TE Connectivity(US:TEL)2025-10-29 10:10Financial Performance - Net sales for Q4 2025 reached a record $4.75 billion, representing a 17% increase year over year and an 11% organic growth[4] - GAAP diluted EPS from continuing operations was $2.23, up 148% year over year, while adjusted EPS was a record $2.44, an increase of 25% year over year[4] - Total orders increased to $4.7 billion, up 22% year over year and 5% sequentially[4] - Full-year net sales were a record $17.3 billion, up 9% on a reported basis and 6% organically[4] - For Q1 FY26, the company expects sales of approximately $4.5 billion, up 17% year over year, and GAAP EPS of approximately $2.33, an increase of 33% year over year[6] - The company reported a total operating income of $3.394 billion for the year ended September 26, 2025, with an operating margin of 19.7%[36] - For the quarter ended September 26, 2025, net income was $663 million, a significant increase from $276 million in the same quarter of 2024[25] - Total net sales for the quarter reached $4,749 million, an increase of 16.7% from $4,068 million in the same quarter of 2024[29] - Operating income for the quarter was $943 million, with an operating margin of 19.9%[32] - The diluted earnings per share from continuing operations for the quarter were $2.44, reflecting an increase from $1.95 in the same quarter last year[32] Cash Flow and Shareholder Returns - Cash flow from operating activities for the full year was $4.1 billion, with free cash flow reaching a record $3.2 billion[4] - The company returned $2.2 billion to shareholders and deployed $2.6 billion for bolt-on acquisitions during the fiscal year[4] - Free cash flow for the quarter was $1,154 million, compared to $833 million in the same quarter of 2024, representing a growth of 38.6%[27] - Cash flows from operating activities for the year were $4,139 million, compared to $3,477 million in 2024, indicating a year-over-year increase of 19.0%[25] Segment Performance - The Industrial segment saw a 24% sales increase during the year, driven by innovations for AI and energy customers[5] - Organic net sales growth for the Transportation Solutions segment was 3.6%, with Automotive growing by 3.9% and Commercial Transportation by 7.4%[30] - Digital Data Networks within Industrial Solutions saw a significant increase of 79.9%, contributing $314 million to net sales[30] - The Industrial Solutions segment reported a total of $1.510 billion in net sales for the year, with a 23.7% growth rate[36] - The Energy sector within Industrial Solutions experienced a remarkable growth of 46.2%, contributing $425 million to net sales for the year[36] Outlook and Projections - The adjusted EPS outlook for Q1 FY26 excludes amortization expense on intangible assets[7] - For the outlook of the quarter ending December 26, 2025, the company projects diluted earnings per share from continuing operations to be $2.33, with an adjusted EPS of $2.53[43] - TE Connectivity anticipates a net sales growth of 17.3% for the upcoming quarter, with organic net sales growth projected at 10.6%[43] - The company expects acquisition-related charges of $0.02 and restructuring charges of $0.03 to impact the upcoming quarter's earnings[43] Tax and Debt - The effective tax rate for the quarter was 21.4%, down from 26.0% in the previous year[32] - The effective tax rate for the quarter ended December 27, 2024, was reported at 25.2%, which is expected to adjust to 23.0% in the future outlook[41] - Long-term debt increased to $4,842 million in 2025, up from $3,332 million in 2024, reflecting a rise of 45.4%[24] - The company has noted a decrease in corporate tax rates in non-U.S. jurisdictions, impacting deferred tax asset valuations[42] Capital Expenditures and Assets - Capital expenditures for the quarter were $271 million, compared to $213 million in the same quarter of 2024, showing an increase of 27.2%[25] - Total assets increased to $25,081 million in 2025, up from $22,854 million in 2024, reflecting a growth of approximately 9.7%[24] - The company reported a total shareholders' equity of $12,585 million in 2025, slightly up from $12,355 million in 2024[24]