TEL
TE Connectivity plc226.91
-3.79-1.64%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q1 '26
AI forecast up $200M on new wins
Q&A confirmed AI revenue for FY2026 will exceed Investor Day expectations by $200 million, driven by new hyperscaler program awards ramping in H2 and into 2027, prompting CapEx hikes to 6% of sales. Orders excluding DDN still rose double-digits, with ACL factory automation recovering across regions and commercial transportation strengthening outside North America—yet U.S. trucks lag. Management dismissed capacity constraints or memory risks, stressing quick pass-through of metal inflation. Incrementals hit 30%+ for the year. Broad momentum reassures, but investors will eye AI ramps and cyclical recoveries.
Key Stats
Market Cap
66.84BP/E (TTM)
36.90Basic EPS (TTM)
6.15Dividend Yield
0.01%Recent Filings
8-K
AGM approves directors, auditors
TE Connectivity shareholders overwhelmingly approved all 13 director nominees at the March 11, 2026 AGM, with support exceeding 91% despite pockets of dissent up to 8% for Talwalkar and Wright. They ratified Deloitte as auditors (97.8%), backed executive pay (92.1%), and authorized share repurchases and re-allotments near 100%. Board continuity intact.
8-K
Doubles revolver to $3B
TE Connectivity doubled its revolving credit facility to $3B on February 13, 2026, replacing the prior $1.5B agreement maturing 2029—no penalties incurred. The new five-year deal matures February 13, 2031, backs commercial paper, and permits $1B expansion. Debt-to-EBITDA covenant caps at 3.75x, stepping to 4.25x post-qualified acquisition. Bigger liquidity, longer runway.
8-K
TEGSA prices $750M notes
TE Connectivity's subsidiary TEGSA issued $200M of 4.500% senior notes due 2031, fungible with $450M existing ones for $650M total, and $550M of 4.875% notes due 2036 on February 9, 2026. Net proceeds of $745.5M will repay 2026 maturities and fund general purposes. Debt refinances shorter-term obligations.
10-Q
Q1 FY2026 results
TE Connectivity surged to $4.7B net sales in Q1 FY2026 ended December 26, 2025, up 21.7% y/y from $3.8B, with Industrial Solutions leaping 38% on digital data networks and energy while Transportation grew 10% via automotive. Gross margin expanded to 37.2% from 35.5%, driving operating income to $963M (20.6% margin, +39% y/y) despite lighter $10M restructuring. Diluted EPS hit $2.53 on 297M shares, matching reported net income of $750M. Cash from operations stayed robust at $865M, funding $258M capex and $406M buybacks; total debt ~$5.7B with $1.5B revolver available, no covenants breached. Sales boomed across Asia-Pacific, EMEA, Americas. Strong quarters ahead. Yet trade compliance probes loom.
8-K
Q1 crushes: 22% sales, 33% EPS growth
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