Amphenol Corporation (APH) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

As a reminder, during the call, we may refer to certain non-GAAP financial measures and make certain forward-looking statements, so please refer to the relevant disclosures in our press release for further information. The company closed the second quarter of 2025 with record sales of $5,650,000,000 and record GAAP and adjusted diluted EPS of 86 cents and 81 cents, respectively. Second quarter sales were up 57% in US dollars, 56% in local currencies, and 41% organically compared to the second quarter of 2024. Sequentially, sales were up 17% in U.S. dollars, 16% in local currencies, and 14% organically. Adam will comment further on trends by market in a few minutes. Orders in the quarter were a record $5,523,000,000, up a strong 36% compared to the second quarter of 2024, and up 4% sequentially. resulting in a book-to-bill ratio of 0.98 to 1. Gap operating income was $1,419,000,000 in the quarter, and gap operating margin was a record 25.1%. Gap operating margin included $29,000,000 of acquisition-related costs. Excluding these acquisition-related costs, adjusted operating income in the second quarter of 2025 was $1,448,000,000 resulting in a record adjusted operating margin of 25.6%. On an adjusted basis, operating margin increased by a strong 430 basis points from the prior quarter and 210 basis points sequentially. The year-over-year increase in adjusted operating margin was primarily driven by strong operating leverage on the significantly higher sales volumes, which was only modestly offset by the diluted impact of acquisitions. On a sequential basis, the increase in adjusted operating margin reflected strong conversion on the higher sales levels, as well as further progress on the profitability improvement initiatives on acquisitions. I'm extremely proud of the ...