saw growth in.

Speaker Change: Glass in 2024 year over year, primarily from screen size. The market was also up.

Speaker Change: Year over year in that space panel makers ran relatively strong in the fourth quarter, we're expecting them to kind of run at that rate as they go into calendar year 2025 that said, we provided you with a guide for full year display on net income which of course implies sales guide is.

Speaker Change: Outright here expecting a big ramp in carrier deployments in the first half of <unk>.

Speaker Change: 2025, so we expect.

Speaker Change: Carriers other than loom into increased deployments, but not so much early in the year.

Speaker Change: Well, so it's possible that that the back half is a little bit lower in display if the front half is a little bit stronger.

Speaker Change: And then to your enterprise question, we definitely expect our momentum to continue into 2025 and certainly in the first quarter our year over year guide implies a strong.

Speaker Change: So we would expect screen size to continue.

Speaker Change: Year over year to really be driving any growth in display in the glass market.

Speaker Change: Enterprise segment in the first quarter.

Speaker Change: And then.

Speaker Change: Your last part of your question was on the display market what I would say on display is we saw growth in <unk>.

Speaker Change: Very helpful. Thank you.

Speaker Change: Okay next question.

Speaker Change: Our next question comes from the line of <unk> merchant with Citi. Your line is now open.

Glass in 2024 year over year, primarily from screen size. The market was also up.

Speaker Change: Great. Thank you and congratulations on a great set of numbers Julie if I may.

Speaker Change: The optical demand is obviously ramping up really well can you talk a little bit about how we should think about net income margins in that segment.

Speaker Change: It expanded a little bit relative to the last quarter.

Speaker Change: Growth was on the top line pretty strong so as we think about the momentum here and the drivers for growth in enterprise.

Speaker Change: As well so it's possible that that the back half is a little bit lower in display if the front half is a little bit stronger.

Speaker Change: More strongly than carrier, how we should think about the net income margin performance in that segment and the second one on cash flow, how we should think about free cash flow margins.

Speaker Change: So we would expect screen size to continue.

Speaker Change: Year over year to really be driving any growth in display in the glass market.

Speaker Change: So as you guys progress towards your.

Speaker Change:

Speaker Change: Yeah.

Speaker Change: Very helpful. Thank you.

Speaker Change: Being born plan and exceed that springboard Randy high confidence springboard plan, how we should think about free cash flow margin in 2025. Thank you.

Speaker Change: Okay next question.

Speaker Change: Our next question comes from the line of <unk> merchant with Citi. Your line is now open.

Speaker Change: Great. Thank you and congratulations on a great set of numbers.

Speaker Change: And thanks, Assia and thanks for the nice comments first on optical.

Speaker Change: Two if I may.

Speaker Change: The optical demand is obviously ramping up really well can you talk a little bit about how we should think about net income margins in that segment.

Speaker Change: I think the thing to think about as our sales have ramped significantly through the year, especially in enterprise and we're expecting that to continue so we have some costs to actually be able to serve the higher sales and the expected higher sales that we have going into 2025 and that is having a little bit of an impact.

It expanded a little bit.

Speaker Change: To the last quarter.

Speaker Change: Growth was on the top line pretty strong so as we think about the momentum here and the drivers for growth in enterprise.

Speaker Change: <unk> on our optical margins here in the fourth quarter. So I would expect our margins to continue to accrete up.

Speaker Change: In optical as we go into 2025.

Speaker Change: And then on cash.

Speaker Change: We as we sort of started out the year, our expectation was that we wouldn't need to add a lot of capacity and that has turned out to be true and I think our capital guidance continues to imply that so our free cash flow was up very nicely year over year, and we expect free cash flow to continue to improve I wanted to think a little bit about your quest.

Speaker Change: So as you guys progress towards your.

Speaker Change:

Speaker Change: Yeah.

Speaker Change: Bring board plan and exceed that springboard Randy high confidence springboard plan, how we should think about free cash flow margin in 2025. Thank you.

Speaker Change: And thanks, Assia and thanks for the nice comments.

Speaker Change: On margin cash flow margin, so I'll come back to you on that but the other thing I would add is that as we exited the year. We did build some working capital in AR and inventory and again I attribute that to just the ramp in sales so that actually bodes well as we go into 2025.

Speaker Change: First on optical.

Speaker Change: Pact on our optical margins here in the fourth quarter. So I would expect our margins to continue to accrete up.

Speaker Change: Thanks, Ed.

Speaker Change: Okay next question.

Speaker Change: Our next question comes from the line of <unk> Mohan with Bank of America. Your line is now open.

Speaker Change: <unk> as we go into 2025.

Speaker Change: Yes. Thank you so much.

Speaker Change: And then on cash.

Speaker Change: One of your optical business is clearly benefiting from that.

Speaker Change: AI deployments and we've heard a lot of.

Speaker Change: The market dislocation over the last week from from deep Sea.

Speaker Change: Here is what your view is on deep seeks impact to build out more broadly and for Corning in particular.

Speaker Change: On margin and cash flow margins, so I'll come back to you on that.

Speaker Change: Well, thanks for that opportunity while MZ.

