Teradyne, Inc. · NASDAQ:TER
Teradyne — Investor Day (March 2025)
72 slides from Teradyne's investor day presentation, Mar 11, 2025
Slide 1: Teradyne Analyst Day 2025
TERADYNE ANALYST DAY 2025
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements including statements regarding Teradyne’s future business prospects, financial performance or position and results of operations. You can identify forward-looking statements by their use of forward-looking words such as “anticipate,”
Slide 3: Agenda
Agenda Greg Smith Regan Mills Chief Executive Officer President Product Test Rick Burns Sanjay Mehta President Chief Financial Officer Semiconductor Test Ujjwal Kumar President Robotics 3
Slide 4: Analyst Day 2025
TERADYNE ANALYST DAY 2025
Slide 5: 2025 and 2026 Guidance Update
2025 and 2026 Guidance Update • Short term volatility mainly in SemiTest business • New uncertainty around tariffs and trade restrictions • No cancellations, but some push outs and capital reviews • No anticipated impact to Q1 guidance • Q2’2025: anticipate revenue flat to 10% down vs Q1 • 2025 full
Slide 6: Teradyne: Positioned for Long-term Growth
A N A LY S T D AY 2 0 2 5 Teradyne: Positioned for Long-term Growth
Slide 7: Leader In Test From the Beginning
Leader In Test From the Beginning 2008 1962 1992 2010 2003 1998 1980 Teradyne Innovations shaping today’s ATE Today’s SemiTest Product Lineup First distributed processing architecture for ATE First fully integrated 5G/mmWave test solution First floating resource architecture for power test First nea
Slide 8: Technology Markets Consolidate as They Mature and Grow
Technology Markets Consolidate as They Mature and Grow Advanced Robotics TAM 1990 1995 2000 2005 2010 2015 2020 2025 2030 Semiconductor Test Market TAM 1990 1995 2000 2005 2010 2015 2020 2025 2030 8
Slide 9: Operating Principles for Teradyne Robotics
Operating Principles for Teradyne Robotics Focus on sustainable growth and long-term shareholder value Marathon, Not a Sprint Customer Success Differentiation Measures of Success • Set up to enable sustained • Having the best • Use AI, platform and • Outpace growth of profitable growth technology is
Slide 10: Positioning Teradyne for the Future
Positioning Teradyne for the Future Acquisition of Leadership Transition in Quantifi Photonics Product Test Division Semiconductor Test TERADYNE Defense & Aerospace TERADYNE Production Rick Burns Shannon Poulin Board Test Focused on high volume Synergies with SemiTest for Leadership transition durin
Slide 11: Teradyne: A Leader in Electronics Test and Advanced Automation
Teradyne: A Leader in Electronics Test and Advanced Automation Semiconductor Test 75% of 2024 sales Robotics 13% of 2024 sales System on Chip Power Memory System Level Test Cobot AMR Product Test 12% of 2024 sales Wireless Test Production Board Defense & Teradyne Test Aerospace Automation Solutions
Slide 12: Trends Driving Growth
Trends Driving Growth Verticalization Electrification Artificial Intelligence 12
Slide 13: Verticalization
Verticalization TERADYNE
Slide 14: Verticalization: Fastest Growing, Biggest Opportunity
Verticalization: Fastest Growing, Biggest Opportunity Aligned to Teradyne's portfolio of SemiTest, Product Test, and Advanced Robotics The Top 12 Enterprise Value ~$23T The AI Nine Top 12 SemiTest Product Test Robotics The rest of the S&P 500 Enterprise Value ~$27T 14
Slide 15: Electrification
3 Electrification TERADYNE
Slide 16: Electrification: Data Centers and Electric Vehicles
Electrification: Data Centers and Electric Vehicles Unique opportunity to gain share in growing disaggregated power and linear test market Estimated Global Data Center Light Vehicle Forecast Change Power / Linear / Discrete Capacity Demand, gigawatts from 2022 to 2024, units (M) 202 Market Landscape
Slide 17: Artificial Intelligence
Pe Al FUN N04 TUN Artificial Intelligence TERADYNE
Slide 18: Artificial Intelligence Will Drive Growth & Efficiency Across Teradyne
