Amphenol Corporation's Stock Drops Despite Record Trading Volume and 22nd Market Ranking

Amphenol Corporation (APH) experienced a significant decline in its stock price, falling 1.05% over two consecutive days, resulting in a total decrease of 2.89%. Despite this downturn, the company's recent financial performance has been robust, with a trading volume of $30.43 billion on July 23, 2025, marking a 237.68% increase from the previous day and ranking 22nd in the market for the day.

Amphenol reported record second-quarter 2025 results, with sales reaching $5.7 billion, a 57% increase in U.S. dollars and a 41% organic growth compared to the same period in 2024. The company's adjusted earnings per share (EPS) surged by 84% to $0.81, surpassing analyst estimates by 21%. This strong performance was driven by a 91% year-over-year increase in revenue from the communications segment, which reached $2.91 billion.

The company's total sales for the second quarter of 2025 were $5.65 billion, reflecting a 57% increase in U.S. dollars, 56% in local currencies, and 41% organically compared to the same period in 2024. Sequentially, sales rose by 17% in U.S. dollars from the previous quarter. Amphenol's orders reached a record $5.523 billion, up 36% year-over-year and 44% sequentially, resulting in a book-to-bill ratio of 0.98:1.

Amphenol's GAAP operating income for the quarter was $1.419 billion, with a 25.1% margin, including $29 million in acquisition-related costs. The adjusted operating margin reached a record 25.6%, up 430 basis points from the prior quarter and 210 basis points sequentially. The company's adjusted diluted EPS increased by 84% to a record $0.81, compared to $0.44 in the second quarter of 2024. GAAP diluted EPS was $0.86 in the second quarter, up 110% compared to the prior year period.

Operating cash flow for the second quarter was a record $1.417 billion, or 130% of net income, while free cash flow was $1.122 billion, or 103% of net income. The company repurchased 2 million shares at an average price of $78, with a total capital return to shareholders of $360 million. Net debt as of June 30 was $4.8 billion, with total liquidity of $6.2 billion. The company's net leverage ratio was 0.9 times at the quarter's end.

Amphenol's third-quarter guidance projects sales of $5.4 billion to $5.5 billion and adjusted diluted EPS of $0.77 to $0.79, representing expected sales growth of 34%-36% and EPS growth of 54%-58%. The company's acquisition of Narda Mitek for approximately $300 million added $120 million in annual sales in the defense space. EBITDA, excluding acquisition-related costs, was $1.7 billion, with no borrowings outstanding under the revolving credit facility or commercial paper programs as of June 30.