TE Connectivity Earnings Call Transcripts
Fiscal Year 2026
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Q2 delivered 15% sales growth and 24% earnings growth, with record orders and strong performance across all segments. Outlook remains robust, with Q3 sales and EPS expected to rise double digits year-over-year, supported by continued AI and energy market momentum.
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Q1 delivered over 20% sales growth, record orders, and strong margin expansion, with both segments outperforming. AI revenue guidance was raised by $200 million, and CapEx is increasing to support program wins. Sequential growth expected in Industrial, with auto seasonality impacting Transportation.
Fiscal Year 2025
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Management raised its long-term growth target to 6%-8% annually, driven by industrial and transportation megatrends in AI, energy, and vehicle electrification. The company expects to double its AI/cloud business in two years, maintain double-digit EPS growth, and deploy capital with a disciplined, high-ROIC approach.
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Record sales, earnings, and free cash flow were achieved, led by strong growth in AI, energy, and data connectivity. Both segments delivered 20% adjusted margins, with robust outlook for FY26 and continued capital deployment for growth.
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Q3 delivered record sales and adjusted EPS, driven by strong AI, energy, and industrial growth, with robust margins and cash flow. Outlook remains positive with double-digit growth expected in Q4 and continued momentum into FY26, supported by strategic investments and acquisitions.
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The company is leveraging strong growth in AI, EV, and energy infrastructure, with rising content per vehicle and robust expansion in Asia. Margins are improving, free cash flow conversion exceeds 100%, and recent M&A is focused on industrial and energy. Innovation, local presence, and portfolio optimization underpin resilience and growth.
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Q2 sales and earnings exceeded guidance, driven by strong industrial and AI-related growth, with robust cash generation and a 9% dividend increase. Tariff impacts are being mitigated, and the Richards acquisition strengthens the industrial segment. Q3 guidance anticipates continued growth.
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Q1 FY25 delivered flat sales but record adjusted margins and EPS, with strong free cash flow and robust order growth, especially in industrial and AI-driven segments. Currency headwinds and regional unevenness persist, but sequential growth is expected, supported by strong execution and recent acquisitions.
Fiscal Year 2024
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Q4 and FY24 results exceeded guidance with record margins, EPS, and free cash flow, driven by strong AI and Asia performance. FY25 outlook calls for continued growth, margin expansion, and robust capital returns, with Asia and AI as key drivers.
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Q3 results showed $4B in sales, 2% organic growth, and record margins, with strong cash flow and EPS. AI-driven Communications growth and stable Automotive offset industrial weakness. FY24 guidance calls for double-digit EPS growth and continued margin expansion.