TE Connectivity 2025 Investor Day Summary Company Overview - **Company**: TE Connectivity (NYSE: TEL) - **Event**: 2025 Investor Day held on November 20, 2025, in Philadelphia Key Industry Insights - **Industry Focus**: Connectivity solutions across various sectors including artificial intelligence, power grids, autonomous factories, and next-generation vehicles [4][10][14] - **Market Size**: The addressable market for TE Connectivity is approximately $130 billion, with significant fragmentation providing both organic and inorganic growth opportunities [14][28] Core Financial Highlights - **Revenue**: Over $17 billion in the previous year with a 21% operating income and 25% EBITDA [13][28] - **Free Cash Flow**: Increased from $1.6 billion to $3.2 billion, indicating strong operational improvements [29] - **Growth Projections**: Expected growth rate of 6%-8% over the next five years, a significant increase from previous performance [10][28] Strategic Initiatives - **Co-Creation Model**: Emphasis on engineering close to customers to foster innovation and address complex architectures [17][18] - **Engineering Capacity**: Increased engineering staff by 25% over the past five years, now totaling 10,700 engineers working on 5,000 projects [18][19] - **Localization**: 76% of operations are localized in regions where customers are based, with 90% of the supply chain also localized [21][22] Growth Drivers - **Industrial Solutions**: Expected to be the largest growth driver, with a focus on automation and connected living [11][44] - **Transportation Segment**: Anticipated 4%-6% content outperformance in the automotive sector [11][12] - **Digital Data Networks and Energy**: Significant growth expected due to massive capital expenditures in these areas [56][57] Market Trends - **Data and Power Needs**: Increasing demand for high-speed data transfer and power solutions driven by AI and electrification trends [35][39] - **AI Surge**: Over $400 billion expected to be invested in AI this year, with TE Connectivity positioned to benefit from this growth [62][63] Operational Excellence - **Quality Improvement**: Achieved a 50% improvement in quality over the last five years, with plans for another 50% improvement in the next five years [26] - **Customization and Scale**: TE Connectivity operates over 3,000 molding presses and 1,200 stamping presses, emphasizing the ability to customize products while maintaining scale [24][25] Conclusion - **Future Outlook**: TE Connectivity is confident in its growth trajectory, driven by strong customer relationships, innovative engineering, and a commitment to operational excellence [48][49] - **Commitment to Shareholders**: Continued focus on increasing dividends and maintaining a strong return on invested capital (ROIC) [32][33]