Sign in

    Amphenol Corp (APH)

    You might also like

    Amphenol Corporation is a leading global designer, manufacturer, and marketer of electrical, electronic, and fiber optic connectors and interconnect systems, antennas, sensors, and sensor-based products, as well as coaxial and high-speed specialty cable . The company operates through three main business segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems . Amphenol serves a diverse set of end markets, including automotive, broadband communications, commercial aerospace, defense, industrial, information technology, and mobile networks .

    1. Communications Solutions - Offers a range of connector and interconnect systems, including high-speed, radio frequency, power, and fiber optic products, along with antennas for markets such as information technology, mobile devices, and broadband communications .
    2. Interconnect and Sensor Systems - Provides sensors, sensor-based systems, connectors, and value-add interconnect systems for automotive, industrial, and aerospace markets .
    3. Harsh Environment Solutions - Focuses on ruggedized interconnect products for industrial, defense, commercial aerospace, automotive, mobile networks, and information technology and data communications markets .
    NamePositionStart DateShort Bio
    R. Adam NorwittPresident and Chief Executive Officer2009R. Adam Norwitt has been with Amphenol for approximately 25 years. He has served as President since 2007 and CEO since 2009. Previously, he was COO from 2007 to 2008 and held various other roles .
    Craig A. LampoSenior Vice President and Chief Financial Officer2015Craig A. Lampo has been the Senior Vice President and CFO since 2015. He was Vice President and Controller from 2004 to 2015 and Treasurer from 2004 to 2006. He joined Amphenol after working at Deloitte & Touche and Arthur Andersen .
    Lance E. D’AmicoSenior Vice President, Secretary, and General Counsel2016Lance E. D’Amico has been Secretary and General Counsel since 2016 and Senior Vice President since 2019. Before Amphenol, he held executive roles at UTi Worldwide Inc and Element K Corporation .
    William J. DohertyPresident, Communications Solutions Division2022William J. Doherty has been President of the Communications Solutions Division since 2022. He previously served as Senior Vice President from 2018 to 2021 and held various other roles since joining Amphenol .
    Luc WalterPresident, Harsh Environment Solutions Division2022Luc Walter has been President of the Harsh Environment Solutions Division since 2022. He was Senior Vice President from 2004 to 2021 and has been with Amphenol for approximately 40 years .
    David SilvermanSenior Vice President, Human Resources2019David Silverman has been Senior Vice President, Human Resources since 2019. He was Vice President, Human Resources from 2014 to 2018 and has been with Amphenol for approximately 17 years .
    Peter J. StraubPresident, Interconnect and Sensor Systems DivisionJanuary 1, 2024Peter J. Straub will be President of the Interconnect and Sensor Systems Division starting January 1, 2024. He was Vice President and Group General Manager of the Sensor Technology Group from 2019 through 2023 .
    1. Despite your strong overall operating margins reaching a record 21.9% in the third quarter , the margin improvement was not significantly contributed by the CIT acquisition, which is still on its journey to reach company average margins ; can you provide more specifics on the timeline and actions planned to bring CIT's margins up to par, and what risks might prevent you from achieving this?

    2. You've indicated elevated capital expenditures in the third quarter and expect continued elevated levels in the fourth quarter to support growth in the IT datacom and defense markets ; given the potential for demand volatility in these markets, how are you mitigating the risk of overinvestment, and what return on investment are you targeting for these capital projects?

    3. With a strong book-to-bill ratio of 1.09:1 driven by large orders in IT datacom, defense, and commercial air, and acknowledging that some of these orders have a longer aperture to provide assurance for capital investments ; how confident are you in the stability of these orders, and what mechanisms are in place to protect against potential order cancellations or delays?

    4. While IT datacom saw exceptional growth of 60% year-over-year driven by AI-related demand , how are you addressing the potential concentration risk if this demand slows down, and what strategies are in place to diversify your revenue streams within this segment?

    5. Given the expected decline in automotive sales in the fourth quarter and only mid-single-digit growth for the full year 2024 , can you elaborate on the challenges you're facing in this market, particularly in Europe where sales declined, and what specific initiatives are you implementing to reinvigorate growth in the automotive segment?

    Program DetailsProgram 1Program 2
    Approval DateApril 27, 2021 April 23, 2024
    End Date/DurationApril 27, 2024 April 28, 2027
    Total additional amount$2,000.0 million $2,000.0 million
    Remaining authorization amount$0 million $1,669.4 million
    DetailsCompleted Ongoing
    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2025$399.9 Senior Notes2.050 7.3% = (399.9 / 5484.1) * 100
    2026$349.4 Senior Notes4.750 6.4% = (349.4 / 5484.1) * 100
    2026€500.0 ($556.6) Euro Senior Notes0.750 10.1% = (556.6 / 5484.1) * 100
    2027$449.6 Senior Notes5.050 8.2% = (449.6 / 5484.1) * 100
    2028€500.0 ($556.1) Euro Senior Notes2.000 10.1% = (556.1 / 5484.1) * 100
    2029$449.6 Senior Notes5.050 8.2% = (449.6 / 5484.1) * 100
    2029$499.8 Senior Notes4.350 9.1% = (499.8 / 5484.1) * 100
    2030$899.6 Senior Notes2.800 16.4% = (899.6 / 5484.1) * 100
    2031$748.1 Senior Notes2.200 13.6% = (748.1 / 5484.1) * 100
    2034$599.4 Senior Notes5.250 10.9% = (599.4 / 5484.1) * 100

    Competitors mentioned in the company's latest 10K filing.

