TE Connectivity Ltd. (NYSE:TEL) delivered better-than-expected third-quarter results on Wednesday, buoyed by outstanding performance in its Industrial segment and record-setting operational metrics.
Following the announcement, shares edged up 0.99% in premarket trading.
The industrial technology firm reported adjusted earnings per share of $2.27, topping Wall Street’s estimate of $2.08. Revenue climbed to a record $4.5 billion, surpassing the projected $4.32 billion and increasing 14% year-over-year—or 9% on an organic basis.
“TE’s strong third quarter results above guidance demonstrate how the diversity of our portfolio and global positioning enable us to achieve record performance in a dynamic environment,” said CEO Terrence Curtin.
The company also posted a record adjusted operating margin of 19.9%, helping to drive new quarterly highs in both adjusted earnings and cash flow.
The Industrial segment was a major growth driver, recording a 30% jump in sales, supported by robust demand for high-speed connectivity in AI applications and strong performance in the energy division. The Transportation segment also posted gains, helped by momentum in Asia and innovations in electrification and vehicle data solutions, despite a dip in vehicle production.
TE Connectivity generated $962 million in free cash flow for the quarter, with cash from operating activities totaling roughly $1.2 billion.
Looking to the fourth quarter, the company forecast revenue of approximately $4.55 billion, ahead of the $4.404 billion analyst consensus. It also expects adjusted EPS of $2.27, outpacing estimates of $2.13.
Additionally, TE closed its $2.3 billion acquisition of Richards in Q3, further enhancing its Industrial business.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.