Amphenol(APH) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter sales reached $6.4 billion, up 49% year-over-year, with organic growth of 37%[8] - Full year sales totaled $23.1 billion, an increase of 52% compared to 2024, with organic growth of 38%[8] - Adjusted Diluted EPS for the fourth quarter was $0.97, up 76% from the prior year[8] - Adjusted Operating Margin for the fourth quarter was 27.5%[8] - Net sales for the three months ended December 31, 2025, reached $6,439.0 million, a 49.2% increase from $4,317.9 million in the same period of 2024[20] - Gross profit for the twelve months ended December 31, 2025, was $8,517.7 million, up 65.5% from $5,139.7 million in 2024[20] - Net income attributable to Amphenol Corporation for the three months ended December 31, 2025, was $1,195.5 million, compared to $746.2 million in 2024, representing a 60.1% increase[20] - Adjusted Diluted EPS for the three months ended December 31, 2025, was $0.97, compared to $0.55 in 2024, reflecting a 76.4% increase[23] - Operating income for the consolidated entity was $1,722.7 million for the three months ended December 31, 2025, compared to $953.7 million in the same period of 2024, reflecting a significant increase[29] - The operating margin for the consolidated entity improved to 26.8% in Q4 2025, up from 22.1% in Q4 2024[29] - The company reported a net income of $1,205.2 million for Q4 2025, significantly higher than $752.0 million in Q4 2024[27] - For the three months ended December 31, 2025, reported net income attributable to Amphenol Corporation was $1,195.5 million, with a diluted EPS of $0.93, reflecting an operating margin of 26.9%[41] - Adjusted net income for the same period was $1,254.1 million, with an adjusted diluted EPS of $0.97, representing an adjusted operating margin of 25.5%[41] Shareholder Returns - The company returned nearly $1.5 billion to shareholders in 2025, including $171 million in stock repurchases and $202 million in dividends[4] - The company declared dividends of $0.25 per common share for the three months ended December 31, 2025, up from $0.165 in 2024[20] Cash Flow and Assets - The company achieved operating cash flow of $1.7 billion and free cash flow of $1.5 billion in Q4 2025[8] - Cash provided by operating activities for the twelve months ended December 31, 2025, was $5,374.7 million, compared to $2,814.7 million in 2024, indicating strong operational cash flow growth[27] - Total cash and cash equivalents at the end of the period reached $11,130.6 million, compared to $3,317.0 million at the end of the previous year[27] - Free cash flow for the twelve months ended December 31, 2025, was $4,392.9 million, significantly up from $2,157.1 million in 2024[44] - Total current assets increased to $20,267.2 million as of December 31, 2025, compared to $9,686.0 million in 2024, reflecting a growth of 109.5%[25] - Cash and cash equivalents surged to $11,130.6 million in 2025, significantly higher than $3,317.0 million in 2024, marking a 235.5% increase[25] Acquisitions and Growth Strategy - Amphenol completed five acquisitions in 2025, including the acquisition of CommScope's CCS business, expected to generate approximately $4.1 billion in sales for 2026[5] - The company reported acquisition-related expenses of $47.4 million for the three months ended December 31, 2025, compared to $12.0 million in 2024[22] - The company recorded acquisition-related expenses of $103.4 million for the twelve months ended December 31, 2025, impacting the effective tax rate[42] - The company expects to continue focusing on market expansion and strategic acquisitions to drive future growth[54] - The company maintains a strong focus on market and geographic diversification to enhance growth opportunities[5] - The company plans to continue focusing on market expansion and new product development to sustain growth momentum in the upcoming quarters[31] Guidance - For Q1 2026, sales are projected to be between $6.90 billion and $7.00 billion, representing a 43% to 45% increase year-over-year[6] - Adjusted Diluted EPS for Q1 2026 is expected to be in the range of $0.91 to $0.93, a 44% to 48% increase from Q1 2025[6] - Guidance for the first quarter of 2026 indicates a GAAP diluted EPS of $0.81 - $0.83, with an adjusted diluted EPS expected to be $0.91 - $0.93 after accounting for acquisition-related costs[55] Liabilities - Total liabilities rose to $22,727.2 million as of December 31, 2025, compared to $11,584.1 million in 2024, indicating a 96.1% increase[25]