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AMPHENOL CORP /DE/ (APH)·Q1 2025 Earnings Summary

Executive Summary

  • Amphenol delivered a record quarter: revenue $4.81B (+48% YoY; +11% QoQ) and adjusted EPS $0.63 (+58% YoY), materially above consensus; GAAP EPS was $0.58 .
  • Strength was led by IT datacom (+134% organic YoY) tied to AI build-outs, with broad-based demand and record adjusted operating margin of 23.5% (+250 bps YoY; +110 bps QoQ) .
  • Q2 2025 guidance: sales $4.90–$5.00B and adjusted EPS $0.64–$0.66; management also guided GAAP EPS $0.63–$0.65 and quarterly interest expense ~$70M, sustained elevated capex to support AI demand .
  • Catalysts: acceleration of AI datacenter orders (book-to-bill 1.1x), raised Andrew accretion to ~$0.09 in 2025 (was ~$0.06), and sustained margin conversion >25% implied in Q2 guidance .

What Went Well and What Went Wrong

What Went Well

  • Record sales and margins: $4.81B revenue, adjusted operating margin 23.5% (record) and adjusted EPS $0.63, both above the high end of guidance; “results were much stronger than expected” (CEO) .
  • AI-driven acceleration: IT datacom grew 133% in USD and 134% organically YoY; management sees “unique opportunity” as products are critical to next-gen AI systems .
  • Orders and cash generation: record $5.292B orders (book-to-bill 1.1x), operating cash flow $765M, free cash flow $580M, repurchased 2.7M shares ($180.9M) and paid $200M dividends .

What Went Wrong

  • Tariffs and pricing pressure: slight pricing impact expected into Q2; management working with customers to mitigate/passthrough, with margins still “very strong” in guide .
  • Mobile devices pull-in: slight demand pull-in in Q1; Q2 expected to moderate in high teens as customers prepare for H2 launches .
  • Europe remains soft in Industrial/factory automation; “green shoots” were limited, with sequential improvement but still slightly down YoY .

Financial Results

Headline quarterly results and estimate comparison

MetricQ3 2024Q4 2024Q1 2025 ActualQ1 2025 ConsensusNotes
Revenue ($USD Billions)$4.04 $4.318 $4.811 $4.284*Beat by ~$0.53B; +12% vs QoQ
GAAP Diluted EPS ($)$0.48 $0.59 $0.58 $0.521*Adjusted EPS $0.63 (non-GAAP)

Values with asterisk (*) retrieved from S&P Global.

Profitability and margins

MetricQ3 2024Q4 2024Q1 2025
Operating Margin (% GAAP)20.3% 22.1% 21.3%
Adjusted Operating Margin (%)21.9% 22.4% 23.5%
Gross Profit ($USD Millions)$1,356.9 $1,480.7 $1,644.0

Non-GAAP reconciliation impacts (Q1 2025)

AdjustmentAmount ($M)EPS Impact ($)
Inventory step-up amortization$60.9 $0.04
Acquisition-related expenses$44.0 $0.02
Excess tax benefits (stock comp)—($0.02)
Adjusted Diluted EPS—$0.63

Segment net sales and margins

SegmentQ3 2024 Net Sales ($M)Q4 2024 Net Sales ($M)Q1 2025 Net Sales ($M)Q1 2025 Op Margin (%)
Harsh Environment Solutions$1,193.5 $1,261.9 $1,268.2 24.5%
Communications Solutions$1,685.5 $1,928.0 $2,413.7 27.4%
Interconnect & Sensor Systems$1,159.8 $1,128.0 $1,129.1 18.1%
Total$4,038.8 $4,317.9 $4,811.0 21.3% (consolidated)

KPIs

KPIQ1 2025
Orders ($USD Billions)$5.292
Book-to-Bill1.1x
Operating Cash Flow ($M)$764.9
Capital Expenditures ($M)$188.6
Free Cash Flow ($M)$580.4
Share Repurchases2.7M shares; $180.9M
Dividends Paid ($M)$200.0
Net Debt ($B)$5.5
Liquidity ($B)$4.0

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Sales ($B)Q2 2025—$4.90–$5.00 New
Adjusted Diluted EPS ($)Q2 2025—$0.64–$0.66 New
GAAP Diluted EPS ($)Q2 2025—$0.63–$0.65 New
Interest expense (net) ($M/qtr)Q2+ 2025—~$70 New
Adjusted effective tax rate (%)FY 2025—~24.5% New
CapexQ2 2025Elevated (Q4 noted) Elevated maintained Maintained
Dividend per share ($)Q1 2025$0.165 (Q4 2024 declared) $0.165 (declared Jan 30, 2025) Maintained
Andrew accretion to EPS ($)FY 2025~$0.06 (Feb 3) ~$0.09 (raised) Raised

