TE Connectivity PLC Earnings Summary
TE Connectivity PLC (NYSE: TEL) announced remarkable results for the fiscal fourth quarter and the fiscal year ending September 26, 2025. The company reported unprecedented levels in sales, operating margin, and cash generation, highlighting an extraordinary period of growth and productivity. This achievement underscores the company's robust operational performance and its strategic positioning in the market.
TE Connectivity PLC Financial Results
Below is a table summarizing key financial metrics for TE Connectivity's fiscal fourth quarter.
| Metric | Q4 2025 | YoY Change | QoQ Change |
|---|---|---|---|
| Net Sales | $4.75 billion | +17% | - |
| GAAP Diluted EPS | $2.23 | +148% | - |
| Adjusted EPS | $2.44 | +25% | - |
| Orders | $4.7 billion | +22% | +5% |
| GAAP Operating Margin | 19% | - | - |
| Adjusted Operating Margin | 20% | - | - |
| Cash Flow from Operating Activities | $1.4 billion | - | - |
| Free Cash Flow | $1.2 billion | - | - |
Year-End Performance
For the fiscal year 2025, TE Connectivity realized net sales of $17.3 billion, an increase of 9% on a reported basis and 6% on an organic basis. The GAAP earnings per share (EPS) significantly advanced to $6.16, while the adjusted EPS reached a new high of $8.76. Record cash flows were notable, with $4.1 billion from operating activities and $3.2 billion in free cash flow.
Revenue Breakdown by Segments
The company's expansive portfolio provided growth across several key sectors. The following table provides a segment-wise breakdown of sales performance:
| Segment | Q4 2025 Revenue | YoY Growth |
|---|---|---|
| Industrial | Significant Increase | +24% |
| Transportation | Sustained Growth | - |
Segment Performance Analysis
Industrial Segment : The Industrial segment saw impressive growth of 24% over the year. TE Connectivity attributes this success to innovations aligned with the accelerating demand from AI and energy sectors, signaling effective strategic investments.
Transportation Segment : Despite facing a challenging environment, the Transportation segment demonstrated content growth, buoyed by increased demands for data connectivity and the evolution of electrified powertrain systems. This reflects TE Connectivity's robust adaptability and foresight amidst evolving market dynamics.
Key Developments and Operational Highlights
TE Connectivity's achievements reflect strategic investments in novel innovations and a solid execution of business models. Key developments in the quarter included robust performance in both the Industrial and Transportation segments, setting records in revenue, operating margin, and cash flow. The company took proactive steps by deploying $2.6 billion towards bolt-on acquisitions, further indicating an aggressive growth strategy.
Executive Commentary
CEO Terrence Curtin expressed satisfaction with the company’s performance, stating, "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. 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."
He further noted, "Our Industrial segment saw growth with innovations to serve AI and energy customers, with expectations of continued strong demand. Our Transportation segment achieved data connectivity content increase and electrified powertrain growth in a challenging market."
Dividends and Share Repurchases
In fiscal 2025, TE Connectivity returned approximately $2.2 billion to shareholders, reflecting a strong commitment to shareholder value through dividends and share repurchase programs. This significant return underscores the company's financial health and strategic capital allocation.
TE Connectivity PLC Stock Forecast
Based on TE Connectivity's stellar performance and strategic market approach, the stock's potential looks promising. Taking into account robust operational metrics and strategic growth initiatives, TE Connectivity's stock could exhibit a high projection target of $150 per share if current momentum continues. Conversely, should market conditions or sector-specific challenges arise, the lower end of projections might see stock levels at approximately $125 per share.
The company's solid market capitalization of $45.5 billion further bolsters analyst confidence in a favorable outlook, provided operational excellence and market conditions are maintained.
In conclusion, TE Connectivity PLC has showcased exceptional fiscal management and strategic growth, setting impressive records and investing in future growth opportunities. As the company progresses into fiscal 2026, expectations are already set for continued growth in both sales and earnings per share, reaffirming the market's confidence in its forward trajectory.
