10-KPeriod: FY2025

TE Connectivity plc Annual Report, Year Ended Sep 26, 2025

Filed November 10, 2025For Securities:TEL

Summary

TE Connectivity plc (TEL) reported solid financial performance for the fiscal year ended September 25, 2025, demonstrating resilience and growth in a dynamic economic environment. The company achieved an 8.9% increase in net sales, reaching $17.3 billion, driven by a robust 23.7% surge in the Industrial Solutions segment, which benefited from strategic acquisitions and strong demand in areas like AI and cloud applications. While the Transportation Solutions segment saw a slight 1.0% dip in net sales, the overall organic net sales growth of 6.4% indicates underlying business strength. Key strategic moves included the significant acquisition of Richards Manufacturing for $2.3 billion, which is expected to bolster the Industrial Solutions segment, and a domicile change from Switzerland to Ireland in fiscal 2024, with no anticipated material impact on operations. The company also continued its capital return strategy, with $1.4 billion in share repurchases and consistent dividend payments, underscoring a commitment to shareholder value.

Financial Highlights

53 data points
Beta

Revenue

$17.26B

35.2% Gross Margin

Net Income

$1.84B

10.7% Net Margin

EPS (Diluted)

$6.16

Total Assets

$25.08B

Cash & Equivalents

$1.25B

Free Cash Flow

$3.20B

Financial Statements
Beta
Revenue$17.26B
Cost of Revenue$11.18B
Gross Profit$6.08B
R&D Expenses$699.00M
SG&A Expenses$1.87B
Operating Income$3.21B
Net Income$1.84B
EPS (Basic)$6.20
EPS (Diluted)$6.16
Shares Outstanding (Basic)297.00M
Shares Outstanding (Diluted)299.00M

Key Highlights

  • 1Net sales increased by 8.9% to $17.3 billion in fiscal 2025, up from $15.8 billion in fiscal 2024.
  • 2Industrial Solutions segment experienced significant growth, with net sales up 23.7% to $7.9 billion, driven by demand in digital data networks, energy, and automation.
  • 3Acquisition of Richards Manufacturing for $2.3 billion in April 2025, expected to strengthen the Industrial Solutions segment.
  • 4Overall organic net sales grew by 6.4%, demonstrating underlying business performance.
  • 5The company returned $1.4 billion to shareholders through share repurchases during fiscal 2025.
  • 6Consolidated gross margin improved to 35.2% from 34.4% year-over-year, indicating enhanced operational efficiency.
  • 7Net cash provided by operating activities increased by $662 million to $4.1 billion.

Frequently Asked Questions

The primary driver of TE Connectivity's net sales growth in fiscal 2025 was the strong performance of its Industrial Solutions segment, which saw a 23.7% increase in net sales. This growth was fueled by demand in digital data networks, automation, energy, and aerospace markets, as well as the recent acquisition of Richards Manufacturing.

The Transportation Solutions segment experienced a slight decline of 1.0% in net sales for fiscal 2025. This was primarily due to sales decreases in the sensors and commercial transportation end markets, impacted by shifts in platform mix and vehicle production levels in certain regions.

TE Connectivity continues to pursue strategic acquisitions to bolster its business segments, notably the acquisition of Richards Manufacturing in fiscal 2025. The company also remains committed to returning capital to shareholders through consistent dividend payments and significant share repurchase programs, as evidenced by $1.4 billion in repurchases during fiscal 2025.

TE Connectivity has been proactively managing inflationary cost pressures and supply chain disruptions through productivity improvements, price increases, cost management initiatives such as restructuring, and reducing discretionary spending. They have also focused on managing capital resources and monitoring capital availability.