TE Connectivity Ltd
TEL · XNYS · USD · fiber_connectors_test
Price, relative performance, and volume
Market, fundamentals, and source material
Realized volatility trend
- Latest
- 35.4%
- Range change
- +21.0 pp
- Low
- 10.1%
- High
- 63.2%
Historical valuation
- Latest
- $62.72B
- Range change
- +$20.12B
- Low
- $36.25B
- High
- $73.34B
Market trend
| 5D return | +5.2% |
|---|---|
| 20D return | +8.0% |
| 60D relative strength | -0.7% |
| Trend acceleration | +3.2% |
| Distance from 50DMA | +4.6% |
| 252D drawdown | -12.3% |
| 20D median dollar volume | $515.8M |
Fundamentals and valuation
| Price / sales | 3.24x |
|---|---|
| EV / sales | 3.49x |
| Market cap | $62.63B |
| Enterprise value | $67.51B |
| Revenue TTM | $19.32B |
| Gross profit TTM | $6.98B |
| Profit margin | +15.6% |
| Revenue growth YoY | +13.8% |
| Cash | $1.24B |
| Total debt | $5.63B |
| Snapshot | Aug 8, 2026 |
Earnings dates
| Date | Fiscal period | Status |
|---|---|---|
| Oct 28, 2026 | 2026-10-28 | Tentative Date Only |
| Jul 22, 2026 | 2026-07-22 | Tentative Date Only |
| Apr 22, 2026 | 2026-04-22 | Tentative Date Only |
| Jan 21, 2026 | 2026-01-21 | Tentative Date Only |
| Oct 29, 2025 | 2025-10-29 | Tentative Date Only |
| Jul 23, 2025 | 2025-07-23 | Tentative Date Only |
| Apr 23, 2025 | 2025-04-23 | Tentative Date Only |
| Jan 22, 2025 | 2025-01-22 | Tentative Date Only |
| Oct 30, 2024 | 2024-10-30 | Tentative Date Only |
| Jul 24, 2024 | 2024-07-24 | Tentative Date Only |
Recent ticker news
| Published | Headline | Sentiment |
|---|---|---|
| Aug 8, 2026, 10:10 AM EDT | TE Connectivity (TEL) Stock Could Be A Bargain At Today’s Price | 1.00 |
| Aug 8, 2026, 9:25 AM EDT | Wall Street Sees a Multitrillion-Dollar Humanoid Robot Market. These 2 Industrial Stocks Sell the Parts. | 1.00 |
| Aug 8, 2026, 9:25 AM EDT | Wall Street Sees a Multitrillion-Dollar Humanoid Robot Market. These 2 Industrial Stocks Sell the Parts. | 1.00 |
| Aug 7, 2026, 9:13 PM EDT | TE Connectivity (TEL) Could Be 12% Undervalued As Growth And Cash Flow Stay In Focus | 1.00 |
| Aug 5, 2026, 9:50 AM EDT | Should Investors Buy ST for Growth Despite Its Heavy Debt Burden? | 1.00 |
| Aug 5, 2026, 9:49 AM EDT | How Sensata's Q2 Beat and Q3 Guidance Shape Its 2026 Growth Story | 1.00 |
| Aug 3, 2026, 12:10 PM EDT | TTMI Stock Before Q2 Earnings Release: To Buy or Not to Buy? | 1.00 |
Official transcript material
2026-07-22Jul 22, 2026, 12:00 PM EDTSec 8k Exhibit55 segments
paragraph:1: EX-99.1
paragraph:2: 2
paragraph:3: tel-20260722xex99d1.htm
paragraph:4: EX-99.1
paragraph:5: News Release Exhibit 99.1 NEWS RELEASE te.com TE Connectivity delivers results above guidance with 14% sales growth and 19% EPS growth in third quarter of fiscal 2026 Fourth quarter guidance reflects another quarter of double-digit sales and EPS growth GALWAY, Ireland – July 22, 2026 – TE Connectivity plc (NYSE: TEL) today reported results for the fiscal third quarter ended June 26, 2026. Third Quarter Highlights ● Net sales were a record $5.16 billion, an increase of 14% on a reported basis and 12% organically year over year, driven by growth in both the Industrial and Transportation segments. ● GAAP diluted earnings per share (EPS) from continuing operations was $2.55, an increase of 19% year over year. Adjusted EPS was a record $2.94, an increase of 22 % year over year. ● GAAP operating margin was 19%, an increase of 10 basis points year over year. Adjusted operating margin expanded by 90 basis points year over year to 22%, driven by strong operational performance. ● Record orders in both segments totaling $5.7 billion, an increase of 27% year over year with double-digit order growth in all businesses. ● Cash flow from operating activities was $1.2 billion for the quarter and $3.0 billion year to date. Free cash flow was $883 million for the quarter and $2.2 billion year to date. ● Returned $2.0 billion to shareholders year to date. ● Entered agreement to acquire Astrodyne TDI, expanding TE’s power portfolio in the Industrial segment. “Our teams delivered record third quarter results above guidance, with strong growth performance in both segments, as we continued to capitalize on customer demand for our innovative interconnect technologies,” said CEO Terrence Curtin. “Our Industrial team delivered sales growth of over 20 percent, while Transportation increased sales by five percent organically by growing content with customers and outperforming end markets. Orders in the third quarter increased by more than $1 billion year over year to $5.7 billion, reinforcing broad growth across the portfolio and increased momentum in AI in both the data center and across the broader energy infrastructure. Our strong margin performance continues to reflect our resiliency while also investing for growth. We also continue to deliver on our cash generation model, with strong capital returns for shareholders. “We are significantly outperforming our business model outlined during our Investor Day, setting us up for double-digit increases in sales and EPS for fiscal 2026 as well as strong growth and operating momentum as we head towards 2027.” Fourth Quarter FY26 Outlook For the fourth quarter of fiscal 2026, the company expects sales of approximately $5.25 billion, an increase of 11% year over year on both a reported and organic basis. Adjusted EPS is expected to be approximately $3.05, an increase of 18% year over year. GAAP EPS from continuing operations is expected to be approximately $2.84, an increase of 27% year over year. 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. TE Connectivity to Acquire Astrodyne TDI TE also announced today it has entered into a definitive agreement to acquire Astrodyne TDI, a leading provider of advanced power management and filtering solutions for mission critical industrial applications, from Tinicum L.P. The acquired company is expected to contribute annual sales of more than $250 million and will be reported as part of the Industrial Solutions segment. The transaction, at an approximate purchase price of $1.4 billion, is subject to customary regulatory approvals and closing conditions and is expected to close by the end of this calendar year. 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 (833) 461-5787 and for international callers, the dial-in number is (585) 542-9983; meeting ID: 628904516. ● 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 July 22. About TE Connectivity TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn , Facebook , WeChat and
paragraph:6: Instagram .
paragraph:7: Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP financial measures: • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans. • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans. • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any. • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans. • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements This release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 26, 2025, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission. ric Mangan 08-783-6629 @te.com Contacts: Media Relations : Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com Investor Relations : Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com # # # TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended For the Nine Months Ended June 26, June 27, June 26, June 27, 2026 2025 2026
paragraph:8: 2025 (in millions, except per share data) Net sales $ 5,160 $ 4,534 $ 14,573 $ 12,513 Cost of sales 3,325 2,934 9,254 8,094 Gross margin 1,835 1,600 5,319 4,419 Selling, general, and administrative expenses 532 491 1,606 1,372 Research, development, and engineering expenses 230 211 692 602 Acquisition and integration costs 9 27 20 41 Restructuring and other charges, net 83 14 103 109 Operating income 981 857 2,898 2,295 Interest income 21 17 67 62 Interest expense (31) (28) (93) (48) Other income (expense), net — — 2 (2) Income from continuing operations before income taxes 971 846 2,874 2,307 Income tax expense (223) (208) (520) (1,128) Income from continuing operations 748 638 2,354 1,179 Loss from discontinued operations, net of income taxes — — (1) — Net income $ 748 $ 638 $ 2,353 $ 1,179 Basic earnings per share: Income from continuing operations $ 2.57 $ 2.16 $ 8.03 $ 3.96 Loss from discontinued operations — — — — Net income 2.57 2.16 8.03 3.96 Diluted earnings per share: Income from continuing operations $ 2.55 $ 2.14 $ 7.98 $ 3.93 Loss from discontinued operations — — — — Net income 2.55 2.14 7.98 3.93 Weighted-average number of shares outstanding: Basic 291 296 293 298 Diluted 293 298 295 300 TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 26,
paragraph:9: September 26, 2026
paragraph:10: 2025 (in millions, except share data) Assets Current assets: Cash and cash equivalents $ 1,239 $ 1,255 Accounts receivable, net of allowance for doubtful accounts of $51
paragraph:11: and $44, respectively 3,749 3,403 Inventories 3,027 2,699 Prepaid expenses and other current assets 728 609 Total current assets 8,743 7,966 Property, plant, and equipment, net 4,529 4,312 Goodwill 7,403 7,126 Intangible assets, net 2,081 2,227 Deferred income taxes 2,233 2,507 Other assets 1,081 943 Total assets $ 26,070 $ 25,081 Liabilities, redeemable noncontrolling interests, and shareholders' equity Current liabilities: Short-term debt $ 102 $ 852 Accounts payable 2,409 2,021 Accrued and other current liabilities 2,149 2,247 Total current liabilities 4,660 5,120 Long-term debt 5,530 4,842 Long-term pension and postretirement liabilities 737 767 Deferred income taxes 176 198 Income taxes 320 414 Other liabilities 1,254 1,010 Total liabilities 12,677 12,351 Commitments and contingencies Redeemable noncontrolling interests 147 145 Shareholders' equity: Preferred shares, $1.00 par value, 2 shares authorized, none outstanding — — Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding — — Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 296,097,014 and 302,889,075 shares issued, respectively 3 3 Accumulated earnings 14,500 13,932 Ordinary shares held in treasury, at cost, 6,156,342 and 8,330,931 shares, respectively (1,350) (1,356) Accumulated other comprehensive income 93 6 Total shareholders' equity 13,246 12,585 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 26,070 $ 25,081 TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Quarters Ended For the Nine Months Ended June 26, June 27, June 26, June 27, 2026
paragraph:12: 2025
paragraph:13: 2026
paragraph:14: 2025 (in millions) Cash flows from operating activities: Net income $ 748 $ 638 $ 2,353 $ 1,179 Loss from discontinued operations, net of income taxes — — 1 — Income from continuing operations 748 638 2,354 1,179 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 256 216 758 594 Deferred income taxes 102 71 261 772 Non-cash lease cost 40 37 118 106 Provision for losses on accounts receivable and inventories 12 19 61 62 Share-based compensation expense 38 36 130 105 Other (26) 26 (51) 60 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts receivable, net (296) (220) (355) (391) Inventories (34) (167) (365) (299) Prepaid expenses and other current assets 52 (109) 38 31 Accounts payable 256 152 433 298 Accrued and other current liabilities 24 222 (240) (76) Income taxes (10) 117 (94) 172 Other 23 149 (51) 105 Net cash provided by operating activities 1,185 1,187 2,997 2,718 Cash flows from investing activities: Capital expenditures (304) (230) (832) (665) Proceeds from sale of property, plant, and equipment 2 5 6 7 Acquisition of businesses, net of cash acquired — (2,307) (200) (2,628) Other (6) (5) (6) (12) Net cash used in investing activities (308) (2,537) (1,032) (3,298) Cash flows from financing activities: Net increase (decrease) in commercial paper — (1,500) 100 (255) Proceeds from issuance of debt — 1,458 750 2,231 Repayment of debt — (1) (851) (580) Proceeds from exercise of share options 15 42 79 101 Repurchase of ordinary shares (529) (301) (1,348) (910) Payment of ordinary share dividends to shareholders (226) (212) (643) (594) Other (9) (23) (67) (56) Net cash used in financing activities (749) (537) (1,980) (63) Effect of currency translation on cash 1 5 (1) (4) Net increase (decrease) in cash, cash equivalents, and restricted cash 129 (1,882) (16) (647) Cash, cash equivalents, and restricted cash at beginning of period 1,110 2,554 1,255 1,319 Cash, cash equivalents, and restricted cash at end of period $ 1,239 $ 672 $ 1,239 $ 672 Supplemental cash flow information: Income taxes paid, net of refunds $ 130 $ 20 $ 353 $ 184 TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED) For the Quarters Ended For the Nine Months Ended June 26, June 27, June 26, June 27, 2026
paragraph:15: 2025
paragraph:16: 2026
paragraph:17: 2025 (in millions) Net cash provided by operating activities $ 1,185 $ 1,187 $ 2,997 $ 2,718 Capital expenditures, net (302) (225) (826) (658) Free cash flow (1) $ 883 $ 962 $ 2,171 $ 2,060 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. TE CONNECTIVITY PLC SEGMENT DATA (UNAUDITED) For the Quarters Ended For the Nine Months Ended June 26, June 27, June 26, June 27, 2026
paragraph:18: 2025
paragraph:19: 2026
paragraph:20: 2025 ($ in millions) Net Sales Net Sales Net Sales Net Sales Transportation Solutions $ 2,580 $ 2,418 $ 7,469 $ 6,975 Industrial Solutions 2,580 2,116 7,104 5,538 Total $ 5,160 $ 4,534 $ 14,573 $ 12,513 Operating Operating Operating Operating Operating Operating Operating Operating Income Margin Income Margin Income Margin Income Margin Transportation Solutions $ 444 17.2 % $ 462 19.1 % $ 1,448 19.4 % $ 1,353 19.4 % Industrial Solutions 537 20.8 395 18.7 1,450 20.4 942 17.0 Total $ 981 19.0 % $ 857 18.9 % $ 2,898 19.9 % $ 2,295 18.3 % Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Operating Operating Operating Operating Operating Operating Operating Operating Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Transportation Solutions $ 541 21.0 % $ 486 20.1 % $ 1,586 21.2 % $ 1,476 21.2 % Industrial Solutions 588 22.8 467 22.1 1,608 22.6 1,107 20.0 Total $ 1,129 21.9 % $ 953 21.0 % $ 3,194 21.9 % $ 2,583 20.6 % (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED) Change in Net Sales for the Quarter Ended June 26, 2026 versus Net Sales for the Quarter Ended June 27, 2025 Net Sales Organic Net Sales Growth (Decline)
paragraph:21: Growth (Decline) (1)
paragraph:22: Translation (2)
paragraph:23: Acquisitions ($ in millions) Transportation Solutions : Automotive $ 94 5.2 % $ 53 2.9 % $ 41 $ — Commercial transportation 71 19.6 63 17.8 8 — Sensors (3) (1.3) (6) (2.8) 3 — Total Transportation Solutions 162 6.7 110 4.5 52 — Industrial Solutions : Digital data networks 207 34.2 205 34.0 2 — Automation and connected living 93 16.3 83 14.3 10 — Aerospace, defense, and marine 45 12.0 43 11.5 2 — Energy 132 34.4 126 32.7 6 — Medical (13) (7.2) (13) (7.2) — — Total Industrial Solutions 464 21.9 444 21.0 20 — Total $ 626 13.8 % $ 554 12.2 % $ 72 $ — Change in Net Sales for the Nine Months Ended June 26, 2026 versus Net Sales for the Nine Months Ended June 27, 2025 Net Sales Organic Net Sales Growth (Decline) Growth (Decline) (1) Translation (2) Acquisitions ($ in millions) Transportation Solutions : Automotive $ 290 5.5 % $ 105 2.0 % $ 185 $ — Commercial transportation 199 19.7 169 16.9 30 — Sensors 5 0.7 (18) (2.7) 23 — Total Transportation Solutions 494 7.1 256 3.7 238 — Industrial Solutions : Digital data networks 733 48.8 715 47.7 18 — Automation and connected living 230 14.7 180 11.5 49 1 Aerospace, defense, and marine 126 11.6 100 9.2 26 — Energy 488 55.5 189 21.5 28 271 Medical (11) (2.1) (12) (2.3) 1 — Total Industrial Solutions 1,566 28.3 1,172 21.2 122 272 Total $ 2,060 16.5 % $ 1,428 11.4 % $ 360 $ 272 (1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures. (2) Represents the change in net sales resulting from changes in foreign currency exchange rates. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended June 26, 2026 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:24: Charges (1)
paragraph:25: Charges, Net (1)
paragraph:26: Expense (1)
paragraph:27: (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 444 $ 1 $ 79 $ 17 $ 541 Industrial Solutions 537 8 4 39 588 Total $ 981 $ 9 $ 83 $ 56 $ 1,129 Operating margin 19.0 % 21.9 % Income tax expense $ (223) $ (2) $ (22) $ (11) $ (258) Effective tax rate 23.0 % 23.1 % Income from continuing operations $ 748 $ 7 $ 61 $ 45 $ 861 Diluted earnings per share from continuing operations $ 2.55 $ 0.02 $ 0.21 $ 0.15 $ 2.94
paragraph:28: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended June 27, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:29: Charges (1)
paragraph:30: Charges, Net (1)
paragraph:31: Expense (1)
paragraph:32: (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 462 $ — $ 7 $ 17 $ 486 Industrial Solutions 395 30 7 35 467 Total $ 857 $ 30 $ 14 $ 52 $ 953
paragraph:33: Operating margin 18.9 % 21.0 % Income tax expense $ (208) $ (7) $ 1 $ (11) $ (225) Effective tax rate 24.6 % 23.9 % Income from continuing operations $ 638 $ 23 $ 15 $ 41 $ 717 Diluted earnings per share from continuing operations $ 2.14 $ 0.08 $ 0.05 $ 0.14 $ 2.41
paragraph:34: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Nine Months Ended June 26, 2026 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:35: Charges (1)
paragraph:36: Charges, Net (1)
paragraph:37: Expense (1)
paragraph:38: Tax Items (2)
paragraph:39: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,448 $ 1 $ 84 $ 53 $ — $ 1,586 Industrial Solutions 1,450 22 19 117 — 1,608 Total $ 2,898 $ 23 $ 103 $ 170 $ — $ 3,194 Operating margin 19.9 % 21.9 % Income tax expense $ (520) $ (5) $ (23) $ (34) $ (114) $ (696) Effective tax rate 18.1 % 22.0 % Income from continuing operations $ 2,354 $ 18 $ 80 $ 136 $ (114) $ 2,474 Diluted earnings per share from continuing operations $ 7.98 $ 0.06 $ 0.27 $ 0.46 $ (0.39) $ 8.39 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents a net income tax benefit related primarily to the settlement of prior period tax matters. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Nine Months Ended June 27, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:40: Charges (1)
paragraph:41: Charges, Net (1)
paragraph:42: Expense (1)
paragraph:43: Tax Items (2)
paragraph:44: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,353 $ — $ 72 $ 51 $ — $ 1,476 Industrial Solutions 942 47 37 81 — 1,107 Total $ 2,295 $ 47 $ 109 $ 132 $ — $ 2,583 Operating margin 18.3 % 20.6 % Income tax expense $ (1,128) $ (10) $ (19) $ (26) $ 587 $ (596) Effective tax rate 48.9 % 23.0 % Income from continuing operations $ 1,179 $ 37 $ 90 $ 106 $ 587 $ 1,999 Diluted earnings per share from continuing operations $ 3.93 $ 0.12 $ 0.30 $ 0.35 $ 1.96 $ 6.66 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $13 million related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended September 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:45: Charges (1)
paragraph:46: Charges, Net (1)
paragraph:47: Expense (1) Tax Items (2)
paragraph:48: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 465 $ — $ 3 $ 19 $ — $ 487 Industrial Solutions 451 10 14 39 — 514 Total $ 916 $ 10 $ 17 $ 58 $ — $ 1,001
paragraph:49: Operating margin 19.3 % 21.1 % Income tax expense $ (233) $ (2) $ 6 $ (11) $ 31 $ (209) Effective tax rate 26.0 % 21.3 % Income from continuing operations $ 664 $ 8 $ 23 $ 47 $ 31 $ 773 Diluted earnings per share from continuing operations $ 2.23 $ 0.03 $ 0.08 $ 0.16 $ 0.10 $ 2.59
paragraph:50: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards and an income tax benefit of $13 million related to the revaluation of deferred tax liabilities as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:51: Charges (1)
paragraph:52: Charges, Net (1)
paragraph:53: Expense (1)
paragraph:54: Tax Items (2)
paragraph:55: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,818 $ — $ 75 $ 70 $ — $ 1,963 Industrial Solutions 1,393 57 51 120 — 1,621 Total $ 3,211 $ 57 $ 126 $ 190 $ — $ 3,584 Operating margin 18.6 % 20.8 % Income tax expense $ (1,361) $ (12) $ (13) $ (37) $ 618 $ (805) Effective tax rate 42.5 % 22.5 % Income from continuing operations $ 1,843 $ 45 $ 113 $ 153 $ 618 $ 2,772 Diluted earnings per share from continuing operations $ 6.16 $ 0.15 $ 0.38 $ 0.51 $ 2.07 $ 9.27 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of July 22, 2026 (UNAUDITED) Outlook for Quarter Ending September 25, 2026 Diluted earnings per share from continuing operations $ 2.84 Acquisition-related charges 0.02 Restructuring and other charges, net 0.04 Amortization expense 0.15 Adjusted diluted earnings per share from continuing operations (1) $ 3.05 Net sales growth 10.6 % Translation 0.2 (Acquisitions) divestitures, net — Organic net sales growth (1) 10.8 % (1) See description of non-GAAP financial measures.
