TE Connectivity Reports Record Q3 Earnings for Fiscal Year 2025

TE Connectivity (NYSE: TEL) has released its Q3 earnings report for fiscal year 2025, covering the period ending June 27, 2025. Key highlights from Q3 include: - Record net sales of $4.5 billion, a year-over-year increase of 14% and a natural growth of 9%, primarily driven by strong growth in industrial solutions. - GAAP diluted earnings per share from continuing operations of $2.14, up 15% year-over-year. Adjusted earnings per share reached a record $2.27, approximately a 19% increase. - Order intake was $4.5 billion, showing growth both year-over-year and quarter-over-quarter. - Operating margin at 18.9%, with an adjusted operating margin of a record 19.9%, supported by strong performance in both major solutions. - Record cash flow for both Q3 and year-to-date, including: - Approximately $1.2 billion cash flow from operations this quarter, totaling about $2.7 billion year-to-date. - Free cash flow of $962 million for the fiscal year, with about $2.1 billion year-to-date. - Strong capital allocation this fiscal year, including: - Acquisition of Richards Manufacturing Co. for $2.3 billion in Q3. - $1.5 billion returned to shareholders. TE Connectivity CEO Terrence Curtin stated, "The strong performance in Q3 exceeded expectations, showcasing how our diversified portfolio and global footprint enable us to achieve record results in a changing market environment, creating value for our shareholders and customers. Our sales achieved double-digit growth, with industrial solutions sales increasing by 30%. With the team’s outstanding performance, our adjusted operating margin reached 20%, driving both adjusted earnings per share and cash flow to new quarterly highs." "The performance of industrial solutions was primarily driven by high-speed connectivity solutions for AI applications and strong growth in the energy sector. In transportation solutions, despite a decline in vehicle production, we achieved sales growth thanks to robust performance in the Asian market and our innovations in electrification and next-generation automotive data connectivity, which have long-term growth trends. We expect this momentum to continue, as indicated by our Q4 outlook, projecting double-digit growth in sales and adjusted earnings." Outlook for Q4 of fiscal year 2025: The company expects net sales of approximately $4.55 billion, a year-over-year increase of 12% and natural growth of 6%. GAAP earnings per share from continuing operations are anticipated to be around $2.18, an increase of over 140% year-over-year; adjusted earnings per share are expected to be approximately $2.27, a 16% increase.