Record Annual Financial Performance
2025 was a record year: reported sales $3.9B (up ~30% reported, +13% organic), adjusted operating income $786M (up 21%), adjusted EPS up 35%, and record free cash flow $561M (up 31%, 102% conversion of adjusted net income).
Strong Fourth Quarter Results
Q4 sales $1.067B (up 42% reported, +24% organic), adjusted operating income $210M (up 33%), adjusted EPS $0.90 (up 53%), and free cash flow $189M (up 26%).
Data Center Acceleration
Data center revenue reached approximately $1.0B in 2025 (from ~$600M in 2024), driving infrastructure growth; infrastructure vertical now ~45% of sales and expected to be >50% in 2026.
Orders and Backlog Momentum
Organic orders up ~30% in Q4 (driven by large AI data center orders); company ended year with $2.3B backlog, ~3x the prior year, providing significant near-term visibility.
Acquisitions Contributing to Growth
Acquisitions contributed meaningfully: Q4 added $126M to sales (~17 points), acquisitions contributed ~16 points to full-year growth; EPG and other deals performing ahead of expectations.
Product Innovation and New Product Impact
Launched 86 new products in 2025, contributing ~10 percentage points to sales growth; new product vitality at 27%, supporting organic growth and data center offerings (modular liquid cooling platforms).
Segment-Level Strength
Systems Protection: Q4 sales $737M (up 58%, organic +34%); segment income up 49% with ROS ~20.3%. Electrical Connections: Q4 sales $330M (up 15%, organic +8%) with ROS ~27.6%.
Improved Balance Sheet and Capital Returns
Debt reduced to $1.6B (down ~$600M YoY); cash $237M and $600M revolver available; net debt/adjusted EBITDA ~1.6x (below target range); returned $383M to shareholders incl. $253M buybacks and +5% dividend increase.
2026 Financial Outlook
Guidance for 2026: reported sales growth 15–18% (organic 10–13%), adjusted EPS $4.00–$4.15 (growth 20–24%), free cash flow conversion 90–95%; Q1 guide: reported sales +34–36%, organic +17–19%, Q1 EPS $0.90–$0.93.
Operational Investments to Scale Capacity
Opened new liquid cooling facility in Blaine, MN and ramped production quickly; 2025 CapEx $93M (up 26%) targeted at capacity and growth in data centers and power utilities.