TE Connectivity Reports 4.4% Net Sales Increase to $4.143 Billion in Q2 Fiscal 2025

TE Connectivity plc reported its financial results for the second quarter and first six months of fiscal 2025, revealing a net sales increase of 4.4% to $4.143 billion for the quarter, compared to $3.967 billion in the same period last year. For the first half of the fiscal year, net sales rose 2.3% to $7.979 billion, up from $7.798 billion. The company’s operating income for the quarter was $748 million, a 8.1% increase from $692 million in the prior year, while net income was $13 million, a significant decrease from $541 million in the same quarter last year, primarily due to a substantial increase in income tax expense.

The results reflect a mixed performance across its segments. The Transportation Solutions segment saw a decline in net sales of 3.9% for the quarter and 5.1% for the first six months, attributed to decreased demand across all end markets. In contrast, the Industrial Solutions segment experienced a 17.2% increase in net sales for the quarter and a 14.1% increase for the first half, driven by strong performance in digital data networks, energy, and aerospace markets. The company also noted that organic net sales growth was 5.3% for the quarter and 2.7% for the first six months, indicating underlying demand trends.

TE Connectivity has been active in strategic acquisitions, having acquired two businesses for a total of $321 million during the first half of fiscal 2025, which are now part of the Industrial Solutions segment. Additionally, on April 1, 2025, the company announced the acquisition of Richards Manufacturing Co. for approximately $2.3 billion, further expanding its capabilities in the energy sector. The company has also restructured its segments to align with its fiscal 2025 strategy, consolidating various product lines to enhance operational efficiency.

Operationally, TE Connectivity reported a net cash provided by operating activities of $1.531 billion for the first six months, an increase from $1.429 billion in the prior year. The company’s total debt increased to $5.614 billion as of March 28, 2025, up from $4.203 billion at the end of the previous fiscal year, reflecting its financing activities related to acquisitions. The company has also authorized a $2.5 billion increase in its share repurchase program, indicating a commitment to returning value to shareholders.

Looking ahead, TE Connectivity expects net sales for the third quarter of fiscal 2025 to be approximately $4.3 billion, with anticipated growth in the Industrial Solutions segment offset by declines in Transportation Solutions. The company projects diluted earnings per share from continuing operations to be around $2.02, factoring in current market conditions and pricing strategies. The outlook reflects the company's ongoing efforts to navigate market challenges while pursuing growth opportunities through strategic acquisitions and operational improvements.