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024, Q4 2024)Current Period (Q1 2025)Trend
AI / IT datacomQ3: +60% YoY; robust orders; elevated capex ; Q4: robust IT datacom growth +133% USD/+134% organic YoY; high-single-digit growth expected in Q2; broad hyperscaler/OEM/chip breadth Accelerating
Tariffs / macroNot discussed in Q3/Q4 releasesSlight pricing impact into Q2; mitigation/passthrough; margins remain strong Manageable headwind
Mobile devicesQ3: strong; +38% QoQ; guide steady Q4 Slight pull-in; expect high-teens moderation in Q2 Normalizing after pull-in
Industrial / EuropeQ3: Europe soft; mixed greenshoots Europe slightly down YoY; sequential growth; greenshoots modest Gradual improvement
Margins / conversionQ3: record adj OM 21.9% Record adj OM 23.5%; CFO implies >25% conversion may be exceeded near term Improving
Product/opticsActive/passive optics expansion; capex support (Q3) Transceiver/active optics portfolio progress; copper/fiber strategy Expanding offering

Management Commentary

  • “Our results were much stronger than expected, exceeding the high end of guidance in sales and adjusted diluted earnings per share.” (CEO) .
  • “The revolution in artificial intelligence continues to create a unique opportunity for Amphenol…our products are critical components in these next-generation networks.” (CEO) .
  • “We now anticipate that the [Andrew] acquisition will add approximately $0.09 to our earnings this full year.” (CEO) .
  • “Given our continued momentum and strong execution, I believe we’re well positioned to modestly exceed [the historical] 25% conversion again this year.” (CFO) .

Q&A Highlights

  • Tariffs: slight pricing impact embedded in Q2 guidance; local footprint and customer pass-through strategy to moderate effects; margins remain strong .
  • Organic upside drivers: execution against AI demand in IT datacom; only notable pull-in was mobile devices; distribution trends normal .
  • Industrial Europe: sequential improvement but still slightly down YoY; greenshoots visible but early .
  • Margins/Conversion: CFO signaled ability to exceed 25% contribution margin near term despite cross-currents .
  • Data center demand breadth: strength across hyperscalers, OEMs, chip companies; guide implies further incremental performance .
  • Order linearity: demand exceeded expectations; customers would have taken more; majority of orders fulfilled within a couple of quarters .

Estimates Context

  • Q1 2025 results vs S&P Global consensus: revenue $4.811B vs $4.284B*; GAAP EPS $0.58 vs $0.521*; adjusted EPS $0.63 (non-GAAP) vs GAAP EPS consensus .

  • of estimates: EPS 13*, Revenue 12*.

  • Implication: consensus likely to revise upward for IT datacom exposure; Andrew accretion raises FY EPS trajectory .

Values with asterisk (*) retrieved from S&P Global.

S&P Global Consensus Detail

MetricQ1 2025 ConsensusQ1 2025 Actual
Revenue ($USD Billions)$4.284*$4.811
Primary EPS ($)$0.52084*$0.58 (GAAP) / $0.63 adj
Primary EPS - # of Estimates13*—
Revenue - # of Estimates12*—

Values with asterisk (*) retrieved from S&P Global.

Key Takeaways for Investors

  • The quarter was a clear beat on both revenue and EPS, driven by AI-led IT datacom demand and strong execution; book-to-bill at 1.1x supports near-term momentum .
  • Guidance implies sustained margin conversion >25% and continued growth into Q2; monitor margin resilience amidst tariffs and elevated capex .
  • Andrew accretion lifted to ~$0.09 for 2025, expanding Communications Solutions scale and margin profile; integration appears ahead of expectations .
  • Mobile devices saw a slight pull-in; expect moderation in Q2—near-term headwind but consistent with seasonality and launch cycles .
  • Industrial Europe remains soft but stabilizing; Harsh Environment and Interconnect/Sensor steady; segment diversity mitigates regional cyclicality .
  • Balance sheet/liquidity robust (net debt ~$5.5B; liquidity ~$4B); capital returns remain active (dividends, buybacks) .
  • Trading: AI datacenter exposure is the principal narrative; beats and higher accretion underpin estimate revisions and multiple support; watch tariff developments and Q2 execution milestones .

Additional Relevant Q1 2025 Press Releases

  • Completed acquisition of CommScope’s OWN/DAS (“Andrew”) and LifeSync; Andrew expected ~$1.3B 2025 sales and initial ~$0.06 accretion (later raised to ~$0.09) .
  • ACS & Semtech introduced 1.6T OSFP Active Copper Cable for next-gen AI/ML interconnects (power/latency benefits) .
  • Released 2024 Sustainability Report with progress on GHG reduction targets .
  • Declared Q1 2025 dividend of $0.165/share .