2026-04-22Apr 22, 2026, 12:00 PM EDTSec 8k Exhibit57 segments
paragraph:1: EX-99.1
paragraph:2: 2
paragraph:3: tel-20260422xex99d1.htm
paragraph:4: EX-99.1
paragraph:5: News Release Exhibit 99.1 NEWS RELEASE te.com TE Connectivity delivers results above guidance with 15% sales growth and over 20% EPS growth in second quarter of fiscal 2026 Third quarter guidance reflects double digit sales and EPS growth GALWAY, Ireland – April 22, 2026 – TE Connectivity plc (NYSE: TEL) today reported results for the fiscal second quarter ended March 27, 2026. Second Quarter Highlights ● Net sales were $4.74 billion, an increase of 15% on a reported basis year over year, driven by growth in both the Industrial and Transportation segments , and 7% organically. ● GAAP diluted earnings per share (EPS) from continuing operations was $2.90. Adjusted EPS was a record $2.73, an increase of 24 % year over year. ● GAAP operating margin was 20%, an increase of 200 basis points year over year. Adjusted operating margin expanded 130 basis points year over year to 22%, driven by strong operational performance across both segments. ● Record orders of $5.3 billion, an increase of 25% year over year with double-digit order growth in both segments and growth in all businesses. ● Cash flow from operating activities during the first half of the fiscal year was $1.8 billion. Free cash flow was $1.3 billion, up 17% year over year. ● Returned $1.2 billion to shareholders during the first half and announced 10% increase in quarterly cash dividend. “Our teams delivered another quarter of results above guidance, including double-digit sales growth and record adjusted EPS,” said CEO Terrence Curtin. “This performance and our record orders were driven by our strategic positioning in key trends including AI, next generation transportation and electric grid modernization, along with the broadening of growth across our portfolio. We’re well positioned to capitalize on the proliferation of data and power to provide our customers with leading interconnect technologies. Our strong margin performance reflects the resilience we’ve built to mitigate the dynamic environment we continue to operate in around the world. “Looking ahead to the third quarter, our ongoing orders momentum across all businesses positions us to deliver double digit sales growth to $5 billion, with continued strong operational performance to drive a double-digit increase in EPS. We continue to invest in innovative products and technologies that support our global customers and fuel our future growth.” Third Quarter FY26 Outlook For the third quarter of fiscal 2026, the company expects sales of approximately $5 billion, an increase of 10% on a reported basis and 9% organically year over year. Adjusted EPS is expected to be approximately $2.83, an increase of 17% year over year. GAAP EPS from continuing operations is expected to be approximately $2.44, an increase of 14% year over year. 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 April 22. About TE Connectivity TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn , Facebook , WeChat and
paragraph:6: Instagram .
paragraph:7: Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP financial measures: • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans. • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans. • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any. • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans. • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements This release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 26, 2025, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission. ric Mangan 08-783-6629 @te.com Contacts: Media Relations : Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com Investor Relations : Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com # # # TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended For the Six Months Ended March 27, March 28, March 27, March 28, 2026 2025 2026
paragraph:8: 2025 (in millions, except per share data) Net sales $ 4,744 $ 4,143 $ 9,413 $ 7,979 Cost of sales 2,999 2,684 5,929 5,160 Gross margin 1,745 1,459 3,484 2,819 Selling, general, and administrative expenses 536 454 1,074 881 Research, development, and engineering expenses 237 203 462 391 Acquisition and integration costs 8 9 11 14 Restructuring and other charges, net 10 45 20 95 Operating income 954 748 1,917 1,438 Interest income 21 22 46 45 Interest expense (32) (14) (62) (20) Other income (expense), net (1) (1) 2 (2) Income from continuing operations before income taxes 942 755 1,903 1,461 Income tax expense (87) (742) (297) (920) Income from continuing operations 855 13 1,606 541 Loss from discontinued operations, net of income taxes — — (1) — Net income $ 855 $ 13 $ 1,605 $ 541 Basic earnings per share: Income from continuing operations $ 2.92 $ 0.04 $ 5.46 $ 1.81 Loss from discontinued operations — — — — Net income 2.92 0.04 5.46 1.81 Diluted earnings per share: Income from continuing operations $ 2.90 $ 0.04 $ 5.43 $ 1.80 Loss from discontinued operations — — — — Net income 2.90 0.04 5.42 1.80 Weighted-average number of shares outstanding: Basic 293 298 294 299 Diluted 295 300 296 301 TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 27,
paragraph:9: September 26, 2026
paragraph:10: 2025 (in millions, except share data) Assets Current assets: Cash and cash equivalents $ 1,110 $ 1,255 Accounts receivable, net of allowance for doubtful accounts of $52
paragraph:11: and $44, respectively 3,454 3,403 Inventories 2,995 2,699 Prepaid expenses and other current assets 682 609 Total current assets 8,241 7,966 Property, plant, and equipment, net 4,473 4,312 Goodwill 7,437 7,126 Intangible assets, net 2,145 2,227 Deferred income taxes 2,337 2,507 Other assets 1,046 943 Total assets $ 25,679 $ 25,081 Liabilities, redeemable noncontrolling interests, and shareholders' equity Current liabilities: Short-term debt $ 102 $ 852 Accounts payable 2,224 2,021 Accrued and other current liabilities 2,039 2,247 Total current liabilities 4,365 5,120 Long-term debt 5,553 4,842 Long-term pension and postretirement liabilities 750 767 Deferred income taxes 198 198 Income taxes 306 414 Other liabilities 1,125 1,010 Total liabilities 12,297 12,351 Commitments and contingencies Redeemable noncontrolling interests 148 145 Shareholders' equity: Preferred shares, $1.00 par value, 2 shares authorized, none outstanding — — Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding — — Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 295,773,434 and 302,889,075 shares issued, respectively 3 3 Accumulated earnings 13,900 13,932 Ordinary shares held in treasury, at cost, 3,632,502 and 8,330,931 shares, respectively (818) (1,356) Accumulated other comprehensive income 149 6 Total shareholders' equity 13,234 12,585 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 25,679 $ 25,081 TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Quarters Ended For the Six Months Ended March 27, March 28, March 27, March 28, 2026
paragraph:12: 2025
paragraph:13: 2026
paragraph:14: 2025 (in millions) Cash flows from operating activities: Net income $ 855 $ 13 $ 1,605 $ 541 Loss from discontinued operations, net of income taxes — — 1 — Income from continuing operations 855 13 1,606 541 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 243 192 502 378 Deferred income taxes 82 603 159 701 Non-cash lease cost 39 35 78 69 Provision for losses on accounts receivable and inventories 6 2 49 43 Share-based compensation expense 42 34 92 69 Other (29) 22 (25) 34 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts receivable, net 20 (317) (59) (171) Inventories (30) (14) (331) (132) Prepaid expenses and other current assets (34) 72 (14) 140 Accounts payable 38 (4) 177 146 Accrued and other current liabilities (47) (3) (264) (298) Income taxes (129) 25 (84) 55 Other (109) (7) (74) (44) Net cash provided by operating activities 947 653 1,812 1,531 Cash flows from investing activities: Capital expenditures (270) (230) (528) (435) Proceeds from sale of property, plant, and equipment 3 1 4 2 Acquisition of businesses, net of cash acquired (200) 4 (200) (321) Other (3) 1 — (7) Net cash used in investing activities (470) (224) (724) (761) Cash flows from financing activities: Net increase in commercial paper 100 1,155 100 1,245 Proceeds from issuance of debt 750 773 750 773 Repayment of debt (851) (579) (851) (579) Proceeds from exercise of share options 20 25 64 59 Repurchase of ordinary shares (414) (306) (819) (609) Payment of ordinary share dividends to shareholders (208) (193) (417) (382) Other (12) (6) (58) (33) Net cash provided by (used in) financing activities (615) 869 (1,231) 474 Effect of currency translation on cash (3) 2 (2) (9) Net increase (decrease) in cash, cash equivalents, and restricted cash (141) 1,300 (145) 1,235 Cash, cash equivalents, and restricted cash at beginning of period 1,251 1,254 1,255 1,319 Cash, cash equivalents, and restricted cash at end of period $ 1,110 $ 2,554 $ 1,110 $ 2,554 Supplemental cash flow information: Income taxes paid, net of refunds $ 135 $ 115 $ 223 $ 164 TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED) For the Quarters Ended For the Six Months Ended March 27, March 28, March 27, March 28, 2026
paragraph:15: 2025
paragraph:16: 2026
paragraph:17: 2025 (in millions) Net cash provided by operating activities $ 947 $ 653 $ 1,812 $ 1,531 Capital expenditures, net (267) (229) (524) (433) Free cash flow (1) $ 680 $ 424 $ 1,288 $ 1,098 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. TE CONNECTIVITY PLC SEGMENT DATA (UNAUDITED) For the Quarters Ended For the Six Months Ended March 27, March 28, March 27, March 28, 2026
paragraph:18: 2025
paragraph:19: 2026
paragraph:20: 2025 ($ in millions) Net Sales Net Sales Net Sales Net Sales Transportation Solutions $ 2,422 $ 2,314 $ 4,889 $ 4,557 Industrial Solutions 2,322 1,829 4,524 3,422 Total $ 4,744 $ 4,143 $ 9,413 $ 7,979 Operating Operating Operating Operating Operating Operating Operating Operating Income Margin Income Margin Income Margin Income Margin Transportation Solutions $ 503 20.8 % $ 445 19.2 % $ 1,004 20.5 % $ 891 19.6 % Industrial Solutions 451 19.4 303 16.6 913 20.2 547 16.0 Total $ 954 20.1 % $ 748 18.1 % $ 1,917 20.4 % $ 1,438 18.0 % Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Operating Operating Operating Operating Operating Operating Operating Operating Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Transportation Solutions $ 522 21.6 % $ 495 21.4 % $ 1,045 21.4 % $ 990 21.7 % Industrial Solutions 507 21.8 351 19.2 1,020 22.5 640 18.7 Total $ 1,029 21.7 % $ 846 20.4 % $ 2,065 21.9 % $ 1,630 20.4 % (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED) Change in Net Sales for the Quarter Ended March 27, 2026 versus Net Sales for the Quarter Ended March 28, 2025 Net Sales Organic Net Sales Growth (Decline)
paragraph:21: Growth (Decline) (1)
paragraph:22: Translation (2)
paragraph:23: Acquisition ($ in millions) Transportation Solutions : Automotive $ 27 1.6 % $ (67) (3.8) % $ 94 $ — Commercial transportation 76 21.3 62 17.1 14 — Sensors 5 2.3 (7) (3.0) 12 — Total Transportation Solutions 108 4.7 (12) (0.5) 120 — Industrial Solutions : Digital data networks 232 48.1 222 46.1 10 — Automation and connected living 67 13.1 42 8.2 25 — Aerospace, defense, and marine 34 9.1 21 5.4 13 — Energy 166 59.5 31 11.2 15 120 Medical (6) (3.3) (7) (3.5) 1 — Total Industrial Solutions 493 27.0 309 16.9 64 120 Total $ 601 14.5 % $ 297 7.2 % $ 184 $ 120 Change in Net Sales for the Six Months Ended March 27, 2026 versus Net Sales for the Six Months Ended March 28, 2025 Net Sales Organic Net Sales Growth Growth (Decline) (1) Translation (2) Acquisitions ($ in millions) Transportation Solutions : Automotive $ 190 5.5 % $ 45 1.3 % $ 145 $ — Commercial transportation 134 20.0 113 16.7 21 — Sensors 8 1.9 (12) (2.7) 20 — Total Transportation Solutions 332 7.3 146 3.2 186 — Industrial Solutions : Digital data networks 526 58.8 510 57.0 16 — Automation and connected living 137 13.8 97 9.8 39 1 Aerospace, defense, and marine 81 11.4 57 8.0 24 — Energy 356 71.9 63 12.7 22 271 Medical 2 0.6 1 0.4 1 — Total Industrial Solutions 1,102 32.2 728 21.3 102 272 Total $ 1,434 18.0 % $ 874 11.0 % $ 288 $ 272 (1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures. (2) Represents the change in net sales resulting from changes in foreign currency exchange rates. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended March 27, 2026 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:24: Charges (1)
paragraph:25: Charges, Net (1)
paragraph:26: Expense (1)
paragraph:27: Tax Items (2)
paragraph:28: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 503 $ — $ 1 $ 18 $ — $ 522 Industrial Solutions 451 8 9 39 — 507 Total $ 954 $ 8 $ 10 $ 57 $ — $ 1,029 Operating margin 20.1 % 21.7 % Income tax expense $ (87) $ (2) $ 2 $ (12) $ (114) $ (213) Effective tax rate 9.2 % 20.9 % Income from continuing operations $ 855 $ 6 $ 12 $ 45 $ (114) $ 804 Diluted earnings per share from continuing operations $ 2.90 $ 0.02 $ 0.04 $ 0.15 $ (0.39) $ 2.73
paragraph:29: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents a net income tax benefit related primarily to the settlement of prior period tax matters. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended March 28, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:30: Charges (1)
paragraph:31: Charges, Net (1)
paragraph:32: Expense (1)
paragraph:33: Tax Items (2)
paragraph:34: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 445 $ — $ 33 $ 17 $ — $ 495 Industrial Solutions 303 12 12 24 — 351 Total $ 748 $ 12 $ 45 $ 41 $ — $ 846
paragraph:35: Operating margin 18.1 % 20.4 % Income tax expense $ (742) $ (2) $ (11) $ (8) $ 574 $ (189) Effective tax rate 98.3 % 22.2 % Income from continuing operations $ 13 $ 10 $ 34 $ 33 $ 574 $ 664 Diluted earnings per share from continuing operations $ 0.04 $ 0.03 $ 0.11 $ 0.11 $ 1.91 $ 2.21
paragraph:36: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Six Months Ended March 27, 2026 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:37: Charges (1)
paragraph:38: Charges, Net (1)
paragraph:39: Expense (1)
paragraph:40: Tax Items (2)
paragraph:41: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,004 $ — $ 5 $ 36 $ — $ 1,045 Industrial Solutions 913 14 15 78 — 1,020 Total $ 1,917 $ 14 $ 20 $ 114 $ — $ 2,065 Operating margin 20.4 % 21.9 % Income tax expense $ (297) $ (3) $ (1) $ (23) $ (114) $ (438) Effective tax rate 15.6 % 21.4 % Income from continuing operations $ 1,606 $ 11 $ 19 $ 91 $ (114) $ 1,613 Diluted earnings per share from continuing operations $ 5.43 $ 0.04 $ 0.06 $ 0.31 $ (0.39) $ 5.45 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents a net income tax benefit related primarily to the settlement of prior period tax matters. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Six Months Ended March 28, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:42: Charges (1)
paragraph:43: Charges, Net (1)
paragraph:44: Expense (1)
paragraph:45: Tax Items (2)
paragraph:46: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 891 $ — $ 65 $ 34 $ — $ 990 Industrial Solutions 547 17 30 46 — 640 Total $ 1,438 $ 17 $ 95 $ 80 $ — $ 1,630 Operating margin 18.0 % 20.4 % Income tax expense $ (920) $ (3) $ (20) $ (15) $ 587 $ (371) Effective tax rate 63.0 % 22.4 % Income from continuing operations $ 541 $ 14 $ 75 $ 65 $ 587 $ 1,282 Diluted earnings per share from continuing operations $ 1.80 $ 0.05 $ 0.25 $ 0.22 $ 1.95 $ 4.26 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $13 million related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended June 27, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:47: Charges (1)
paragraph:48: Charges, Net (1)
paragraph:49: Expense (1)
paragraph:50: (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 462 $ — $ 7 $ 17 $ 486 Industrial Solutions 395 30 7 35 467 Total $ 857 $ 30 $ 14 $ 52 $ 953
paragraph:51: Operating margin 18.9 % 21.0 % Income tax expense $ (208) $ (7) $ 1 $ (11) $ (225) Effective tax rate 24.6 % 23.9 % Income from continuing operations $ 638 $ 23 $ 15 $ 41 $ 717 Diluted earnings per share from continuing operations $ 2.14 $ 0.08 $ 0.05 $ 0.14 $ 2.41
paragraph:52: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:53: Charges (1)
paragraph:54: Charges, Net (1)
paragraph:55: Expense (1)
paragraph:56: Tax Items (2)
paragraph:57: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,818 $ — $ 75 $ 70 $ — $ 1,963 Industrial Solutions 1,393 57 51 120 — 1,621 Total $ 3,211 $ 57 $ 126 $ 190 $ — $ 3,584 Operating margin 18.6 % 20.8 % Income tax expense $ (1,361) $ (12) $ (13) $ (37) $ 618 $ (805) Effective tax rate 42.5 % 22.5 % Income from continuing operations $ 1,843 $ 45 $ 113 $ 153 $ 618 $ 2,772 Diluted earnings per share from continuing operations $ 6.16 $ 0.15 $ 0.38 $ 0.51 $ 2.07 $ 9.27 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of April 22, 2026 (UNAUDITED) Outlook for Quarter Ending June 26, 2026 Diluted earnings per share from continuing operations $ 2.44 Acquisition-related charges 0.02 Restructuring and other charges, net 0.22 Amortization expense 0.15 Adjusted diluted earnings per share from continuing operations (1) $ 2.83 Net sales growth 10.3 % Translation (1.1) (Acquisitions) divestitures, net — Organic net sales growth (1) 9.2 % (1) See description of non-GAAP financial measures.
