Summary
TE Connectivity plc (TEL) has filed its 10-K for the fiscal year ended September 27, 2024. The company, a global industrial technology leader, reported a slight decrease in net sales of 1.2% to $15.845 billion compared to the prior year. This was primarily driven by sales declines in the Transportation Solutions and Industrial Solutions segments, partially offset by growth in Communications Solutions. On an organic basis, net sales remained flat, indicating resilience despite macroeconomic headwinds and foreign currency translation impacts. The company successfully managed its gross margin, which improved due to better manufacturing productivity and pricing actions, despite increased raw material costs. Operating income saw a significant increase of $492 million, largely due to improved gross margins and lower restructuring charges. TE Connectivity also completed a significant strategic move by changing its jurisdiction of incorporation from Switzerland to Ireland, effective September 30, 2024, which is not expected to materially impact operations or financial results. Looking ahead, TE Connectivity anticipates net sales of approximately $3.9 billion for the first quarter of fiscal 2025, with diluted earnings per share projected at $1.64. The company continues to focus on strategic initiatives, including reinvestment in operations, share repurchases, and dividends, underscoring a commitment to shareholder value and long-term growth.
Financial Highlights
53 data points| Revenue | $15.85B |
| Cost of Revenue | $10.39B |
| Gross Profit | $5.46B |
| R&D Expenses | $621.00M |
| SG&A Expenses | $1.73B |
| Operating Income | $2.80B |
| Net Income | $3.19B |
| EPS (Basic) | $10.40 |
| EPS (Diluted) | $10.33 |
| Shares Outstanding (Basic) | 307.00M |
| Shares Outstanding (Diluted) | 309.00M |
Key Highlights
- 1Net sales decreased by 1.2% to $15.845 billion in fiscal 2024, with organic net sales remaining flat year-over-year, demonstrating stable underlying business performance.
- 2Gross margin improved significantly to 34.4% (from 31.5% in fiscal 2023) due to better manufacturing productivity and effective pricing strategies.
- 3Operating income increased by $492 million to $2.796 billion, reflecting improved gross margins and a reduction in restructuring and other charges.
- 4The company completed a strategic redomiciliation from Switzerland to Ireland, effective September 30, 2024, without anticipating material changes to its operations or financial results.
- 5Transportation Solutions, the largest segment (60% of sales), experienced a 2.0% net sales decline, primarily in the sensors and commercial transportation sub-segments, though automotive organic sales saw a modest increase.
- 6Communications Solutions showed the strongest growth with a 3.7% net sales increase, driven by the 'Data and Devices' sub-segment, particularly AI applications.
- 7TE Connectivity repurchased approximately 14 million shares for $1.991 billion in fiscal 2024 and announced an additional $2.5 billion increase to its share repurchase program.