TE Connectivity delivers double-digit sales and EPS growth in third quarter of fiscal 2025

Core Insights - TE Connectivity plc reported strong third quarter results for fiscal 2025, exceeding guidance due to robust operational performance and record sales and cash flow [3][5][9] - The company achieved double-digit sales growth, particularly in the Industrial segment, which saw a 30% increase in sales [3][4] - Adjusted operating margins reached 20%, leading to record adjusted EPS and cash generation for the quarter [3][9] Financial Performance - Net sales for the third quarter were a record $4.5 billion, up 14% year over year and 9% organically [9] - GAAP diluted EPS from continuing operations was $2.14, a 15% increase year over year, while adjusted EPS was $2.27, reflecting a 19% year-over-year increase [9] - Operating income was $857 million with an operating margin of 18.9%, and an adjusted operating margin of 19.9% [9][17] Segment Performance - The Industrial Solutions segment reported net sales of $2.1 billion, a 30% increase compared to the previous year, driven by high-speed connectivity solutions for AI applications and growth in the energy sector [4][17] - The Transportation Solutions segment increased sales to $2.4 billion despite declines in vehicle production, supported by strength in Asia and innovations in electrification and vehicle data connectivity [4][17] Cash Flow and Capital Deployment - Cash flow from operating activities for the quarter was approximately $1.2 billion, with free cash flow of $962 million [9][16] - The company completed the acquisition of Richards for $2.3 billion in the Industrial segment and returned $1.5 billion to shareholders [9][16] Fourth Quarter Outlook - For the fourth quarter of fiscal 2025, TE Connectivity expects net sales of approximately $4.55 billion, representing a 12% increase on a reported basis and 6% organically [5] - GAAP EPS from continuing operations is projected to be approximately $2.18, an increase of over 140% year over year, with adjusted EPS expected to be around $2.27, up 16% year over year [5]