2026-01-21Jan 21, 2026, 11:00 AM ESTSec 8k Exhibit41 segments
paragraph:1: EX-99.1
paragraph:2: 2
paragraph:3: tel-20260121xex99d1.htm
paragraph:4: EX-99.1
paragraph:5: Exhibit 99.1 NEWS RELEASE te.com TE Connectivity announces first quarter results for fiscal year 2026 Exceeds guidance with 22% sales growth and over 30% EPS growth year over year GALWAY, Ireland – Jan. 21, 2026 – TE Connectivity plc (NYSE: TEL) today reported results for the fiscal first quarter ended Dec. 26, 2025. First Quarter Highlights ● Net sales were $4.7 billion, an increase of 22% on a reported basis year over year, driven by growth in both the Industrial and Transportation segments, and 15% organically. ● GAAP diluted earnings per share (EPS) from continuing operations was $2.53, an increase of 45% year over year. Adjusted EPS was $2.72, an increase of 33 % year over year. ● GAAP operating margin was 20.6%, an increase of 260 basis points year over year. Adjusted operating margin expanded 180 basis points year over year to 22.2%, driven by strong operational performance across both segments. ● Record orders of $5.1 billion, an increase of 28% year over year and 9% sequentially. ● Cash flow from operating activities was $865 million and free cash flow was $608 million, with $615 million returned to shareholders. “Our teams delivered strongly against our strategy, resulting in first quarter earnings growth over 30% and sales growth of more than 20%, both of which were above our guidance and driven by growth in both segments,” said CEO Terrence Curtin. “We continue to benefit from a broadening of growth from our investments in data and power connectivity in key applications such as AI, energy grid hardening and next generation vehicles that are driving our auto content growth above market. Our positioning and team execution resulted in record quarterly orders of over $5 billion, setting up TE for another year of strong growth and margin expansion. “We expect double-digit sales and adjusted earnings growth again in our second quarter as our teams continue to innovate with our customers to ensure next generation technologies are brought to life.” Second Quarter FY26 Outlook For the second quarter of fiscal 2026, the company expects sales of approximately $4.7 billion, an increase of 13% on a reported basis and 6% organically year over year. Adjusted EPS is expected to be approximately $2.65, up 20% year over year. GAAP EPS from continuing operations is expected to be approximately $2.26.
paragraph:6: Beginning in fiscal 2026, the company is excluding amortization expense on intangible assets and, if applicable, the related tax effects from its calculation of certain non-GAAP measures. 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
paragraph:7: ● 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 Jan. 21. About TE Connectivity TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn , Facebook , WeChat and
paragraph:8: Instagram . Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP financial measures: • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans. • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans. • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any. • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans. • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 26, 2025, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission. Contacts: Media Relations : Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com Investor Relations : Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com # # # TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended December 26, December 27, 2025 2024 (in millions, except per share data) Net sales $ 4,669 $ 3,836 Cost of sales 2,930 2,476 Gross margin 1,739 1,360 Selling, general, and administrative expenses 538 427 Research, development, and engineering expenses 225 188 Acquisition and integration costs 3 5 Restructuring and other charges, net 10 50 Operating income 963 690 Interest income 25 23 Interest expense (30) (6) Other income (expense), net 3 (1) Income from continuing operations before income taxes 961 706 Income tax expense (210) (178) Income from continuing operations 751 528 Loss from discontinued operations, net of income taxes (1) — Net income $ 750 $ 528 Basic earnings per share: Income from continuing operations $ 2.55 $ 1.77 Loss from discontinued operations — — Net income 2.55 1.77 Diluted earnings per share: Income from continuing operations $ 2.53 $ 1.75 Loss from discontinued operations — — Net income 2.53 1.75 Weighted-average number of shares outstanding: Basic 294 299 Diluted 297 301 TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 26,
paragraph:9: September 26, 2025
paragraph:10: 2025 (in millions, except share data) Assets Current assets: Cash and cash equivalents $ 1,251 $ 1,255 Accounts receivable, net of allowance for doubtful accounts of $48
paragraph:11: and $44, respectively 3,469 3,403 Inventories 2,951 2,699 Prepaid expenses and other current assets 697 609 Total current assets 8,368 7,966 Property, plant, and equipment, net 4,395 4,312 Goodwill 7,162 7,126 Intangible assets, net 2,177 2,227 Deferred income taxes 2,429 2,507 Other assets 1,021 943 Total assets $ 25,552 $ 25,081 Liabilities, redeemable noncontrolling interests, and shareholders' equity Current liabilities: Short-term debt $ 852 $ 852 Accounts payable 2,149 2,021 Accrued and other current liabilities 2,068 2,247 Total current liabilities 5,069 5,120 Long-term debt 4,856 4,842 Long-term pension and postretirement liabilities 766 767 Deferred income taxes 198 198 Income taxes 441 414 Other liabilities 1,086 1,010 Total liabilities 12,416 12,351 Commitments and contingencies Redeemable noncontrolling interests 149 145 Shareholders' equity: Preferred shares, $1.00 par value, 2 shares authorized, none outstanding — — Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding — — Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 303,796,785 and 302,889,075 shares issued, respectively 3 3 Accumulated earnings 14,543 13,932 Ordinary shares held in treasury, at cost, 10,086,721 and 8,330,931 shares, respectively (1,762) (1,356) Accumulated other comprehensive income 203 6 Total shareholders' equity 12,987 12,585 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 25,552 $ 25,081 TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Quarters Ended December 26, December 27, 2025
paragraph:12: 2024 (in millions) Cash flows from operating activities: Net income $ 750 $ 528 Loss from discontinued operations, net of income taxes 1 — Income from continuing operations 751 528 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 259 186 Deferred income taxes 77 98 Non-cash lease cost 39 34 Provision for losses on accounts receivable and inventories 43 41 Share-based compensation expense 50 35 Other 4 12 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts receivable, net (79) 146 Inventories (301) (118) Prepaid expenses and other current assets 20 68 Accounts payable 139 150 Accrued and other current liabilities (217) (295) Income taxes 45 30 Other 35 (37) Net cash provided by operating activities 865 878 Cash flows from investing activities: Capital expenditures (258) (205) Proceeds from sale of property, plant, and equipment 1 1 Acquisition of businesses, net of cash acquired — (325) Other 3 (8) Net cash used in investing activities (254) (537) Cash flows from financing activities: Net increase in commercial paper — 90 Proceeds from exercise of share options 44 34 Repurchase of ordinary shares (405) (303) Payment of ordinary share dividends to shareholders (209) (189) Other (46) (27) Net cash used in financing activities (616) (395) Effect of currency translation on cash 1 (11) Net decrease in cash, cash equivalents, and restricted cash (4) (65) Cash, cash equivalents, and restricted cash at beginning of period 1,255 1,319 Cash, cash equivalents, and restricted cash at end of period $ 1,251 $ 1,254 Supplemental cash flow information: Income taxes paid, net of refunds 88 49 TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED) For the Quarters Ended December 26, December 27, 2025
paragraph:13: 2024 (in millions) Net cash provided by operating activities $ 865 $ 878 Capital expenditures, net (257) (204) Free cash flow (1) $ 608 $ 674 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. TE CONNECTIVITY PLC SEGMENT DATA (UNAUDITED) For the Quarters Ended December 26, December 27, 2025
paragraph:14: 2024 ($ in millions) Net Sales Net Sales Transportation Solutions $ 2,467 $ 2,243 Industrial Solutions 2,202 1,593 Total $ 4,669 $ 3,836 Operating Operating Operating Operating Income Margin Income Margin Transportation Solutions $ 501 20.3 % $ 446 19.9 % Industrial Solutions 462 21.0 244 15.3 Total $ 963 20.6 % $ 690 18.0 % Adjusted Adjusted Adjusted Adjusted Operating Operating Operating Operating Income (1) Margin (1) Income (1) Margin (1) Transportation Solutions $ 523 21.2 % $ 495 22.1 % Industrial Solutions 513 23.3 289 18.1 Total $ 1,036 22.2 % $ 784 20.4 % (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED) Change in Net Sales for the Quarter Ended December 26, 2025 versus Net Sales for the Quarter Ended December 27, 2024 Net Sales Organic Net Sales Growth
paragraph:15: Growth (Decline) (1)
paragraph:16: Translation (2)
paragraph:17: Acquisitions ($ in millions) Transportation Solutions : Automotive $ 163 9.5 % $ 112 6.5 % $ 51 $ — Commercial transportation 58 18.6 51 16.3 7 — Sensors 3 1.4 (5) (2.3) 8 — Total Transportation Solutions 224 10.0 158 7.0 66 — Industrial Solutions : Digital data networks 294 71.2 288 69.7 6 — Automation and connected living 70 14.6 55 11.6 14 1 Aerospace, defense, and marine 47 14.1 36 10.9 11 — Energy 190 88.0 32 14.6 7 151 Medical 8 5.3 8 5.3 — — Total Industrial Solutions 609 38.2 419 26.3 38 152 Total $ 833 21.7 % $ 577 15.0 % $ 104 $ 152 (1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures. (2) Represents the change in net sales resulting from changes in foreign currency exchange rates. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended December 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:18: Charges (1)
paragraph:19: Charges, Net (1)
paragraph:20: Expense (1)
paragraph:21: (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 501 $ — $ 4 $ 18 $ 523 Industrial Solutions 462 6 6 39 513 Total $ 963 $ 6 $ 10 $ 57 $ 1,036 Operating margin 20.6 % 22.2 % Income tax expense $ (210) $ (1) $ (3) $ (11) $ (225) Effective tax rate 21.9 % 21.8 % Income from continuing operations $ 751 $ 5 $ 7 $ 46 $ 809 Diluted earnings per share from continuing operations $ 2.53 $ 0.02 $ 0.02 $ 0.15 $ 2.72
paragraph:22: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended December 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:23: Charges (1)
paragraph:24: Charges, Net (1)
paragraph:25: Expense (1)
paragraph:26: Tax Items (2)
paragraph:27: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 446 $ — $ 32 $ 17 $ — $ 495 Industrial Solutions 244 5 18 22 — 289 Total $ 690 $ 5 $ 50 $ 39 $ — $ 784
paragraph:28: Operating margin 18.0 % 20.4 % Income tax expense $ (178) $ (1) $ (9) $ (7) $ 13 $ (182) Effective tax rate 25.2 % 22.8 % Income from continuing operations $ 528 $ 4 $ 41 $ 32 $ 13 $ 618 Diluted earnings per share from continuing operations $ 1.75 $ 0.01 $ 0.14 $ 0.11 $ 0.04 $ 2.05
paragraph:29: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended March 28, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:30: Charges (1)
paragraph:31: Charges, Net (1)
paragraph:32: Expense (1)
paragraph:33: Tax Items (2)
paragraph:34: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 445 $ — $ 33 $ 17 $ — $ 495 Industrial Solutions 303 12 12 24 — 351 Total $ 748 $ 12 $ 45 $ 41 $ — $ 846
paragraph:35: Operating margin 18.1 % 20.4 % Income tax expense $ (742) $ (2) $ (11) $ (8) $ 574 $ (189) Effective tax rate 98.3 % 22.2 % Income from continuing operations $ 13 $ 10 $ 34 $ 33 $ 574 $ 664 Diluted earnings per share from continuing operations $ 0.04 $ 0.03 $ 0.11 $ 0.11 $ 1.91 $ 2.21
paragraph:36: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Amortization Adjusted U.S. GAAP
paragraph:37: Charges (1)
paragraph:38: Charges, Net (1)
paragraph:39: Expense (1)
paragraph:40: Tax Items (2)
paragraph:41: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,818 $ — $ 75 $ 70 $ — $ 1,963 Industrial Solutions 1,393 57 51 120 — 1,621 Total $ 3,211 $ 57 $ 126 $ 190 $ — $ 3,584 Operating margin 18.6 % 20.8 % Income tax expense $ (1,361) $ (12) $ (13) $ (37) $ 618 $ (805) Effective tax rate 42.5 % 22.5 % Income from continuing operations $ 1,843 $ 45 $ 113 $ 153 $ 618 $ 2,772 Diluted earnings per share from continuing operations $ 6.16 $ 0.15 $ 0.38 $ 0.51 $ 2.07 $ 9.27 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of January 21, 2026 (UNAUDITED) Outlook for Quarter Ending March 27, 2026 Diluted earnings per share from continuing operations $ 2.26 Acquisition-related charges 0.01 Restructuring and other charges, net 0.23 Amortization expense 0.15 Adjusted diluted earnings per share from continuing operations (1) $ 2.65 Net sales growth 13.4 % Translation (4.3) (Acquisitions) divestitures, net (2.9) Organic net sales growth (1) 6.2 % (1) See description of non-GAAP financial measures.