Speaker Change: Yeah.

Speaker Change: But the other thing I would add is that as we exited the year. We did build some working capital in AR and inventory and again I attribute that to just the ramp in sales so that actually bodes well as we go into 2025.

Speaker Change: Sure.

Speaker Change: First Ed.

Speaker Change: Most importantly for for Corning investors.

Speaker Change: We don't see any negative impact.

Speaker Change: Our springboard plan.

Speaker Change: To deliver our $3 billion plus.

Speaker Change: Revenue.

Speaker Change: Thanks, Ed.

Speaker Change: At the end of 2026 from the deep seek set of announcements so from accounting perspective.

Speaker Change: Next question.

Speaker Change: Our next question comes from the line of <unk> Mohan with Bank of America. Your line is now open.

Speaker Change:

Speaker Change: Yes. Thank you so much.

We don't see it.

Speaker Change: One of your optical business is clearly benefiting from an AI deployment and we've heard a lot of <unk>.

Speaker Change: Any significant impact.

Yeah.

Speaker Change: More broadly.

Speaker Change: Market dislocation over the last week from from deep Sea.

Speaker Change: I think you're interested in.

Speaker Change: His.

Speaker Change: Deep seek has actually been a topic of focus for the technical community.

Speaker Change: Or is what your view is on deep seeks impact to build out more broadly and for Corning in particular.

Speaker Change: For the last two or three months.

Speaker Change: Uh huh.

Speaker Change: Well, thanks for that opportunity <unk>.

Speaker Change: From when they first did there'd be three.

Speaker Change: Late last year.

Speaker Change: Yeah.

Speaker Change: Uh huh.

Speaker Change: <unk>.

Speaker Change: First Ed.

Speaker Change: To reduce the cost of training.

Speaker Change: Most importantly for for Corning investors.

Speaker Change: They appear to abuse both innovations.

Speaker Change: We don't see any negative impact.

Speaker Change: Already.

Speaker Change: On our springboard plan.

Speaker Change: In use by the leaders in this space as well as some innovations.

Speaker Change: To deliver our $3 billion plus.

Speaker Change: We're a little ahead of the industry at this time right.

Speaker Change: Revenue.

Speaker Change: By the end of 2026.

Speaker Change: Right and I, just think more will be come.

Speaker Change: The deep seek set of announcements so from accounting perspective.

Speaker Change: <unk>.

Speaker Change: As to.

Speaker Change: Yeah.

Speaker Change: We don't see.

Speaker Change: Everything that went into.

Speaker Change: And the significant impact.

Speaker Change: They're set of innovations as time goes by.

Speaker Change: Yeah.

Speaker Change: Sure.

Speaker Change: More broadly.

Speaker Change: Stepping back.

Speaker Change: I think you're interested in is.

Speaker Change: I think what is super important to understand.

Speaker Change: Deep seek has actually been a topic of focus for the technical community.

Speaker Change: We need dramatic improvement.

Speaker Change: In training.

Speaker Change: For the last two or three months.

Speaker Change: And influence cost.

Speaker Change: Make gen AI.

Speaker Change: From when they first did there'd be three.

Speaker Change: Into a highly sustainable business model and more importantly, the productivity driver.

Speaker Change: Late last year.

Speaker Change: Uh huh.

Speaker Change: To reduce the cost of training.

Speaker Change: That we all hope it will be so we need sort of order of magnitude type improvements and so we should always do is X.

Speaker Change: They appear to abuse both innovations.

Speaker Change: Already.

Speaker Change: In use by the leaders in this space as well as some innovations.

Speaker Change: Expect there to be significant innovations are going to continue here right and in many ways all of US in this space are counting on many more innovations to come so that this realizes its ultimate potential.

Speaker Change: A little ahead of the industry at this time.

Speaker Change: Right and I, just think more will be come public.

Speaker Change: As to <unk>.

Speaker Change: Everything that went into.

Speaker Change: Set of innovations as time goes by.

Speaker Change: There is nothing in all of this that would say that.

Speaker Change: Stepping back.

Speaker Change: I think what is super important to understand.

Speaker Change: The need for.

Speaker Change: Better compute and better communications doesn't make models better.

Speaker Change: Is it we need dramatic improvement.

Speaker Change: In training.

Speaker Change: Does that make sense to you <unk>, yes, yes, no. It does I appreciate that answer thank you Randall.

Speaker Change: And influence cost to make Gen AI.

Speaker Change: One for Ed if I could.

Speaker Change: Into a highly sustainable business model and more importantly, the productivity driver.

Ed Schlesinger: Just one quick clarification on the core rate of 121.

Speaker Change: We all hope it will be so we need sort of order of magnitude type improvements.

Speaker Change: With this core rate be.

Speaker Change: Static again for a few years as you have had in the past and that's my quick clarification, and then secondarily would you say that.

Speaker Change: Which should always do is expect there to be significant innovations are going to continue here right and in many ways.

Speaker Change: As you think about 2025 and your guidance for Capex over here, you're just coming off a pretty low euro capex rollout.

Speaker Change: All of US in this space are counting on many more innovations to come.

