10-KPeriod: FY2022

AMPHENOL CORP /DE/ Annual Report, Year Ended Dec 31, 2022

Filed February 8, 2023For Securities:APH

Summary

Amphenol Corporation (APH) reported strong financial performance for the fiscal year ended December 31, 2022, with net sales increasing by 16% to $12.62 billion and net income growing by 21% to $1.90 billion. The company demonstrated robust growth across its three reporting segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. This growth was driven by strong organic demand in key end markets such as automotive, information technology and data communications, and industrial sectors, complemented by contributions from strategic acquisitions. Despite inflationary pressures and supply chain challenges that impacted raw material and logistics costs, Amphenol effectively managed its operations, leveraging pricing actions and productivity improvements to maintain healthy operating margins, with Adjusted Operating Margin at 20.7%. The company also maintained a strong liquidity position, generating $2.17 billion in operating cash flow and $1.80 billion in free cash flow. Amphenol continued its commitment to shareholder returns through consistent dividend payments and a stock repurchase program, underscoring its stable financial health and strategic execution.

Financial Highlights

55 data points
Beta

Revenue

$12.62B

31.9% Gross Margin

Net Income

$1.90B

15.1% Net Margin

EPS (Diluted)

$1.53

Total Assets

$15.33B

Cash & Equivalents

$1.37B

Free Cash Flow

$1.79B

Financial Statements
Beta
Revenue$12.62B
Cost of Revenue$8.59B
Gross Profit$4.03B
R&D Expenses$323.60M
SG&A Expenses$1.42B
Operating Income$2.59B
Interest Expense$128.40M
Net Income$1.90B
EPS (Basic)$1.60
EPS (Diluted)$1.53
Shares Outstanding (Basic)1.19B
Shares Outstanding (Diluted)1.24B

Key Highlights

  • 1Net sales increased by 16% to $12.62 billion in FY2022, driven by strong demand across key end markets and segment growth.
  • 2Net income attributable to Amphenol Corporation grew by 21% to $1.90 billion, reflecting effective operational management and pricing strategies.
  • 3Operating income margin remained strong at 20.5% (Adjusted Operating Margin of 20.7%), demonstrating resilience against inflationary pressures.
  • 4The company generated $2.17 billion in operating cash flow and $1.80 billion in free cash flow, highlighting robust cash generation capabilities.
  • 5Amphenol continued its strategic acquisition program, investing $288 million in two acquisitions to enhance its product offerings and market presence.
  • 6Dividends declared increased by 26% year-over-year to $482.6 million, and the company repurchased $730.5 million of its common stock.
  • 7Significant diversification in end markets, with no single customer accounting for 10% or more of net sales in FY2022.

Frequently Asked Questions

Amphenol reported net sales of $12.62 billion for the year ended December 31, 2022, a 16% increase compared to the prior year. Net income attributable to Amphenol Corporation also grew by 21% to $1.90 billion, demonstrating strong top-line and bottom-line growth.

Amphenol effectively navigated inflationary pressures and supply chain challenges by implementing pricing actions and focusing on productivity improvements. Despite these headwinds, the company maintained healthy operating margins, with its Adjusted Operating Margin reaching 20.7%.

Amphenol generated robust free cash flow of $1.80 billion in 2022. The company deploys this cash through strategic acquisitions (investing $288 million in 2022), consistent dividend payments (increasing dividends by 26% year-over-year), and share repurchases ($730.5 million repurchased in 2022), reflecting a balanced approach to returning value to shareholders and reinvesting in growth.

Key growth drivers included the automotive, information technology and data communications, and industrial markets, which saw strong organic growth. The company also benefited from a continued recovery in the commercial aerospace market and strategic contributions from recent acquisitions.