2025-10-29Oct 29, 2025, 12:00 PM EDTSec 8k Exhibit57 segments
paragraph:1: EX-99.1
paragraph:2: 2
paragraph:3: tel-20251029xex99d1.htm
paragraph:4: EX-99.1
paragraph:5: Exhibit 99.1 NEWS RELEASE te.com TE Connectivity delivers 17% sales growth in fiscal fourth quarter with results above guidance Achieves full-year records in sales, operating margin and cash generation
paragraph:6: GALWAY, Ireland – Oct. 29, 2025 – TE Connectivity plc (NYSE: TEL) today 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: o Cash flow from operating activities of $4.1 billion. o 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
paragraph:7: ● 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
paragraph:8: 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. About TE Connectivity TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS.
paragraph:9: Learn more at www.te.com and on LinkedIn , Facebook , WeChat and
paragraph:10: Instagram . Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP financial measures: • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans. • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans. • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any. • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans. • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. In addition, our change of incorporation from Switzerland to Ireland is subject to risks, such as the risk that the anticipated advantages might not materialize, as well as the risks that the price of our stock could decline and our position on stock exchanges and indices could change, and Irish corporate governance and regulatory schemes could prove different or more challenging than currently expected. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 27, 2024, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission. Contacts: Media Relations : Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com Investor Relations : Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com # # # TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended For the Years Ended September 26, September 27, September 26, September 27, 2025
paragraph:11: 2024
paragraph:12: 2025
paragraph:13: 2024 (in millions, except per share data) Net sales $ 4,749 $ 4,068 $ 17,262 $ 15,845 Cost of sales 3,089 2,685 11,183 10,389 Gross margin 1,660 1,383 6,079 5,456 Selling, general, and administrative expenses 494 433 1,866 1,732 Research, development, and engineering expenses 227 195 829 741 Acquisition and integration costs 6 5 47 21 Restructuring and other charges, net 17 99 126 166 Operating income 916 651 3,211 2,796 Interest income 21 26 83 87 Interest expense (29) (15) (77) (70) Other expense, net (11) (5) (13) (16) Income from continuing operations before income taxes 897 657 3,204 2,797 Income tax (expense) benefit (233) (381) (1,361) 397 Income from continuing operations 664 276 1,843 3,194 Loss from discontinued operations, net of income taxes (1) — (1) (1) Net income $ 663 $ 276 $ 1,842 $ 3,193 Basic earnings per share: Income from continuing operations $ 2.25 $ 0.91 $ 6.21 $ 10.40 Loss from discontinued operations — — — — Net income 2.25 0.91 6.20 10.40 Diluted earnings per share: Income from continuing operations $ 2.23 $ 0.90 $ 6.16 $ 10.34 Loss from discontinued operations — — — — Net income 2.22 0.90 6.16 10.33 Weighted-average number of shares outstanding: Basic 295 303 297 307 Diluted 298 305 299 309 TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 26,
paragraph:14: September 27, 2025
paragraph:15: 2024 (in millions, except share data) Assets Current assets: Cash and cash equivalents $ 1,255 $ 1,319 Accounts receivable, net of allowance for doubtful accounts of $44
paragraph:16: and $32, respectively 3,403 3,055 Inventories 2,699 2,517 Prepaid expenses and other current assets 609 740 Total current assets 7,966 7,631 Property, plant, and equipment, net 4,312 3,903 Goodwill 7,126 5,801 Intangible assets, net 2,227 1,174 Deferred income taxes 2,507 3,497 Other assets 943 848 Total assets $ 25,081 $ 22,854 Liabilities, redeemable noncontrolling interests, and shareholders' equity Current liabilities: Short-term debt $ 852 $ 871 Accounts payable 2,021 1,728 Accrued and other current liabilities 2,247 2,147 Total current liabilities 5,120 4,746 Long-term debt 4,842 3,332 Long-term pension and postretirement liabilities 767 810 Deferred income taxes 198 199 Income taxes 414 411 Other liabilities 1,010 870 Total liabilities 12,351 10,368 Commitments and contingencies Redeemable noncontrolling interests 145 131 Shareholders' equity: Preferred shares, $1.00 par value, 2 shares authorized, none outstanding as of September 26, 2025 — — Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding as of September 26, 2025 — — Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 302,889,075 shares issued and common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, respectively 3 139 Accumulated earnings 13,932 14,533 Ordinary shares and common shares held in treasury, at cost, 8,330,931 and 16,656,681 shares, respectively (1,356) (2,322) Accumulated other comprehensive income 6 5 Total shareholders' equity 12,585 12,355 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 25,081 $ 22,854 TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Quarters Ended For the Years Ended September 26, September 27, September 26, September 27, 2025
paragraph:17: 2024
paragraph:18: 2025
paragraph:19: 2024 (in millions) Cash flows from operating activities: Net income $ 663 $ 276 $ 1,842 $ 3,193 Loss from discontinued operations, net of income taxes 1 — 1 1 Income from continuing operations 664 276 1,843 3,194 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 244 232 838 826 Deferred income taxes 166 401 938 (789) Non-cash lease cost 39 34 145 134 Provision for losses on accounts receivable and inventories (4) (13) 58 57 Share-based compensation expense 44 27 149 127 Other 20 18 80 71 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts receivable, net 50 (216) (341) (134) Inventories 139 97 (160) (30) Prepaid expenses and other current assets 60 13 91 25 Accounts payable (8) 60 290 159 Accrued and other current liabilities 41 159 (35) (165) Income taxes (25) (111) 147 (83) Other (9) 65 96 85 Net cash provided by operating activities 1,421 1,042 4,139 3,477 Cash flows from investing activities: Capital expenditures (271) (213) (936) (680) Proceeds from sale of property, plant, and equipment 4 4 11 16 Acquisition of businesses, net of cash acquired — — (2,628) (339) Proceeds from divestiture of business, net of cash retained by business sold — — — 59 Other (3) 3 (15) (6) Net cash used in investing activities (270) (206) (3,568) (950) Cash flows from financing activities: Net decrease in commercial paper — (54) (255) (75) Proceeds from issuance of debt — 348 2,231 348 Repayment of debt — (350) (580) (352) Proceeds from exercise of share options 81 37 182 89 Repurchase of ordinary/common shares (437) (761) (1,347) (2,062) Payment of ordinary/common share dividends to shareholders (209) (196) (803) (760) Other (1) (18) (57) (57) Net cash used in financing activities (566) (994) (629) (2,869) Effect of currency translation on cash (2) 8 (6) — Net increase (decrease) in cash, cash equivalents, and restricted cash 583 (150) (64) (342) Cash, cash equivalents, and restricted cash at beginning of period 672 1,469 1,319 1,661 Cash, cash equivalents, and restricted cash at end of period $ 1,255 $ 1,319 $ 1,255 $ 1,319 Supplemental cash flow information: Interest paid on debt, net $ 21 $ 26 $ 34 $ 64 Income taxes paid, net of refunds 92 91 276 475 TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED) For the Quarters Ended For the Years Ended September 26, September 27, September 26, September 27, 2025
paragraph:20: 2024
paragraph:21: 2025
paragraph:22: 2024 (in millions) Net cash provided by operating activities $ 1,421 $ 1,042 $ 4,139 $ 3,477 Capital expenditures, net (267) (209) (925) (664) Free cash flow (1) $ 1,154 $ 833 $ 3,214 $ 2,813 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. TE CONNECTIVITY PLC SEGMENT DATA (UNAUDITED) For the Quarters Ended For the Years Ended September 26, September 27, September 26, September 27, 2025
paragraph:23: 2024
paragraph:24: 2025
paragraph:25: 2024 ($ in millions) Net Sales
paragraph:26: Net Sales
paragraph:27: Net Sales
paragraph:28: Net Sales
paragraph:29: Transportation Solutions $ 2,413 $ 2,330 $ 9,388 $ 9,481 Industrial Solutions 2,336 1,738 7,874 6,364 Total $ 4,749 $ 4,068 $ 17,262 $ 15,845 Operating Operating Operating Operating Operating Operating Operating Operating Income Margin Income Margin Income Margin Income Margin Transportation Solutions $ 465 19.3 % $ 410 17.6 % $ 1,818 19.4 % $ 1,880 19.8 % Industrial Solutions 451 19.3 241 13.9 1,393 17.7 916 14.4 Total $ 916 19.3 % $ 651 16.0 % $ 3,211 18.6 % $ 2,796 17.6 % Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Operating Operating Operating Operating Operating Operating Operating Operating Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Transportation Solutions $ 468 19.4 % $ 452 19.4 % $ 1,893 20.2 % $ 1,950 20.6 % Industrial Solutions 475 20.3 303 17.4 1,501 19.1 1,037 16.3 Total $ 943 19.9 % $ 755 18.6 % $ 3,394 19.7 % $ 2,987 18.9 % (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED) Change in Net Sales for the Quarter Ended September 26, 2025 versus Net Sales for the Quarter Ended September 27, 2024 Net Sales Organic Net Sales Growth (Decline)
paragraph:30: Growth (Decline) (1)
paragraph:31: Translation (2)
paragraph:32: Acquisitions ($ in millions) Transportation Solutions :
paragraph:33:
paragraph:34: Automotive $ 67 3.9 % $ 35 2.0 % $ 32 $ — Commercial transportation 26 7.4 18 4.9 8 — Sensors (10) (3.9) (15) (6.1) 5 — Total Transportation Solutions 83 3.6 38 1.6 45 — Industrial Solutions : Digital data networks 314 79.9 308 78.6 6 — Automation and connected living 74 14.5 57 11.2 13 4 Aerospace, defense, and marine 34 9.3 24 6.8 10 — Energy 211 83.1 60 23.9 7 144 Medical (35) (16.4) (35) (16.4) — — Total Industrial Solutions 598 34.4 414 23.9 36 148 Total $ 681 16.7 % $ 452 11.1 % $ 81 $ 148 Change in Net Sales for the Year Ended September 26, 2025 versus Net Sales for the Year Ended September 27, 2024 Net Sales Organic Net Sales Acquisitions/ Growth (Decline) Growth (Decline) (1) Translation (2) (Divestiture) ($ in millions) Transportation Solutions :
paragraph:35:
paragraph:36: Automotive $ 13 0.2 % $ 14 0.2 % $ 11 $ (12) Commercial transportation (31) (2.1) (33) (2.3) 2 — Sensors (75) (7.6) (79) (8.0) 4 — Total Transportation Solutions (93) (1.0) (98) (1.0) 17 (12) Industrial Solutions : Digital data networks 934 73.3 924 72.6 10 — Automation and connected living 153 7.7 70 3.5 11 72 Aerospace, defense, and marine 139 10.3 127 9.5 12 — Energy 425 46.2 137 15.0 — 288 Medical (141) (16.9) (142) (17.1) 1 — Total Industrial Solutions 1,510 23.7 1,116 17.6 34 360 Total $ 1,417 8.9 % $ 1,018 6.4 % $ 51 $ 348 (1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures. (2) Represents the change in net sales resulting from changes in foreign currency exchange rates. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended September 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:37: Charges (1)
paragraph:38: Charges, Net (1)
paragraph:39: Tax Items (2)
paragraph:40: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 465 $ — $ 3 $ — $ 468 Industrial Solutions 451 10 14 — 475 Total $ 916 $ 10 $ 17 $ — $ 943 Operating margin 19.3 % 19.9 % Income tax expense $ (233) $ (2) $ 6 $ 31 $ (198) Effective tax rate 26.0 % 21.4 % Income from continuing operations $ 664 $ 8 $ 23 $ 31 $ 726 Diluted earnings per share from continuing operations $ 2.23 $ 0.03 $ 0.08 $ 0.10 $ 2.44
paragraph:41: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards and an income tax benefit of $13 million related to the revaluation of deferred tax liabilities as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended September 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:42: Charges (1)
paragraph:43: Charges, Net (1) Tax Items (2)
paragraph:44: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 410 $ — $ 42 $ — $ 452 Industrial Solutions 241 5 57 — 303 Total $ 651 $ 5 $ 99 $ — $ 755 Operating margin 16.0 % 18.6 % Income tax expense $ (381) $ (1) $ (22) $ 238 $ (166) Effective tax rate 58.0 % 21.8 % Income from continuing operations $ 276 $ 4 $ 77 $ 238 $ 595 Diluted earnings per share from continuing operations $ 0.90 $ 0.01 $ 0.25 $ 0.78 $ 1.95
paragraph:45: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense related to an increase in the valuation allowance for deferred tax assets of a Swiss subsidiary. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 26, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:46: Charges (1)
paragraph:47: Charges, Net (1)
paragraph:48: Tax Items (2)
paragraph:49: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,818 $ — $ 75 $ — $ 1,893 Industrial Solutions 1,393 57 51 — 1,501 Total $ 3,211 $ 57 $ 126 $ — $ 3,394 Operating margin 18.6 % 19.7 % Income tax expense $ (1,361) $ (12) $ (13) $ 618 $ (768) Effective tax rate 42.5 % 22.7 % Income from continuing operations $ 1,843 $ 45 $ 113 $ 618 $ 2,619 Diluted earnings per share from continuing operations $ 6.16 $ 0.15 $ 0.38 $ 2.07 $ 8.76 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:50: Charges (1)
paragraph:51: Charges, Net (1)
paragraph:52: Tax Items (2)
paragraph:53: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,880 $ — $ 67 $ 3 $ 1,950 Industrial Solutions 916 21 99 1 1,037 Total $ 2,796 $ 21 $ 166 $ 4 $ 2,987 Operating margin 17.6 % 18.9 % Income tax (expense) benefit $ 397 $ (3) $ (29) $ (1,016) $ (651) Effective tax rate (14.2) % 21.8 % Income from continuing operations $ 3,194 $ 18 $ 137 $ (1,012) $ 2,337 Diluted earnings per share from continuing operations $ 10.34 $ 0.06 $ 0.44 $ (3.28) $ 7.56 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes a $636 million net income tax benefit associated with a $972 million ten-year tax credit obtained by a Swiss subsidiary reduced by a $336 million valuation allowance related to the amount of the tax credit not expected to be realized. Also includes a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland and a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended December 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:54: Charges (1)
paragraph:55: Charges, Net (1) Tax Items (2)
paragraph:56: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 446 $ — $ 32 $ — $ 478 Industrial Solutions 244 5 18 — 267 Total $ 690 $ 5 $ 50 $ — $ 745 Operating margin 18.0 % 19.4 % Income tax expense $ (178) $ (1) $ (9) $ 13 $ (175) Effective tax rate 25.2 % 23.0 % Income from continuing operations $ 528 $ 4 $ 41 $ 13 $ 586 Diluted earnings per share from continuing operations $ 1.75 $ 0.01 $ 0.14 $ 0.04 $ 1.95
paragraph:57: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of October 29, 2025 (UNAUDITED) Outlook for Quarter Ending December 26, 2025 Diluted earnings per share from continuing operations $ 2.33 Acquisition-related charges 0.02 Restructuring and other charges, net 0.03 Amortization expense (1) 0.15 Adjusted diluted earnings per share from continuing operations (2) $ 2.53 Net sales growth 17.3 % Translation (2.9) (Acquisitions) divestitures, net (3.8) Organic net sales growth (2) 10.6 % (1) Adjusted EPS outlook for the first quarter of fiscal 2026 excludes amortization expense on intangible assets and the related tax effects. (2) See description of non-GAAP financial measures.