Speaker Change: Relative to last several years and it's ticking back up can you just help us think through what are the incremental places where investments are growing on that incremental capex. Thank you.

Speaker Change: This realizes its ultimate potential.

Speaker Change: Yeah.

Speaker Change: There is nothing in all of this.

Speaker Change: Yes, maybe on Capex, just real quick we had been guiding around $1 2 billion for most of the year. We came in a little below that there's always a little bit of timing in terms of how we're spending but I think the most important thing to think about is our depreciation is about one 3 billion. So if we're spending capital at that level or below.

Speaker Change: I would say.

Speaker Change: The need for.

Speaker Change: Better compute and better communications doesn't make models better.

Speaker Change: Does that make sense to you <unk>, yes, yes, no. It does I appreciate that answer thank you Randall.

Speaker Change: And one for Ed if I could.

Speaker Change: That level, we're really not adding any material capacity in our guide for next year is in line with that thinking.

Speaker Change: Just one quick clarification on the core rate of 121.

Speaker Change: With this core rate be.

Speaker Change: So we always need a little capacity here or there or we add technological innovation capital for new technology, but that's how I'm thinking about it and we're really not adding anything significant in our 2025 guide.

Speaker Change: Static again for a few years as you have had in the past and that's my quick clarification, and then secondarily would you say that.

Speaker Change: As you think about 2025 and your guidance for Capex over here, you're just coming off a pretty low euro capex.

Speaker Change: On the core rate so maybe just stepping back we've been talking about what we've been doing in display. So the most important thing is that we were able to raise price double digits in the back half and that's actually in our kind of guide our run rate as we go forward, we were able to hedge 2025 and 2026.

Speaker Change: Relative to last several years and that's ticking back up can you just help us think through what are the incremental places where investments are going on that incremental capex. Thank you.

Speaker Change: Yes, maybe on Capex, just real quick we had been guiding around $1 2 billion for most of the year, we came in a little below that.

Speaker Change: At $1 20 right.

Speaker Change: So at least my expectation is no change for that time period. We also have hedges in place beyond 2026, and we will come back as the year progresses and share our thoughts on how to think about it.

Speaker Change: Theres always a little bit of timing in terms of how we're spending but I think the most important thing to think about is our depreciation is about one 3 billion. So if we're spending capital at that level or below that level, we're really not adding any material capacity in our guide for next year is in line with that thinking.

Speaker Change: Beyond that 2026 time window.

Speaker Change: Okay, great. Thank you so much.

Speaker Change: So we always need a little capacity here or there or we add technological innovation capital for new technology, but that's how I'm thinking about it we're really not adding anything significant in our 2025 guide on.

Speaker Change: Next question please.

Speaker Change: Our next question comes from the line of John Roberts with Mizuho. Your line is now open.

Speaker Change: How do you think about the risk of the bead program being reworked and maybe satellite playing a more significant role. It seems like this administration is willing to go back into programs are already well underway.

Speaker Change: The core rate so maybe just stepping back we've been talking about what we've been doing in display. So the most important thing is that we were able to raise price double digits in the back half and that's actually in our kind of guide our run rate as we go forward, we were able to hedge 2025% in 2026.

Speaker Change: Operator.

Speaker Change: Yes.

Speaker Change: Thanks for the question John within our overall springboard plan of one of the things we've accounted for in our sort of de rating between non risk adjusted.

Speaker Change: $1 20 right.

Speaker Change: And our risk adjusted plan is how effective and how broadly Pete would be used.

Speaker Change: We weren't counting on it to become.

Speaker Change: Any degree of revenue even in a non risk adjusted plan until 2026.

Speaker Change: Beyond that 2026 time window.

Speaker Change: So.

Speaker Change: Okay, great. Thank you so much.

Speaker Change: One of the things we updated as part of our strategy planning process was how do we feel about where.

Speaker Change: Great next question please.

Speaker Change: Our next question comes from the line of John Roberts with Mizuho. Your line is now open.

Speaker Change: Fiber optics.

John Roberts: Thank you.

Speaker Change: Would deploy versus satellite being a better economic answer.

John Roberts: Do you think about the risk of the beta program being reworked and maybe satellite playing a more significant role. It seems like this administration is willing to go back into programs are already well underway.

Speaker Change: After we work through all of those pieces, what we basically came back with some modifications.

John Roberts: Operator.

John Roberts: Yes.

Speaker Change: But nothing that would change our fundamental springboard thesis John.

John Roberts: Thanks for the question John within our overall springboard plan are one of the things we've accounted for.

Speaker Change: And then maybe a quick one for Ed, but the hemlock minority interest income surged whats going on there and will you breakout hemlock sales beginning in the March quarter.

John Roberts: <unk> sort of de rating between non risk adjusted.

John Roberts: And our risk adjusted plan is how effective and how broadly Pete would be used we weren't counting on it to become.

Speaker Change: Yes, so two things John we have a few joint ventures that impact our minority interest line hemlock did actually have a strong fourth quarter.

John Roberts: Any degree of revenue even in a non risk adjusted plan until 2026.