Artificial Intelligence Will Drive Growth & Efficiency Across Teradyne Test Robotics Enterprise End Market Demand Driver SAM Expander Business Transformer • Today: compute, • Smarter mobile robots • Product Development networking, DRAM • More flexible cobot • Service Delivery • Tomorrow: automotive,
Slide 19: AI Investment Headlines
Amazon Bets Big on AI With $100B Planned Capex in 2025 Apple Commits $500 Billion to AI Race The bustling demand for generative AI chatbots and technology has compelled companies to accelerate investments in AI data centers and As Some Rivals Slow Down infrastructures. Amazon’s AI spend is targeted
Slide 20: Global Gen AI-capable Smartphone Penetration Rate
Global Gen AI-capable Smartphone Penetration Rate Unit m 1000 75% 2023-2028F CAGR = 87% 800 60% 600 45% 400 30% 200 15% 0 0% 2023 2024F 2025F 2026F 2027F 2028F Global AI-capable smartphone shipment Penetration rate 20 Source: IDC, CCBIS estimates
Slide 21: Impact of AI on Teradyne’s Growth
Impact of AI on Teradyne’s Growth 2023 2024 2025 2026 2027 2028 2029 2030 SOC: Auto AI Processing SOC: AI Compute, Networking SOC: Mobile: AI Smartphones Memory: HBM Memory: LP-DDR/Flash IST: AI SLT Enterprise SSD PBT: AI Server Assemblies QP: Silicon Photonics LP: Wireless Data Standards 21
Slide 22: Impact of AI on Robotics
Impact of AI on Robotics Expands to more complex applications Improves resilience of automated processes Simplifies deployment Revenue from AI-based applications 200 160 120 $150M 80 40 $11M 0 2024 2028 22
Slide 23: Teradyne 2028: Balanced, Resilient Growth
Teradyne 2028: Balanced, Resilient Growth Semiconductor Test Robotics Semiconductor Test 74% of 2028E Sales | 83% of 2028E EPS System on Chip Power Memory System Level Test Robotics Cobot AMR 16% of 2028E Sales | Product Test 6% of 2028E EPS Product Test 10% of 2028E Sales | 11% of 2028E EPS Teradyn
Slide 24: Semiconductor Test Division
A N A LY S T D AY 2 0 2 5 Semiconductor Test Division
Slide 25: Road to Semiconductor Test Industry Duopoly
Road to Semiconductor Test Industry Duopoly Personal Computing Mobile Computing AI Computing $7,000 60% $6,000 50% $5,000 40% TAM $4,000 Teradyne Eagle Eagle Nextest 30% Advantest Nextest $3,000 Advantest Verigy Others Verigy 20% $2,000 Teradyne Others 10% $1,000 $- 0% 02 03 04 05 06 07 08 09 10 11
Slide 26: Macro Trends Driving Test Growth
Macro Trends Driving Test Growth Verticalization Electrification Artificial Intelligence 26
Slide 27: Semiconductor Test Midterm Outlook
Semiconductor Test Midterm Outlook ATE TAM History & Forecast ATE Growth Drivers 9% CAGR $9,000 AI Cloud Accelerators $8,000 Automotive/ and Silicon Photonics $7,000 Industrial $6,000 Mobile TAM ($M) $5,000 AI-featured Smartphones $4,000 Compute and Accessories $3,000 $2,000 Memory $1,000 Expanding
Slide 28: Teradyne Automation Solutions Delivers Copy Exact for Customers
Teradyne Automation Solutions Delivers Copy Exact for Customers Assisting semiconductor customers with factory automation opens >$1B TAM Designed for the Semiconductor Industry Applications Increase operational efficiency Improve quality and traceability Fast deployment Easy to repurpose Machine Mat
Slide 29: Automotive/Industrial Segment Nearly Doubles on Electrification
Automotive/Industrial Segment Nearly Doubles on Electrification Automotive/ Industrial AI data center ADAS and power consumption autonomous driving Wide bandgap Industrial technologies infrastructure ETS-800 automotive/power test platforms Highly scalable platform Comprehensive power device coverage
Slide 30: Infineon Partnership Solidifies Teradyne’s Market Leadership
Infineon Partnership Solidifies Teradyne’s Market Leadership High voltage charging and reduced charge times Source: Yole Intelligence Wide bandgap demand in EV market 20 50 150 350 SiC GaN kw kw kw kw Si 120 min 45 min 16 min 7 min 2023 2035 Si SiC Battery range increases Source: Infineon Source: ID
Slide 31: Infineon Testimonial
“Teradyne is a strategic partner to Infineon to advance power semiconductor test capabilities. Together, we are addressing the dynamic test challenges in new technologies like silicon carbide and gallium nitride at the scale and flexibility needed by our markets and customers.” Dr. Rutger Wijburg Ch