2025-07-23Jul 23, 2025, 12:00 PM EDTSec 8k Exhibit59 segments
paragraph:1: EX-99.1
paragraph:2: 2
paragraph:3: tel-20250723xex99d1.htm
paragraph:4: EX-99.1
paragraph:5: Exhibit 99.1 NEWS RELEASE te.com TE Connectivity delivers double-digit sales and EPS growth in third quarter of fiscal 2025 Results above guidance driven by strong operational performance and records in sales and cash flow GALWAY, Ireland – July 23, 2025 – TE Connectivity plc (NYSE: TEL) today reported results for the fiscal third quarter ended June 27, 2025. Third Quarter Highlights ● Net sales were a record $4.5 billion, an increase of 14% on a reported basis year over year and 9% organically driven primarily by strong growth in the Industrial segment. ● GAAP diluted earnings per share (EPS) from continuing operations was $2.14, up 15% year over year. Adjusted EPS was a record $2.27, an increase of approximately 19 % year over year. ● Orders were $4.5 billion, up year over year and sequentially. ● Operating margin was 18.9% and adjusted operating margin was a record 19.9%, driven by strong operational performance across both segments. ● Record cash generation for the third quarter and year to date, including: ● Cash flow from operating activities for the quarter was approximately $1.2 billion and $2.7 billion year to date. ● Free cash flow for the quarter was $962 million and approximately $2.1 billion year to date. ● Strong capital deployment year to date, including: ● Completed Richards acquisition in third quarter for $2.3 billion in the Industrial segment. ● Returned $1.5 billion to shareholders. “TE’s strong third quarter results above guidance demonstrate how the diversity of our portfolio and global positioning enable us to achieve record performance in a dynamic environment to deliver value for our owners and customers,” said CEO Terrence Curtin. “Our double-digit sales growth was driven by 30% sales growth in our Industrial segment. Together with the strong performance by our teams, we achieved 20% adjusted operating margins leading to quarterly records in adjusted EPS and cash generation. “The Industrial segment’s results were led by the delivery of high-speed connectivity solutions into AI applications, and strong growth in our energy business. In our Transportation segment, we increased sales despite declines in vehicle production due to our strength in Asia and innovations in long-term growth trends such as electrification and next-generation vehicle data connectivity. We expect the momentum to continue, as reflected in our fourth quarter guidance where we expect double-digit sales and adjusted earnings growth.” Fourth Quarter FY25 Outlook For the fourth quarter of fiscal 2025, the company expects net sales of approximately $4.55 billion, up 12% on a reported basis and 6% organically. GAAP EPS from continuing operations is expected to be approximately $2.18, an increase of more than 140% year over year, with adjusted EPS of approximately $2.27, up 16% year over year. 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
paragraph:6: ● 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 July 23. About TE Connectivity TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers, medical technology and more. With more than 85,000 employees, including 9,000 engineers, working alongside customers in approximately 130 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn , Facebook , WeChat and
paragraph:7: Instagram . Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP financial measures: • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans. • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans. • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any. • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans. • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. In addition, our change of incorporation from Switzerland to Ireland is subject to risks, such as the risk that the anticipated advantages might not materialize, as well as the risks that the price of our stock could decline and our position on stock exchanges and indices could change, and Irish corporate governance and regulatory schemes could prove different or more challenging than currently expected. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 27, 2024, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission. Contacts: Media Relations : Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com Investor Relations : Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com # # # TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended For the Nine Months Ended June 27, June 28, June 27, June 28, 2025
paragraph:8: 2024
paragraph:9: 2025
paragraph:10: 2024 (in millions, except per share data) Net sales $ 4,534 $ 3,979 $ 12,513 $ 11,777 Cost of sales 2,934 2,593 8,094 7,704 Gross margin 1,600 1,386 4,419 4,073 Selling, general, and administrative expenses 491 431 1,372 1,299 Research, development, and engineering expenses 211 189 602 546 Acquisition and integration costs 27 5 41 16 Restructuring and other charges, net 14 6 109 67 Operating income 857 755 2,295 2,145 Interest income 17 20 62 61 Interest expense (28) (18) (48) (55) Other expense, net — (3) (2) (11) Income from continuing operations before income taxes 846 754 2,307 2,140 Income tax (expense) benefit (208) (181) (1,128) 778 Income from continuing operations 638 573 1,179 2,918 Loss from discontinued operations, net of income taxes — — — (1) Net income $ 638 $ 573 $ 1,179 $ 2,917 Basic earnings per share: Income from continuing operations $ 2.16 $ 1.87 $ 3.96 $ 9.47 Net income 2.16 1.87 3.96 9.47 Diluted earnings per share: Income from continuing operations $ 2.14 $ 1.86 $ 3.93 $ 9.41 Net income 2.14 1.86 3.93 9.41 Weighted-average number of shares outstanding: Basic 296 306 298 308 Diluted 298 308 300 310 TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) June 27,
paragraph:11: September 27, 2025
paragraph:12: 2024 (in millions, except share data) Assets Current assets: Cash and cash equivalents $ 672 $ 1,319 Accounts receivable, net of allowance for doubtful accounts of $43
paragraph:13: and $32, respectively 3,431 3,055 Inventories 2,832 2,517 Prepaid expenses and other current assets 670 740 Total current assets 7,605 7,631 Property, plant, and equipment, net 4,213 3,903 Goodwill 7,251 5,801 Intangible assets, net 2,286 1,174 Deferred income taxes 2,624 3,497 Other assets 887 848 Total assets $ 24,866 $ 22,854 Liabilities, redeemable noncontrolling interests, and shareholders' equity Current liabilities: Short-term debt $ 851 $ 871 Accounts payable 2,024 1,728 Accrued and other current liabilities 2,113 2,147 Total current liabilities 4,988 4,746 Long-term debt 4,846 3,332 Long-term pension and postretirement liabilities 817 810 Deferred income taxes 223 199 Income taxes 426 411 Other liabilities 1,042 870 Total liabilities 12,342 10,368 Commitments and contingencies Redeemable noncontrolling interests 143 131 Shareholders' equity: Preferred shares, $1.00 par value, 2 shares authorized, none outstanding as of June 27, 2025 — — Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding as of June 27, 2025 — — Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 301,987,708 shares issued and common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, respectively 3 139 Accumulated earnings 13,337 14,533 Ordinary shares and common shares held in treasury, at cost, 6,147,743 and 16,656,681 shares, respectively (916) (2,322) Accumulated other comprehensive income (loss) (43) 5 Total shareholders' equity 12,381 12,355 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 24,866 $ 22,854 TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Quarters Ended For the Nine Months Ended June 27, June 28, June 27, June 28, 2025
paragraph:14: 2024
paragraph:15: 2025
paragraph:16: 2024 (in millions) Cash flows from operating activities: Net income $ 638 $ 573 $ 1,179 $ 2,917 Loss from discontinued operations, net of income taxes — — — 1 Income from continuing operations 638 573 1,179 2,918 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 216 208 594 594 Deferred income taxes 71 22 772 (1,190) Non-cash lease cost 37 33 106 100 Provision for losses on accounts receivable and inventories 19 15 62 70 Share-based compensation expense 36 31 105 100 Other 26 (11) 60 53 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts receivable, net (220) 10 (391) 82 Inventories (167) 114 (299) (127) Prepaid expenses and other current assets (109) 13 31 12 Accounts payable 152 44 298 99 Accrued and other current liabilities 222 (37) (76) (324) Income taxes 117 13 172 28 Other 149 (22) 105 20 Net cash provided by operating activities 1,187 1,006 2,718 2,435 Cash flows from investing activities: Capital expenditures (230) (149) (665) (467) Proceeds from sale of property, plant, and equipment 5 10 7 12 Acquisition of businesses, net of cash acquired (2,307) — (2,628) (339) Proceeds from divestiture of business, net of cash retained by business sold — 21 — 59 Other (5) 1 (12) (9) Net cash used in investing activities (2,537) (117) (3,298) (744) Cash flows from financing activities: Net increase (decrease) in commercial paper (1,500) 18 (255) (21) Proceeds from issuance of debt 1,458 — 2,231 — Repayment of debt (1) (1) (580) (2) Proceeds from exercise of share options 42 19 101 52 Repurchase of ordinary/common shares (301) (416) (910) (1,301) Payment of ordinary/common share dividends to shareholders (212) (199) (594) (564) Other (23) (12) (56) (39) Net cash used in financing activities (537) (591) (63) (1,875) Effect of currency translation on cash 5 (5) (4) (8) Net increase (decrease) in cash, cash equivalents, and restricted cash (1,882) 293 (647) (192) Cash, cash equivalents, and restricted cash at beginning of period 2,554 1,176 1,319 1,661 Cash, cash equivalents, and restricted cash at end of period $ 672 $ 1,469 $ 672 $ 1,469 Supplemental cash flow information: Income taxes paid, net of refunds $ 20 $ 146 $ 184 $ 384 TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED) For the Quarters Ended For the Nine Months Ended June 27, June 28, June 27, June 28, 2025
paragraph:17: 2024
paragraph:18: 2025
paragraph:19: 2024 (in millions) Net cash provided by operating activities $ 1,187 $ 1,006 $ 2,718 $ 2,435 Capital expenditures, net (225) (139) (658) (455) Free cash flow (1) $ 962 $ 867 $ 2,060 $ 1,980 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. TE CONNECTIVITY PLC SEGMENT DATA (UNAUDITED) For the Quarters Ended For the Nine Months Ended June 27, June 28, June 27, June 28, 2025
paragraph:20: 2024
paragraph:21: 2025
paragraph:22: 2024 ($ in millions) Net Sales
paragraph:23: Net Sales
paragraph:24: Net Sales
paragraph:25: Net Sales
paragraph:26: Transportation Solutions $ 2,418 $ 2,351 $ 6,975 $ 7,151 Industrial Solutions 2,116 1,628 5,538 4,626 Total $ 4,534 $ 3,979 $ 12,513 $ 11,777 Operating Operating Operating Operating Operating Operating Operating Operating Income Margin Income Margin Income Margin Income Margin Transportation Solutions $ 462 19.1 % $ 506 21.5 % $ 1,353 19.4 % $ 1,470 20.6 % Industrial Solutions 395 18.7 249 15.3 942 17.0 675 14.6 Total $ 857 18.9 % $ 755 19.0 % $ 2,295 18.3 % $ 2,145 18.2 % Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Operating Operating Operating Operating Operating Operating Operating Operating Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Transportation Solutions $ 469 19.4 % $ 498 21.2 % $ 1,425 20.4 % $ 1,498 20.9 % Industrial Solutions 432 20.4 268 16.5 1,026 18.5 734 15.9 Total $ 901 19.9 % $ 766 19.3 % $ 2,451 19.6 % $ 2,232 19.0 % (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED) Change in Net Sales for the Quarter Ended June 27, 2025 versus Net Sales for the Quarter Ended June 28, 2024 Net Sales Organic Net Sales Growth (Decline)
paragraph:27: Growth (Decline) (1)
paragraph:28: Translation (2)
paragraph:29: Acquisitions ($ in millions) Transportation Solutions
paragraph:30: (3) :
paragraph:31:
paragraph:32: Automotive $ 57 3.3 % $ 28 1.5 % $ 29 $ — Commercial transportation 14 3.9 10 2.7 4 — Sensors (4) (1.7) (9) (3.8) 5 — Total Transportation Solutions 67 2.8 29 1.1 38 — Industrial Solutions (3) : Automation and connected living 52 10.0 26 5.0 10 16 Aerospace, defense, and marine 29 8.4 21 6.2 8 — Digital data networks 277 84.2 269 81.9 8 — Energy 158 69.9 45 20.2 3 110 Medical (28) (13.4) (29) (13.5) 1 — Total Industrial Solutions 488 30.0 332 20.5 30 126 Total $ 555 13.9 % $ 361 9.1 % $ 68 $ 126 Change in Net Sales for the Nine Months Ended June 27, 2025 versus Net Sales for the Nine Months Ended June 28, 2024 Net Sales Organic Net Sales Acquisitions/ Growth (Decline) Growth (Decline) (1) Translation (2) (Divestiture) ($ in millions) Transportation Solutions
paragraph:33: (3) :
paragraph:34:
paragraph:35: Automotive $ (54) (1.0) % $ (21) (0.4) % $ (21) $ (12) Commercial transportation (57) (5.2) (51) (4.6) (6) — Sensors (65) (8.9) (64) (8.7) (1) — Total Transportation Solutions (176) (2.5) (136) (1.9) (28) (12) Industrial Solutions (3) : Automation and connected living 79 5.3 13 0.9 (2) 68 Aerospace, defense, and marine 105 10.7 103 10.5 2 — Digital data networks 620 70.4 616 69.9 4 — Energy 214 32.2 77 11.6 (7) 144 Medical (106) (17.1) (107) (17.2) 1 — Total Industrial Solutions 912 19.7 702 15.2 (2) 212 Total $ 736 6.2 % $ 566 4.8 % $ (30) $ 200 (1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures. (2) Represents the change in net sales resulting from changes in foreign currency exchange rates. (3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended June 27, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:36: Charges (1)
paragraph:37: Charges, Net (1)
paragraph:38: (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 462 $ — $ 7 $ 469 Industrial Solutions 395 30 7 432 Total $ 857 $ 30 $ 14 $ 901 Operating margin 18.9 % 19.9 % Income tax expense $ (208) $ (7) $ 1 $ (214) Effective tax rate 24.6 % 24.0 % Income from continuing operations $ 638 $ 23 $ 15 $ 676 Diluted earnings per share from continuing operations $ 2.14 $ 0.08 $ 0.05 $ 2.27
paragraph:39: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended June 28, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:40: Charges (1)
paragraph:41: Charges, Net (1)
paragraph:42: (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 506 $ — $ (8) $ 498 Industrial Solutions 249 5 14 268 Total $ 755 $ 5 $ 6 $ 766 Operating margin 19.0 % 19.3 % Income tax expense $ (181) $ — $ 4 $ (177) Effective tax rate 24.0 % 23.1 % Income from continuing operations $ 573 $ 5 $ 10 $ 588 Diluted earnings per share from continuing operations $ 1.86 $ 0.02 $ 0.03 $ 1.91
paragraph:43: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Nine Months Ended June 27, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:44: Charges (1)
paragraph:45: Charges, Net (1)
paragraph:46: Tax Items (2)
paragraph:47: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,353 $ — $ 72 $ — $ 1,425 Industrial Solutions 942 47 37 — 1,026 Total $ 2,295 $ 47 $ 109 $ — $ 2,451 Operating margin 18.3 % 19.6 % Income tax expense $ (1,128) $ (10) $ (19) $ 587 $ (570) Effective tax rate 48.9 % 23.1 % Income from continuing operations $ 1,179 $ 37 $ 90 $ 587 $ 1,893 Diluted earnings per share from continuing operations $ 3.93 $ 0.12 $ 0.30 $ 1.96 $ 6.31 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $13 million related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Nine Months Ended June 28, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:48: Charges (1)
paragraph:49: Charges, Net (1)
paragraph:50: Tax Items (2)
paragraph:51: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,470 $ — $ 25 $ 3 $ 1,498 Industrial Solutions 675 16 42 1 734 Total $ 2,145 $ 16 $ 67 $ 4 $ 2,232 Operating margin 18.2 % 19.0 % Income tax (expense) benefit $ 778 $ (2) $ (7) $ (1,254) $ (485) Effective tax rate (36.4) % 21.8 % Income from continuing operations $ 2,918 $ 14 $ 60 $ (1,250) $ 1,742 Diluted earnings per share from continuing operations $ 9.41 $ 0.05 $ 0.19 $ (4.03) $ 5.62 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes an $874 million net income tax benefit associated with a ten-year tax credit obtained by a Swiss subsidiary and a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland. Also includes a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended September 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:52: Charges (1)
paragraph:53: Charges, Net (1) Tax Items (2)
paragraph:54: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 410 $ — $ 42 $ — $ 452 Industrial Solutions 241 5 57 — 303 Total $ 651 $ 5 $ 99 $ — $ 755 Operating margin 16.0 % 18.6 % Income tax expense $ (381) $ (1) $ (22) $ 238 $ (166) Effective tax rate 58.0 % 21.8 % Income from continuing operations $ 276 $ 4 $ 77 $ 238 $ 595 Diluted earnings per share from continuing operations $ 0.90 $ 0.01 $ 0.25 $ 0.78 $ 1.95
paragraph:55: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense related to an increase in the valuation allowance for deferred tax assets of a Swiss subsidiary. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:56: Charges (1)
paragraph:57: Charges, Net (1)
paragraph:58: Tax Items (2)
paragraph:59: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,880 $ — $ 67 $ 3 $ 1,950 Industrial Solutions 916 21 99 1 1,037 Total $ 2,796 $ 21 $ 166 $ 4 $ 2,987 Operating margin 17.6 % 18.9 % Income tax (expense) benefit $ 397 $ (3) $ (29) $ (1,016) $ (651) Effective tax rate (14.2) % 21.8 % Income from continuing operations $ 3,194 $ 18 $ 137 $ (1,012) $ 2,337 Diluted earnings per share from continuing operations $ 10.34 $ 0.06 $ 0.44 $ (3.28) $ 7.56 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes a $636 million net income tax benefit associated with a $972 million ten-year tax credit obtained by a Swiss subsidiary reduced by a $336 million valuation allowance related to the amount of the tax credit not expected to be realized. Also includes a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland and a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of July 23, 2025 (UNAUDITED) Outlook for Quarter Ending September 26, 2025 Diluted earnings per share from continuing operations $ 2.18 Restructuring and other charges, net 0.05 Acquisition-related charges 0.04 Adjusted diluted earnings per share from continuing operations (1) $ 2.27 Net sales growth 11.9 % Translation (2.8) (Acquisitions) divestitures, net (3.6) Organic net sales growth (1) 5.5 % (1) See description of non-GAAP financial measures.