Speaker Change: A lot of their semiconductor poly silicon contracts are backend loaded so that does drive our minority interest up high in the fourth quarter.

John Roberts: So.

John Roberts: One of the things we updated as part of our strategy planning process was how do we feel about where.

Speaker Change: Or higher just given the higher sales higher income.

Speaker Change: And yes, our intention would be as we go into 2025 to provide.

Speaker Change: Fiber optics.

Speaker Change: Would deploy versus satellite being the better economic answer.

Speaker Change: Some updates to our segment reporting you've heard us talk about graduating our automotive glass business out and breaking out solar sort of slash hemlock. So that is that continues to be our plans and.

Speaker Change: After we work through all of those pieces, what we basically came back with some modifications.

Speaker Change: But nothing that would change our fundamental springboard thesis John.

Speaker Change: And then maybe a quick one for Ed, but the hemlock minority interest income surged whats going on there and will you breakout hemlock sales beginning in the March quarter.

Speaker Change: After we file our 10-K and move past this year, we will provide some more insight on that.

Speaker Change: Okay.

Speaker Change: Thank you as a reminder to ask a question at this time. Please press star one one touchtone telephone.

Speaker Change: Yes, so two things John we have a few joint ventures that impact on minority interest line hemlock did actually have a strong fourth quarter.

Speaker Change: Our next question comes from the line of Matt <unk> with Deutsche Bank. Your line is now open.

Matt: Hey, guys. Thanks, so much for taking my question and congrats on the quarter.

Speaker Change: A lot of their semiconductor polysilicon contracts are backend loaded so that does drive our minority interest up high in the fourth quarter.

Speaker Change: Two from me first on I guess, the New administration and I'm wondering is the prospect of.

Speaker Change: Or higher just given the higher sales higher income.

Speaker Change: Newer tariffs implemented by the New U S administration.

Speaker Change: And yes, our intention would be as we go into 2025 to provide.

Speaker Change: Forward any sort of demand ordering activity into <unk> or even in the first quarter.

Speaker Change: And then secondly, maybe for Ed you talked about the healthy balance sheet position ramping free cash flow.

Speaker Change: And you talked about buybacks I'm just wondering given the dividend was relatively flat last year. How are you thinking about resuming dividend growth in the context of the success of springboard seem to date. Thanks.

Speaker Change: After we file our 10-K and move past this year, we will provide some more insight on that.

Speaker Change: Yeah. Thanks, Matt appreciate the comments and the questions. So maybe I'll start with your second one.

Speaker Change: Thank you.

Speaker Change: Thank you as a reminder to ask a question at this time. Please press star one one touchtone telephone.

Speaker Change: So yes, good cash flow, we started buying back shares we expect to continue to do that as we go forward.

Speaker Change: Our next question comes from the line of Matt <unk> with Deutsche Bank. Your line is now open.

Speaker Change: We haven't provided any specific target I think on the dividend.

Matt: Hey, guys. Thanks, so much for taking the question and congrats on the quarter.

Speaker Change: We pay a very healthy dividend.

Speaker Change: Two from me first on I guess, the New administration and I'm wondering is the prospect.

Speaker Change: Would like to see our payout ratio come down a little bit from where it is even today.

Speaker Change: Newer tariffs implemented by the New U S administration.

Speaker Change: Before we start to resume increasing.

Speaker Change: Forward any sort of demand ordering activity into <unk> or even in the first quarter.

Speaker Change: Dividend, but that's certainly not off the table for us as we go forward.

Speaker Change: Maybe on tariffs I'll make a comment and Wendell can jump in if you want to add anything I think first and foremost I want to be very humble and admit that we don't actually know what's going to happen yet there's a lot of proposals out there. So we're obviously tracking all of that and we're not going to react to things until they're really enacted.

Speaker Change: Then secondly, maybe for Ed you talked about the healthy balance sheet position ramping free cash flow.

Speaker Change: And you talked about buybacks I'm just wondering the dividend was relatively flat last year. How are you thinking about resuming dividend growth in the context of the success of springboard seen to date. Thanks.

Speaker Change: A couple of things to consider for Corning.

Speaker Change: Yeah. Thanks, Matt appreciate the comments and the questions. So maybe I'll start with your second one.

Speaker Change: First and foremost we manufactured generally where our customers are so sort of from a direct impact of tariffs on us on the things we make an import export there isn't a huge impact there is a limited impact not it's not zero, but there is certainly a limited impact and we have the ability to move our supply chain a little.

Speaker Change: So yes, good cash flow, we started buying back shares we expect to continue to do that as we go forward.

Speaker Change: We haven't provided any specific target I think on the dividend.

Speaker Change: We pay a very healthy dividend.

Speaker Change: I would like to see our payout ratio come down a little bit from where it is even today.

Speaker Change: And we certainly have the ability to raise price if that is something that is required to do having secondly, we manufacture a lot in the U S. We're very much for advanced manufacturing in the U S. We have a big footprint in our optical business in fiber and cable we produce environmental for our environmental business our life Sciences.

Speaker Change: Before we start to resume increasing the dividend, but that's certainly not off the table for us as we go forward.

