4Q 2025 Results January 26, 2026 Copyright 2024 Baker Hughes Company. All rights reserved. The information contained in this document is company confidential and proprietary property of Baker Hughes and its affiliates. Copyright 2026 Baker Hughes Company. All rights reserved. The information contained in this document is company confidential and proprietary property of Baker Hughes and its affiliates. It is used only for the benefit of Baker Hughes and may not be distributed, transmitted, reproduced, altere ...

Core Insights - TE Connectivity (TEL) reported first-quarter fiscal 2026 adjusted earnings of $2.72 per share, a 39.5% increase from the previous year, surpassing the Zacks Consensus Estimate by 7.09% [1][8] - Net sales reached $4.67 billion, exceeding the consensus estimate by 3.62% and reflecting a 22% increase year over year, with a 15% organic growth [2][8] - Orders rose to $5.1 billion, marking a 28% year-over-year increase and a 9% sequential rise, with a book-to-bill ratio of 1.1 compared to 1.05 in the prior year [2] Segment Performance - The Transportation solutions segment generated revenues of $2.47 billion, accounting for 52.8% of net sales, with a 10% year-over-year increase [3] - Automotive sales in the Transportation segment grew by 7% year over year, while commercial transportation sales surged by 16% [4] - The Industrial Solutions segment reported revenues of $2.20 billion, also 52.8% of net sales, with a 38% year-over-year increase [5] Operating Metrics - GAAP gross margin expanded by 180 basis points to 37.2%, while adjusted operating margin also increased by 180 basis points to 22.2% [6] - Selling, general, and administrative expenses rose to 11.5% of net sales, an increase of 40 basis points [6] Financial Position - As of December 26, 2025, cash and cash equivalents stood at $1.25 billion, with long-term debt at $4.86 billion [7] - TE Connectivity generated $865 million in cash from operations during the quarter, a decrease from $1.4 billion in the previous quarter [7][9] Future Guidance - For the second quarter of fiscal 2026, TE Connectivity anticipates net sales to increase by 13% year over year, projecting adjusted earnings of $2.65 per share, indicating a 20% growth [10]

Core Insights - TE Connectivity (TEL) is expected to report quarterly earnings of $2.54 per share, reflecting a 30.3% increase year over year, with revenues projected at $4.51 billion, a 17.5% year-over-year increase [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating stability in analysts' projections [1] Key Metrics Projections - Analysts expect 'Net Sales- Transportation Solutions' to be $2.34 billion, a 4.5% increase year over year [4] - 'Net Sales- Industrial Solutions' is forecasted to reach $2.16 billion, indicating a significant 35.7% increase from the previous year [4] - 'Net Sales- Industrial Solutions- Medical' is estimated at $146.72 million, reflecting a slight decline of 2.8% year over year [4] - 'Net Sales- Transportation Solutions- Automotive' is projected at $1.79 billion, a 3.9% increase from the prior year [5] - 'Net Sales- Transportation Solutions- Sensors' is expected to be $212.30 million, showing a 1.6% year-over-year increase [5] - 'Net Sales- Industrial Solutions- Energy' is anticipated to reach $373.91 million, a substantial increase of 73.1% from the previous year [6] - 'Net Sales- Transportation Solutions- Commercial transportation' is projected at $331.15 million, indicating a 6.1% increase year over year [6] Operating Income Estimates - The consensus estimate for 'Adjusted Operating Income- Transportation Solutions' is $501.56 million, compared to $478.00 million reported in the same quarter last year [7] - Analysts estimate 'Adjusted Operating Income- Industrial Solutions' at $452.26 million, up from $267.00 million reported in the same quarter of the previous year [7] Stock Performance - TE Connectivity shares have increased by 6.5% over the past month, outperforming the Zacks S&P 500 composite, which moved up by 1.6% [8] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [8]

Core Insights - TE Connectivity (TEL) shares increased by 3.4% to $244.13, following a period of 4.4% loss over the past four weeks, indicating a potential recovery in stock performance [1] - The company is experiencing growth in its Industrial Solutions segment, driven by strong demand for artificial intelligence (AI) and cloud applications [1] Earnings Expectations - TE Connectivity is projected to report quarterly earnings of $2.54 per share, reflecting a year-over-year increase of 30.3% [2] - Expected revenues for the upcoming quarter are $4.51 billion, which is a 17.5% increase compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for TE Connectivity has been slightly revised higher in the last 30 days, which typically correlates with stock price appreciation [3] - The stock currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [3] Industry Comparison - TE Connectivity is part of the Zacks Electronics - Miscellaneous Components industry, where CTS (CTS) also operates [3] - CTS has a consensus EPS estimate of $0.6, unchanged over the past month, representing a year-over-year change of 13.2% [4] - CTS currently holds a Zacks Rank of 4 (Sell), contrasting with TE Connectivity's stronger position [4]

