TE Connectivity(US:TEL)2026-01-21 11:17Financial Performance - Net sales for the first quarter were $4.7 billion, representing a 22% increase year over year, with 15% organic growth[6] - GAAP diluted EPS from continuing operations was $2.53, a 45% increase year over year, while adjusted EPS was $2.72, up 33% year over year[6] - GAAP operating margin improved to 20.6%, an increase of 260 basis points year over year, and adjusted operating margin expanded to 22.2%, up 180 basis points[6] - Record orders reached $5.1 billion, marking a 28% increase year over year and a 9% sequential increase[6] - Total net sales for the quarter reached $4,669 million, representing a 21.7% growth compared to $3,836 million in the prior year[31] - Operating income increased to $963 million with an operating margin of 20.6%, compared to $690 million and 18.0% in the previous year[31] - For the year ended September 26, 2025, TE Connectivity achieved total operating income of $3,211 million, adjusted to $3,584 million[39] - The operating margin for the year ended September 26, 2025, was 18.6%, adjusting to 20.8%[39] - Diluted earnings per share from continuing operations for the year ended September 26, 2025, was reported at $6.16, adjusted to $9.27[39] Cash Flow and Shareholder Returns - Cash flow from operating activities was $865 million, with free cash flow of $608 million, and $615 million returned to shareholders[6] - Free cash flow for the quarter was $608 million, down from $674 million in the same quarter last year[29] - The company repurchased ordinary shares worth $405 million during the quarter, up from $303 million in the previous year[28] Future Outlook - The company expects second quarter sales of approximately $4.7 billion, a 13% increase year over year, and adjusted EPS of approximately $2.65, up 20% year over year[8] - The outlook for the quarter ending March 27, 2026, includes an expected diluted earnings per share from continuing operations of $2.26, adjusted to $2.65[41] - TE Connectivity anticipates a net sales growth of 13.4% for the quarter ending March 27, 2026, with organic net sales growth projected at 6.2%[41] Segment Performance - Transportation Solutions segment net sales were $2,467 million, up 10.0% from $2,243 million, while Industrial Solutions segment net sales rose to $2,202 million, a 38.2% increase from $1,593 million[31] Expenses and Taxation - Research, development, and engineering expenses were $225 million, up from $188 million year over year[25] - The effective tax rate for the quarter was 21.9%, with income from continuing operations reported at $751 million[33] - The effective tax rate for the quarter ended March 28, 2025, was reported at 98.3%, significantly higher than the adjusted rate of 22.2%[37] - The company reported a significant income tax expense of $1,361 million for the year ended September 26, 2025, impacting overall profitability[39] Assets and Liabilities - The company reported a total of $8,368 million in current assets, an increase from $7,966 million in the previous quarter[27] - Total liabilities increased to $12,416 million from $12,351 million in the prior quarter[27] Capital Expenditures - Capital expenditures for the quarter were $258 million, compared to $205 million in the same quarter last year[28] Accounting Changes - The company is excluding amortization expense on intangible assets from its non-GAAP financial measures starting in fiscal 2026[9]