Speaker Change: Business solar and we even make product for our mobile consumer electronics business in the U S. So I think that actually puts us on the side of we like U S manufacturing and we're very supportive of that so we'll continue to track it but.

Speaker Change: A couple of things to consider for Corning.

Speaker Change: But right now I don't think we have anything that we would add to the to the external dialogue feel free to jump in I think when you start to do fine tuning our models right.

Speaker Change: First and foremost we manufactured generally where our customers are.

Speaker Change: Sort of from a direct impact of tariffs on us on the things we make an import export there isn't a huge impact there is a limited impact not it's not zero, but there is certainly a limited impact and we have the ability to move our supply chain, a little bit and we certainly have the ability to raise price. If that is something that is required to do.

Speaker Change: Some places to look.

Speaker Change: I think it's exactly right on our direct sales, we will see some differences in customer behavior.

Speaker Change: I think in our display business.

Speaker Change: Seeing over a little bit stronger.

Speaker Change: I think secondly, we manufacture a lot in the U S. We're very much for advanced manufacturing in the U S. We have a big footprint in our optical business in fiber and cable we produce environmental for our environmental business, Our life Sciences business solar and we even make product for our mobile consumer electronics business in the U S.

Speaker Change: Panel maker utilization as they sort of get ready.

Speaker Change: For what may or may not happen.

Speaker Change: But thats really a close in sort of modeling question, Matt I think it's got the fundamentals crust.

Speaker Change: Hello hung with the humility that we have to bring to this broader question.

Speaker Change: So I think that actually puts us on the side of we like U S manufacturing and we're very supportive of that so we'll continue to track it but.

Speaker Change: Does that makes sense too Matt.

Matt: It does it does thank you Bob.

Speaker Change: But right now I don't think we have anything that we would add to the to the external dialogue feel free to jump in I think when you start to do fine tuning our models right.

Speaker Change: Okay.

Speaker Change: Next question.

Speaker Change: Our next question comes from the line of meta Marshall with Morgan Stanley. Your line is now open.

Meta Marshall: Great. Thanks, a couple of quick questions for me, maybe first as you've started to kind of get the lumen order early on.

Speaker Change: Some places to look.

Speaker Change: I think it's exactly right on our direct sales, we will see some differences in customer behavior.

Meta Marshall: That kind of tracking to kind of how you thought the order patterns that you are expecting.

Speaker Change: I think in our display business.

Speaker Change: Seeing little bit stronger.

Meta Marshall: Then maybe just a second question on specialty materials.

Speaker Change: Panel maker utilization as they sort of get ready.

Meta Marshall: Noted kind of it looked like there was an upgrade in the content what they asked 25 bone from Samsung that just came out so I'm just wondering if that kind of impact the trajectory of the year, especially material. Thanks.

Speaker Change: For what may or may not happen.

Speaker Change: But thats really a close in sort of modeling question, Matt I think it's got the fundamental trust.

Meta Marshall: On the first one.

Speaker Change: Hello hung with the humility that we have to bring to this broader question.

Speaker Change: The order pattern is coming in the way, we would've expected we've actually been more of the bottleneck. Because this is a brand new to the world product. So it's been our ability to make sure we got through the full qual cycles testing cycles.

Speaker Change: Does that make sense Matt.

Matt: It does it does thank you.

Matt: Okay next question.

Speaker Change: Our next question comes from the line of meta Marshall with Morgan Stanley. Your line is now open.

Speaker Change: And the like to be able to do this new to the world product rather than.

Meta Marshall: Great. Thanks, a couple of quick questions for me maybe first.

Speaker Change: <unk> desire to install it.

Speaker Change: <unk> started to kind of get the lumen order early on is that kind of tracking to kind of how you thought the order patterns that you are expecting.

Speaker Change: Taken us here.

Speaker Change: The past month to be able to ship.

Speaker Change: So.

Speaker Change: But a few core of your question is are we seeing the demand we anticipated the answer is.

Speaker Change: And then maybe just a second question on specialty materials.

Speaker Change: Noted kind of it looked like there was an upgrade in the content what they asked 25 bone from Samsung that just came out so I'm just wondering if that kind of impact that trajectory, especially material. Thanks.

Speaker Change: Yes.

Speaker Change: To the second yes, we're excited about their announcement.

Speaker Change: It's in line with sort of our overall more Corning strategy.

Speaker Change: And we are in general always happy when we see our customers be able to use our newest innovations to be able to make their product better and they think it's so important that they promoted.

Speaker Change: On the first one.

Speaker Change: It always takes time.

Speaker Change: Great. Thank you.

Speaker Change: Okay next question please.

Speaker Change: And the like to be able to do this new to the world product rather than <unk>.

Speaker Change: Our next question comes from the line of Tim Long with Barclays. Your line is now open.

Speaker Change: <unk> desire to install it.

Speaker Change: Thank you.

Speaker Change: <unk> taken this year.

Tim Long: Excuse me two parter, if I could on optical.

Speaker Change: The past month to be able to ship.

Speaker Change: First maybe a quick one I think the enterprise piece of the business used to be about 50, 50 enterprise data center and I'm, assuming that's giving a lot more to the data center customers. If you could just give just some high level impact there and then secondly, and maybe maybe you or when.

