Slide 1: TE Connectivity Second Quarter 2025 Earnings
TE Connectivity Second Quarter 2025 Earnings April 23, 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 Q2 Sales and Earnings Exceeded Guidance, with Record Adjusted EPS Sales of $4.1B, up 5% organically and 4% reported Y/Y, with growth driven by the Industrial Segment Orders of $4.25B, up 6% both Y/Y and sequentially Adjusted Operating Margins of 19.4%, up 90bps Y/Y driven b
Slide 4: Segment Orders Summary
Segment Orders Summary ($ in millions) FY24 FY25 FY25 Q2 Growth Reported Q2 Q1 Q2 Y/Y Q/Q Transportation 2,309 2,151 2,315 0% 8% Transportation orders flat Y/Y driven by growth in Asia, offset by declines in Europe and North America Industrial 1,702 1,860 1,931 13% 4% Industrial segment orders r
Slide 5: Transportation Solutions
Transportation Solutions $ in Millions Automotive Q2 SALES Q2 BUSINESS PERFORMANCE Flat organic sales with growth in Asia, offset by declines in Europe & North America Reported Y/Y Growth Rates Reported Organic Down 4% Commercial Transportation $2,407 $2,314 Automotive $1,735 (2)% 0% Organic dec
Slide 6: Industrial Solutions
Industrial Solutions $ in Millions Digital Data Networks Q2 SALES Q2 BUSINESS PERFORMANCE Strong growth driven by momentum in AI applications across multiple customers Reported Y/Y Growth Reported Organic Automation & Connected Living Up 17% Rates Return to organic growth primarily $1,829 Digita
Slide 7: Q2 Financial Summary
Q2 Financial Summary ($ in Millions, except per share amounts) Q2 FY24 Q2 FY25 Net Sales $ 3,967 $ 4,143 Operating Income $ 692 $ 748 Operating Margin 17.4% 18.1% Acquisition-Related Charges 3 12 Restructuring & Other Charges, Net 40 45 Adjusted Operating Income $ 735 $ 805 Adjusted Operating Margin
Slide 8: Q2 Financial Performance
Q2 Financial Performance SALES ADJUSTED OPERATING MARGIN $ in Billions Organic sales 90bps of up 5% Y/Y margin $4.1 19.4% expansion $4.0 18.5% Q2 2024 Q2 2025 Q2 2024 Q2 2025 ADJUSTED EPS FREE CASH FLOW $ in Billions Up 13% Y/Y Continued $2.10 strong cash $1.86 $1.1 $1.1 generation Q2 2024 Q2 2025 Y
Slide 9: Additional Information
Additional Information EVERY CONNECTION COUNTS
Slide 10: 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 256 0.28 FX Impact (80) - Tax Rate Impact - (0.04) Q2 2025 Results $4,143 $2.10 10 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation.
Slide 11: Y/Y Q3 2025 Sales and Adjusted EPS Guidance
Y/Y Q3 2025 Sales Adjusted EPS (in millions) Q3 2024 Results $3,979 $1.91 Operational Performance 320 0.17 FX Impact 1 0.02 Tax Rate Impact - (0.04) Q3 2025 Guidance $4,300 $2.06 11 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation.
Slide 12: Q2 Balance Sheet and Cash Flow Summary
Q2 Balance Sheet and Cash Flow Summary Free Cash Flow and Working Capital Liquidity, Cash and Debt ($ in Millions) Q2 2024 Q2 2025 ($ in Millions) Q2 2024 Q2 2025 Cash from Operating Activities $710 $653 Beginning Cash Balance $1,170 $1,254 Free Cash Flow 543 424 Capital expenditures, net (167) (229
Slide 13: Appendix
Appendix EVERY CONNECTION COUNTS
Slide 14: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present non-GAAP performance and liquidity measures as Organic Net Sales Growth (Decline) – represents net sales Adjusted Income Tax (Expense) Benefit and Adjusted we believe it is appropriate for investors to consider adjusted growth (decline) (the most comparable
Slide 15: Non-GAAP Financial Measures (cont.)
Non-GAAP Financial Measures (cont.) Adjusted Earnings Per Share – represents diluted earnings cash impact of special items, if any, minus net capital (loss) per share from continuing operations (the most expenditures. Voluntary pension contributions are excluded comparable GAAP financial measure)
Slide 16: Segment Summary
Segment Summary For the Q uarte rs Ende d For the Six Months Ende d March 28, March 29, March 28, March 29, 2025 2024 2025 2024 ($ in millions) Ne t Sale s Ne t Sale s Ne t Sale s Ne t Sale s Transportation Solutions $ 2,314 $ 2,407 $ 4,557 $ 4,800 Industrial Solutions 1,829 1,560 3,422 2,998 Total
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 March 28, 2025 ve rsus Ne t Sale s for the Q uarte r Ende d March 29, 2024 Ne t Sale s O rganic Ne t Sale s Growth (De cline ) Growth (De cline ) (1) Translation (2) Acquisitions ($ in millions) Transportation Solution
Slide 18: Non-GAAP Reconciliation for Quarter Ended March 28, 2025
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 28, 2025 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) Ope
Slide 19: Non-GAAP Reconciliation for 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 (1) (1) U.S. GAAP Charge s Charge s, Ne t (Non-GAAP) (2) ($ in millions, e xce pt pe r share data) Operating income:
Slide 20: Non-GAAP Reconciliation for Six Months Ended March 28, 2025
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 28, 2025 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 21: Non-GAAP Reconciliation for Six Months Ended March 29, 2024
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months 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) Tax Ite ms (2) (Non-GAAP) (3) ($ in millions, e xce pt pe r share data)
Slide 22: Non-GAAP Reconciliation for Quarter Ended June 2024
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 28, 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: T
Slide 23: Non-GAAP Reconciliation for 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 24: Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin For the Q uarte rs Ende d March 28, March 29, 2025 2024 ($ in millions) Net income $ 13 $ 541 Income tax expense 742 146 Other expense, net 1 5 Interest expense 14 19 Interest income (22) (19) Operating income 748 692 Acquisition-related c
Slide 25: Reconciliation of Free Cash Flow
Reconciliation of Free Cash Flow For the Q uarte rs Ende d For the Six Months Ende d March 28, March 29, March 28, March 29, 2025 2024 2025 2024 (in millions) Net cash provided by operating activities $ 653 $ 710 $ 1,531 $ 1,429 Net cash used in investing activities (224) (159) (761) (627) Net cash
Slide 26: 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 June 27, O utlook for 2025 (1) Fiscal 2025 (1) Diluted earnings per share from continuing operations $ 2.02 Restructuring and other charges, net 0.02 Acquisition-rel