APH Scales Through Acquisitions: Is the Growth Thesis Strengthening?

Amphenol APH continues to expand its portfolio and end-market presence through strategic acquisitions across communications, medical and defense end-markets. These acquisitions are enhancing the company’s high-technology interconnect solutions and supporting a diversified business model. 

Amphenol’s buyouts contributed 8% to 2024 revenues. In the past nine quarters, APH has completed roughly 15 acquisitions. In the first quarter of 2025, it reported 
sales of $4.8 billion, which jumped 48% year over year, driven primarily by contributions from acquisitions. 

The company has consistently followed a strategy of acquiring businesses that complement its core offerings and expand its footprint in high-growth, application-specific markets. Conesys was added through the CIT acquisition that closed in May 2024, strengthening Amphenol’s capability in ruggedized connectors for aerospace, defense and industrial applications. The June 2022 acquisition of NPI Sensor Systems boosted Amphenol’s sensor-based technologies used in automation and automotive segments. 

In the first quarter of 2025, Amphenol closed two strategic transactions: the Andrew wireless infrastructure business (CommScope’s OWN & DAS) and LifeSync. The Andrew deal is expected to generate approximately 9 cents to adjusted earnings, while the LifeSync acquisition expands Amphenol’s portfolio of interconnect products for medical applications.

APH Faces Rising Competition

Amphenol competes with players like TE Connectivity TEL and Bel Fuse BELFB across key verticals, including telecom, defense and industrial connectivity.

Bel Fuse competes in ruggedized connectors, power components and cable assemblies for harsh environments. It is expanding in modular network systems and defense-grade interconnects, areas that directly align with Amphenol’s Andrew and Conesys acquisitions. As Bel Fuse scales its offerings across telecom and enterprise markets, it remains a rising competitor in Amphenol’s core domains.

TE Connectivity remains a strong peer in high-speed interconnects, fiber-optic systems and industrial connectivity. Its global reach and focus on signal integrity overlap with Amphenol’s addressable markets. As TE Connectivity expands across complex infrastructure use cases, it continues to challenge Amphenol across telecom, automotive and cloud verticals.

APH’s Share Price Performance, Valuation and Estimates

Amphenol’s shares have gained 42.2% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 6.1% and the Zacks Electronics - Connectors industry’s increase of 40.3%.

APH's Performance

Amphenol stock is trading at a premium, with a forward 12-month Price/Earnings of 35.35X compared with the sector’s 27.23X. APH has a Value Score of C.

APH's Valuation

The Zacks Consensus Estimate for Amphenol’s second-quarter 2025 earnings is pegged at 66 cents per share, unchanged over the past 30 days, indicating 53.49% year-over-year growth.

Amphenol Corporation Price and Consensus

Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote

The consensus mark for APH’s 2025 earnings is pegged at $2.68 per share, which has remained unchanged over the past 30 days. The figure indicates a 41.80% increase year over year.

Amphenol currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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