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- **Revenue Records**: Q4 2025 sales of $4.75B (+17% YoY), full-year $17.3B (+9% YoY), with AI revenue tripling to $900M.
- **Profit Growth**: Adjusted EPS $2.44 (+25% YoY), free cash flow $3.2B (+14% YoY), 100%+ conversion to net income.
- **AI Expansion**: FY26 AI revenue to grow ~$600M, non-AI cloud business doubles to $500M, supported by $200M+ capex.
- **Margin Momentum**: 20% adjusted operating margin for FY25, 30%+ EPS flow-through on organic growth, Q1 2026 guidance of $2.53 EPS (+23% YoY).
- **Strategic Moves**: $2.6B in bolt-on M&A, $2.2B shareholder returns, and localization strategy to drive 4-6% content growth over market in auto.

**【CEO Summary Section】**
- **Record Financial Performance**: Q4 2025 revenue reached $4.75 billion (17% YoY growth), with full-year sales of $17.3 billion (9% YoY). Adjusted EPS was $2.44, up 25% YoY, and free cash flow hit $3.2 billion (14% YoY growth).
- **AI Growth Momentum**: AI-related revenue tripled to $900 million in FY25, driven by hyperscale platforms. Q1 2026 guidance includes $4.5 billion in sales and $2.53 EPS, reflecting 17% YoY growth.
- **Segment Strength**: Industrial segment grew 34% Q4, led by Digital Data Networks (80% YoY growth). Transportation saw 2% organic growth in auto, with content growth over market expected at 4-6% YoY.

**【CFO Financial Commentary】**
- **Profitability Metrics**: Adjusted operating margin of 20% for FY25, up 80bps YoY. Free cash flow conversion exceeded 100%, with $2.2 billion returned to shareholders via buybacks and dividends.
- **Non-GAAP Changes**: Starting Q1 2026, intangible amortization will be excluded from non-GAAP measures, adding ~$0.15 per quarter to EPS. Full-year tax rate expected at 23%.
- **Capital Deployment**: $2.6 billion in bolt-on acquisitions (e.g., Richards Energy) and $200 million+ in capex for AI/hyperscale growth.

**【Q&A Highlights】**
- **AI Expansion**: CEO projects AI revenue to grow ~$600 million in FY26, with non-AI cloud business doubling to $500 million. Margins in Industrial segment expected to expand due to scale and program wins.
- **EV Impact**: Content growth in Transportation driven by data connectivity and electrification, offsetting Western auto market weakness. Q1 2026 auto production forecast at 87-88 million units.
- **Margin Dynamics**: CFO notes 30%+ EPS flow-through on organic growth, with sequential margin expansion in Q1 2026 driven by Transportation segment.
- **M&A Strategy**: Focus on bolt-on acquisitions (e.g., Harger, Richards) to support secular growth trends in energy, AI, and connectivity.

TE Connectivity plc (TEL) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

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Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Net Income

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TEL

TEL fundamentals

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