Core Insights - Donaldson Company, Inc. (DCI) reported adjusted earnings of 94 cents per share for Q1 fiscal 2026, surpassing the Zacks Consensus Estimate of 93 cents, reflecting a year-over-year increase of 13.3% [1] - Total revenues reached $935.4 million, exceeding the Zacks Consensus Estimate of $924 million, with a year-over-year growth of 3.9% [2] Revenue Results - Revenue breakdown shows a 0.6% decline in the United States/Canada, while Europe, the Middle East, and Africa saw a 9.1% increase, and Latin America increased by 5.9%. The Asia Pacific region improved by 6.6% [2] - Mobile Solutions segment, accounting for 64% of net sales, generated $598.3 million, up 4.5% year-over-year, with Off-Road sales rising 6.1% and On-Road sales declining 27.1% [3] - Industrial Solutions segment revenues were $257.8 million, a slight increase of 0.1% year-over-year, impacted by a 7.1% decline in Aerospace and Defense [4] - Life Sciences segment revenues increased by 13.1% year-over-year to $79.3 million, driven by new equipment and replacement part sales in the food and beverage sector [4] Margin Profile - Cost of sales rose 4.5% year-over-year to $606.6 million, while gross profit increased by 2.9% to $328.8 million, resulting in a gross margin of 35.2%, down 30 basis points due to inflation and inventory valuation issues [5] - Operating expenses decreased by 4.9% year-over-year to $179.5 million, leading to a 14.2% increase in operating profit to $149.3 million, with an operating margin of 16%, up 150 basis points [5] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of Q1 were $210.7 million, up from $180.4 million in the previous quarter, while long-term debt increased to $671.5 million from $630.4 million [7] - The company generated net cash of $125.4 million from operating activities, a 72% increase year-over-year, with free cash flow rising 154.7% to $122 million [8] FY26 Outlook - For fiscal 2026, DCI expects adjusted EPS in the range of $3.95-$4.11, with sales growth anticipated between 1-5% from fiscal 2025 levels [11] - Segment-wise, Mobile Solutions sales are expected to be flat to increase by 4%, Industrial Solutions by 2-6%, and Life Sciences by 1-5% [12] - Capital expenditure is projected between $65 million and $85 million, with free cash flow conversion expected to be in the range of 85-95% [13]

Core Insights - TE Connectivity (TEL) reported adjusted earnings of $2.44 per share for Q4 fiscal 2025, a 25.1% increase year-over-year, surpassing the Zacks Consensus Estimate by 6.55% [1][8] - Net sales reached $4.75 billion, exceeding consensus estimates by 4.28% and reflecting a 17% increase year-over-year, with 11% organic growth [1][8] - The growth was primarily driven by the Industrial and Transportation segments, with orders increasing to $4.7 billion, up 22% year-over-year [2][3] Q4 Financial Performance - The Transportation solutions segment generated revenues of $2.41 billion, accounting for 50.8% of net sales, with a year-over-year increase of 3.6% [3] - Automotive sales rose by 4% year-over-year, supported by strong demand in Asia, while sensor sales declined by 4% [3] - The Industrial Solutions segment reported revenues of $2.33 billion, representing a 34% increase year-over-year [4] Segment Performance - Digital Data Networks, Automation & Connected Living, Aerospace, Defense and Marine, and Energy segments saw significant year-over-year growth of 80%, 15%, 9%, and 83%, respectively [5] - The Medical sector experienced a decline of 16% [5] Operating Metrics - GAAP gross margin expanded by 100 basis points to 35% year-over-year [6] - Selling, general, and administrative expenses decreased to 10.4% of net sales, down 20 basis points [6] - Adjusted operating margin increased by 130 basis points to 19.9% [6] Balance Sheet and Cash Flow - As of September 26, 2025, cash and cash equivalents rose to $1.25 billion from $672 million [7] - Long-term debt slightly decreased to $4.842 billion [7] - Cash generated from operations was $1.4 billion, up from $1.2 billion in the previous quarter [7][9] Q1 Guidance - For Q1 fiscal 2026, TEL expects net sales to increase by 17% year-over-year to $4.5 billion, with adjusted earnings projected at $2.53 per share, indicating a 23% growth [10]

Core Insights - TE Connectivity (TEL) reported a revenue of $4.75 billion for the quarter ended September 2025, marking a year-over-year increase of 16.7% and exceeding the Zacks Consensus Estimate of $4.55 billion by 4.28% [1] - The company's EPS for the same period was $2.44, up from $1.95 a year ago, surpassing the consensus EPS estimate of $2.29 by 6.55% [1] Financial Performance - Net Sales in Industrial Solutions reached $2.34 billion, exceeding the average estimate of $2.17 billion by four analysts, representing a significant year-over-year increase of 98% [4] - Net Sales in Transportation Solutions amounted to $2.41 billion, slightly above the estimated $2.38 billion, reflecting a year-over-year growth of 4.4% [4] - Adjusted Operating Income for Industrial Solutions was reported at $475 million, surpassing the average estimate of $424.51 million [4] - Adjusted Operating Income for Transportation Solutions was $468 million, slightly below the average estimate of $475.69 million [4] Stock Performance - TE Connectivity's shares have returned +7.8% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]