2025-04-23Apr 23, 2025, 12:00 PM EDTSec 8k Exhibit61 segments
paragraph:1: EX-99.1
paragraph:2: 2
paragraph:3: tel-20250423xex99d1.htm
paragraph:4: EX-99.1
paragraph:5: Exhibit 99.1 NEWS RELEASE te.com TE Connectivity delivers sales and EPS above guidance in second quarter of fiscal year 2025 Third quarter guidance reflects continued momentum and Richards acquisition GALWAY, Ireland – April 23, 2025 – TE Connectivity plc (NYSE: TEL) today reported results for the fiscal second quarter ended Mar. 28, 2025. Second Quarter Highlights ● Net sales were $4.1 billion, up 4% on a reported basis year over year and 5% organically driven by double digit growth in the Industrial segment. ● GAAP diluted earnings per share (EPS) from continuing operations was $0.04, which includes a one-time non-cash tax charge due to a change in tax law in the second quarter of 2025. Adjusted EPS was $2.10, a company record and up approximately 13 % year over year. ● Orders were $4.25 billion, up 6% both year over year and sequentially. ● Operating margin was 18.1% and adjusted operating margin was 19.4%, driven by strong operational performance in both segments. ● Cash flow from operating activities during the first half of the fiscal year was $1.5 billion and free cash flow was approximately $1.1 billion. ● Returned approximately $1 billion to shareholders and announced a 9% dividend increase. ● Richards Manufacturing Co. acquisition completed in April to capitalize on strong growth opportunities in the North American utility market. ● Issued One Connected World corporate responsibility report, highlighted by an 80% reduction in Scope 1 & 2 greenhouse gas emissions during the past four years. “Our teams delivered strong operational performance that led to record adjusted EPS and results that exceeded our guidance on both sales and earnings,” said TE Connectivity CEO Terrence Curtin. “Our Transportation segment continued to execute well, capitalizing on our leading position in Asia and maintaining strong margin performance. Our Industrial segment expanded its operating margin on sales growth of 17%, driven by broad business growth and ongoing momentum in AI, aerospace and energy applications. “Due to our long-standing business strategy and investments to locate manufacturing facilities near customers, we expect to effectively navigate the current trade environment. Our ongoing momentum and ability to pull operational levers gives us confidence in our third quarter guidance for year-over-year improvement in sales and EPS. We are well positioned for the current uncertain macroeconomic environment and remain focused on innovating in long-term industrial technology growth trends and creating value for both our customers and owners.” Third Quarter FY25 Outlook For the third quarter of fiscal 2025, the company expects net sales of approximately $4.30 billion, up 8% year over year. GAAP EPS from continuing operations is expected to be approximately $2.02, up nearly 9% year over year, with adjusted EPS of approximately $2.06, up 8% year over year. Third quarter guidance includes the benefit from the Richards acquisition and tariff impact assumptions, as well as tax rate headwinds of $0.04 on a year over year basis and $0.06 sequentially. 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
paragraph:6: ● 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
paragraph:7: 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 April 23. About TE Connectivity TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers, medical technology and more. With more than 85,000 employees, including 9,000 engineers, working alongside customers in approximately 130 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn , Facebook , WeChat,
paragraph:8: Instagram and X (formerly Twitter). Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP financial measures: • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans. • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans. • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any. • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. • Adjusted Earnings Per Share – represents diluted earnings (loss) per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans. • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. In addition, our change of incorporation from Switzerland to Ireland is subject to risks, such as the risk that the anticipated advantages might not materialize, as well as the risks that the price of our stock could decline and our position on stock exchanges and indices could change, and Irish corporate governance and regulatory schemes could prove different or more challenging than currently expected. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 27, 2024, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission. Contacts: Media Relations : Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com Investor Relations : Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com # # # TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended For the Six Months Ended March 28, March 29, March 28, March 29, 2025
paragraph:9: 2024
paragraph:10: 2025
paragraph:11: 2024 (in millions, except per share data) Net sales $ 4,143 $ 3,967 $ 7,979 $ 7,798 Cost of sales 2,684 2,604 5,160 5,111 Gross margin 1,459 1,363 2,819 2,687 Selling, general, and administrative expenses 454 444 881 868 Research, development, and engineering expenses 203 184 391 357 Acquisition and integration costs 9 3 14 11 Restructuring and other charges, net 45 40 95 61 Operating income 748 692 1,438 1,390 Interest income 22 19 45 41 Interest expense (14) (19) (20) (37) Other expense, net (1) (5) (2) (8) Income from continuing operations before income taxes 755 687 1,461 1,386 Income tax (expense) benefit (742) (146) (920) 959 Income from continuing operations 13 541 541 2,345 Loss from discontinued operations, net of income taxes — — — (1) Net income $ 13 $ 541 $ 541 $ 2,344 Basic earnings per share: Income from continuing operations $ 0.04 $ 1.76 $ 1.81 $ 7.59 Net income 0.04 1.76 1.81 7.59 Diluted earnings per share: Income from continuing operations $ 0.04 $ 1.75 $ 1.80 $ 7.54 Net income 0.04 1.75 1.80 7.54 Weighted-average number of shares outstanding: Basic 298 308 299 309 Diluted 300 310 301 311 TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 28,
paragraph:12: September 27, 2025
paragraph:13: 2024 (in millions, except share data) Assets Current assets: Cash and cash equivalents $ 2,554 $ 1,319 Accounts receivable, net of allowance for doubtful accounts of $36
paragraph:14: and $32, respectively 3,193 3,055 Inventories 2,603 2,517 Prepaid expenses and other current assets 724 740 Total current assets 9,074 7,631 Property, plant, and equipment, net 3,925 3,903 Goodwill 5,900 5,801 Intangible assets, net 1,161 1,174 Deferred income taxes 2,741 3,497 Other assets 855 848 Total assets $ 23,656 $ 22,854 Liabilities, redeemable noncontrolling interests, and shareholders' equity Current liabilities: Short-term debt $ 2,351 $ 871 Accounts payable 1,843 1,728 Accrued and other current liabilities 1,805 2,147 Total current liabilities 5,999 4,746 Long-term debt 3,263 3,332 Long-term pension and postretirement liabilities 786 810 Deferred income taxes 211 199 Income taxes 396 411 Other liabilities 784 870 Total liabilities 11,439 10,368 Commitments and contingencies Redeemable noncontrolling interests 132 131 Shareholders' equity: Preferred shares, $1.00 par value, 2 shares authorized, none outstanding as of March 28, 2025 — — Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding as of March 28, 2025 — — Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 301,276,687 shares issued and common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, respectively 3 139 Accumulated earnings 12,811 14,533 Ordinary shares and common shares held in treasury, at cost, 4,139,531 and 16,656,681 shares, respectively (615) (2,322) Accumulated other comprehensive income (loss) (114) 5 Total shareholders' equity 12,085 12,355 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 23,656 $ 22,854 TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Quarters Ended For the Six Months Ended March 28, March 29, March 28, March 29, 2025
paragraph:15: 2024
paragraph:16: 2025
paragraph:17: 2024 (in millions) Cash flows from operating activities: Net income $ 13 $ 541 $ 541 $ 2,344 Loss from discontinued operations, net of income taxes — — — 1 Income from continuing operations 13 541 541 2,345 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 192 192 378 386 Deferred income taxes 603 5 701 (1,212) Non-cash lease cost 35 33 69 67 Provision for losses on accounts receivable and inventories 2 13 43 55 Share-based compensation expense 34 35 69 69 Other 22 24 34 64 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts receivable, net (317) (55) (171) 72 Inventories (14) 41 (132) (241) Prepaid expenses and other current assets 72 47 140 (1) Accounts payable (4) (73) 146 55 Accrued and other current liabilities (3) (48) (298) (287) Income taxes 25 3 55 15 Other (7) (48) (44) 42 Net cash provided by operating activities 653 710 1,531 1,429 Cash flows from investing activities: Capital expenditures (230) (167) (435) (318) Proceeds from sale of property, plant, and equipment 1 — 2 2 Acquisition of businesses, net of cash acquired 4 10 (321) (339) Proceeds from divestiture of business, net of cash retained by business sold — — — 38 Other 1 (2) (7) (10) Net cash used in investing activities (224) (159) (761) (627) Cash flows from financing activities: Net increase (decrease) in commercial paper 1,155 30 1,245 (39) Proceeds from issuance of debt 773 — 773 — Repayment of debt (579) — (579) (1) Proceeds from exercise of share options 25 22 59 33 Repurchase of ordinary/common shares (306) (409) (609) (885) Payment of ordinary/common share dividends to shareholders (193) (182) (382) (365) Other (6) — (33) (27) Net cash provided by (used in) financing activities 869 (539) 474 (1,284) Effect of currency translation on cash 2 (6) (9) (3) Net increase (decrease) in cash, cash equivalents, and restricted cash 1,300 6 1,235 (485) Cash, cash equivalents, and restricted cash at beginning of period 1,254 1,170 1,319 1,661 Cash, cash equivalents, and restricted cash at end of period $ 2,554 $ 1,176 $ 2,554 $ 1,176 Supplemental cash flow information: Income taxes paid, net of refunds $ 115 $ 138 $ 164 $ 238 TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED) For the Quarters Ended For the Six Months Ended March 28, March 29, March 28, March 29, 2025
paragraph:18: 2024
paragraph:19: 2025
paragraph:20: 2024 (in millions) Net cash provided by operating activities $ 653 $ 710 $ 1,531 $ 1,429 Capital expenditures, net (229) (167) (433) (316) Free cash flow (1) $ 424 $ 543 $ 1,098 $ 1,113 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. TE CONNECTIVITY PLC SEGMENT DATA (UNAUDITED) For the Quarters Ended For the Six Months Ended March 28, March 29, March 28, March 29, 2025
paragraph:21: 2024
paragraph:22: 2025
paragraph:23: 2024 ($ in millions) Net Sales
paragraph:24: Net Sales
paragraph:25: Net Sales
paragraph:26: Net Sales
paragraph:27: Transportation Solutions $ 2,314 $ 2,407 $ 4,557 $ 4,800 Industrial Solutions 1,829 1,560 3,422 2,998 Total $ 4,143 $ 3,967 $ 7,979 $ 7,798 Operating Operating Operating Operating Operating Operating Operating Operating Income Margin Income Margin Income Margin Income Margin Transportation Solutions $ 445 19.2 % $ 477 19.8 % $ 891 19.6 % $ 964 20.1 % Industrial Solutions 303 16.6 215 13.8 547 16.0 426 14.2 Total $ 748 18.1 % $ 692 17.4 % $ 1,438 18.0 % $ 1,390 17.8 % Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Operating Operating Operating Operating Operating Operating Operating Operating Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Transportation Solutions $ 478 20.7 % $ 496 20.6 % $ 956 21.0 % $ 1,000 20.8 % Industrial Solutions 327 17.9 239 15.3 594 17.4 466 15.5 Total $ 805 19.4 % $ 735 18.5 % $ 1,550 19.4 % $ 1,466 18.8 % (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED) Change in Net Sales for the Quarter Ended March 28, 2025 versus Net Sales for the Quarter Ended March 29, 2024 Net Sales Organic Net Sales Growth (Decline)
paragraph:28: Growth (Decline) (1)
paragraph:29: Translation (2)
paragraph:30: Acquisitions ($ in millions) Transportation Solutions
paragraph:31: (3) :
paragraph:32:
paragraph:33: Automotive $ (37) (2.1) % $ 6 0.4 % $ (43) $ — Commercial transportation (27) (7.0) (20) (5.1) (7) — Sensors (29) (11.6) (25) (9.6) (4) — Total Transportation Solutions (93) (3.9) (39) (1.5) (54) — Industrial Solutions (3) : Automation and connected living 12 2.4 8 1.5 (10) 14 Aerospace, defense, and marine 32 9.4 37 10.8 (5) — Digital data networks 209 76.6 213 78.0 (4) — Energy 45 19.2 18 7.6 (7) 34 Medical (29) (13.7) (29) (13.7) — — Total Industrial Solutions 269 17.2 247 15.7 (26) 48 Total $ 176 4.4 % $ 208 5.3 % $ (80) $ 48 Change in Net Sales for the Six Months Ended March 28, 2025 versus Net Sales for the Six Months Ended March 29, 2024 Net Sales Organic Net Sales Acquisitions/ Growth (Decline) Growth (Decline) (1) Translation (2) (Divestiture) ($ in millions) Transportation Solutions
paragraph:34: (3) :
paragraph:35:
paragraph:36: Automotive $ (111) (3.1) % $ (49) (1.3) % $ (50) $ (12) Commercial transportation (71) (9.6) (61) (8.3) (10) — Sensors (61) (12.4) (55) (11.1) (6) — Total Transportation Solutions (243) (5.1) (165) (3.4) (66) (12) Industrial Solutions (3) : Automation and connected living 27 2.8 (13) (1.4) (12) 52 Aerospace, defense, and marine 76 12.0 82 12.9 (6) — Digital data networks 343 62.1 347 62.8 (4) — Energy 56 12.8 32 7.2 (10) 34 Medical (78) (19.0) (78) (19.0) — — Total Industrial Solutions 424 14.1 370 12.3 (32) 86 Total $ 181 2.3 % $ 205 2.7 % $ (98) $ 74 (1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures. (2) Represents the change in net sales resulting from changes in foreign currency exchange rates. (3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended March 28, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:37: Charges (1)
paragraph:38: Charges, Net (1)
paragraph:39: Tax Items (2)
paragraph:40: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 445 $ — $ 33 $ — $ 478 Industrial Solutions 303 12 12 — 327 Total $ 748 $ 12 $ 45 $ — $ 805 Operating margin 18.1 % 19.4 % Income tax expense $ (742) $ (2) $ (11) $ 574 $ (181) Effective tax rate 98.3 % 22.3 % Income from continuing operations $ 13 $ 10 $ 34 $ 574 $ 631 Diluted earnings per share from continuing operations $ 0.04 $ 0.03 $ 0.11 $ 1.91 $ 2.10
paragraph:41: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended March 29, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:42: Charges (1)
paragraph:43: Charges, Net (1)
paragraph:44: (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 477 $ — $ 19 $ 496 Industrial Solutions 215 3 21 239 Total $ 692 $ 3 $ 40 $ 735 Operating margin 17.4 % 18.5 % Income tax expense $ (146) $ (1) $ (6) $ (153) Effective tax rate 21.3 % 21.0 % Income from continuing operations $ 541 $ 2 $ 34 $ 577 Diluted earnings per share from continuing operations $ 1.75 $ 0.01 $ 0.11 $ 1.86
paragraph:45: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Six Months Ended March 28, 2025 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:46: Charges (1)
paragraph:47: Charges, Net (1)
paragraph:48: Tax Items (2)
paragraph:49: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 891 $ — $ 65 $ — $ 956 Industrial Solutions 547 17 30 — 594 Total $ 1,438 $ 17 $ 95 $ — $ 1,550 Operating margin 18.0 % 19.4 % Income tax expense $ (920) $ (3) $ (20) $ 587 $ (356) Effective tax rate 63.0 % 22.6 % Income from continuing operations $ 541 $ 14 $ 75 $ 587 $ 1,217 Diluted earnings per share from continuing operations $ 1.80 $ 0.05 $ 0.25 $ 1.95 $ 4.04 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $13 million related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Six Months Ended March 29, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:50: Charges (1)
paragraph:51: Charges, Net (1)
paragraph:52: Tax Items (2)
paragraph:53: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 964 $ — $ 33 $ 3 $ 1,000 Industrial Solutions 426 11 28 1 466 Total $ 1,390 $ 11 $ 61 $ 4 $ 1,466 Operating margin 17.8 % 18.8 % Income tax (expense) benefit $ 959 $ (2) $ (11) $ (1,254) $ (308) Effective tax rate (69.2) % 21.1 % Income from continuing operations $ 2,345 $ 9 $ 50 $ (1,250) $ 1,154 Diluted earnings per share from continuing operations $ 7.54 $ 0.03 $ 0.16 $ (4.02) $ 3.71 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes an $874 million net income tax benefit associated with a ten-year tax credit obtained by a Swiss subsidiary and a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland. Also includes a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended June 28, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:54: Charges (1)
paragraph:55: Charges, Net (1)
paragraph:56: (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 506 $ — $ (8) $ 498 Industrial Solutions 249 5 14 268 Total $ 755 $ 5 $ 6 $ 766 Operating margin 19.0 % 19.3 % Income tax expense $ (181) $ — $ 4 $ (177) Effective tax rate 24.0 % 23.1 % Income from continuing operations $ 573 $ 5 $ 10 $ 588 Diluted earnings per share from continuing operations $ 1.86 $ 0.02 $ 0.03 $ 1.91
paragraph:57: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:58: Charges (1)
paragraph:59: Charges, Net (1)
paragraph:60: Tax Items (2)
paragraph:61: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,880 $ — $ 67 $ 3 $ 1,950 Industrial Solutions 916 21 99 1 1,037 Total $ 2,796 $ 21 $ 166 $ 4 $ 2,987 Operating margin 17.6 % 18.9 % Income tax (expense) benefit $ 397 $ (3) $ (29) $ (1,016) $ (651) Effective tax rate (14.2) % 21.8 % Income from continuing operations $ 3,194 $ 18 $ 137 $ (1,012) $ 2,337 Diluted earnings per share from continuing operations $ 10.34 $ 0.06 $ 0.44 $ (3.28) $ 7.56 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes a $636 million net income tax benefit associated with a $972 million ten-year tax credit obtained by a Swiss subsidiary reduced by a $336 million valuation allowance related to the amount of the tax credit not expected to be realized. Also includes a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland and a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of April 23, 2025 (UNAUDITED) Outlook for Quarter Ending June 27, 2025 Diluted earnings per share from continuing operations $ 2.02 Restructuring and other charges, net 0.02 Acquisition-related charges 0.02 Adjusted diluted earnings per share from continuing operations (1) $ 2.06 Net sales growth 8.1 % (Acquisitions) divestitures, net (3.0) Organic net sales growth (1) 5.1 % (1) See description of non-GAAP financial measures.
