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TE Connectivity Shows Promising Growth in Q2 Fiscal Year 2025

TE Connectivity plc (NYSE: TEL) recently announced its financial results for the second quarter of fiscal year 2025, which ended on March 28, 2025. The company reported impressive numbers, reflecting not just solid sales but also a record in earnings per share (EPS).

Key Financial Highlights

The net sales of the company reached approximately $4.1 billion, marking a 4% increase year-over-year, and a 5% growth organically, significantly driven by a remarkable double-digit rise in its Industrial Solutions segment. This indicates a strong performance against the backdrop of a competitive market.

Moreover, the diluted EPS from continuing operations was reported at $0.04, but this figure included a one-time, non-cash tax charge as a result of changes in tax legislation. When adjusted, the EPS hit a record $2.10, showcasing a substantial 13% year-over-year improvement.

TE Connectivity's orders for this quarter amounted to $4.25 billion, an increase of 6% compared to both the previous year and the prior quarter. This consistent ordering pattern underscores the confidence customers have in the company amidst fluctuating economic conditions.

In terms of operational efficiency, the operating margin stood at 18.1%, with an adjusted operating margin reaching 19.4%, which is indicative of strong operational performance across both the Transportation and Industrial segments.

Cash flow from operating activities during the first half of the fiscal year was an impressive $1.5 billion, while free cash flow approximated $1.1 billion. This robust cash flow situation enabled TE Connectivity to return nearly $1 billion to its shareholders alongside a notable 9% increase in dividends—both strong signals of financial health and commitment to shareholder value.

Expansion Through Acquisition

In a strategic move, TE Connectivity successfully completed the acquisition of Richards Manufacturing Co. in April. This acquisition is expected to enhance the company’s strong growth opportunities within the North American utility market, which aligns with TE Connectivity's long-term growth strategy.

Corporate Responsibility Focus

The company also highlighted its commitment to sustainability with its recent release of the One Connected World corporate responsibility report. Notably, TE Connectivity reported an 80% reduction in Scope 1 and 2 greenhouse gas emissions over the past four years, affirming its dedication to environmental stewardship while maintaining business growth.

Future Outlook

As TE Connectivity looks ahead, they express confidence in their third-quarter guidance, anticipating net sales of about $4.30 billion, which is an 8% rise year-over-year. They project an expected GAAP EPS from continuing operations of roughly $2.02, representing a nearly 9% increase compared to last year, and an adjusted EPS of approximately $2.06, up 8%.

TE Connectivity's CEO, Terrence Curtin, stated, “Our teams delivered strong operational performance that led to record adjusted EPS and results that exceeded our guidance on both sales and earnings.” This sentiment mirrors the strategy and efforts of TE Connectivity to navigate the current economic landscape effectively.

Conclusion

In summary, TE Connectivity plc’s second quarter for fiscal year 2025 reflects a commendable performance with significant growth in sales, earnings, and operational efficiency. The combination of strategic acquisitions and a strong operational foundation positions TE Connectivity well for continued success in the coming quarters. As it embraces opportunities in the evolving industrial technology landscape, TE Connectivity continues to focus keenly on creating value for its customers and shareholders alike.