#None #Galway #TE Connectivity #Earnings Growth #Industrial segment

TE Connectivity Reports Impressive Growth in Q3 Fiscal 2025

TE Connectivity plc (NYSE: TEL), a renowned industrial technology firm, has announced its financial results for the third quarter of the fiscal year 2025, covering the period that ended on June 27, 2025. The company achieved a remarkable feat, with net sales reaching a record $4.5 billion, marking a significant year-over-year increase of 14%. This growth reflects not only a robust sales performance but also a considerable 9% organic growth primarily fueled by strong demand in the Industrial sector.

Key Financial Highlights

TE Connectivity's diluted earnings per share (EPS) from continuing operations also showcased significant improvement, rising by 15% year-over-year to $2.14. When factoring in adjustments, the EPS reached a record $2.27, representing an impressive 19% increase compared to the same quarter last year. The company reported total orders amounting to $4.5 billion, which signifies both year-over-year and sequential growth, underlining the company's strong market position and operational effectiveness.

The operating margin for the company was reported at 18.9%, while the adjusted operating margin reached a record 19.9%. This achievement was largely driven by robust operational performance across both of TE's business segments: Transportation Solutions and Industrial Solutions.

Record Cash Generation

One of the key highlights of TE's financial performance was its cash generation capabilities. For the third quarter alone, the company generated approximately $1.2 billion from operating activities, contributing to a total of $2.7 billion year-to-date. Additionally, TE Connectivity reported a free cash flow of $962 million for the quarter and around $2.1 billion year to date, showcasing the company's effective cash management strategies.

TE's efforts towards capital deployment have also been noteworthy. During the quarter, the company successfully completed the acquisition of Richards for $2.3 billion, bolstering its Industrial Solutions segment. Furthermore, it returned $1.5 billion to its shareholders, demonstrating commitment to providing shareholder value.

Strong Performance in Industrial Sector

According to CEO Terrence Curtin, the strong results for the third quarter exceeded the company's expectations, illustrating how the diverse portfolio and global positioning play a crucial role in achieving record performances even in dynamic market conditions. The company indicated that the impressive sales growth was largely attributable to significant gains in the Industrial segment, which experienced a remarkable 30% sales increase.

TE Connectivity's efficiency in delivering high-speed connectivity solutions to AI applications and strong growth within its energy business have propelled this segment's success. In the Transportation segment, despite a downturn in vehicle production, the company noted an increase in sales due to its strengths in Asia and innovations focusing on electrification and next-generation vehicle data connectivity.

Future Outlook

Looking ahead at the fourth quarter of fiscal 2025, TE Connectivity anticipates net sales of approximately $4.55 billion, which would represent a 12% increase on a reported basis, and 6% organically. Furthermore, the company expects GAAP EPS from continuing operations to reach approximately $2.18, marking a more than 140% increase year-over-year, with adjusted EPS projected at around $2.27, corresponding to a 16% year-over-year growth.

In conclusion, TE Connectivity's performance in the third quarter of fiscal 2025 reflects its robust operational strategies and resilience in a competitive market. With concerted efforts in innovation and strategic acquisitions, the company is well-positioned to sustain its growth momentum in upcoming periods.