TE Connectivity delivers sales and EPS above guidance in second quarter of fiscal year 2025

Core Insights - TE Connectivity plc reported strong operational performance in Q2 of fiscal year 2025, achieving record adjusted EPS and exceeding guidance on both sales and earnings [3][5] - The company expects continued momentum in the third quarter, with anticipated net sales of approximately $4.30 billion, representing an 8% year-over-year increase, and GAAP EPS expected to be around$ 2.02, up nearly 9% year-over-year [4][5] Financial Performance - For Q2, net sales were $4.1 billion, up 4% year-over-year, with organic growth of 5%, driven by double-digit growth in the Industrial segment [10] - Adjusted EPS reached a record$ 2.10, reflecting a 13% increase year-over-year [10] - Operating margin was reported at 18.1%, with an adjusted operating margin of 19.4%, indicating strong operational performance across segments [10][28] Segment Performance - The Transportation segment capitalized on its leading position in Asia, maintaining strong margin performance [3] - The Industrial segment saw a 17% sales growth, driven by broad business growth and ongoing momentum in AI, aerospace, and energy applications [3][4] Strategic Outlook - The company completed the acquisition of Richards Manufacturing Co. to leverage growth opportunities in the North American utility market [10] - TE Connectivity's long-standing strategy of locating manufacturing facilities near customers is expected to help navigate the current trade environment effectively [4] Cash Flow and Shareholder Returns - Cash flow from operating activities for the first half of the fiscal year was $1.5 billion, with free cash flow of approximately$ 1.1 billion [10] - The company returned approximately $1 billion to shareholders and announced a 9% increase in dividends [10]