#None #fiscal results #TE Connectivity #EPS Growth

TE Connectivity Reports Strong Performance in Fiscal Fourth Quarter

TE Connectivity plc (NYSE: TEL) has released its financial results for the fourth quarter and full fiscal year ending September 25, 2026, showcasing remarkable growth and providing a strong outlook ahead. The company reported record net sales of $5.3 billion in the fourth quarter, reflecting a 12% increase compared to last year and a 13% organic growth. This positive momentum was driven primarily by significant expansions in the Industrial and Transportation segments, with orders jumping 29% year-over-year, totaling $6.1 billion.

The GAAP diluted earnings per share (EPS) from continuing operations hit $3.10, representing a significant 39% increase year-over-year. Adjusted EPS showed similar strength, reaching $3.14, an increase of 21%. The company's operating margin stood at 21%, while adjusted operating margin was slightly higher at 22%, indicative of strong operational performance across both segments.

In terms of cash flow, TE Connectivity generated $1.5 billion from operating activities, and free cash flow reached $1.2 billion, underscoring its robust financial health with approximately $800 million returned to shareholders. CEO Terrence Curtin highlighted the record-setting performance throughout the year, emphasizing the company’s strategic initiatives to address the increasing demands for data and power connectivity.

Overview of the Year’s Achievements

In fiscal year 2026, TE Connectivity achieved net sales totaling $19.9 billion, equating to a 15% increase on a reported basis, and 12% growth on an organic basis. This robust increase across the portfolio reflects growing customer needs amid the accelerating digital transformation in various sectors, from automated factories to energy networks.

Orders for the year totaled $22.2 billion, which is a 27% increase, providing a strong foundation for anticipated double-digit sales growth in fiscal 2027.

Continuing with impressive financial performance, GAAP operating margin for the fiscal year was reported at 20%, with an adjusted operating margin of 22%. The GAAP EPS celebrated an astounding 80% rise to $11.07, while the adjusted EPS climbed 24% to $11.52.

Moreover, TE Connectivity’s cash generation activities were robust, with cash flow from operations sitting at $4.5 billion and free cash flow at $3.4 billion. The company returned around $2.8 billion to shareholders, showcasing its commitment to enhancing shareholder value while allocating $1.6 billion for strategic acquisitions in the Industrial segment to broaden its service offerings.

Forward Outlook

Looking ahead, TE Connectivity remains optimistic about its growth trajectory entering fiscal 2027. The company intends to leverage strong orders across its diverse businesses to deliver mid-teen percentage sales growth in the first quarter of fiscal year 2027. Furthermore, an expected EPS growth of over 20% year-over-year is anticipated amidst robust operational and market trends.

Curtin reiterated the company’s position to capitalize on the emerging growth drivers in the connectivity market, stating that the momentum gained in 2026 sets a solid foundation for leveraging future opportunities as new innovations continue to shape the industrial landscape.

In summary, TE Connectivity’s impressive fiscal performance reflects not only strong sales growth and enhanced profitability but also an unwavering commitment to delivering value for its stakeholders in the changing economic landscape. As the global demand for innovative connectivity solutions ramps up, TE Connectivity is well-poised to navigate future challenges and opportunity spaces in the market.