01—Abstract
Summary
Summary of the 10-Q filed July 25, 2025. Cited figures are marked; the original filing is the authoritative source.
TE Connectivity plc (TEL) reported a strong third quarter for fiscal year 2025, with net sales increasing by 13.9% year-over-year to $4.534 billiona.
This growth was driven by robust performance in the Industrial Solutions segment, which saw a 30.0% sales increase, and a more modest 2.8% increase in the Transportation Solutions segment. The company also reported improved gross margins, reflecting higher volumes and manufacturing efficiencies. The acquisition of Richards Manufacturing Co. for $2.3 billionb in April 2025 significantly contributed to the Industrial Solutions segment's performance and overall revenue growth.
For the first nine months of fiscal 2025, net sales grew 6.2% to $12.513 billionc, with the Industrial Solutions segment showing a 19.7% increase and Transportation Solutions experiencing a 2.5% decline. Diluted earnings per share from continuing operations for the quarter were $2.14, a slight increase from $1.86 in the prior year's quarter. The company has raised its full-year outlook for net sales to approximately $4.55 billion for the fourth quarter, indicating continued confidence in its growth trajectory, supported by organic growth and strategic acquisitions.
02—Key points
Key Highlights
- Net sales surged by 13.9% to $4.534 billion in Q3 FY2025, driven by strong performance in both segments, particularly Industrial Solutions (+30.0%).
- The acquisition of Richards Manufacturing Co. for $2.3 billion in April 2025 significantly contributed to the Industrial Solutions segment's growth and overall revenue.
- Gross margin improved to 35.3% from 34.8% in the prior year's quarter, reflecting higher volumes and manufacturing efficiencies.
- Diluted EPS from continuing operations increased to $2.14 in Q3 FY2025 from $1.86 in Q3 FY2024.
- Operating income rose by $102 million to $857 million in Q3 FY2025, with the Industrial Solutions segment showing substantial growth.
- The company reaffirmed its positive outlook, expecting Q4 FY2025 net sales of approximately $4.55 billion and diluted EPS of $2.18.
- Net cash provided by operating activities remained strong at $2.718 billion for the first nine months of fiscal 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, TE Connectivity plc kept $0.14.
- Revenue$4.53B100.0%
- Cost of revenue−$2.93B64.7%
- Gross profit$1.60B35.3%
- Operating costs−$743.0M16.4%
- Operating income$857.0M18.9%
- Interest, other & tax−$219.0M4.8%
- Net income$638.0M14.1%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed July 25, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $4.53B$3.98B | +13.9% |
| Cost of Revenue | $2.93B$2.59B | +13.2% |
| Gross Profit | $1.60B$1.39B | +15.4% |
| SG&A Expenses | $491.00M$431.00M | +13.9% |
| Operating Income | $857.00M$755.00M | +13.5% |
| Net Income | $638.00M$573.00M | +11.3% |
| EPS (Basic) | $2.16$1.87 | +15.5% |
| EPS (Diluted) | $2.14$1.86 | +15.1% |
| Shares Outstanding (Basic) | 296.00M306.00M | −3.3% |
| Shares Outstanding (Diluted) | 298.00M308.00M | −3.2% |
05—Questions
Frequently Asked Questions
What drove the significant increase in net sales for TE Connectivity in the third quarter of fiscal 2025?
The 13.9% increase in net sales to $4.534 billion was primarily driven by strong organic net sales growth of 9.1% and the positive impact of acquisitions, notably the significant contribution from the recently acquired Richards Manufacturing Co. The Industrial Solutions segment, in particular, experienced a 30.0% sales increase, bolstered by growth in areas like digital data networks and energy.
How did the acquisition of Richards Manufacturing Co. impact the company's financial performance?
The acquisition of Richards Manufacturing Co. in April 2025 for approximately $2.3 billion contributed $73 million in net sales during the third quarter of fiscal 2025. It was a key driver of the Industrial Solutions segment's 30.0% revenue growth and added $1.142 billion in goodwill to the balance sheet. The acquisition is expected to contribute to cost savings and operational synergies.
What is the company's outlook for the fourth quarter of fiscal 2025?
TE Connectivity expects net sales for the fourth quarter of fiscal 2025 to be approximately $4.55 billion, an increase from $4.07 billion in the prior year's quarter. This outlook is supported by expected sales growth in the Industrial Solutions segment, benefiting from the Richards Manufacturing acquisition. Diluted earnings per share from continuing operations are projected to be around $2.18.
Are there any significant changes in the company's reporting segments?
Yes, effective for fiscal year 2025, TE Connectivity reorganized its management and segments into two reportable segments: Transportation Solutions and Industrial Solutions. Prior period segment results have been recast to align with this new structure. This change aims to better align the organization with the company's current strategy.
06—Continue