TE Connectivity Ltd. ( (TEL) ) has released its Q1 earnings. Here is a breakdown of the information TE Connectivity Ltd. presented to its investors.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
TE Connectivity Ltd., a global leader in industrial technology, specializes in connectivity and sensor solutions to enhance safety, sustainability, productivity, and connectivity in various sectors, including transportation, renewable energy, and medical technology. In their latest earnings report for the first quarter of fiscal year 2025, TE Connectivity announced that earnings per share exceeded guidance, supported by record cash generation and strong operational performance. The company reported net sales of $3.84 billion, flat year over year due to currency exchange headwinds, while adjusted earnings per share rose by approximately 6% to $1.95.
Key highlights include orders reaching $4.0 billion, a 6% year-over-year increase driven by the Industrial segment’s artificial intelligence initiatives. The operating margin was recorded at 18%, with an adjusted operating margin hitting a quarterly record of 19.4%. TE Connectivity generated record free cash flow of $674 million, up 18% year over year, and returned $500 million to shareholders while investing $325 million in bolt-on acquisitions within the Industrial segment.
Strategically, the company has achieved double-digit sales growth in the Industrial segment, capitalizing on AI momentum and strength in aerospace, defense, and marine (AD&M) and energy businesses. Despite uneven global vehicle production in the Transportation segment, TE Connectivity continues to innovate in growth areas such as electrification and vehicle data connectivity.
Looking forward, TE Connectivity anticipates sequential growth in second-quarter sales and an adjusted EPS increase compared to the first quarter. The company remains optimistic about leveraging long-term growth opportunities through acquisitions and margin expansion strategies, reinforcing its commitment to value creation.
