TE Connectivity delivers 17% sales growth in fiscal fourth quarter with results above guidance

Achieves full-year records in sales, operating margin and cash generation

GALWAY, Ireland, Oct. 29, 2025 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal fourth quarter and fiscal year ended September 26, 2025.

Fourth Quarter Highlights

Full Year Highlights

"Our teams executed at a high level against our business model to deliver strong results for the fourth quarter as well as the full year," said CEO Terrence Curtin. "Our performance resulted in records on the top line, earnings and cash flow in 2025 and sets TE up well going into our new fiscal year. These results against an uneven macro environment demonstrate the strategic positioning of our portfolio and the investments we've made to broaden the business to benefit from long-term growth trends. Industrial segment sales increased 24% during the year, driven by innovations that serve AI and energy customers as demand continues to accelerate. Our Transportation segment performed well in a challenging end market, delivering content growth from increased data connectivity and growth of the electrified power train.

"We are well positioned to keep capitalizing on these and other key long-term growth trends. With strong order levels and our continued operational resilience, we expect sales and EPS in the first quarter of fiscal 2026 to each be up double digits year over year."

First Quarter FY26 Outlook

For the first quarter of fiscal 2026, the company expects sales of approximately $4.5 billion, up 17% on a reported basis and 11% organically year over year. GAAP EPS from continuing operations is expected to be approximately $2.33, an increase of 33% year over year, with adjusted EPS of approximately $2.53, up 23% year over year.

Beginning in fiscal 2026, the company will exclude amortization expense on intangible assets and, if applicable, the related tax effects from its calculation of certain non-GAAP measures. The company's Adjusted EPS outlook for the first quarter of fiscal 2026 excludes amortization expense and the related tax effects. Recast financial information is provided in a Form 8-K filed with the SEC today.

Information about TE Connectivity's use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.

Conference Call and Webcast

The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:

About TE Connectivity

TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram.

Non-GAAP Financial Measures

We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

Forward-Looking Statements

This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. In addition, our change of incorporation from Switzerland to Ireland is subject to risks, such as the risk that the anticipated advantages might not materialize, as well as the risks that the price of our stock could decline and our position on stock exchanges and indices could change, and Irish corporate governance and regulatory schemes could prove different or more challenging than currently expected. More detailed information about these and other factors is set forth in TE Connectivity plc's Annual Report on Form 10-K for the fiscal year ended Sept 27, 2024, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.

# # #

TE CONNECTIVITY PLC

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Quarters Ended

For the Years Ended

September 26,

September 27,

September 26,

September 27,

2025

2024

2025

2024

(in millions, except per share data)

Net sales

4,749

4,068

17,262

15,845

Cost of sales

3,089

2,685

11,183

10,389

Gross margin

1,660

1,383

6,079

5,456

Selling, general, and administrative expenses

494

433

1,866

1,732

Research, development, and engineering expenses

227

195

829

741

Acquisition and integration costs

Restructuring and other charges, net

126

166

Operating income

916

651

3,211

2,796

Interest income

Interest expense

(29)

(15)

(77)

(70)

Other expense, net

(11)

(5)

(13)

(16)

Income from continuing operations before income taxes

897

657

3,204

2,797

Income tax (expense) benefit

(233)

(381)

(1,361)

397

Income from continuing operations

664

276

1,843

3,194

Loss from discontinued operations, net of income taxes

(1)

—

(1)

Net income

663

276

1,842

3,193

Basic earnings per share:

Income from continuing operations

2.25

0.91

6.21

10.40

Loss from discontinued operations

—

Net income

2.25

0.91

6.20

10.40

Diluted earnings per share:

Income from continuing operations

2.23

0.90

6.16

10.34

Loss from discontinued operations

—

Net income

2.22

0.90

6.16

10.33

Weighted-average number of shares outstanding:

Basic

295

303

297

307

Diluted

298

305

299

309

TE CONNECTIVITY PLC

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

September 26,

September 27,

2025

2024

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

1,255

1,319

Accounts receivable, net of allowance for doubtful accounts of $44 and $32, respectively

3,403

3,055

Inventories

2,699

2,517

Prepaid expenses and other current assets

609

740

Total current assets

7,966

7,631

Property, plant, and equipment, net

4,312

3,903

Goodwill

7,126

5,801

Intangible assets, net

2,227

1,174

Deferred income taxes

2,507

3,497

Other assets

943

848

Total assets

25,081

22,854

Liabilities, redeemable noncontrolling interests, and shareholders' equity

Current liabilities:

Short-term debt

852

871

Accounts payable

2,021

1,728

Accrued and other current liabilities

2,247

2,147

Total current liabilities

5,120

4,746

Long-term debt

4,842

3,332

Long-term pension and postretirement liabilities

767

810

Deferred income taxes

198

199

Income taxes

414

411

Other liabilities

1,010

870

Total liabilities

12,351

10,368

Commitments and contingencies

Redeemable noncontrolling interests

145

131

Shareholders' equity:

Preferred shares, $1.00 par value, 2 shares authorized, none outstanding as of September 26, 2025

—

Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding as of

September 26, 2025

—

Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 302,889,075 shares issued and

common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, respectively

139

Accumulated earnings

13,932

14,533

Ordinary shares and common shares held in treasury, at cost, 8,330,931 and 16,656,681 shares,

respectively

(1,356)

(2,322)

Accumulated other comprehensive income

Total shareholders' equity

12,585

12,355

Total liabilities, redeemable noncontrolling interests, and shareholders' equity

25,081

22,854

TE CONNECTIVITY PLC

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

For the Years Ended

September 26,

September 27,

September 26,

September 27,

2025

2024

2025

2024

(in millions)

Cash flows from operating activities:

Net income

663

276

1,842

3,193

Loss from discontinued operations, net of income taxes

—

Income from continuing operations

664

276

1,843

3,194

Adjustments to reconcile income from continuing operations to net cash

provided by operating activities:

Depreciation and amortization

244

232

838

826

Deferred income taxes

166

401

938

(789)

Non-cash lease cost

145

134

Provision for losses on accounts receivable and inventories

(4)

(13)

Share-based compensation expense

149

127

Other

Changes in assets and liabilities, net of the effects of acquisitions and

divestitures:

Accounts receivable, net

(216)

(341)

(134)

Inventories

139

(160)

(30)

Prepaid expenses and other current assets

Accounts payable

(8)

290

159

Accrued and other current liabilities

159

(35)

(165)

Income taxes

(25)

(111)

147

(83)

Other

(9)

Net cash provided by operating activities

1,421

1,042

4,139

3,477

Cash flows from investing activities:

Capital expenditures

(271)

(213)

(936)

(680)

Proceeds from sale of property, plant, and equipment

Acquisition of businesses, net of cash acquired

—

(2,628)

(339)

Proceeds from divestiture of business, net of cash retained by business sold

—

Other

(3)

(15)

(6)

Net cash used in investing activities

(270)

(206)

(3,568)

(950)

Cash flows from financing activities:

Net decrease in commercial paper

—

(54)

(255)

(75)

Proceeds from issuance of debt

—

348

2,231

348

Repayment of debt

—

(350)

(580)

(352)

Proceeds from exercise of share options

182

Repurchase of ordinary/common shares

(437)

(761)

(1,347)

(2,062)

Payment of ordinary/common share dividends to shareholders

(209)

(196)

(803)

(760)

Other

(1)

(18)

(57)

Net cash used in financing activities

(566)

(994)

(629)

(2,869)

Effect of currency translation on cash

(2)

(6)

—

Net increase (decrease) in cash, cash equivalents, and restricted cash

583

(150)

(64)

(342)

Cash, cash equivalents, and restricted cash at beginning of period

672

1,469

1,319

1,661

Cash, cash equivalents, and restricted cash at end of period

1,255

1,319

1,255

1,319

Supplemental cash flow information:

Interest paid on debt, net

Income taxes paid, net of refunds

276

475

TE CONNECTIVITY PLC

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

For the Years Ended

September 26,

September 27,

September 26,

September 27,

2025

2024

2025

2024

(in millions)

Net cash provided by operating activities

1,421

1,042

4,139

3,477

Capital expenditures, net

(267)

(209)

(925)

(664)

Free cash flow (1)

1,154

833

3,214

2,813

(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

SEGMENT DATA (UNAUDITED)

For the Quarters Ended

For the Years Ended

September 26,

September 27,

September 26,

September 27,

2025

2024

2025

2024

($ in millions)

Net Sales

Transportation Solutions

2,413

2,330

9,388

9,481

Industrial Solutions

2,336

1,738

7,874

6,364

Total

4,749

4,068

17,262

15,845

Operating

Income

Margin

Income

Margin

Income

Margin

Income

Margin

Transportation Solutions

465

19.3

410

17.6

1,818

19.4

1,880

19.8

Industrial Solutions

451

19.3

241

13.9

1,393

17.7

916

14.4

Total

916

19.3

651

16.0

3,211

18.6

2,796

17.6

Adjusted

Operating

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Transportation Solutions

468

19.4

452

19.4

1,893

20.2

1,950

20.6

Industrial Solutions

475

20.3

303

17.4

1,501

19.1

1,037

16.3

Total

943

19.9

755

18.6

3,394

19.7

2,987

18.9

(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)

Change in Net Sales for the Quarter Ended September 26, 2025

versus Net Sales for the Quarter Ended September 27, 2024

Net Sales

Organic Net Sales

Growth (Decline)

Growth (Decline) (1)

Translation (2)

Acquisitions

($ in millions)

Transportation Solutions:

Automotive

3.9

2.0

—

Commercial transportation

7.4

4.9

—

Sensors

(10)

(3.9)

(15)

(6.1)

—

Total Transportation Solutions

3.6

1.6

—

Industrial Solutions:

Digital data networks

314

79.9

308

78.6

—

Automation and connected living

14.5

11.2

Aerospace, defense, and marine

9.3

6.8

—

Energy

211

83.1

23.9

144

Medical

(35)

(16.4)

(35)

(16.4)

—

Total Industrial Solutions

598

34.4

414

23.9

148

Total

681

16.7

452

11.1

148

Change in Net Sales for the Year Ended September 26, 2025

versus Net Sales for the Year Ended September 27, 2024

Net Sales

Organic Net Sales

Acquisitions/

Growth (Decline)

Growth (Decline) (1)

Translation (2)

(Divestiture)

($ in millions)

Transportation Solutions:

Automotive

0.2

(12)

Commercial transportation

(31)

(2.1)

(33)

(2.3)

—

Sensors

(75)

(7.6)

(79)

(8.0)

—

Total Transportation Solutions

(93)

(1.0)

(98)

(1.0)

(12)

Industrial Solutions:

Digital data networks

934

73.3

924

72.6

—

Automation and connected living

153

7.7

3.5

Aerospace, defense, and marine

139

10.3

127

9.5

—

Energy

425

46.2

137

15.0

—

288

Medical

(141)

(16.9)

(142)

(17.1)

—

Total Industrial Solutions

1,510

23.7

1,116

17.6

360

Total

1,417

8.9

1,018

6.4

348

(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.

(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended September 26, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

465

—

468

Industrial Solutions

451

—

475

Total

916

—

943

Operating margin

19.3

19.9

Income tax expense

(233)

(2)

(198)

Effective tax rate

26.0

21.4

Income from continuing operations

664

726

Diluted earnings per share from

continuing operations

2.23

0.03

0.08

0.10

2.44

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards and an income tax benefit of $13 million related to the revaluation of deferred tax liabilities as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended September 27, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

410

—

452

Industrial Solutions

241

—

303

Total

651

—

755

Operating margin

16.0

18.6

Income tax expense

(381)

(1)

(22)

238

(166)

Effective tax rate

58.0

21.8

Income from continuing operations

276

238

595

Diluted earnings per share from

continuing operations

0.90

0.01

0.25

0.78

1.95

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax expense related to an increase in the valuation allowance for deferred tax assets of a Swiss subsidiary.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 26, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

1,818

—

1,893

Industrial Solutions

1,393

—

1,501

Total

3,211

126

—

3,394

Operating margin

18.6

19.7

Income tax expense

(1,361)

(12)

(13)

618

(768)

Effective tax rate

42.5

22.7

Income from continuing operations

1,843

113

618

2,619

Diluted earnings per share from continuing operations

6.16

0.15

0.38

2.07

8.76

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 27, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

1,880

—

1,950

Industrial Solutions

916

1,037

Total

2,796

166

2,987

Operating margin

17.6

18.9

Income tax (expense) benefit

397

(3)

(29)

(1,016)

(651)

Effective tax rate

(14.2)

21.8

Income from continuing operations

3,194

137

(1,012)

2,337

Diluted earnings per share from

continuing operations

10.34

0.06

0.44

(3.28)

7.56

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Includes a $636 million net income tax benefit associated with a $972 million ten-year tax credit obtained by a Swiss subsidiary reduced by a $336 million valuation allowance related to the amount of the tax credit not expected to be realized. Also includes a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland and a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended December 27, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

446

—

478

Industrial Solutions

244

—

267

Total

690

—

745

Operating margin

18.0

19.4

Income tax expense

(178)

(1)

(9)

(175)

Effective tax rate

25.2

23.0

Income from continuing operations

528

586

Diluted earnings per share from

continuing operations

1.75

0.01

0.14

0.04

1.95

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax expense related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY PLC

RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of October 29, 2025

(UNAUDITED)

Outlook for

Quarter Ending

December 26,

2025

Diluted earnings per share from continuing operations

2.33

Acquisition-related charges

0.02

Restructuring and other charges, net

0.03

Amortization expense (1)

0.15

Adjusted diluted earnings per share from continuing operations (2)

2.53

Net sales growth

17.3

Translation

(2.9)

(Acquisitions) divestitures, net

(3.8)

Organic net sales growth (2)

10.6

(1) Adjusted EPS outlook for the first quarter of fiscal 2026 excludes amortization expense on intangible assets and the related tax effects.

(2) See description of non-GAAP financial measures.

SOURCE TE Connectivity plc