Speaker Change: So.

Speaker Change: But a few core of your question is are we seeing the demand we anticipated the answer is.

Speaker Change: Yes.

Speaker Change: To the second yes, we're excited about their announcement.

Speaker Change: In line with sort of our overall more Corning strategy.

Tim Long: No.

Speaker Change: And we are in general always happy when we see our customers be able to use our newest innovations to be able to make their product better and that they think it's so important that they promoted.

Tim Long: Just curious just looking back obviously theres always been a lot of cyclicality in this optical com business. Some really big years, followed by some down 10 or 20% year. So curious how you're thinking about cyclicality going forward I'm sure the visibility into the next into 2025 is very solid.

Speaker Change: It always takes time.

Speaker Change: Great. Thank you.

Tim Long: How far is the visibility extend for you.

Speaker Change: Okay next question please.

How do you prepare for potential cyclicality like we've seen multiple times over the last.

Speaker Change: Our next question comes from the line of Tim Long with Barclays. Your line is now open.

Speaker Change: Thank you.

Tim Long: A decade. Thank you.

Tim Long: Excuse me two parter, if I could on optical.

Speaker Change: Yeah, maybe on your first the first part of your question, Tim I think a good way to think about it as our enterprise business is up about 50%.

Tim Long: First maybe a quick one I think the enterprise piece of the business used to be about $50 50 enterprise data center and I'm, assuming that's giving a lot more to the data center customers. If you could just give just some high level impact there and then secondly.

Speaker Change: For the full year of 2024 versus 2023, and the majority of that growth is coming in the Gen AI data center space.

Speaker Change: Maybe maybe you or Wendell.

Speaker Change: So that kind of gives you a flavor for the change in the profile of the mix between Hyperscale datacenter and non data center.

Just curious just looking back obviously theres always been a lot of cyclicality in this optical com business. Some really big years, followed by some down 10 or 20% year. So curious how you're thinking about cyclicality going forward I'm sure the visibility into the next into 2025 is very solid.

Wendell Weeks: On the second one I'll make a comment but I'd certainly like Wendell to add.

Wendell Weeks: We actually have pretty good visibility in what I would call. The near term right. So think of that as 2025 right. We expect our momentum to continue in that space I'm always again hamzah I'll use the same word humble that there can be periods of time, where you have a build cycle.

Speaker Change: How far is the visibility extend for you.

Speaker Change: How do you prepare for potential cyclicality like we've seen multiple times over the last.

Speaker Change: A decade. Thank you.

Speaker Change: Yeah, maybe on your first the first part of your question, Tim I think a good way to think about it as our enterprise business is up about 50%.

Wendell Weeks: That slows down and so you could have a quarter, where even though your order rates are strong and the momentum is continuing your sales may not go up as much as it has over the last.

Speaker Change: For the full year of 2024 versus 2023, and the majority of that growth is coming in the Gen AI data center space.

Wendell Weeks: Several quarters, I think thats true in carrier and it can certainly be true in the <unk>.

Wendell Weeks: Enterprise space as well.

Wendell Weeks: Okay.

Wendell Weeks: I think it's a great observation Tim.

Speaker Change: So that kind of gives you a flavor for the change in the profile of the mix between Hyperscale datacenter and non data center.

Wendell Weeks: That is one of the key factors that is a difference between a non risk adjusted plan.

Speaker Change: On the second one I'll make a comment but I'd certainly like Wendell to add.

Wendell Weeks: And our risk adjusted plan is catching the timing.

Wendell Weeks: Of those capital cycles.

Speaker Change: We actually have pretty good visibility in what I would call. The near term right. So think of that as 2025 right. We expect our momentum to continue in that space I'm always again humble used the same word humble that there can be periods of time, where you have a build cycle.

Wendell Weeks: Good news.

Wendell Weeks: Right now it is.

Wendell Weeks: Historically.

Wendell Weeks: Sort of one of the big drivers of those cycles.

<unk> has been carrier behavior as new links are put in.

Wendell Weeks: And right.

Wendell Weeks: Right now you don't see carrier being a significant driver.

Speaker Change: That slows down and so you could have a quarter, where even though your order rates are strong and the momentum is continuing your sales may not go up as much as it has over the last.

Wendell Weeks: The results that we have just printed.

Wendell Weeks: It's much more it's just a recovery.

Wendell Weeks: Our orders to get more in line with their deployments.

Speaker Change: Several quarters, I think thats true in carrier and it can certainly be true in the <unk>.

Wendell Weeks: So then that takes us back to what will.

Speaker Change: Enterprise space as well.

Speaker Change: Okay.

Wendell Weeks: The Hyperscale data centers to data center build outs.

Speaker Change: I think it's a great observation Tim.

Speaker Change: That is one of the key factors that is a difference between a non risk adjusted plan.

Wendell Weeks: Look like.

Wendell Weeks: And we will try to provide.

Wendell Weeks: Are you a little more insight into that when we get together in March as to how much visibility that we see how.

Speaker Change: And our risk adjusted plan is catching the timing.

