Amphenol(US:APH)2025-10-22 13:28Financial Performance - Sales reached $6.2 billion, an increase of 53% in U.S. dollars and 41% organically compared to Q3 2024[9] - Adjusted Diluted EPS was $0.93, up 86% year-over-year, while GAAP Diluted EPS was $0.97, reflecting a 102% increase[9] - Operating Margin achieved a record of 27.5%[3] - Net sales for the three months ended September 30, 2025, reached $6,194.4 million, a 53.3% increase from $4,038.8 million in the same period of 2024[21] - Gross profit for the nine months ended September 30, 2025, was $6,056.6 million, compared to $3,659.0 million for the same period in 2024, reflecting a 65.5% increase[21] - Net income attributable to Amphenol Corporation for the three months ended September 30, 2025, was $1,245.7 million, up from $604.4 million in 2024, representing a 106.5% increase[21] - Adjusted Diluted EPS for the three months ended September 30, 2025, was $0.93, compared to $0.50 for the same period in 2024, indicating an 86% increase[23] - Nine-month consolidated net sales for 2025 totaled $16,655.7 million, a 53% increase from $10,904.9 million in the same period of 2024[32] Shareholder Returns - The company returned approximately $354 million to shareholders through stock buybacks and dividends, including $201 million in dividends[3] - The quarterly dividend was increased by 52% to $0.25 per share from $0.165 per share[6] Future Guidance - The company expects Q4 2025 sales to be between $6.0 billion and $6.1 billion, representing a 39% to 41% increase year-over-year[7] - For the full year 2025, sales are projected to be between $22.66 billion and $22.76 billion, indicating a 49% to 50% increase from the previous year[7] - Adjusted Diluted EPS for Q4 2025 is expected to be in the range of $0.89 to $0.91, a 62% to 65% increase from Q4 2024[7] - The guidance for Q4 2025 Diluted EPS (GAAP) is projected to be between $0.89 and $0.91, while the Adjusted Diluted EPS (non-GAAP) is expected to be between $0.89 and $0.91[52] - For the full year 2025, the Diluted EPS (GAAP) guidance is $3.31 to $3.33, with Adjusted Diluted EPS (non-GAAP) projected at $3.26 to $3.28[52] Acquisitions - Amphenol completed the acquisition of Rochester Sensors, which has annual sales of approximately $100 million, in August 2025[4] - The company anticipates closing the Trexon acquisition by the end of Q4 2025 and the CCS acquisition by the end of Q1 2026[5] Cash Flow and Investments - The company reported net cash provided by operating activities of $1,470.8 million for the three months ended September 30, 2025, compared to $704.0 million in 2024, a 109.5% increase[27] - Free Cash Flow for the nine months ended September 30, 2025, reached $2,917.2 million, up from $1,509.1 million in the same period of 2024, indicating an increase of 93.3%[43] - Net cash used in investing activities for the nine months ended September 30, 2025, was $3,578.6 million, compared to $2,398.2 million in 2024, indicating a significant increase in investment activity[27] Segment Performance - Communications Solutions segment saw a 96% growth in net sales, from $1,685.5 million in Q3 2024 to $3,309.5 million in Q3 2025[32] - Harsh Environment Solutions segment reported net sales of $1,515.8 million, reflecting a 27% increase year-over-year[32] - Organic net sales growth for the Communications Solutions segment was 75% in Q3 2025[32] Operational Efficiency - Operating income for Q3 2025 was $1,702.3 million, with an operating margin of 27.5%, compared to $819.5 million and 20.3% in Q3 2024[41] - Adjusted (non-GAAP) operating income for Q3 2025 was $1,188.6 million, with a margin of 27.0%[41] - The Adjusted Operating Margin is derived from Adjusted Operating Income expressed as a percentage of Net Sales, providing insights into operational efficiency[45] Tax and Debt - The effective tax rate for net income attributable to Amphenol Corporation was 23.5% in Q3 2025, compared to 21.4% in Q3 2024[41] - The company’s long-term debt, less current portion, was $7,129.5 million as of September 30, 2025, compared to $6,484.4 million at the end of 2024, an increase of 10%[25] - The Adjusted Effective Tax Rate is calculated based on income before taxes, excluding certain non-operational items, which aids in understanding tax impacts on earnings[47] Cash Management - Management emphasizes the importance of Free Cash Flow as a liquidity measure, highlighting its role in assessing cash generation capabilities and potential reinvestment opportunities[49] - Capital expenditures for the three months ended September 30, 2025, were $257.2 million, compared to $230.0 million in 2024, reflecting an increase of 11.8%[27] - The company reported proceeds from disposals of property, plant, and equipment of $1.9 million in Q3 2025, slightly up from $1.7 million in Q3 2024[43]