Q1 2025 TE Connectivity PLC Earnings Call Transcript
Key Points
- TE Connectivity PLC (TEL) achieved record adjusted operating margin and EPS, surpassing guidance.
- The company reported record first-quarter free cash flow of $674 million, up 18% year over year.
- Orders grew to $4 billion, exceeding expectations and supporting a positive outlook for the second quarter.
- The Industrial Solutions segment experienced double-digit growth, driven by strong performance in digital data networks and aerospace, defense, and marine markets.
- TE Connectivity PLC (TEL) was included in the Dow Jones Sustainability Index for the 13th year, highlighting its commitment to sustainable business practices.
- The company faces unfavorable currency exchange headwinds, expected to exceed $300 million for fiscal 2025.
- Sales in the Transportation segment were down 3% organically, with declines in Western regions offsetting growth in Asia.
- The Sensors business experienced a sales decline due to weakness in broader industrial markets in Europe and North America.
- The Medical business saw a 25% decline, attributed to inventory normalization by customers.
- Commercial transportation sales were down 12% organically, driven by heavy truck production weakness in Europe and North America.
Everyone, thank you for standing by and welcome to the TE Connectivity first-quarter earnings call for fiscal year 2025. (Operator Instructions)
And as a reminder, today's call is being recorded. I would now like to turn the conference over to our host, Vice President of Investor Relations, Sujal Shah. Please go ahead.
Good morning and thank you for joining our conference call to discuss TE Connectivity's first-quarter results and outlook for our second quarter of fiscal 2025. With me today are Chief Executive Officer, Terrence Curtin; and Chief Financial Officer Heath Mitts.
During this call, we will be providing certain forward-looking information, and we ask you to review the forward-looking cautionary statements included in today's press release. In addition, we will use certain non-GAAP measures in our discussion this morning, and we ask you to review the sections of our press release and the accompanying slide presentation that address the use of these items. The press
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