Slide 1: TE Connectivity First Quarter 2025 Earnings
TE Connectivity First Quarter 2025 Earnings January 22, 2025 EVERY CONNECTION COUNTS
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements operate, including continuing military conflict in certain parts of the world; This presentation contains certain "forward-looking statements" within the developments in the credit markets; future goodwill impairme
Slide 3: Earnings Highlights
Earnings Highlights Record Adjusted Operating Margins; Q1 EPS Above Guidance Driven by Strong Operational Performance Sales of $3.84B, flat year-over-year Organic sales as expected. Reported sales unfavorably impacted by increased currency exchange headwinds in the quarter Orders of $4.0B, up
Slide 4: Segment Orders Summary
Segment Orders Summary ($ in millions) FY24 FY24 FY25 Q1 Growth Reported Q1 Q4 Q1 Y/Y Q/Q Transportation 2,268 2,224 2,151 (5)% (3)% Transportation orders as expected, reflecting ongoing softness in commercial transportation and sensors end markets Industrial 1,505 1,617 1,860 24% 15% Industrial
Slide 5: Transportation Solutions
Transportation Solutions $ in Millions Automotive Q1 SALES Q1 BUSINESS PERFORMANCE Organic growth in Asia offset by softness in Europe & North America Reported Y/Y Growth Rates Reported Organic Down 6% Commercial Transportation $2,393 $2,243 Automotive $1,722 (4)% (3)% Organic decline driven by
Slide 6: Industrial Solutions
Industrial Solutions $ in Millions Digital Data Networks Q1 SALES Q1 BUSINESS PERFORMANCE Strong growth driven by momentum in AI applications across multiple customers Reported Y/Y Growth Reported Organic Automation & Connected Living Up 11% Rates Organic decline driven by $1,593 Digital Data $1
Slide 7: Q1 Financial Summary
Q1 Financial Summary ($ in Millions, except per share amounts) Q1 FY24 Q1 FY25 Net Sales $ 3,831 $ 3,836 Operating Income $ 698 $ 690 Operating Margin 18.2% 18.0% Acquisition-Related Charges 8 5 Restructuring & Other Charges, Net 25 50 Adjusted Operating Income $ 731 $ 745 Adjusted Operating Margin
Slide 8: Q1 Financial Performance
Q1 Financial Performance SALES ADJUSTED OPERATING MARGIN $ in Billions Organic sales 30bps of flat Y/Y margin 19.4% expansion $3.8 $3.8 19.1% Q1 2024 Q1 2025 Q1 2024 Q1 2025 ADJUSTED EPS FREE CASH FLOW $ in Millions Up 18% Up 6% Y/Y Y/Y $1.95 $674 $1.84 $570 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Margin Ex
Slide 9: Additional Information
Additional Information EVERY CONNECTION COUNTS
Slide 10: Y/Y Q1 2025 Sales and Adjusted EPS
Y/Y Q1 2025 Sales Adjusted EPS (in millions) Q1 2024 Results $3,831 $1.84 Operational Performance 23 0.12 FX Impact (18) 0.03 Tax Rate Impact - (0.04) Q1 2025 Results $3,836 $1.95 10 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation.
Slide 11: Y/Y Q2 2025 Sales and Adjusted EPS
Y/Y Q2 2025 Sales Adjusted EPS (in millions) Q2 2024 Results $3,967 $1.86 Operational Performance 95 0.16 FX Impact (112) (0.01) Tax Rate Impact - (0.05) Q2 2025 Guidance $3,950 $1.96 11 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation.
Slide 12: Q1 Balance Sheet and Cash Flow Summary
Q1 Balance Sheet and Cash Flow Summary Free Cash Flow and Working Capital Liquidity, Cash and Debt ($ in Millions) Q1 2024 Q1 2025 ($ in Millions) Q1 2024 Q1 2025 Cash from Operating Activities $719 $878 Beginning Cash Balance $1,661 $1,319 Free Cash Flow 570 674 Capital expenditures, net (149) (204
Slide 13: Appendix
Appendix EVERY CONNECTION COUNTS
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as Organic Net Sales Growth (Decline) – represents net sales Adjusted Income Tax (Expense) Benefit and Adjusted we believe it is appropriate for investors to consider adjusted growth (decline) (the most comparable
Slide 15: Non-GAAP Financial Measures (cont.)
Non-GAAP Financial Measures (cont.) Adjusted Earnings Per Share – represents diluted earnings cash impact of special items, if any, minus net capital (loss) per share from continuing operations (the most expenditures. Voluntary pension contributions are excluded comparable GAAP financial measure)
Slide 16: Segment Summary
Segment Summary For the Q uarte rs Ende d De ce mbe r 27, De ce mbe r 29, 2024 2023 ($ in millions) Ne t Sale s Ne t Sale s Transportation Solutions $ 2,243 $ 2,393 Industrial Solutions 1,593 1,438 Total $ 3,836 $ 3,831 O pe rating O pe rating O pe rating O pe rating Income Margin Income Margin Tran
Slide 17: Reconciliation of Net Sales Growth
Reconciliation of Net Sales Growth Change in Ne t Sale s for the Q uarte r Ende d De ce mbe r 27, 2024 ve rsus Ne t Sale s for the Q uarte r Ende d De ce mbe r 29, 2023 Ne t Sale s O rganic Ne t Sale s Acquisitions/ Growth (De cline ) Growth (De cline ) (1) Translation (2) (Dive stiture ) ($ in mill
Slide 18: Reconciliation of Non-GAAP Measures, Quarter Ended December 27, 2024
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 27, 2024 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) Tax Ite ms (2) (Non-GAAP) (3) ($ in millions, e xce pt pe r share data)
Slide 19: Reconciliation of Non-GAAP Measures, Quarter Ended December 29, 2023
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended December 29, 2023 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d (1) (1) (2) U.S. GAAP Charge s Charge s, Ne t Tax Ite ms (Non-GAAP) (3) ($ in millions, e xce pt pe r share data)
Slide 20: Reconciliation of Non-GAAP Measures, Quarter Ended March 29, 2024
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 29, 2024 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) (Non-GAAP) (2) ($ in millions, e xce pt pe r share data) Operating income:
Slide 21: Reconciliation of Non-GAAP Measures, Year Ended September 27, 2024
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 27, 2024 Adjustme nts Acquisition- Re structuring Re late d and O the r Adjuste d U.S. GAAP Charge s (1) Charge s, Ne t (1) Tax Ite ms (2) (Non-GAAP) (3) ($ in millions, e xce pt pe r share data) Op
Slide 22: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin For the Q uarte rs Ende d De ce mbe r 27, De ce mbe r 29, 2024 2023 ($ in millions) Net income $ 528 $ 1,803 Loss from discontinued operations — 1 Income tax expense (benefit) 178 (1,105) Other expense, net 1 3 Interest expense 6 18 Intere
Slide 23: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Q uarte rs Ende d De ce mbe r 27, De ce mbe r 29, 2024 2023 (in millions) Net cash provided by operating activities $ 878 $ 719 Net cash used in investing activities (537) (468) Net cash used in financing activities (395) (745) Effect of currency translation
Slide 24: Reconciliation of Forward-Looking Non-GAAP Financial Measures
Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures O utlook for Q uarte r Ending March 28, O utlook for 2025 (1) Fiscal 2025 (1) Diluted loss per share from continuing operations $ (0.05) Restructuring and other charges, net 0.13 Acquisition-rela