Q1 2026 TE Connectivity PLC Earnings Call Transcript
Key Points
- TE Connectivity PLC (TEL) reported over 20% sales growth in the first quarter, with growth in both segments.
- The company achieved record orders of over $5 billion, indicating strong demand across its businesses.
- Adjusted earnings per share reached a record $2.72, surpassing guidance and increasing over 30% year-over-year.
- The Industrial Solutions segment saw a significant sales increase of 38% in the quarter, with Digital Data Networks growing 70% year-over-year.
- TE Connectivity PLC (TEL) demonstrated strong cash generation, with free cash flow exceeding $600 million and 100% of it returned to shareholders.
- The company anticipates a typical seasonal decline in the Transportation segment due to auto production trends.
- TE Connectivity PLC (TEL) faces ongoing macroeconomic unevenness, which could impact future performance.
- There is pressure from rising metal prices, which could affect procurement costs and require price adjustments.
- The company expects restructuring charges to be approximately $100 million for fiscal 2026.
- TE Connectivity PLC (TEL) is increasing capital expenditures to support growth, which may impact short-term cash flow.
Everyone, thank you for standing by, and welcome to the TE Connectivity first quarter earnings call for fiscal year 2026. (Operator Instructions) 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 our outlook for the second quarter of fiscal 2026. 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. We ask you to review the sections of our press release and the accompanying slide presentation that address the use of these items.
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