TE Connectivity TEL 2025Q3 Earnings Preview Upside Potential on Richards Acquisition

Forward-Looking Analysis
TE Connectivity is poised for an optimistic Q3 2025 earnings report, supported by the recent acquisition of Richards Manufacturing Co. The company predicts an 8% increase in net sales, reaching approximately $4.30 billion. Analysts forecast diluted EPS to rise by 8.4%, reaching $2.07 per share, compared to $1.91 in the same quarter last year. The company's strong operational performance, demonstrated by a record adjusted EPS last quarter, continues to drive momentum. The acquisition enhances TE Connectivity's presence in the North American utility market, providing strategic growth opportunities. Despite potential tax rate headwinds, the firm remains confident in navigating the trade environment, leveraging its manufacturing facilities near customers. TE Connectivity's ongoing investment in AI, aerospace, and energy applications further positions the company for sustained growth amid an uncertain macroeconomic climate. Analysts maintain a "Buy" rating, although they predict a slight decrease in stock price to $168.

Historical Performance Review
In Q2 2025, TE Connectivity reported net sales of $4.14 billion, reflecting a 4% year-over-year increase. The company achieved a net income of $13 million, with an EPS of $0.04. Gross profit reached $1.46 billion, showcasing robust operational performance. The adjusted EPS set a company record at $2.10, marking a 13% increase from the previous year. The Industrial segment experienced double-digit growth, contributing significantly to the quarterly results.

Additional News
TE Connectivity has completed the acquisition of Richards Manufacturing Co., strengthening its foothold in the North American utility market. The strategic move aims to capitalize on growth opportunities within the region. The company has announced a 9% dividend increase, returning approximately $1 billion to shareholders. TE Connectivity has issued its One Connected World corporate responsibility report, highlighting an 80% reduction in Scope 1 & 2 greenhouse gas emissions over the past four years. The firm expects to double AI sales to $600 million, underscoring its commitment to advancing in industrial technology growth trends. With a trailing EPS of $4.55, analysts forecast earnings growth from $8.05 to $8.91 per share in the coming year.

Summary & Outlook
TE Connectivity exhibits strong financial health, driven by strategic acquisitions and robust operational performance. The Richards acquisition serves as a growth catalyst, enhancing the company's market position and future prospects. TE Connectivity's commitment to innovation and sustainability further supports a bullish outlook. While tax rate headwinds pose potential risks, the company's strategic manufacturing investments and focus on AI, aerospace, and energy applications bolster confidence in continued growth. Analysts maintain a positive stance, supported by the company's ability to navigate the trade environment and capitalize on long-term industrial technology trends. The outlook remains bullish, emphasizing sustained value creation for customers and shareholders.