4414ebd2441b3a110847672aa12460ae0f2a0430e137ac5606a8c2dad00bbf99

The spike in **Acquisition-related Expenses** in Q3 2024 is primarily due to the **CIT acquisition**, which introduced significant costs such as the **amortization of acquired backlog value**, **external transaction costs**, and **acquisition-related inventory step-up costs** amounting to **$18.2 million**. Additionally, a higher volume of acquisition activity increased the overall expenses compared to Q3 2023, when the costs were limited mainly to external transaction fees. This combination of factors led to a substantial rise from **$9.0 million** in Q3 2023 to **$63.6 million** in Q3 2024.  **[0001558370-24-013696_aph-20240930x10q.htm:43]** **[0001558370-24-013696_aph-20240930x10q.htm:55]** **[0001558370-24-013696_aph-20240930x10q.htm:25]** **[0001558370-24-013493_aph-20241023xex99d1.htm:10]** 

Why did Acquisition-related Expenses spike in Q3 2024?

The significant increase in Interest Expense in Q4 2024 was driven by several factors. **Amphenol Corporation issued new Senior Notes** in October 2024 to fund the acquisition of CommScope’s Mobile Networks Business, which resulted in higher interest expenses. Additionally, the company experienced **increased borrowings** under its U.S. Commercial Paper Program for various corporate purposes, including acquiring Carlisle Interconnect Technologies, and this, along with **higher interest rates** on outstanding debt during 2024, further contributed to the rise in expenses.  **[0001558370-25-000714_aph-20241231x10k.htm:51]** **[0001558370-25-000714_aph-20241231x10k.htm:59]** 

What drove the significant increase in Interest Expense in Q4 2024?

Operating Income was significantly higher in Q4 2024 due to **higher sales volumes**—with consolidated net sales rising by **30%** to **$4,318 million**—and **improved operating margins**, which reached a record **22.4%** (an increase of **120 basis points**) thanks to strong demand across multiple markets. Additionally, contributions from the acquisitions of Carlisle Interconnect Technologies and Lutze, along with record orders totaling **$5.14 billion** and effective cost management, further boosted operating income in Q4 2024.  **[APH_3413016_0]** **[0001558370-25-000305_aph-20250122xex99d1.htm:1]** **[APH_3413016_3]** 

Why was Operating Income significantly higher in Q4 2024?

The decline in Other Income in Q3 2024 was primarily related to a reduction in the interest income earned on cash and cash equivalents. In previous quarters, increased cash on hand—partly due to the issuance of new October Senior Notes in anticipation of acquiring CommScope’s Mobile Networks Business—and higher interest rates boosted the figure. In Q3 2024, these factors were less pronounced, resulting in a lower level of Other Income.  **[0001558370-25-000714_aph-20241231x10k.htm:51]** 

Why did Other Income decline in Q3 2024?

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The significant increase in **Cash and cash equivalents** in **Q4 2024** was primarily driven by several factors. First, the company issued new **October Senior Notes** to bolster its liquidity in preparation for strategic acquisitions, notably the pending acquisition of CommScope's Mobile Networks Business.  **[0001558370-25-000714_aph-20241231x10k.htm:58]** **[0001558370-25-000714_aph-20241231x10k.htm:51]**  Additionally, robust **operating cash flow** and strong **free cash flow generation** significantly contributed to the enhanced cash position.  **[0001558370-25-000305_aph-20250122xex99d1.htm:1]** **[APH_3413016_3]**  Finally, funds were set aside for acquisitions, highlighting a deliberate acquisition financing strategy that further increased the cash reserves.  **[0001558370-25-000305_aph-20250122xex99d1.htm:1]** **[0001558370-25-000714_aph-20241231x10k.htm:51]** **[0001558370-25-000714_aph-20241231x10k.htm:62]** 

Why was Cash and cash equivalents so high in Q4 2024?

The jump in Q4 2024 was driven by **acquisition financing**—notably the acquisitions of **Carlisle Interconnect Technologies** and **Luetze**—along with the **issuance of multiple senior notes** such as the **5.050%, 5.250%, 5.000%, and 5.375% Senior Notes**. Additionally, **strategic capital investments** in key growth areas like IT datacom and defense, particularly in support of AI applications, also contributed to the significant increase in long-term debt.  **[0001558370-25-000305_aph-20250122xex99d1.htm:11]** **[0001558370-25-000714_aph-20241231x10k.htm:83]** **[0001558370-25-000305_aph-20250122xex99d1.htm:1]** **[APH_3413016_3]** **[APH_3413016_4]** **[0001558370-25-000714_aph-20241231x10k.htm:105]** **[APH_3413016_1]** 

What drove the jump in Long-term debt in Q4 2024?

The **Other intangible assets** spiked in **Q2 2024** because the company recognized additional intangible assets acquired through its **2024 Acquisitions**, particularly the **CIT acquisition**. This increase was partially offset by the **amortization** of existing intangible assets and adjustments related to measurement periods for acquisitions that closed late in **2023**.  **[0001558370-24-010011_aph-20240724xex99d1.htm:11]** **[0001558370-24-010246_aph-20240630x10q.htm:2]** **[0001558370-24-010246_aph-20240630x10q.htm:47]** **[0001558370-24-010246_aph-20240630x10q.htm:26]** 

Why did Other intangible assets spike in Q2 2024?

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c58d419e588b19569dcd5cbbe3f1a9fc53f79df82e3d9ce5f3e597994b6b8ef6

Net Sales (USD, millions)

Cost of Sales (USD, millions)

Gross Profit (USD, millions)

Acquisition-related Expenses (USD, millions)

Selling, General and Administrative Expenses (USD, millions)

Operating Income (USD, millions)

Interest Expense (USD, millions)

Other Income (Expense), Net (USD, millions)

Income Before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Income (USD, millions)

Net Income Attributable to Noncontrolling Interests (USD, millions)

Net Income Attributable to Amphenol Corporation (USD, millions)

2efbaebef704ed369871a158b40e9a1948ce188e63f09db8735f9ac2489e66a2

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

101d8fa221c9c23869dd16ac10c285c1c3b335c4f161963a0d23af7cddb83a5f

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Units]

EPS - Diluted [USD, Units]

8737b43e96def77dbc98464b65bb2b5f2685c0845e319dbc8fff3cbf91043b54

770a3404235e91d192f84520a924ab5fbf44b63d06b53350b1cc53ae0017e185

United States

China

Other Foreign Locations

International

Total Revenue

51388da5751187feebcbaa12558540608561bad8eadec586cda2ebe339059b11

Harsh Environment Solutions

- Connectors and Systems

- Value-Add Products

- Cable

- Other

Communications Solutions

- Antennas

Interconnect and Sensor Systems

- Sensors and Products

Interconnect Products and Assemblies

Cable Products and Solutions

77869be216bcbffb8f400522f351bbd2dde7fc34aa24b0f58e83df6ae7192e67

AMPHENOL CORP /DE/ (APH)

Financials