TE Connectivity delivers 17% sales growth in fiscal fourth quarter with results above guidance

Core Insights - TE Connectivity plc achieved record sales, operating margin, and cash generation for the fiscal year 2025, with strong performance across its segments despite a challenging macro environment [3][9][12] - The company reported net sales of $4.75 billion for the fourth quarter, a 17% increase year-over-year, and $17.3 billion for the full year, up 9% [9][12] - The Industrial segment saw a 24% increase in sales, driven by innovations catering to AI and energy customers, while the Transportation segment benefited from increased data connectivity and electrified power train growth [3][9] Financial Performance - For Q4 FY2025, GAAP diluted EPS from continuing operations was $2.23, a 148% increase year-over-year, while adjusted EPS reached a record $2.44, up 25% [9][12] - The company generated cash flow from operating activities of $1.4 billion in Q4 and a record $4.1 billion for the full year, with free cash flow of $1.2 billion in Q4 and $3.2 billion for the year [9][12] - TE Connectivity returned $650 million to shareholders in Q4 and $2.2 billion for the full year, while also deploying $2.6 billion for bolt-on acquisitions [9][12] Segment Performance - The Transportation Solutions segment reported net sales of $2.4 billion in Q4, while the Industrial Solutions segment achieved $2.3 billion, reflecting strong demand across both areas [9][12] - The operating margin for the full year was 19% for GAAP and 20% for adjusted, indicating robust operational performance [9][12] - Orders increased to $4.7 billion, up 22% year-over-year, showcasing strong demand across both segments [9][12] Outlook - For Q1 FY2026, TE Connectivity expects sales of approximately $4.5 billion, representing a 17% increase on a reported basis and an 11% organic growth year-over-year [4][9] - GAAP EPS is projected to be around $2.33, a 33% increase year-over-year, with adjusted EPS expected to be approximately $2.53, up 23% [4][9] - The company is well-positioned to capitalize on long-term growth trends, supported by strong order levels and operational resilience [4][9]