TE Connectivity plc SEC 10-Q Report

TE Connectivity plc, a global leader in connectivity and sensor solutions, has released its Form 10-Q report for the third quarter of fiscal 2025. The report highlights significant financial and operational achievements, driven by robust performance in key business segments and strategic acquisitions.

Financial Highlights

• Net Sales: $4,534 million, increased 13.9% in the third quarter of fiscal 2025 due to sales growth in the Industrial Solutions segment and, to a lesser degree, the Transportation Solutions segment.
• Gross Margin: $1,600 million, representing 35.3% of net sales, increased due to higher volume and improved manufacturing productivity.
• Operating Income: $857 million, reflecting an increase driven by higher sales and improved operational efficiencies.
• Net Income: $638 million, with a basic earnings per share of $2.16 and a diluted earnings per share of $2.14, reflecting strong performance in the Industrial Solutions segment.
• Diluted Earnings Per Share: $2.14, reflecting the company's ability to maintain profitability amidst increased sales and operational improvements.

Business Highlights

• Revenue Segments: The Transportation Solutions segment saw a 2.8% increase in net sales for the third quarter of fiscal 2025, driven by growth in the automotive and commercial transportation end markets. However, there was a 2.5% decline in net sales for the first nine months of fiscal 2025 due to decreases across all end markets.
• Revenue Segments: The Industrial Solutions segment experienced significant growth, with a 30.0% increase in net sales in the third quarter and a 19.7% increase in the first nine months of fiscal 2025. This growth was primarily due to strong performance in digital data networks, energy, aerospace, defense, and marine, as well as automation and connected living end markets.
• Geographical Performance: In the Asia-Pacific region, net sales increased by 24.5% in the third quarter and 21.1% in the first nine months of fiscal 2025, driven by strong organic growth and acquisitions. The EMEA region saw a 5.4% increase in net sales in the third quarter but a 5.5% decline in the first nine months, impacted by currency translation and other factors.
• Geographical Performance: The Americas region reported a 12.6% increase in net sales for the third quarter and a 4.2% increase for the first nine months of fiscal 2025, supported by acquisitions and organic growth.
• New Acquisitions: The acquisition of Richards Manufacturing Co. in April 2025 contributed $73 million in net sales for the third quarter and first nine months of fiscal 2025, enhancing the Industrial Solutions segment, particularly in the energy business.
• Future Outlook: For the fourth quarter of fiscal 2025, the company expects net sales to reach approximately $4.55 billion, with anticipated growth in the Industrial Solutions segment, bolstered by the Richards Manufacturing acquisition. Diluted earnings per share from continuing operations are projected to be around $2.18.
• Operational Efficiency: The company reported improved manufacturing productivity, contributing to an increase in gross margin for both the third quarter and the first nine months of fiscal 2025.

SEC Filing: TE Connectivity plc [ TEL ] - 10-Q - Jul. 25, 2025