Slide 32: Mobile Segment Recovers with AI Functionality
Mobile Segment Recovers with AI Functionality Mobile Edge AI for mobile AP Extended battery life Next generation Small displays connectivity UltraFLEXplus ATE and Titan SLT platforms Comprehensive test coverage Performance RF testing Highly optimized test flows Massive parallel SLT 32
Slide 33: How VIP Companies Differentiate in the Market
How VIP Companies Differentiate in the Market “VIP” System Companies Transistor Shipments End Application Mobile AP AI Accelerators Packaging Electrical Technology Stack Electronic IP Software Hardware Silicon “Traditional” VIP Silicon Companies Sources: Omdia AMFT Shipments, Chipworks teardowns, Te
Slide 34: Compute Segment Brings New Opportunities
Compute Segment Brings New Opportunities AI accelerator and Networking bandwidth GPU complexity for AI datacenters Compute Silicon photonics and Power efficiency and co-packaged optics yield improvements UltraFLEXplus ATE and Titan HP SLT test platforms High-performance testing Scalable ATE architec
Slide 35: Memory Segment Share Gain Continues into DRAM
Memory Segment Share Gain Continues into DRAM Higher speed and Expanded flash power HBM demand xDDR performance Large annual infrastructure improvements investments Memory Magnum is the industry de facto standard Single platform for entire memory segment Near-DUT-test architecture Fastest time-to-ma
Slide 36: Teradyne Memory Story
Teradyne Memory Story Memory Revenue Memory ATE TAM Memory Market Share Smart Phone Big Data AI Magnum Magnum Magnum Magnum 8X Era Era Era 2x V EPIC 7H $500M $1.6B 50% 3X 4X 2X 2X 1X 1X 2008 2024 2008 2017 2024 2028 Flash FT Wafer Sort DRAM FT HBM 36
Slide 37: Teradyne’s Strengths Will Win the Semiconductor ATE Market Battle
Teradyne’s Strengths Will Win the Semiconductor ATE Market Battle Personal Computing Mobile Computing AI Computing $9,000 60% $8,000 50% $7,000 $6,000 40% TAM TAM Teradyne Eagle $5,000 Eagle Nextest 30% Nextest Advantest $4,000 Advantest Verigy Verigy Others $3,000 20% Others Teradyne $2,000 10% $1,
Slide 38: Teradyne Robotics
A N A LY S T D AY 2 0 2 5 Teradyne Robotics
Slide 39: Large Opportunity to Replace the “Old Way” of Working, ~$220B
Large Opportunity to Replace the “Old Way” of Working, and Address Increasing Labor Shortages ~$220B Advanced Robotics TAM by 2033 (including integrated AI) 39
Slide 40: Teradyne Robotics: The Advanced Robotics Global Market Leader
Teradyne Robotics: The Advanced Robotics Global Market Leader Leading AI-powered robotics platform for enabling start-up innovation at global scale Leading platform for Top AMR platform AI solutions in Cobots for large fleets Production-grade Best-in-class in Advanced Robotics Customer Experience •
Slide 41: Year-Over-Year Teradyne Robotics vs. Peers Revenue Performance
Year-Over-Year Teradyne Robotics vs. Peers Revenue Performance In constant currency Accelerated Growth Slowed Growth Decline External Market growing strong (20%+) Market slowdown: COVID Market in decline: wars & capex cuts inflation Internal New products & channel Slowed/stopped new products New pro
Slide 42: Record Number of New Product Introductions in 2024
Record Number of New Product Introductions in 2024 Enabled SAM expansion into new applications and new end-markets UR Launches MiR Launches SAM Expansion 2025 Plans New cobots for growth Services & segments like logistics, Software semiconductors and food & beverage. UR platform upgrades. Expand Pal
Slide 43: Teradyne Robotics End Markets and Regional Diversity
Teradyne Robotics End Markets and Regional Diversity Robotics Split by End-Market, $M Robotics 2024 Split by Region, $M $376M $365M $788M 2024-2028 CAGR % 1% 1% 12% 3% 5% 5% Emerging, +76% 9% 8% APAC 12% 12% Logistics, +51% Ongoing 42% China 4% 1% Growth Focus Areas 3% Americas 1% 15% Life Sciences,
Slide 44: 2025 Strategy: Continue Market Outperformance Through Expansion into New Segments
