|
|
|
|
|||||
|
|
|
TE Connectivity TEL reported fourth-quarter fiscal 2025 adjusted earnings of $2.44 per share, which increased 25.1% from the year-ago quarter and beat the Zacks Consensus Estimate by 6.55%.
Net sales totaled $4.75 billion, which beat the consensus estimate by 4.28% and increased 17% reported and 11% organically year over year. The surge was driven by growth in both the Industrial and Transportation segments.
Orders increased in both segments to $4.7B, up 22% year over year and 5% sequentially.
Following the release, TEL shares rose 4.40% in the pre-market trading, driven by strong operational performance and records in sales and cash flow.
TE Connectivity Ltd. price-consensus-eps-surprise-chart | TE Connectivity Ltd. Quote
The Transportation solutions segment generated revenues of $2.41 billion, contributing 50.8% to net sales. The figure increased 3.6% year over year on a reported basis and 2% organically.
Automotive sales increased 4% year over year, including 2% organic growth, supported by strong content-driven demand in Asia.
Sensor sales fell 4% year over year and 6% organically, reflecting soft demand across Western end markets.
Commercial transportation sales rose 7% year over year and 5% organically, driven primarily by growth in Asia and Europe.
The Industrial Solutions segment generated revenues of $2.33 billion, making up 49.2% of net sales. This represented a 34% increase year over year on a reported basis and 24% growth organically.
Digital Data Networks, Automation & Connected Living, Aerospace, Defense and Marine, and Energy saw year-over-year growth of 80%, 15%, 9% and 83%, respectively. However, the Medical sector experienced a decline of 16%.
In fourth-quarter fiscal 2025, GAAP gross margin expanded 100 basis points (bps) year over year to 35%.
Selling, general, and administrative expenses, as a percentage of net sales, contracted 20 bps to 10.4%.
Research, development, and engineering expenses were held flat at 4.8% of net sales, unchanged year over year.
Adjusted operating margin expanded 130 bps year over year to 19.9% in the reported quarter.
As of Sept. 26, 2025, cash and cash equivalents were $1.25 billion, up from $672 million as of June 27, 2025.
Long-term debt was $4.842 billion as of Sept. 26, 2025, compared with $4.846 billion as of June 27, 2025.
TE Connectivity generated $1.4 billion in cash from operations in the reported quarter, up from the previous quarter's figure of $1.2 billion.
TEL generated a free cash flow of $1.2 billion in the fourth quarter, up from $962 million reported in the previous quarter.
TE Connectivity expects fiscal first-quarter net sales to increase 17% year over year and 11% organically year over year to $4.5 billion. Adjusted earnings are projected to be $2.53 per share, indicating growth of 23% year over year.
Currently, TE Connectivity has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Alkami Technology ALKT, AMETEK AME, and Advanced Energy AEIS. While Alkami Technology sports a Zacks Rank #1 (Strong Buy), AMETEK and Advanced Energy carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alkami Technology is set to report third-quarter 2025 results on Oct. 30. Alkami Technology shares have lost 36.2% year to date.
AMETEK is slated to report third-quarter 2025 results on Oct. 30. AMETEK shares have gained 2.7% year to date.
Advanced Energy is set to report third-quarter 2025 results on Nov. 4. Advanced Energy shares have surged 77% year to date.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 2 hours | |
| 3 hours | |
| 3 hours | |
| 4 hours | |
| 5 hours | |
| 5 hours | |
| 5 hours | |
| Oct-29 | |
| Oct-29 | |
| Oct-29 | |
| Oct-29 | |
| Oct-29 | |
| Oct-29 | |
| Oct-29 | |
| Oct-29 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite