How much of Amphenol's 2024 growth came from organic sources versus acquisitions?

Full-year sales grew 21% in U.S. dollars. Organic growth was 13%, currency contributed roughly nothing on a constant-currency basis, and acquisitions contributed about 8 percentage points. In Q4, organic growth was 20% of the 30% total, with acquisitions contributing 10 points.

Did Amphenol beat its guidance?

Management said record Q4 sales and Adjusted Diluted EPS both exceeded the high end of the company's guidance for the quarter.

What is the outlook for Q1 2025?

Amphenol expects Q1 2025 sales of $4.00–4.10B, representing 23–26% growth, and Adjusted Diluted EPS of $0.49–0.51, up 23–28%. The guidance assumes current market conditions and constant exchange rates and excludes acquisitions not yet closed, including CommScope's OWN and DAS businesses.

How did the company's balance sheet change, and should investors be concerned?

Long-term debt increased to $6.5B from $4.0B, and total assets rose to $21.4B from $16.5B, mainly from acquisitions and new debt issuance. Cash also rose to $3.3B. Free cash flow of $2.2B and the company's continued capital returns suggest it can service this debt, but leverage is meaningfully higher and investors should monitor integration results and deleveraging.

What are the main non-GAAP adjustments, and how large are they?

The main adjustments are acquisition-related expenses ($127M pre-tax for FY2024, $0.08 per share after tax), excess tax benefits from stock-based compensation ($0.11 per share for FY2024), a discrete tax benefit ($0.01 per share), and amortization of acquisition inventory step-up ($0.01 per share). The gap between GAAP and adjusted EPS was about $0.03 for the full year and $0.04 in Q4.

APH 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 22, 2025. Cited figures are marked; the original filing is the authoritative source.

Amphenol (APH) reported record fourth-quarter and full-year 2024 results on January 22, 2025.

Q4 2024 net sales rose 30% year over year to $4.3 billion^a (20% organic), GAAP diluted EPS was $0.59 (up 44%), and Adjusted Diluted EPS was $0.55 (up 34%). Operating margin reached 22.1% GAAP and 22.4% adjusted, a record, and management noted that both record Q4 sales and Adjusted Diluted EPS exceeded the high end of guidance. For the full year, sales grew 21% to $15.2 billion (13% organic), GAAP diluted EPS was $1.92 (up 24%), and Adjusted Diluted EPS was $1.89 (up 25%).

Operating cash flow was $2.8 billion^b and free cash flow was $2.2 billion, while the company returned roughly $1.3 billion to shareholders through buybacks and dividends. Growth was driven by IT datacom, mobile networks, commercial air, mobile devices, broadband and defense, with acquisitions (notably Carlisle Interconnect Technologies and Luetze) contributing meaningfully. Growth was partly acquisition-driven, so investors should weigh organic growth (13% for the year) alongside the headline 21%.

Balance sheet leverage rose noticeably: long-term debt climbed to $6.5 billion^c from $4.0 billion, largely to fund acquisitions, and acquisition-related expenses grew to $127 million for the year. For Q1 2025, Amphenol guided to sales of $4.00 to $4.10 billion (up 23% to 26%) and Adjusted Diluted EPS of $0.49 to $0.51 (up 23% to 28%), excluding acquisitions not yet closed. The company expects to close the CommScope OWN and DAS acquisition in Q1 2025, which the guidance does not include.

02—Key points

Key Highlights

Q4 2024 net sales of $4.32B, up 30% in USD and 20% organically; full-year sales of $15.2B, up 21% (13% organic).
Record Q4 Adjusted Operating Margin of 22.4% and full-year Adjusted Operating Margin of 21.7%.
Q4 GAAP diluted EPS of $0.59 (up 44%) and Adjusted Diluted EPS of $0.55 (up 34%); full-year Adjusted Diluted EPS of $1.89 (up 25%).
Operating cash flow of $2.8B and free cash flow of $2.2B for FY2024, with Q4 free cash flow of $648M.
Returned nearly $1.3B to shareholders in 2024, including $689M in buybacks and $595M in dividends paid.
Long-term debt rose to $6.5B from $4.0B, reflecting acquisition financing and new senior note issuance.
Q1 2025 guidance: sales of $4.00–4.10B (up 23–26%) and Adjusted Diluted EPS of $0.49–0.51, excluding pending acquisitions such as CommScope OWN and DAS.

03—Questions

Frequently Asked Questions

How much of Amphenol's 2024 growth came from organic sources versus acquisitions?
Full-year sales grew 21% in U.S. dollars. Organic growth was 13%, currency contributed roughly nothing on a constant-currency basis, and acquisitions contributed about 8 percentage points. In Q4, organic growth was 20% of the 30% total, with acquisitions contributing 10 points.
Did Amphenol beat its guidance?
Management said record Q4 sales and Adjusted Diluted EPS both exceeded the high end of the company's guidance for the quarter.
What is the outlook for Q1 2025?
Amphenol expects Q1 2025 sales of $4.00–4.10B, representing 23–26% growth, and Adjusted Diluted EPS of $0.49–0.51, up 23–28%. The guidance assumes current market conditions and constant exchange rates and excludes acquisitions not yet closed, including CommScope's OWN and DAS businesses.
How did the company's balance sheet change, and should investors be concerned?
Long-term debt increased to $6.5B from $4.0B, and total assets rose to $21.4B from $16.5B, mainly from acquisitions and new debt issuance. Cash also rose to $3.3B. Free cash flow of $2.2B and the company's continued capital returns suggest it can service this debt, but leverage is meaningfully higher and investors should monitor integration results and deleveraging.
What are the main non-GAAP adjustments, and how large are they?
The main adjustments are acquisition-related expenses ($127M pre-tax for FY2024, $0.08 per share after tax), excess tax benefits from stock-based compensation ($0.11 per share for FY2024), a discrete tax benefit ($0.01 per share), and amortization of acquisition inventory step-up ($0.01 per share). The gap between GAAP and adjusted EPS was about $0.03 for the full year and $0.04 in Q4.

04—Continue

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