Speaker Change: Of those capital cycles.

Speaker Change: Good news.

Wendell Weeks: Do the reservations.

Speaker Change: Right now it is.

Wendell Weeks: Our capacity look like.

Speaker Change: Historically.

Speaker Change: Sort of one of the big drivers of those cycles.

Wendell Weeks: We'll try to provide that with a little more insight to help you guys understand why we will be upgrading our plan and why we're not just.

Speaker Change: <unk> has been carrier behavior as new links are put in.

Speaker Change: And.

Speaker Change: Right now you don't see carrier.

Wendell Weeks: Rolling out with our non risk adjusted plan.

Speaker Change: Being a significant driver of the results that we just printed.

Wendell Weeks: That makes sense to you too.

Speaker Change: Yes. It does thank you very much.

Speaker Change: It's much more it's just a recovery.

Wendell Weeks: Okay next question.

Speaker Change: <unk>.

Speaker Change: And our next question comes from the line of Josh Spector with UBS. Your line is now open.

Speaker Change: Orders to get more in line with their deployments.

Speaker Change: So then that takes us back to what will.

Speaker Change: Hey, guys. This is James Cameron on for Josh.

Speaker Change: The Hyperscale data centers, the data center build outs.

I just wanted to dive back in on the <unk> program and.

Speaker Change: Look like.

Speaker Change: I think there.

Speaker Change: Three states maybe at this point that have been that have gone through their final approval process I just wanted to see if you've had any orders start to come in under that or.

Speaker Change: And we will try to provide you a little more insight into that when we get together in March as to how much visibility that we see how does.

Speaker Change: If it's still pointing towards kind of that 2026 timeline.

Speaker Change: Do the reservations.

Speaker Change: Our capacity look like.

Speaker Change: And if you have had any orders how did those track against your prior target of call. It a $4 billion Tam against the 42 billion dollar allocated program.

We will try to provide that with.

Speaker Change: A little more insight to help you guys understand why we will be upgrading our plan and why we're not just.

Speaker Change: Yes.

Speaker Change: Okay. So first early stages.

Speaker Change: Rolling out with our non risk adjusted plan.

Speaker Change: So that makes sense to you too.

Ed has talked about approaching.

Speaker Change: Yes. It does thank you very much.

Speaker Change: The future with humility.

Speaker Change: Okay next question.

Speaker Change: And you'll remember when we introduced speed is one of the three potential springs.

Speaker Change: Our next question comes from the line of Josh Spector with UBS. Your line is now open.

Speaker Change: I also shared that you should approach government programs with some degree of cynicism as well as humility.

Speaker Change: Hey, guys. This is James Cameron on for Josh.

Speaker Change: I just wanted to dive back in on the <unk> program and.

Speaker Change: Because of how long everything takes.

Speaker Change: I think there.

Speaker Change: Three states maybe at this point that have been that have gone through their final approval process. I just wanted to see if you had any orders start to come in under that or.

Speaker Change: That cynicism seems to have been well placed yes, we are starting to see the early as trickles, but.

Speaker Change: Not enough for us to notice in the size and scale.

Speaker Change: If it still pointing towards kind of that 2026 timeline.

Speaker Change: Okay great.

Speaker Change: Alright, and yes.

Speaker Change: And if you have had any orders how did those track against your kind of prior target of call. It a $4 billion Tam against a $42 billion allocated program.

Speaker Change: What we're seeing supports our view of the Tam of that.

Speaker Change: Being said, it's so little data I wouldn't take it as necessarily reinforcing.

Speaker Change: Yes.

Speaker Change: Nor would I say that it would all.

Speaker Change: Okay. So first early stages.

Speaker Change: Ed has talked about approaching.

Speaker Change: Accelerate our view that this would begin to make a difference anytime between.

Speaker Change: The future with humility.

Speaker Change: Now in 2026.

Speaker Change: And you'll remember when we introduced speed is one of the three potential springs.

Speaker Change: Alright understood. Thank you very much.

Speaker Change: I also shared that you should approach government programs with some degree of cynicism as well as humility.

Speaker Change: Alright, well take one last question.

Speaker Change: Our last question is from the line of George Notter with Jefferies. Your line is now open.

Speaker Change: Because of how long everything takes.

Speaker Change: Hi, guys. Thanks, a lot for squeezing me in and congrats on the strong results I guess I wanted to ask about.

Speaker Change: That cynicism seems to have been well placed yes, we are starting to see the early as triples, but.

Speaker Change: The 120 right on the yen I guess that was a lot better than I was imagining just looking at the forward curves we've seen over the last.

Speaker Change: Not enough for us to notice in the size and scale of our numbers right.

Speaker Change: Six or nine months.

Speaker Change: Yes.

I'm wondering if.

Speaker Change: What we're seeing supports our view of the Tam of.

Speaker Change: The company spent a lot on putting those hedges in place or is it the case that we've seen historically, where the hedging portfolio has been relatively low cost or no cost for the company.

Speaker Change: That being said, it's so little data I wouldn't take it as necessarily reinforcing.

Speaker Change: Just trying to understand kind of how you got on that yen rate and then also.