2025 Strategy: Continue Market Outperformance Through Expansion into New Segments, While Restructuring for Long-term Business Resilience 1. Maintain momentum on new products, 3. Consolidate Sales, Marketing & Services to and channel transformation improve commercial effectiveness Revenue UR Common M
Slide 45: World’s Leading Open and Scalable Advanced Robotics Platform
World’s Leading Open and Scalable Advanced Robotics Platform UR+ MiR Go 300+ Partners 60+ Partners Ecosystem 500+ Applications 150+ Applications Integrated | Streamlined | Solution-focused 400+ SIs 50+ SIs 200+ OEMs 4 OEMs PolyScope X MiR Fleet Enterprise Intuitive 100+ robots Software AI-powered Ad
Slide 46: Growth Segments Strategy
Growth Segments Strategy Growth Segments Platform Approach for Faster Revenue Growth in Two Selection Criteria Growth Segments Expansion Select Growth Segments 1. Faster growth than core • Products: quick derivative of existing UR and MiR 2024-2028 CAGR: 59% 135 hardware platform 2. Long-term labor
Slide 47: Product Test Division
A N A LY S T D AY 2 0 2 5 Product Test Division
Slide 48: Product Test – Ensuring System Quality In an AI World
Product Test – Ensuring System Quality In an AI World Cloud AI Infrastructure Edge AI Applications $300B1 $550B2 $280B3 Product Test Solutions Custom Semiconductor Design 1. Source: Omdia 48 2. Source: McKinsey & Company 3. Source: IDC
Slide 49: Silicon Photonics and CPO Drive Huge Benefits for AI Data Centers
Silicon Photonics and CPO Drive Huge Benefits for AI Data Centers SiPho for Data Centers AI Accelerator CPO Transition Scenario 20 30% 18 Up to 16 AI Accelerator Units (M) 14 Reduction in overall data center 12 energy consumption 1 10 CPO Non CPO 8 10x Potential increase in overall data 6 4 2 center
Slide 50: Scaling Silicon Photonics with Teradyne’s Complete Test Solutions
Scaling Silicon Photonics with Teradyne’s Complete Test Solutions Wafer Optical Engine Co-Packaged Optics Precision optical alignment High speed electro/optical Hundreds of optical channels >1000 watt Open Architecture Integrated Electrical and Optical Test Manufacturing Optimized with Applications
Slide 51: Teradyne + Quantifi Photonics
Teradyne + Quantifi Photonics • AI driving optical interconnects enabling 600 AI data center power & performance 500 • High throughput photonic IC test required to scale CO-PACKAGED 400 Channel count • Turnkey test solutions required for time to market 300 200 SFP QSFP OSFP CHIPLET OPTICAL ENGINE 10
Slide 52: Product Test – Return to Double Digit Growth Plan
Product Test – Return to Double Digit Growth Plan Product Test Revenue, $M Growth Drivers 600 • AI quality and unit growth demands 500 • Maintain WiFi & UWB 400 leadership 12% CAGR • Customer & technology 300 synergies, including Semi VIPs 200 • Silicon photonics disruption 100 0 16 17 18 19 20 21 2
Slide 53: Financial Highlights
A N A LY S T D AY 2 0 2 5 Financial Highlights
Slide 54: Resilient Business Model Driving Attractive Returns
Resilient Business Model Driving Attractive Returns Profitably grow our Semiconductor Test, Product Test, and Robotics businesses Diversified revenue with a flexible model enabling significant free cash flow through the cycles delivering attractive returns Balanced capital allocation 54
Slide 55: Committed to Our Non-GAAP 2028 Earnings Model
Committed to Our Non-GAAP 2028 Earnings Model
Slide 56: Revenue Trend Back to Historical Growth Levels
Revenue Trend Back to Historical Growth Levels Segment Revenue Trending $6,000 2024-2028 CAGR +15% $5,000 $4,000 2016-2020 Robotics CAGR Product Test $3,000 +16% IST Memory $2,000 SOC $1,000 $0 16 17 18 19 20 21 22 23 24 25 26 27 28 56
Slide 57: Revenue Trend Back to Historical Growth Levels: IST
Revenue Trend Back to Historical Growth Levels: IST IST Revenue Trending $6,000 $5,000 $4,000 IST $3,000 $2,000 $1,000 $0 16 17 18 19 20 21 22 23 24 25 26 27 28 57
Slide 58: Revenue Trend Back to Historical Growth Levels: Product Test
