TE Connectivity Ltd. ( (TEL) ) has released its Q2 earnings. Here is a breakdown of the information TE Connectivity Ltd. presented to its investors.
TE Connectivity Ltd., a global leader in industrial technology, offers connectivity and sensor solutions across various sectors, including transportation, energy, and medical technology. In its latest earnings report, TE Connectivity exceeded its guidance for the second quarter of fiscal year 2025, reporting net sales of $4.1 billion, a 4% increase year-over-year, and a record adjusted earnings per share (EPS) of $2.10, up 13% from the previous year. The company also completed the acquisition of Richards Manufacturing Co., aiming to leverage growth in the North American utility market.
Key financial metrics highlighted in the report include a 6% increase in orders to $4.25 billion and an adjusted operating margin of 19.4%, driven by strong performance in both the Transportation and Industrial segments. The Industrial segment, in particular, saw a 17% sales growth, fueled by advancements in AI, aerospace, and energy applications. Additionally, TE Connectivity returned approximately $1 billion to shareholders and announced a 9% dividend increase.
The company’s strategic focus on locating manufacturing facilities near customers has positioned it well to navigate the current trade environment. This strategy, along with operational efficiencies, supports TE Connectivity’s optimistic guidance for the third quarter, projecting an 8% year-over-year increase in net sales to approximately $4.30 billion and an adjusted EPS of $2.06.
Looking ahead, TE Connectivity remains committed to innovating within long-term industrial technology trends and creating value for its stakeholders. Despite the uncertain macroeconomic environment, the company is confident in its ability to sustain momentum and achieve continued growth in sales and earnings.