TE Connectivity (TEL) Company Report

TE Connectivity targets 6–8% organic revenue growth, 30%+ margin flow-through, and double-digit EPS expansion through cycle, reflecting a shift toward higher-growth end markets in AI/data center, energy, industrial, and transportation.
Since 2019, TE delivered 4% organic sales growth (vs. GDP ~2.5%), expanded gross margins by 250 bps, and doubled free cash flow from $1.6 B to $3.2 B, enabling reinvestment and shareholder returns.
Industrial Solutions grew 24% to $8 B with 21% operating margin, driven by co-creation, integrated manufacturing, and strategic M&A (e.g., ERNI, Schaffner) across factory automation, digital data networks, and energy.
Transportation Solutions generated $9 B revenue at 21% margin, leveraging zonal architecture, data connectivity, electronification, and EV high-voltage content to outpace vehicle production by 4–6%.
TE plans to more than double its AI & cloud business (currently $1.4 B) in two years, partnering with hyperscalers on high-speed optics, power delivery, and advanced cooling solutions.

Nov 20, 2025, 2:30 PM

Transcript

TE Connectivity outlines 2025 Investor Day growth targets and financials

TEL

Guidance Update

Share Buyback

TE Connectivity delivered FY25 sales of $17.3 B and doubled free cash flow to $3.2 B, expanding adjusted operating margin to 20.8% versus 18.3% in 2019.
The company targets 6–8% organic growth through the cycle, 30%+ incremental operating margins, and double-digit adjusted EPS growth.
Industrial Solutions posted $7.9 B in FY25 sales with an ~21% adjusted operating margin, driven by Automation & Connected Living, Digital Data Networks, Medical, Energy, and AD&M.
Transportation Solutions is positioned for 4–6% growth over market through the cycle, with ~35% of auto revenue from China, leveraging high-bandwidth data and electrification trends.
TE Connectivity achieved 115.9% free cash flow conversion in FY25 and plans 100%+ FCF conversion, allocating ~1/3 to dividends and ~2/3 to M&A and share buybacks.

Nov 20, 2025, 2:30 PM

Presentation

TE Connectivity outlines growth strategy at Investor Day 2025

TEL

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Growth guidance raised to 6–8% through cycle, up from prior 4–6%, driven by secular tailwinds in AI, energy, and transportation, with 30+% flow-through margins supporting ~50–60 bps annual margin improvement.
Industrial Solutions grew 24% to $8 billion in FY 2025, expanded margins by 300 bps to 21%, and plans to more than double its $1.4 billion AI/cloud business within two years via high-speed connectivity and advanced cooling solutions.
Transportation Solutions delivered $9 billion revenue and 21% operating margins in FY 2025, and is expected to grow mid-single digits, with automotive outpacing production by 4–6% and adding $2 billion in content over five years through data connectivity, electronification, and e-mobility trends.
Capital allocation prioritizes one-third dividends and two-thirds M&A/share buybacks, maintaining mid-teens ROIC targets and leveraging strong free cash flow for strategic investments.

Nov 20, 2025, 2:30 PM

Transcript

TE Connectivity unveils 6–8% growth target at 2025 Investor Day

TEL

Guidance Update

New Projects/Investments

TE Connectivity plans to lift its long-term organic revenue growth target to 6–8% through the cycle, driven by broader end-market exposure, and has expanded gross margins by 250 bps since 2019 while doubling free cash flow from $1.6 billion to $3.2 billion over the past five years.
The company is doubling down on AI and data center innovation—including liquid-cooled bus bars (5× more power per rack, –40% cost/kW) and immersion cooling—and aims to more than double its $1.4 billion AI & cloud business within two years.
In Transportation, TE forecasts 12–15 million vehicles will adopt zonal architectures by 2030 and expects a 30% increase in connectivity content per vehicle—split roughly one-third each from data, e-mobility and low-voltage systems.
TE commits to >100% free cash flow conversion, 30%+ fall-through on incremental margins, a dividend payout of ~⅓ of free cash flow, and continued ROIC discipline and M&A optionality.

Nov 20, 2025, 2:30 PM

Transcript

TE Connectivity outlines next chapter of value creation

TEL

Earnings

Guidance Update

M&A

FY 2025 results: Sales > $17 billion, ~21% adjusted operating margin, adjusted EPS $9.27, and ~115% free cash flow conversion.
Targets 6–8% through-cycle growth with 30%+ incremental operating margins and double-digit adjusted EPS growth via broadening secular markets and operational excellence.
Disciplined capital strategy with >100% FCF conversion, allocating ~2/3 to dividends and share buybacks and ~1/3 to M&A and strategic investments.
Engineering and operational moat: 120+ factories, 10,000 engineers, and 5,000 new development projects co-designing next-generation architectures.

