Workflow
TE Connectivity(TEL) - 2025 Q1 - Quarterly Results
TELTE Connectivity(TEL)2025-01-22 11:14

Financial Performance - Net sales were 3.84billion,flatyearoveryearonanorganicbasis[5]−AdjustedEPSwas3.84 billion, flat year over year on an organic basis[5] - Adjusted EPS was 1.95, up 6% year over year[5] - Adjusted operating margin reached a quarterly record of 19.4%[5] - Cash from operating activities was 878million,up22878 million, up 22% year over year[5] - Free cash flow was 674 million, up 18% year over year[5] - Net cash provided by operating activities increased from 719millionto719 million to 878 million, a 22.1% increase[25] - Free cash flow rose from 570millionto570 million to 674 million, an 18.2% increase[27] - Total net sales remained flat at 3,836million,withaslightdeclineinoperatingmarginfrom18.23,836 million, with a slight decline in operating margin from 18.2% to 18.0%[29] - Adjusted operating income increased from 731 million to 745million,withadjustedoperatingmarginrisingfrom19.1745 million, with adjusted operating margin rising from 19.1% to 19.4%[29] - Net income from continuing operations was 528 million, with diluted earnings per share of 1.75[32]−Adjustedincomefromcontinuingoperationswas1.75[32] - Adjusted income from continuing operations was 586 million, with adjusted diluted earnings per share of 1.95[32]−Effectivetaxratedecreasedfrom25.21.95[32] - Effective tax rate decreased from 25.2% to 23.0% after adjustments[32] - Income from continuing operations for Q4 2023 was 1.84 per diluted share after adjustments[34] - Income from continuing operations for Q1 2024 was 1.86perdilutedshareafteradjustments[37]−AdjusteddilutedearningspersharefromcontinuingoperationsforQ12025isforecastedat1.86 per diluted share after adjustments[37] - Adjusted diluted earnings per share from continuing operations for Q1 2025 is forecasted at 1.96[42] Segment Performance - Orders reached 4.0billion,up64.0 billion, up 6% year over year and 4% sequentially, driven by the Industrial segment[5] - Transportation Solutions net sales declined by 6.3% to 2,243 million, with operating margin decreasing from 20.4% to 19.9%[29] - Industrial Solutions net sales grew by 10.8% to 1,593million,withoperatingmarginincreasingfrom14.71,593 million, with operating margin increasing from 14.7% to 15.3%[29] - Transportation Solutions operating income for Q4 2023 was 487 million, adjusted to 504millionafterrestructuringandothercharges[34]−IndustrialSolutionsoperatingincomeforQ42023was504 million after restructuring and other charges[34] - Industrial Solutions operating income for Q4 2023 was 211 million, adjusted to 227millionafteracquisition−relatedandrestructuringcharges[34]−TotaloperatingincomeforQ42023was227 million after acquisition-related and restructuring charges[34] - Total operating income for Q4 2023 was 698 million, adjusted to 731million,withanoperatingmarginof19.1731 million, with an operating margin of 19.1%[34] - Transportation Solutions operating income for Q1 2024 was 477 million, adjusted to 496millionafterrestructuringcharges[37]−IndustrialSolutionsoperatingincomeforQ12024was496 million after restructuring charges[37] - Industrial Solutions operating income for Q1 2024 was 215 million, adjusted to 239millionafteracquisition−relatedandrestructuringcharges[37]−TotaloperatingincomeforQ12024was239 million after acquisition-related and restructuring charges[37] - Total operating income for Q1 2024 was 692 million, adjusted to 735million,withanoperatingmarginof18.5735 million, with an operating margin of 18.5%[37] Shareholder Returns and Acquisitions - The company returned approximately 500 million to shareholders and deployed 325millionforbolt−onacquisitionsintheIndustrialsegment[5]FutureOutlook−ForQ2FY25,thecompanyexpectsnetsalesofapproximately325 million for bolt-on acquisitions in the Industrial segment[5] Future Outlook - For Q2 FY25, the company expects net sales of approximately 3.95 billion and adjusted EPS of 1.96,up51.96, up 5% year over year[7] - Net sales growth for Q1 2025 is projected to decline by 0.4%, with organic net sales growth expected at 1.3%[42] Organizational Changes - The company reorganized into two reportable segments: Transportation Solutions and Industrial Solutions[8] Sustainability and Recognition - The company was named to the Dow Jones Sustainability Index for the 13th consecutive year[5] Asset and Liability Changes - Total assets decreased from 22,854 million to $22,441 million, a decline of 1.8%[24]