Speaker Change: Nor would I say that it would at all.

Speaker Change: Curious if you can take the Q1 guidance.

Speaker Change: Accelerate our view that this would begin to make a difference anytime between.

Speaker Change: And give us a year on year compare.

Speaker Change: Now in 2026.

Speaker Change: So give us a sense for what.

Speaker Change: Yeah.

Speaker Change: Q1 of 'twenty four would have looked like in 120 right on the yen.

Speaker Change: Alright understood. Thank you very much.

Speaker Change: Just to be able to have an apples to apples compare thanks, a lot guys.

Speaker Change: Alright, well take one last question.

Speaker Change: Our last question is from the line of George Notter with Jefferies. Your line is now open.

Speaker Change: Yeah. Thanks, George So I think the short answer is yes.

Speaker Change: We were able to use a number of tools like we always do.

George Notter: Hi, guys. Thanks, a lot for squeezing me in and congrats on the strong results I guess I wanted to ask about.

Speaker Change: When we hedge the yen to keep the cost very low.

Speaker Change: To be able to achieve that 120 yen rate as you know we've been hedging the yen and other currencies for a long period of time and we've generated a significant amount of gains over $2 $5 billion of time, we can go out in time as well to continue to benefit from the rate and then there are other.

George Notter: The 120 right on the yen I guess that was a lot better than I was imagining just looking at the forward curves we've seen over the last.

George Notter: Six or nine months.

George Notter: I guess I'm wondering if.

George Notter: The company spent a lot on putting those hedges in place or is it the case that we've seen historically.

George Notter: Hedging portfolio has been relatively low cost or no cost for the company.

Speaker Change: <unk>, we have so generally relatively low cost and all of that cost is reflected in our financial statements.

Speaker Change: Trying to understand kind of how you got on that yen rate and then also I'd be curious if you can take the Q1 guidance.

Speaker Change: On the Q1 guide.

Speaker Change: We will take your question and come back I mean, we're not planning to recast the yen primarily because when you take the impact of our price increases and the change from 107 to 120, we accept we expect to get to the same level of profitability. So that's the way we sort of design.

George Notter: And give us a year on year compare.

Speaker Change: So give us a sense for what Q.

Speaker Change: Q1 of 'twenty four would have looked like in 120 right on the yen.

Speaker Change: Just to be able to have an apples to apples compare thanks, a lot guys.

George Notter: Yeah. Thanks, George So I think the short answer is.

George Notter: We were able to use a number of tools like we always do.

Speaker Change: And our approach to dealing with the weaker yen environment and so therefore, we were not intending to do that but I understand.

George Notter: When we hedge the yen to keep the cost very low.

George Notter: To be able to achieve that 120 yen rate as you know we've been hedging the yen and other currencies for a long period of time and we've generated a significant amount of gains over $2 $5 billion of time, we can go out in time as well to continue to benefit from the rate and then there are other.

Speaker Change: What you are trying to do when I think about our Q1 guide Q1 of 2024, we did not have our price increases in there and we were at 107. When you go to Q1 of 2025, we have the price increases and we're at $1 20, and we expect to be at or above the same level of profitability.

George Notter: <unk>, we have so generally relatively low cost and all of that cost is reflected in our financial statements.

Speaker Change: And that's kind of a proof point that we are using to sort of.

Speaker Change: Articulate this approach, but we'll come back and talk a little bit maybe offline about.

George Notter: On the Q1 guide.

George Notter: We will take your question and come back I mean, we're not planning to recast the yen primarily because when you take the impact of our price increases and the change from 107 to 120, we exit we expect to get to the same level of profitability. So that's the way we sort of design.

Speaker Change: What you're seeking.

Speaker Change: Super Thanks very much.

Speaker Change: Thanks, George Thanks, Ed.

Speaker Change: Thank you everybody for joining us this morning before we close I wanted to let you know that we're going to be virtually attending the Susquehanna 14th annual Tech Conference on February 28, and as we said, we'll be hosting an investor event in New York City on March 18th. Additionally, we'll be scheduling management visits to investor offices in select cities.

George Notter: And our approach to dealing with the weaker yen environment and so therefore, we were not intending to do that but I understand.

George Notter: What you are trying to do when I think about our Q1 guide Q1 of 2024, we did not have our price increases in there and we were at 107. When you go to Q1 of 2025, we have the price increases and we're at 120, and we expect to be at or above the same level of profitability.

Speaker Change: Finally, a web replay of today's call will be available on our site. Starting later this morning.

Speaker Change: Once again, thank you all for joining us operator that concludes our call. Please disconnect all lines.

Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.

And that's kind of a proof point that we are using to sort of.

Speaker Change: Articulate this approach, but we'll come back and talk a little bit maybe offline about what you're seeking.

Speaker Change: Super Thanks very much.

Speaker Change: Okay. Thanks, George Thanks, Ed.

Speaker Change: Finally, a web replay of today's call will be available on our site. Starting later this morning. Once again. Thank you all for joining US operator that concludes our call. Please disconnect all lines.

Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Q4 2024 Corning Inc Earnings Call

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