    • Aptiv
    • Belden
    • Commscope
    • Eaton
    • Foxconn
    • Glenair
    • HARTING
    • Hirose
    • HUBER+SUHNER
    • ICT Luxshare
    • JAE
    • Jonhon
    • JST
    • Molex
    • Phoenix Contact
    • Radiall
    • Rosenberger
    • Sensata
    • TE Connectivity
    • Yazaki
    • 3M

    The company competes primarily on the basis of technology innovation, product quality and performance, price, customer service, and delivery time .

    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP1997PresentCurrent auditor

    Recent developments and announcements about APH.

    Financial Reporting

      Earnings Call

      ·
      Jan 22, 2025, 10:01 PM

      Amphenol (APH) has released its earnings call transcript for the fourth quarter and full year of 2024, providing key insights into its financial performance, market trends, and strategic initiatives. Below is a summary of the key points:

      Financial Performance

      • Q4 2024 Results:

        • Record sales of $4.318 billion, up 30% year-over-year and 7% sequentially.
        • Adjusted diluted EPS of $0.55, a 34% increase from the prior year.
        • Record operating cash flow of $847 million and free cash flow of $648 million.
        • Adjusted operating margin reached 22.4%, up 120 basis points year-over-year.
      • Full Year 2024 Results:

        • Sales of $15.223 billion, up 21% year-over-year.
        • Adjusted diluted EPS of $1.89, a 25% increase from 2023.
        • Record operating cash flow of $2.815 billion and free cash flow of $2.157 billion.
        • Strong book-to-bill ratio of 1.11:1 for the year.

      Market Trends and Segment Performance

      • IT Datacom Market:

        • Sales grew 76% year-over-year in Q4, driven by AI-related demand.
        • Full-year sales increased 57%, with continued growth expected in Q1 2025.
      • Automotive Market:

        • Sales grew 6% year-over-year in 2024, with strong performance in North America and Asia offsetting European declines.
        • Management highlighted the growing content opportunity in both EVs and ICE vehicles.
      • Defense Market:

        • Sales grew 15% year-over-year in 2024, with strong growth in Europe and next-generation electronics.
      • Industrial Market:

        • Organic growth of 6% in Q4, with strength in medical, alternative energy, and rail mass transit.
        • Management remains cautious about Europe but optimistic about North America and Asia.
      • Mobile Devices Market:

        • Sales grew 11% year-over-year in 2024, driven by strong demand for smartphones, laptops, and wearables.

      Strategic Initiatives and Forward Guidance

      • Acquisitions:

        • The acquisition of the Andrew businesses from CommScope is expected to close in Q1 2025, strengthening Amphenol’s position in the communications market.
      • AI and High-Speed Interconnects:

        • Management emphasized the company’s leadership in high-speed and power interconnect products, critical for AI-related applications.
      • Q1 2025 Guidance:

        • Sales expected to range between $4 billion and $4.1 billion, representing 23%-26% growth year-over-year.
        • Adjusted diluted EPS guidance of $0.49 to $0.51.

      Analyst Questions and Management Responses

      • AI Demand and Supply Chain:

        • Management highlighted robust demand for AI-related products and emphasized their agility in meeting customer needs despite supply chain challenges .
      • Automotive Market:

        • Analysts inquired about the impact of EV production on market opportunities. Management noted that both EVs and ICE vehicles present growing content opportunities, with electronics playing a critical role in both.
      • Margins and Acquisitions:

        • Analysts asked about the dilutive impact of acquisitions on margins. Management expressed confidence in improving margins over time, particularly for the CIT acquisition.

      Key Takeaways

      Amphenol delivered record-breaking financial results in 2024, driven by strong demand across multiple markets, particularly in AI-related applications. The company’s strategic acquisitions and focus on high-growth markets position it well for continued success in 2025. Management remains optimistic about its ability to navigate market uncertainties and capitalize on long-term growth opportunities.

      For further details, please refer to the full earnings call transcript.

      Earnings Report

      ·
      Jan 22, 2025, 3:05 PM

      Amphenol Corporation (APH) has released its earnings results for Q4 and the full year 2024. Below are the highlights:

      Fourth Quarter 2024 Highlights:

      • Sales: $4.3 billion, a 30% increase in U.S. dollars and 20% organic growth compared to Q4 2023.
      • GAAP Diluted EPS: $0.59, up 44% year-over-year.
      • Adjusted Diluted EPS: $0.55, up 34% year-over-year.
      • Operating Margin: GAAP at 22.1%, Adjusted at 22.4%.
      • Cash Flow: Operating cash flow of $847 million and free cash flow of $648 million.

      Full Year 2024 Highlights:

      • Sales: $15.2 billion, a 21% increase in U.S. dollars and 13% organic growth compared to 2023.
      • GAAP Diluted EPS: $1.92, up 24% year-over-year.
      • Adjusted Diluted EPS: $1.89, up 25% year-over-year.
      • Operating Margin: GAAP at 20.7%, Adjusted at 21.7%.
      • Cash Flow: Operating cash flow of $2.8 billion and free cash flow of $2.2 billion.
      • Acquisitions: Completed acquisitions of Carlisle Interconnect Technologies and Luetze.
      • Shareholder Returns: Returned nearly $1.3 billion to shareholders through share repurchases and dividends.

      Key Growth Drivers:

      • Robust growth in IT datacom, mobile networks, commercial air, mobile devices, broadband, and defense markets.
      • Contributions from acquisitions.

      Outlook for Q1 2025:

      • Sales: Expected between $4.00 billion and $4.10 billion, representing a 23% to 26% increase year-over-year.
      • Adjusted Diluted EPS: Expected between $0.49 and $0.51, a 23% to 28% increase year-over-year.

      Amphenol's CEO, R. Adam Norwitt, expressed confidence in the company's ability to adapt to market conditions and leverage growth opportunities across its diversified markets.