2025-01-22Jan 22, 2025, 11:00 AM ESTSec 8k Exhibit42 segments
paragraph:1: EX-99.1
paragraph:2: 2
paragraph:3: tel-20250122xex99d1.htm
paragraph:4: EX-99.1
paragraph:5: Exhibit 99.1 NEWS RELEASE te.com TE Connectivity announces first quarter results for fiscal year 2025 EPS above guidance with record first quarter cash generation GALWAY, Ireland – Jan. 22, 2025 – TE Connectivity plc (NYSE: TEL) today reported results for the fiscal first quarter ended Dec. 27, 2024. First Quarter Highlights ● Net sales were $3.84 billion, flat year over year and as expected on an organic basis. ● Compared to guidance, sales were unfavorably impacted by increased currency exchange headwinds. ● Earnings per share (EPS) above guidance, with GAAP diluted EPS from continuing operations at $1.75. Adjusted EPS was $1.95, up approximately 6 % year over year. ● Orders of $4.0 billion, up 6% year over year and 4% sequentially, driven by the Industrial segment, with increased momentum in artificial intelligence programs. ● Operating margin was 18% and adjusted operating margin was a quarterly record at 19.4%, driven by strong operational execution. ● Record first quarter cash generation, including: ● Cash from operating activities of $878 million, up 22% year over year. ● Free cash flow of $674 million, up 18% year over year. ● Returned approximately $500 million to shareholders and deployed $325 million for bolt-on acquisitions in the Industrial segment. ● Named to Dow Jones Sustainability Index for the 13 th consecutive year. “I’m pleased that our team began the fiscal year with a strong operational performance, highlighted by adjusted EPS above guidance and records in both adjusted operating margin and first quarter free cash flow,” said TE Connectivity CEO Terrence Curtin. “In our Transportation segment, we continued to navigate an uneven global vehicle production environment to deliver a strong result while continuing to innovate with our global customers in growth trends such as electrification and next-generation vehicle data connectivity. We delivered double digit sales growth in our Industrial segment and expanded margins, driven by momentum in AI programs across multiple customers, as well as capitalizing on ongoing strength in our AD&M and Energy businesses. “As we continue our operational excellence and innovate with our valued customers, we expect second quarter sales to be up sequentially and adjusted EPS to be up year over year and compared to the first quarter. We remain excited about capitalizing on long-term growth opportunities, including our bolt-on acquisition strategy and margin expansion plans, to keep delivering on our value creation model.” Second Quarter FY25 Outlook For the second quarter of fiscal 2025, the company expects net sales of approximately $3.95 billion. GAAP EPS from continuing operations is expected to be approximately ($0.05), which includes a one-time non-cash tax charge due to changes in tax law in the second quarter of 2025. Adjusted EPS is expected to be approximately $1.96, up 5% year over year. Second quarter guidance includes $0.06 of currency exchange and tax headwinds compared to the prior year. Beginning this fiscal year, the company has two reportable segments – Transportation Solutions and Industrial Solutions – resulting from a reorganization announced in the fourth quarter of fiscal 2024. The company provided recast financial information in an 8-K filing on Dec. 17, 2024. 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
paragraph:6: ● 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
paragraph:7: 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 Jan. 22. About TE Connectivity TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, renewable energy, automated factories, data centers, medical technology and more. With more than 85,000 employees, including 9,000 engineers, working alongside customers in approximately 130 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com
paragraph:8: and on LinkedIn , Facebook , WeChat , Instagram and X (formerly Twitter) . Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP financial measures: • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans. • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans. • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any. • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. • Adjusted Earnings Per Share – represents diluted earnings (loss) per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans. • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. In addition, our change of incorporation from Switzerland to Ireland is subject to risks, such as the risk that the anticipated advantages might not materialize, as well as the risks that the price of our stock could decline and our position on stock exchanges and indices could change, and Irish corporate governance and regulatory schemes could prove different or more challenging than currently expected. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 27, 2024, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission. Contacts: Media Relations : Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com Investor Relations : Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended December 27, December 29, 2024
paragraph:9: 2023 (in millions, except per share data) Net sales $ 3,836 $ 3,831 Cost of sales 2,476 2,507 Gross margin 1,360 1,324 Selling, general, and administrative expenses 427 424 Research, development, and engineering expenses 188 173 Acquisition and integration costs 5 8 Restructuring and other charges, net 50 21 Operating income 690 698 Interest income 23 22 Interest expense (6) (18) Other expense, net (1) (3) Income from continuing operations before income taxes 706 699 Income tax (expense) benefit (178) 1,105 Income from continuing operations 528 1,804 Loss from discontinued operations, net of income taxes — (1) Net income $ 528 $ 1,803 Basic earnings per share: Income from continuing operations $ 1.77 $ 5.80 Net income 1.77 5.80 Diluted earnings per share: Income from continuing operations $ 1.75 $ 5.76 Net income 1.75 5.76 Weighted-average number of shares outstanding: Basic 299 311 Diluted 301 313 TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 27,
paragraph:10: September 27, 2024
paragraph:11: 2024 (in millions, except share data) Assets Current assets: Cash and cash equivalents $ 1,254 $ 1,319 Accounts receivable, net of allowance for doubtful accounts of $34
paragraph:12: and $32, respectively 2,912 3,055 Inventories 2,619 2,517 Prepaid expenses and other current assets 734 740 Total current assets 7,519 7,631 Property, plant, and equipment, net 3,759 3,903 Goodwill 5,835 5,801 Intangible assets, net 1,177 1,174 Deferred income taxes 3,270 3,497 Other assets 881 848 Total assets $ 22,441 $ 22,854 Liabilities, redeemable noncontrolling interests, and shareholders' equity Current liabilities: Short-term debt $ 920 $ 871 Accounts payable 1,859 1,728 Accrued and other current liabilities 1,694 2,147 Total current liabilities 4,473 4,746 Long-term debt 3,285 3,332 Long-term pension and postretirement liabilities 778 810 Deferred income taxes 203 199 Income taxes 396 411 Other liabilities 773 870 Total liabilities 9,908 10,368 Commitments and contingencies Redeemable noncontrolling interests 124 131 Shareholders' equity: Preferred shares, $1.00 par value, 2 shares authorized, none outstanding as of December 27, 2024 — — Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding as of December 27, 2024 — — Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 300,840,538 shares issued and common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, respectively 3 139 Accumulated earnings 12,933 14,533 Ordinary shares and common shares held in treasury, at cost, 2,074,979 and 16,656,681 shares, respectively (310) (2,322) Accumulated other comprehensive income (loss) (217) 5 Total shareholders' equity 12,409 12,355 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 22,441 $ 22,854 TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Quarters Ended December 27, December 29, 2024
paragraph:13: 2023 (in millions) Cash flows from operating activities: Net income $ 528 $ 1,803 Loss from discontinued operations, net of income taxes — 1 Income from continuing operations 528 1,804 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 186 194 Deferred income taxes 98 (1,217) Non-cash lease cost 34 34 Provision for losses on accounts receivable and inventories 41 42 Share-based compensation expense 35 34 Other 12 40 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts receivable, net 146 127 Inventories (118) (282) Prepaid expenses and other current assets 68 (48) Accounts payable 150 128 Accrued and other current liabilities (295) (239) Income taxes 30 12 Other (37) 90 Net cash provided by operating activities 878 719 Cash flows from investing activities: Capital expenditures (205) (151) Proceeds from sale of property, plant, and equipment 1 2 Acquisition of businesses, net of cash acquired (325) (349) Proceeds from divestiture of business, net of cash retained by business sold — 38 Other (8) (8) Net cash used in investing activities (537) (468) Cash flows from financing activities: Net increase (decrease) in commercial paper 90 (69) Repayment of debt — (1) Proceeds from exercise of share options 34 11 Repurchase of ordinary/common shares (303) (476) Payment of ordinary/common share dividends to shareholders (189) (183) Other (27) (27) Net cash used in financing activities (395) (745) Effect of currency translation on cash (11) 3 Net decrease in cash, cash equivalents, and restricted cash (65) (491) Cash, cash equivalents, and restricted cash at beginning of period 1,319 1,661 Cash, cash equivalents, and restricted cash at end of period $ 1,254 $ 1,170 Supplemental cash flow information: Income taxes paid, net of refunds 49 100 TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED) For the Quarters Ended December 27, December 29, 2024
paragraph:14: 2023 (in millions) Net cash provided by operating activities $ 878 $ 719 Capital expenditures, net (204) (149) Free cash flow (1) $ 674 $ 570 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. TE CONNECTIVITY PLC SEGMENT DATA (UNAUDITED) For the Quarters Ended December 27, December 29, 2024
paragraph:15: 2023 ($ in millions) Net Sales
paragraph:16: Net Sales
paragraph:17: Transportation Solutions $ 2,243 $ 2,393 Industrial Solutions 1,593 1,438 Total $ 3,836 $ 3,831 Operating Operating Operating Operating Income Margin Income Margin Transportation Solutions $ 446 19.9 % $ 487 20.4 % Industrial Solutions 244 15.3 211 14.7 Total $ 690 18.0 % $ 698 18.2 % Adjusted Adjusted Adjusted Adjusted Operating Operating Operating Operating Income (1) Margin (1) Income (1) Margin (1) Transportation Solutions $ 478 21.3 % $ 504 21.1 % Industrial Solutions 267 16.8 227 15.8 Total $ 745 19.4 % $ 731 19.1 % (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED) Change in Net Sales for the Quarter Ended December 27, 2024 versus Net Sales for the Quarter Ended December 29, 2023 Net Sales Organic Net Sales Acquisitions/ Growth (Decline)
paragraph:18: Growth (Decline) (1)
paragraph:19: Translation (2)
paragraph:20: (Divestiture) ($ in millions) Transportation Solutions
paragraph:21: (3) :
paragraph:22:
paragraph:23: Automotive $ (74) (4.1) % $ (55) (3.0) % $ (7) $ (12) Commercial transportation (44) (12.4) (41) (11.6) (3) — Sensors (32) (13.3) (30) (12.6) (2) — Total Transportation Solutions (150) (6.3) (126) (5.2) (12) (12) Industrial Solutions (3) : Automation and connected living 15 3.2 (21) (4.5) (2) 38 Aerospace, defense, and marine 44 15.2 45 15.4 (1) — Digital data networks 134 48.0 134 48.0 — — Energy 11 5.4 14 6.8 (3) — Medical (49) (24.5) (49) (24.5) — — Total Industrial Solutions 155 10.8 123 8.6 (6) 38 Total $ 5 0.1 % $ (3) — % $ (18) $ 26 (1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures. (2) Represents the change in net sales resulting from changes in foreign currency exchange rates. (3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended December 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:24: Charges (1)
paragraph:25: Charges, Net (1)
paragraph:26: Tax Items (2)
paragraph:27: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 446 $ — $ 32 $ — $ 478 Industrial Solutions 244 5 18 — 267 Total $ 690 $ 5 $ 50 $ — $ 745 Operating margin 18.0 % 19.4 % Income tax expense $ (178) $ (1) $ (9) $ 13 $ (175) Effective tax rate 25.2 % 23.0 % Income from continuing operations $ 528 $ 4 $ 41 $ 13 $ 586 Diluted earnings per share from continuing operations $ 1.75 $ 0.01 $ 0.14 $ 0.04 $ 1.95
paragraph:28: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended December 29, 2023 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:29: Charges (1)
paragraph:30: Charges, Net (1)
paragraph:31: Tax Items (2)
paragraph:32: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 487 $ — $ 14 $ 3 $ 504 Industrial Solutions 211 8 7 1 227 Total $ 698 $ 8 $ 21 $ 4 $ 731 Operating margin 18.2 % 19.1 % Income tax (expense) benefit $ 1,105 $ (1) $ (5) $ (1,254) $ (155) Effective tax rate (158.1) % 21.2 % Income from continuing operations $ 1,804 $ 7 $ 16 $ (1,250) $ 577 Diluted earnings per share from continuing operations $ 5.76 $ 0.02 $ 0.05 $ (3.99) $ 1.84
paragraph:33: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes an $874 million net income tax benefit associated with a ten-year tax credit obtained by a Swiss subsidiary and a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland. Also includes a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes. (3) See description of non-GAAP financial measures. TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended March 29, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:34: Charges (1)
paragraph:35: Charges, Net (1)
paragraph:36: (Non-GAAP) (2) ($ in millions, except per share data) Operating income: Transportation Solutions $ 477 $ — $ 19 $ 496 Industrial Solutions 215 3 21 239 Total $ 692 $ 3 $ 40 $ 735 Operating margin 17.4 % 18.5 % Income tax expense $ (146) $ (1) $ (6) $ (153) Effective tax rate 21.3 % 21.0 % Income from continuing operations $ 541 $ 2 $ 34 $ 577 Diluted earnings per share from continuing operations $ 1.75 $ 0.01 $ 0.11 $ 1.86
paragraph:37: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) See description of non-GAAP financial measures TE CONNECTIVITY PLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:38: Charges (1)
paragraph:39: Charges, Net (1)
paragraph:40: Tax Items (2)
paragraph:41: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,880 $ — $ 67 $ 3 $ 1,950 Industrial Solutions 916 21 99 1 1,037 Total $ 2,796 $ 21 $ 166 $ 4 $ 2,987 Operating margin 17.6 % 18.9 % Income tax (expense) benefit $ 397 $ (3) $ (29) $ (1,016) $ (651) Effective tax rate (14.2) % 21.8 % Income from continuing operations $ 3,194 $ 18 $ 137 $ (1,012) $ 2,337 Diluted earnings per share from continuing operations $ 10.34 $ 0.06 $ 0.44 $ (3.28) $ 7.56 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes a $636 million net income tax benefit associated with a $972 million ten-year tax credit obtained by a Swiss subsidiary reduced by a $336 million valuation allowance related to the amount of the tax credit not expected to be realized. Also includes a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland and a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes. (3) See description of non-GAAP financial measures.
paragraph:42: TE CONNECTIVITY PLC RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of January 22, 2025 (UNAUDITED) Outlook for Quarter Ending March 28, 2025 Diluted loss per share from continuing operations $ (0.05) Restructuring and other charges, net 0.13 Acquisition-related charges 0.01 Tax items 1.87 Adjusted diluted earnings per share from continuing operations (1) $ 1.96 Net sales growth (decline) (0.4) % Translation 2.8 (Acquisitions) divestitures, net (1.1) Organic net sales growth (1) 1.3 % (1) See description of non-GAAP financial measures.