Nov 20, 2025, 2:16 PM

8-K

TE Connectivity announces Q4 2025 results

TEL

Earnings

Guidance Update

M&A

Q4 sales of $4.75 billion (+17% reported, +11% organic), orders of $4.7 billion (+22% y/y, +5% sequential), adjusted EPS of $2.44 (+25% y/y), adjusted operating margin of 20% (+130 bps), and free cash flow of $1.2 billion in the quarter.
FY 2025 sales of $17.3 billion (+9% reported, +6% organic), adjusted EPS of $8.76 (+16% y/y), adjusted operating margin of ~20% (+80 bps), and free cash flow exceeding $3 billion.
Deployed capital in FY 2025 with $2.2 billion returned to shareholders (buybacks/dividends) and $2.6 billion in bolt-on acquisitions.
FY 2026 Q1 guidance: sales of $4.5 billion (+17% y/y, +11% organic) and adjusted EPS of $2.53 (+23% y/y).
Beginning in fiscal 2026, amortization of intangible assets will be excluded from non-GAAP financial measures to align reporting.

Oct 29, 2025, 12:30 PM

Transcript

TE Connectivity reports Q3 FY25 results and Q4 FY25 guidance

TEL

Earnings

Guidance Update

M&A

Q3 sales reached $4.53 billion, up 14% reported and 9% organically year-over-year, with orders of $4.5 billion, driven by strength in the Industrial segment.
Adjusted EPS for Q3 was $2.27, a 19% increase year-over-year, and adjusted operating margin expanded 60 bps to 19.9%.
YTD free cash flow totaled $2.1 billion, including a record $1 billion in Q3, with $1.5 billion returned to shareholders.
Completed the Richards acquisition in the Energy business, enhancing the company’s industrial footprint.
Q4 guidance: expects $4.55 billion in sales (+12% reported, +6% organic) and $2.27 adjusted EPS (+16% Y/Y), implying full-year FY25 sales growth of 8% reported and 5% organic, and adjusted EPS up 13%.

Oct 29, 2025, 12:30 PM

Presentation

TE Connectivity reports Q4 and FY2025 results and FY2026 guidance

TEL

Earnings

Guidance Update

Q4 sales of $4.75 billion (+17% reported, +11% organic) and orders of $4.7 billion (+22% y/y, +5% sequential).
Q4 adjusted EPS of $2.44 (+25%), adjusted operating margin of 20% (+130 bps y/y), and free cash flow of $1.2 billion.
FY2025 sales reached $17.3 billion (+9% reported, +6% organic), adjusted EPS $8.76 (+16%), adjusted operating margin 20% (+80 bps), and free cash flow $3.2 billion.
Industrial segment saw AI revenues exceed $900 million, tripling y/y, with Digital Data & Devices up 80% in Q4 and energy organic sales +24%.
Q1 FY2026 guidance: sales $4.5 billion (+17% reported, +11% organic) and adjusted EPS $2.53 (+23%); non-GAAP measures will exclude intangible amortization starting FY2026.

Oct 29, 2025, 12:30 PM

Transcript

TE Connectivity reports Q4 FY2025 results

TEL

Earnings

Guidance Update

Q4 sales of $4.75 billion, up 17% reported and 11% organic Y/Y, with orders of $4.7 billion, +22% Y/Y and +5% sequentially.
Adjusted EPS of $2.44, a 25% increase versus Q4 FY24, driven by margin expansion to ~20%.
Generated ~$1.2 billion in free cash flow in the quarter, returning ~$650 million to shareholders.
Full-year FY25 sales reached $17.3 billion (+9% Y/Y) with adjusted EPS of $8.76 (+16%) and FCF of $3.2 billion; Q1 FY26 guidance calls for ~$4.5 billion in sales (+17%) and $2.53 in adjusted EPS (+23%).

Oct 29, 2025, 12:30 PM

Presentation

TE Connectivity delivers Q4 and FY25 record results

TEL

Earnings

Guidance Update

Revenue Acceleration/Inflection

TE Connectivity reported Q4 FY25 net sales of $4.75 billion, up 17% year-over-year reported and 11% organically; GAAP diluted EPS was $2.23 (+148% Y/Y) and adjusted EPS a record $2.44 (+25% Y/Y).
Q4 operating margin was 19% GAAP and 20% adjusted, orders grew 22% Y/Y to $4.7 billion, and free cash flow reached a record $1.2 billion with ~$650 million returned to shareholders.
For FY25, net sales set a record at $17.3 billion (up 9% reported; 6% organic), adjusted EPS was a record $8.76, free cash flow was $3.2 billion, and $2.2 billion was returned to shareholders.
Outlook for Q1 FY26 calls for sales of approximately $4.5 billion (up 17% reported; 11% organic) and adjusted EPS of about $2.53, up 23% year-over-year.

Oct 29, 2025, 10:10 AM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for TE Connectivity.

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