TE Connectivity (TEL) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly and full-year sales, earnings, and free cash flow, with Q4 sales up 17% year-over-year and adjusted EPS up 25% year-over-year, driven by strong execution and strategic positioning in growth markets.

• Orders reached $4.7B in Q4, up 22% year-over-year and 5% sequentially, with growth in both Transportation and Industrial segments.

• Both transportation and industrial segments contributed to outperformance, with significant momentum in AI, energy, and data connectivity applications.

• Continued operational resilience through global manufacturing investments and localization strategies.

• Free cash flow for FY25 was $3.2B, with over $2.2B returned to shareholders and $2.6B used for acquisitions.

Financial highlights

• Q4 net sales: $4.75B (up 17% reported, 11% organic year-over-year), exceeding guidance.

• Q4 adjusted EPS was $2.44, up 25% year-over-year; adjusted operating margin was 20%, up 130 bps.

• Full-year sales were $17.3B, up 9% reported and 6% organically; adjusted EPS was $8.76, up 16%.

• Free cash flow for the year exceeded $3B, with over 100% conversion to adjusted net income.

• Ending cash balance: $1.26B; total debt: $5.69B at FY25 end.

Outlook and guidance

• Q1 FY26 sales expected at ~$4.5B, up 17% reported and 11% organically year-over-year.

• Q1 adjusted EPS guidance is ~$2.53, representing 23% year-over-year growth; GAAP EPS expected at ~$2.33, up 33%.

• Order levels support double-digit growth outlook for Q1 FY26.

• Adjusted effective tax rate expected at ~22% for Q1 and ~23% for FY26.

• Beginning Q1 FY26, non-GAAP reporting will exclude amortization expense on intangible assets.