2024-10-30Oct 30, 2024, 12:00 PM EDTSec 8k Exhibit60 segments
paragraph:1: EX-99.1
paragraph:2: 2
paragraph:3: tel-20241030xex99d1.htm
paragraph:4: EX-99.1
paragraph:5: Exhibit 99.1 NEWS RELEASE te.com TE Connectivity announces fourth quarter and fiscal 2024 results with full year records for operating margin, EPS and cash generation Board of directors authorizes $2.5 billion increase in share repurchase program GALWAY, Ireland – Oct. 30, 2024 – TE Connectivity plc (NYSE: TEL) today reported results for the fiscal fourth quarter and fiscal year ended Sept. 27, 2024. Fourth Quarter Highlights ● Net sales were above guidance at $4.1 billion, up 1% on a reported basis year over year and 2% organically. ● GAAP diluted earnings per share (EPS) from continuing operations were $0.90, down 49% year over year, including a one-time tax-related impact of $0.78. A djusted EPS exceeded guidance at an all-time record $1.95, up 10% year over year. ● Operating margins were 16.0% and adjusted operating margins were a fourth quarter record at 18.6%, driven by strong operational performance. ● Cash flow from operating activities was approximately $1 billion and free cash flow was $833 million, with $952 million returned to shareholders, continuing the company’s strong cash generation and disciplined deployment model. Full Year Highlights ● Net sales were $15.8 billion, with organic growth in the Communications and Transportation segments. ● GAAP operating margin was 17.6% and adjusted operating margin was 18.9%, each a record, driven by strong operational performance. ● Record GAAP EPS was $10.34 and adjusted EPS was $7.56, up 12%. ● Generated record cash flow for the full year, including: o Cash flow from operating activities of approximately $3.5 billion. o Free cash flow of $2.8 billion. ● Returned approximately $2.8 billion to shareholders and deployed approximately $340 million for a bolt-on acquisition. Share Repurchase Authorization ● The Company’s board of directors authorized a $2.5 billion increase in its share repurchase program. “Our team finished the fiscal year strong, delivering quarterly sales that were above guidance and a record $1.95 adjusted EPS,” said TE Connectivity CEO Terrence Curtin. “For the full year, we set records in key areas including EPS, cash generation and operating margins, delivering on our commitment to expand margins in a dynamic market environment. Our Transportation segment expanded its adjusted operating margin to 20%, driven by strong operational performance and our leading global position in next generation automotive technologies. Our Industrial segment finished the year with growth in three out of four businesses. The Communications segment finished the year delivering growth and strong margin expansion, driven by accelerating momentum in artificial intelligence programs. “Our teams will build on our momentum from 2024 and we expect first quarter sales and adjusted EPS to be up year over year. We will continue to capitalize on our operational strengths and innovations in long-term growth trends such as electrification and data connectivity in transportation, renewable energy and AI. In a reinforcement of our long-term value creation model, I’m pleased that our board authorized a $2.5 billion increase in our share repurchase program that will continue to benefit our owners.” First Quarter FY25 Outlook For the first quarter of fiscal 2025, the company expects net sales of approximately $3.9 billion. GAAP EPS from continuing operations is expected to be $1.64 and adjusted EPS is expected to be $1.88. First quarter guidance includes $0.04 of tax headwinds compared to the prior year. Beginning in fiscal 2025, the company will have two reportable segments – Transportation Solutions and Industrial Solutions – resulting from a reorganization announced in the fourth quarter of fiscal 2024. The company will also provide recast financial information in an 8-K filing later this quarter. 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. Any share repurchase by the company will be made in accordance with applicable securities laws in the open market or in private transactions. The repurchase program is subject to business and market conditions, and may be commenced, suspended or discontinued at any time or from time to time without prior notice. 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
paragraph:6: ● 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
paragraph:7: 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 Oct. 30, 2024. About TE Connectivity TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, renewable energy, automated factories, data centers, medical technology and more. With more than 85,000 employees, including 8,000 engineers, working alongside customers in approximately 130 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com
paragraph:8: and on LinkedIn , Facebook , WeChat , Instagram and X (formerly Twitter) . Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies. The following provides additional information regarding our non-GAAP financial measures: • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans. • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans. • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any. • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans. • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow. Forward-Looking Statements This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. In addition, our change of incorporation from Switzerland to Ireland is subject to risks, such as the risk that the anticipated advantages might not materialize, as well as the risks that the price of our stock could decline and our position on stock exchanges and indices could change, and Irish corporate governance and regulatory schemes could prove different or more challenging than currently expected. More detailed information about these and other factors is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended Sept 29, 2023, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission. Contacts: Media Relations : Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com Investor Relations : Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com TE CONNECTIVITY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) For the Quarters Ended For the Years Ended September 27, September 29, September 27, September 29, 2024
paragraph:9: 2023
paragraph:10: 2024
paragraph:11: 2023 (in millions, except per share data) Net sales $ 4,068 $ 4,035 $ 15,845 $ 16,034 Cost of sales 2,685 2,750 10,389 10,979 Gross margin 1,383 1,285 5,456 5,055 Selling, general, and administrative expenses 433 412 1,732 1,670 Research, development, and engineering expenses 195 174 741 708 Acquisition and integration costs 5 7 21 33 Restructuring and other charges, net 99 57 166 340 Operating income 651 635 2,796 2,304 Interest income 26 21 87 60 Interest expense (15) (19) (70) (80) Other expense, net (5) (3) (16) (16) Income from continuing operations before income taxes 657 634 2,797 2,268 Income tax (expense) benefit (381) (81) 397 (364) Income from continuing operations 276 553 3,194 1,904 Income (loss) from discontinued operations, net of income taxes — (1) (1) 6 Net income $ 276 $ 552 $ 3,193 $ 1,910 Basic earnings per share: Income from continuing operations $ 0.91 $ 1.77 $ 10.40 $ 6.04 Income (loss) from discontinued operations — — — 0.02 Net income 0.91 1.76 10.40 6.06 Diluted earnings per share: Income from continuing operations $ 0.90 $ 1.75 $ 10.34 $ 6.01 Income (loss) from discontinued operations — — — 0.02 Net income 0.90 1.75 10.33 6.03 Weighted-average number of shares outstanding: Basic 303 313 307 315 Diluted 305 316 309 317 TE CONNECTIVITY LTD. CONSOLIDATED BALANCE SHEETS (UNAUDITED) September 27,
paragraph:12: September 29, 2024
paragraph:13: 2023 (in millions, except share data) Assets Current assets: Cash and cash equivalents $ 1,319 $ 1,661 Accounts receivable, net of allowance for doubtful accounts of $32
paragraph:14: and $30, respectively 3,055 2,967 Inventories 2,517 2,552 Prepaid expenses and other current assets 740 712 Total current assets 7,631 7,892 Property, plant, and equipment, net 3,903 3,754 Goodwill 5,801 5,463 Intangible assets, net 1,174 1,175 Deferred income taxes 3,497 2,600 Other assets 848 828 Total assets $ 22,854 $ 21,712 Liabilities, redeemable noncontrolling interests, and shareholders' equity Current liabilities: Short-term debt $ 871 $ 682 Accounts payable 1,728 1,563 Accrued and other current liabilities 2,147 2,218 Total current liabilities 4,746 4,463 Long-term debt 3,332 3,529 Long-term pension and postretirement liabilities 810 728 Deferred income taxes 199 185 Income taxes 411 365 Other liabilities 870 787 Total liabilities 10,368 10,057 Commitments and contingencies Redeemable noncontrolling interests 131 104 Shareholders' equity: Common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, and 322,470,281 shares authorized and issued, respectively 139 142 Accumulated earnings 14,533 12,947 Treasury shares, at cost, 16,656,681 and 10,487,742 shares, respectively (2,322) (1,380) Accumulated other comprehensive income (loss) 5 (158) Total shareholders' equity 12,355 11,551 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 22,854 $ 21,712 TE CONNECTIVITY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) For the Quarters Ended For the Years Ended September 27, September 29, September 27, September 29, 2024
paragraph:15: 2023
paragraph:16: 2024
paragraph:17: 2023 (in millions) Cash flows from operating activities: Net income $ 276 $ 552 $ 3,193 $ 1,910 (Income) loss from discontinued operations, net of income taxes — 1 1 (6) Income from continuing operations 276 553 3,194 1,904 Adjustments to reconcile income from continuing operations to net cash provided by operating activities: Depreciation and amortization 232 200 826 794 Deferred income taxes 401 44 (789) (77) Non-cash lease cost 34 23 134 129 Provision for losses on accounts receivable and inventories (13) (6) 57 76 Share-based compensation expense 27 28 127 123 Impairment of held for sale businesses — 7 — 74 Other 18 16 71 101 Changes in assets and liabilities, net of the effects of acquisitions and divestitures: Accounts receivable, net (216) 56 (134) (146) Inventories 97 278 (30) (45) Prepaid expenses and other current assets 13 47 25 17 Accounts payable 60 (69) 159 (1) Accrued and other current liabilities 159 35 (165) 21 Income taxes (111) (34) (83) 17 Other 65 (40) 85 145 Net cash provided by operating activities 1,042 1,138 3,477 3,132 Cash flows from investing activities: Capital expenditures (213) (194) (680) (732) Proceeds from sale of property, plant, and equipment 4 1 16 4 Acquisition of businesses, net of cash acquired — (2) (339) (110) Proceeds from divestiture of businesses, net of cash retained by businesses sold — — 59 48 Other 3 — (6) 22 Net cash used in investing activities (206) (195) (950) (768) Cash flows from financing activities: Net increase (decrease) in commercial paper (54) 42 (75) (40) Proceeds from issuance of debt 348 — 348 499 Repayment of debt (350) — (352) (591) Proceeds from exercise of share options 37 10 89 43 Repurchase of common shares (761) (271) (2,062) (945) Payment of common share dividends to shareholders (196) (184) (760) (725) Other (18) (4) (57) (34) Net cash used in financing activities (994) (407) (2,869) (1,793) Effect of currency translation on cash 8 (6) — 2 Net increase (decrease) in cash, cash equivalents, and restricted cash (150) 530 (342) 573 Cash, cash equivalents, and restricted cash at beginning of period 1,469 1,131 1,661 1,088 Cash, cash equivalents, and restricted cash at end of period $ 1,319 $ 1,661 $ 1,319 $ 1,661 Supplemental cash flow information: Interest paid on debt, net $ 26 $ 27 $ 64 $ 75 Income taxes paid, net of refunds 91 71 475 425 TE CONNECTIVITY LTD. RECONCILIATION OF FREE CASH FLOW (UNAUDITED) For the Quarters Ended For the Years Ended September 27, September 29, September 27, September 29, 2024
paragraph:18: 2023
paragraph:19: 2024
paragraph:20: 2023 (in millions) Net cash provided by operating activities $ 1,042 $ 1,138 $ 3,477 $ 3,132 Capital expenditures, net (209) (193) (664) (728) Free cash flow (1) $ 833 $ 945 $ 2,813 $ 2,404 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. TE CONNECTIVITY LTD. CONSOLIDATED SEGMENT DATA (UNAUDITED) For the Quarters Ended For the Years Ended September 27, September 29, September 27, September 29, 2024
paragraph:21: 2023
paragraph:22: 2024
paragraph:23: 2023 ($ in millions) Net Sales
paragraph:24: Net Sales
paragraph:25: Net Sales
paragraph:26: Net Sales
paragraph:27: Transportation Solutions $ 2,311 $ 2,413 $ 9,398 $ 9,588 Industrial Solutions 1,180 1,159 4,481 4,551 Communications Solutions 577 463 1,966 1,895 Total $ 4,068 $ 4,035 $ 15,845 $ 16,034 Operating Operating Operating Operating Operating Operating Operating Operating Income Margin Income Margin Income Margin Income Margin Transportation Solutions $ 404 17.5 % $ 411 17.0 % $ 1,847 19.7 % $ 1,451 15.1 % Industrial Solutions 137 11.6 162 14.0 588 13.1 602 13.2 Communications Solutions 110 19.1 62 13.4 361 18.4 251 13.2 Total $ 651 16.0 % $ 635 15.7 % $ 2,796 17.6 % $ 2,304 14.4 % Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Operating Operating Operating Operating Operating Operating Operating Operating Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Income (1) Margin (1) Transportation Solutions $ 446 19.3 % $ 444 18.4 % $ 1,917 20.4 % $ 1,665 17.4 % Industrial Solutions 184 15.6 184 15.9 683 15.2 713 15.7 Communications Solutions 125 21.7 71 15.3 387 19.7 299 15.8 Total $ 755 18.6 % $ 699 17.3 % $ 2,987 18.9 % $ 2,677 16.7 % (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. TE CONNECTIVITY LTD. RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED) Change in Net Sales for the Quarter Ended September 27, 2024 versus Net Sales for the Quarter Ended September 29, 2023 Net Sales Organic Net Sales Acquisition/ Growth (Decline)
paragraph:28: Growth (Decline) (1)
paragraph:29: Translation (2)
paragraph:30: (Divestiture) ($ in millions) Transportation Solutions
paragraph:31: (3) :
paragraph:32:
paragraph:33: Automotive $ (56) (3.2) % $ (10) (0.5) % $ — $ (46) Commercial transportation (16) (4.3) (13) (3.8) (3) — Sensors (30) (10.6) (29) (10.5) (1) — Total (102) (4.2) (52) (2.2) (4) (46) Industrial Solutions (3) : Industrial equipment (42) (10.8) (81) (20.4) 3 36 Aerospace, defense, and marine 44 13.6 44 13.6 — — Energy 23 10.0 31 13.7 (8) — Medical (4) (1.8) (2) (1.1) (2) — Total 21 1.8 (8) (0.6) (7) 36 Communications Solutions (3) : Data and devices 100 34.1 101 34.5 (1) — Appliances 14 8.2 19 11.2 (5) — Total 114 24.6 120 26.0 (6) — Total $ 33 0.8 % $ 60 1.5 % $ (17) $ (10) Change in Net Sales for the Year Ended September 27, 2024 versus Net Sales for the Year Ended September 29, 2023 Net Sales Organic Net Sales Acquisitions/ Growth (Decline) Growth (Decline) (1) Translation (2) (Divestitures) ($ in millions) Transportation Solutions
paragraph:34: (3) :
paragraph:35:
paragraph:36: Automotive $ 5 0.1 % $ 210 3.0 % $ (46) $ (159) Commercial transportation (69) (4.5) (62) (4.1) (7) — Sensors (126) (11.3) (119) (10.8) (7) — Total (190) (2.0) 29 0.3 (60) (159) Industrial Solutions (3) : Industrial equipment (321) (18.8) (425) (24.9) 3 101 Aerospace, defense, and marine 166 14.1 181 15.4 3 (18) Energy 36 4.1 43 4.9 (27) 20 Medical 49 6.3 51 6.5 (2) — Total (70) (1.5) (150) (3.3) (23) 103 Communications Solutions (3) : Data and devices 112 9.6 118 10.2 (6) — Appliances (41) (5.6) (27) (3.7) (14) — Total 71 3.7 91 4.8 (20) — Total $ (189) (1.2) % $ (30) (0.2) % $ (103) $ (56) (1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures. (2) Represents the change in net sales resulting from changes in foreign currency exchange rates. (3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary. TE CONNECTIVITY LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended September 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:37: Charges (1)
paragraph:38: Charges, Net (1)
paragraph:39: Tax Items (2)
paragraph:40: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 404 $ — $ 42 $ — $ 446 Industrial Solutions 137 4 43 — 184 Communications Solutions 110 1 14 — 125 Total $ 651 $ 5 $ 99 $ — $ 755 Operating margin 16.0 % 18.6 % Income tax expense $ (381) $ (1) $ (22) $ 238 $ (166) Effective tax rate 58.0 % 21.8 % Income from continuing operations $ 276 $ 4 $ 77 $ 238 $ 595 Diluted earnings per share from continuing operations $ 0.90 $ 0.01 $ 0.25 $ 0.78 $ 1.95
paragraph:41: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax expense related to an increase in the valuation allowance for deferred tax assets of a Swiss subsidiary. (3) See description of non-GAAP financial measures. TE CONNECTIVITY LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended September 29, 2023 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:42: Charges (1)
paragraph:43: Charges, Net (1)
paragraph:44: Tax Items (2)
paragraph:45: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 411 $ 1 $ 32 $ — $ 444 Industrial Solutions 162 6 16 — 184 Communications Solutions 62 — 9 — 71 Total $ 635 $ 7 $ 57 $ — $ 699 Operating margin 15.7 % 17.3 % Income tax expense $ (81) $ (1) $ (3) $ (49) $ (134) Effective tax rate 12.8 % 19.2 % Income from continuing operations $ 553 $ 6 $ 54 $ (49) $ 564 Diluted earnings per share from continuing operations $ 1.75 $ 0.02 $ 0.17 $ (0.16) $ 1.78
paragraph:46: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax benefits associated with a decrease in the valuation allowance for certain tax loss and credit carryforwards. (3) See description of non-GAAP financial measures. TE CONNECTIVITY LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 27, 2024 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:47: Charges (1)
paragraph:48: Charges, Net (1)
paragraph:49: Tax Items (2)
paragraph:50: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,847 $ — $ 67 $ 3 $ 1,917 Industrial Solutions 588 19 75 1 683 Communications Solutions 361 2 24 — 387 Total $ 2,796 $ 21 $ 166 $ 4 $ 2,987 Operating margin 17.6 % 18.9 % Income tax (expense) benefit $ 397 $ (3) $ (29) $ (1,016) $ (651) Effective tax rate (14.2) % 21.8 % Income from continuing operations $ 3,194 $ 18 $ 137 $ (1,012) $ 2,337 Diluted earnings per share from continuing operations $ 10.34 $ 0.06 $ 0.44 $ (3.28) $ 7.56 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes a $636 million net income tax benefit associated with a $972 million ten-year tax credit obtained by a Swiss subsidiary reduced by a $336 million valuation allowance related to the amount of the tax credit not expected to be realized. Also includes a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland and a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes. (3) See description of non-GAAP financial measures. TE CONNECTIVITY LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Year Ended September 29, 2023 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:51: Charges (1)
paragraph:52: Charges, Net (1)
paragraph:53: Tax Items (2)
paragraph:54: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 1,451 $ 3 $ 211 $ — $ 1,665 Industrial Solutions 602 27 84 — 713 Communications Solutions 251 3 45 — 299 Total $ 2,304 $ 33 $ 340 $ — $ 2,677 Operating margin 14.4 % 16.7 % Income tax expense $ (364) $ (6) $ (85) $ (49) $ (504) Effective tax rate 16.0 % 19.1 % Income from continuing operations $ 1,904 $ 27 $ 255 $ (49) $ 2,137 Diluted earnings per share from continuing operations $ 6.01 $ 0.09 $ 0.80 $ (0.15) $ 6.74 (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Represents income tax benefits associated with a decrease in the valuation allowance for certain tax loss and credit carryforwards. (3) See description of non-GAAP financial measures. TE CONNECTIVITY LTD. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES For the Quarter Ended December 29, 2023 (UNAUDITED) Adjustments Acquisition- Restructuring Related and Other Adjusted U.S. GAAP
paragraph:55: Charges (1)
paragraph:56: Charges, Net (1)
paragraph:57: Tax Items (2)
paragraph:58: (Non-GAAP) (3) ($ in millions, except per share data) Operating income: Transportation Solutions $ 478 $ — $ 14 $ 3 $ 495 Industrial Solutions 141 7 6 1 155 Communications Solutions 79 1 1 — 81 Total $ 698 $ 8 $ 21 $ 4 $ 731 Operating margin 18.2 % 19.1 % Income tax (expense) benefit $ 1,105 $ (1) $ (5) $ (1,254) $ (155) Effective tax rate (158.1) % 21.2 % Income from continuing operations $ 1,804 $ 7 $ 16 $ (1,250) $ 577 Diluted earnings per share from continuing operations $ 5.76 $ 0.02 $ 0.05 $ (3.99) $ 1.84
paragraph:59: (1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (2) Includes an $874 million net income tax benefit associated with a ten-year tax credit obtained by a Swiss subsidiary and a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland. Also includes a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes. (3) See description of non-GAAP financial measures.
paragraph:60: TE CONNECTIVITY LTD. RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES TO FORWARD-LOOKING GAAP FINANCIAL MEASURES As of October 30, 2024 (UNAUDITED) Outlook for Quarter Ending December 27, 2024 Diluted earnings per share from continuing operations $ 1.64 Restructuring and other charges, net 0.23 Acquisition-related charges 0.01 Adjusted diluted earnings per share from continuing operations (1) $ 1.88 Net sales growth 1.8 % Translation (0.8) (Acquisitions) divestitures, net (0.6) Organic net sales growth (1) 0.4 % (1) See description of non-GAAP financial measures.