Steve Fox

Steve Fox asked about the drivers of impressive incremental margins, specifically in the harsh environment and communications segments, and how increasing product complexity impacts these incrementals, particularly in next-generation data centers and aerospace.

Answer

CFO Craig Lampo attributed the record operating margin to strong execution, leveraging rapid growth, and significant profitability progress from acquisitions like CIT. CEO Adam Norwitt explained that increasing product complexity across all end markets, including high-speed and power products, creates more value for customers, which is reflected in improved margins.

Steve Fox asked about the drivers behind Amphenol's record operating margins, specifically inquiring about the 40% incrementals in the harsh environment and communications segments, and how increasing product complexity impacts the company's ability to deliver strong incremental margins in next-generation markets like data centers and aerospace.

Answer

CFO Craig Lampo attributed the record operating margins to strong growth, effective execution, and the successful integration and performance of acquisitions like CIT. CEO Adam Norwitt further explained that increasing product complexity across all end markets, including IT Data Communications, defense, and commercial aerospace, allows Amphenol to create more value for customers, which is reflected in improved margins.