Allegro MicroSystems (ALGM) TD Cowen's 54th Annual Technology, Media & Telecom Conference summary

Company overview and market positioning

• Headquarters in Manchester, NH, with nearly 100 years of history and deep automotive relationships.

• Market leader in magnetic sensing with 23%-24% global share; 70% of revenue from automotive, 30% from industrial sectors.

• Focused on high-growth areas: XEV, hybrid EV, ADAS, and data center applications.

• Strong customer relationships, especially in automotive, with long-term reliability and safety certifications.

Financial performance and business trends

• FY 2026 sales reached nearly $900 million, up 23% YoY; auto business grew 17%, focus auto (XEV, ADAS) up 30%, industrial up 40%.

• Record bookings and backlog in the March quarter, indicating robust demand.

• Automotive market remains stable with steady unit growth; inventory levels now below pre-pandemic levels.

• No significant restocking expected soon due to working capital dynamics and current lead times.

Inventory, visibility, and supply chain

• Customers placing orders within 20-22 week lead times; visibility has improved, especially in auto and data center.

• Automotive tier ones and distributors are managing working capital tightly, limiting inventory build.

• Enhanced supply chain in China with new wafer fab and OSAT, supporting both local and export markets.