Revenue Trend Back to Historical Growth Levels: Product Test Product Test Revenue Trending $6,000 $5,000 $4,000 Product Test $3,000 $2,000 $1,000 $0 16 17 18 19 20 21 22 23 24 25 26 27 28 58
Slide 59: Robotics Growth: New Products Addressing New Markets
Robotics Growth: New Products Addressing New Markets Robotics by End Market $900 $800 AI-enabled revenue grows from $0 in Emerging 2021, to $11M by 2024 and is $700 Logistics expected to grow to $150M by 2028 Life Sciences & $600 Chemicals $500 Food & Beverage OEM and Direct Large Accounts grow Semi
Slide 60: Market Recovery, Compute Share Gain with Balanced Revenue Growth
Market Recovery, Compute Share Gain with Balanced Revenue Growth ATE TAM SoC / Memory Revenue $9,000 $3,500 $8,000 $3,000 $7,000 $2,500 $6,000 $5,000 $2,000 $4,000 $1,500 $3,000 $1,000 $2,000 $500 $1,000 $0 $0 16 17 18 19 20 21 22 23 24 25 26 27 28 16 17 18 19 20 21 22 23 24 25 26 27 28 Segment Mix
Slide 61: Track Record for Gross Margin Expansion
Track Record for Gross Margin Expansion Gross Margin $3,500 64% Focused investment towards profit pools $3,000 62% $2,500 60% Supply chain resiliency investments $2,000 58% with a focus on cost reduction $1,500 56% $1,000 54% More than 80% of revenue enabled by contract manufacturing $500 52% $0 50%
Slide 62: Disciplined Expense Management Yields Operating Leverage
Disciplined Expense Management Yields Operating Leverage OPEX 100% of employee base on variable $1,600 40% compensation $1,400 35% $1,200 30% 35% of our employees are in low- $1,000 25% cost regions $800 20% $600 15% Grow OPEX at half the rate of revenue growth $400 10% $200 5% Investment Priorities
Slide 63: Operating Profit Expansion Correlated to Free Cash Flow Conversion
Operating Profit Expansion Correlated to Free Cash Flow Conversion Operating Profit % Free Cash Flow $1,600 35% $1,200 120% $1,400 30% $1,000 100% $1,200 25% $800 80% $1,000 20% $800 $600 60% 15% $600 $400 40% 10% $400 5% $200 20% $200 $0 0% $0 0% 16 17 18 19 20 21 22 23 24 25 26 27 28 16 17 18 19 2
Slide 64: Balanced Capital Allocation Approach
Balanced Capital Allocation Approach Continue to fund dividends Since 2015 ~ $600M in dividends Share buy backs to offset dilution and Since 2015 ~ $4B buy backs ~1/3 share opportunistically buy shares back with reduction excess liquidity Strategic and accretive M&A Since 2015 ~ $1.1B in M&A 64
Slide 65: Resilient Business Model Driving Attractive Returns
Resilient Business Model Driving Attractive Returns Profitably Grow Flexible Model with Our Businesses Balanced Revenue Mix Balanced Capital Allocation Market recovery in Mobile, > 80% of revenue enabled by contract Strong free cash flows through Auto/Industrial manufacturing industry cycles Compute
Slide 66: Q&A Session
Q&A Session Greg Smith Regan Mills Chief Executive Officer President Product Test Rick Burns Sanjay Mehta President Chief Financial Officer Semiconductor Test Ujjwal Kumar President Robotics 66
Slide 67: Certain Non-GAAP Financial Measures Discussed During Analyst Day
Teradyne, Inc. Certain Non-Gaap financial measures discussed during the Analyst Day presentation March 11, 2025 FY2024 EPS, gross margin, operating expenses, operating profit/PBIT FY2026 EPS FY2025 Operating expenses, operating profit/PBIT FY2028 EPS, gross margin, operating expenses, operating prof
Slide 68: 2026 Model Range / 2028 Model Range
2026 Model Range Robotics 2028 EPS 2028 Estimated GAAP Diluted EPS – Mid 0.52 Add back intangible amortization 0.01 2028 Estimated Non-GAAP Diluted EPS 0.53 2028 Model Range
Slide 69: GAAP to Non-GAAP Earnings Reconciliation
GAAP to Non-GAAP Earnings Reconciliation (In millions, except per share amounts)
Slide 70: Gross Margin and PBIT/Operating Profit
Gross Margin and PBIT/Operating Profit
Slide 71: OpEx
16 17 20 2 2 23 24 25 GAAP $1,019 $698 $858 $1,006 $1,035 $1,036 $1,055 $1,191 Intangible Asset Amortization $53 $31 $31 $21 $19 $19 $19 $11 Restructuring and Other $22 ($13) $9 $17 $21 $16 $6 Equity Modification Charge $0 $1 $0 $0 $6 $2 $0 Goodwill Impairment Charge $255 $0 $0 $0 $0 $0 $0 Acquired
Slide 72: Free Cash Flow (“FCF”)
Free Cash flow (“FCF”) TERADYNE