TE Connectivity plc (NYSE: TEL) reported results for the fiscal fourth quarter and fiscal year ended September 26, 2025.
Fourth Quarter Highlights
- Net sales were a record $4.75 billion, an increase of 17% on a reported basis year over year and 11% organically, driven by growth in both the Industrial and Transportation segments.
- GAAP diluted earnings per share (EPS) from continuing operations was $2.23, up 148% year over year. Adjusted EPS was a record $2.44, an increase of 25% year over year.
- Orders increased in both Segments to $4.7 billion, up 22% year over year and 5% sequentially.
- GAAP Operating margin was 19% and adjusted operating margin was 20%, driven by strong operational performance across both segments.
- Cash flow from operating activities was $1.4 billion and free cash flow was a record at $1.2 billion, with nearly $650 million returned to shareholders.
Full Year Highlights
- Net sales were a record $17.3 billion, up 9% on a reported basis and 6% organically.
- GAAP operating margin was 19% and adjusted operating margin was 20%, each a record, driven by strong operational performance.
- GAAP EPS was $6.16 and adjusted EPS was a record $8.76.
- Generated record cash flow for the full year, including:
- Cash flow from operating activities of $4.1 billion.
- Free cash flow of $3.2 billion.
- Returned $2.2 billion to shareholders and deployed $2.6 billion for bolt-on acquisitions.
“Our teams executed at a high level against our business model to deliver strong results for the fourth quarter as well as the full year,” said CEO Terrence Curtin. “Our performance resulted in records on the top line, earnings and cash flow in 2025 and sets TE up well going into our new fiscal year. These results against an uneven macro environment demonstrate the strategic positioning of our portfolio and the investments we’ve made to broaden the business to benefit from long-term growth trends. Industrial segment sales increased 24% during the year, driven by innovations that serve AI and energy customers as demand continues to accelerate. Our Transportation segment performed well in a challenging end market, delivering content growth from increased data connectivity and growth of the electrified power train.
“We are well positioned to keep capitalizing on these and other key long-term growth trends. With strong order levels and our continued operational resilience, we expect sales and EPS in the first quarter of fiscal 2026 to each be up double digits year over year.”
First Quarter FY26 Outlook
For the first quarter of fiscal 2026, the company expects sales of approximately $4.5 billion, up 17% on a reported basis and 11% organically year over year. GAAP EPS from continuing operations is expected to be approximately $2.33, an increase of 33% year over year, with adjusted EPS of approximately $2.53, up 23% year over year.
Beginning in fiscal 2026, the company will exclude amortization expense on intangible assets and, if applicable, the related tax effects from its calculation of certain non-GAAP measures. The company’s Adjusted EPS outlook for the first quarter of fiscal 2026 excludes amortization expense and the related tax effects. Recast financial information is provided in a Form 8-K filed with the SEC today.
Information about TE Connectivity’s use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.
Conference Call and Webcast
The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:
- At TE Connectivity’s website: investors.te.com
- By telephone: For both “listen-only” participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (800) 715-9871 and for international callers, the dial-in number is (646) 307-1963.
- A replay of the conference call will be available on TE Connectivity’s investor website at investors.te.com at 11:30 a.m. ET on October 29.
