TE Connectivity Ltd. (TEL) Bundle
A Brief History of TE Connectivity Ltd.
TE Connectivity Ltd. (NYSE: TEL), a global leader in connectivity and sensor solutions, has established a significant presence in various industrial sectors. As of 2024, the company has undergone notable transformations and recorded substantial financial achievements.
Company Overview
Founded in 2007, TE Connectivity has evolved from Tyco Electronics into a robust entity focusing on connectivity and sensor technologies. The company serves a diverse range of markets, including transportation, industrial, medical, and communications.
Financial Performance
For the fiscal year ended September 27, 2024, TE Connectivity reported:
- Net income of $3.19 billion, compared to $1.91 billion in the previous year.
- Diluted earnings per share (EPS) from continuing operations of $10.34, up from $6.01 in 2023.
- Operating income of $2.79 billion, with an operating margin of 17.6%.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income ($ millions) | 3,193 | 1,910 |
| Diluted EPS ($) | 10.34 | 6.01 |
| Operating Income ($ millions) | 2,796 | 2,304 |
| Operating Margin (%) | 17.6 | 14.4 |
Segment Performance
TE Connectivity operates through several key segments:
- Transportation Solutions: Generated net sales of $9.40 billion in 2024, although it saw a slight decline of 2.0% from the previous year.
- Industrial Solutions: Reported sales of $4.48 billion, reflecting a decrease of 1.5% year-over-year.
- Communications Solutions: Achieved net sales of $1.97 billion, an increase of 3.7% compared to 2023.
| Segment | Net Sales 2024 ($ millions) | Net Sales 2023 ($ millions) | Growth Rate (%) |
|---|---|---|---|
| Transportation Solutions | 9,398 | 9,588 | -2.0 |
| Industrial Solutions | 4,481 | 4,551 | -1.5 |
| Communications Solutions | 1,966 | 1,895 | 3.7 |
Cash Flow and Shareholder Returns
TE Connectivity generated strong cash flow, reporting:
- Operating cash flow of $3.48 billion for the year.
- Free cash flow of $2.81 billion, reflecting a robust operational performance.
- Returned approximately $2.8 billion to shareholders, including share repurchases and dividends.
Future Outlook
Looking ahead, TE Connectivity anticipates continued growth driven by advancements in electrification, automation, and connectivity technologies. The company expects first-quarter fiscal 2025 net sales to be approximately $3.9 billion, with adjusted EPS forecasted at $1.88.
For the first quarter of fiscal 2025, TE Connectivity projects:
- GAAP EPS from continuing operations of $1.64.
- Adjusted EPS of $1.88, including expected tax headwinds of $0.04 compared to the previous year.
Recent Developments
As part of its growth strategy, TE Connectivity has reorganized its reporting segments into Transportation Solutions and Industrial Solutions, effective from fiscal 2025. This change aims to enhance operational efficiency and focus on core business areas.
A Who Owns TE Connectivity Ltd. (TEL)
Ownership Structure
As of 2024, TE Connectivity Ltd. (NYSE: TEL) has a diverse ownership structure, including a mix of institutional investors, mutual funds, and individual shareholders.
Institutional Ownership
Institutional investors hold a significant portion of TE Connectivity's shares, reflecting the company's stable market presence. The following table outlines the top institutional shareholders as of the latest data:
| Institution | Shares Held (millions) | % of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 42.5 | 13.5% |
| BlackRock, Inc. | 39.2 | 12.4% |
| State Street Corporation | 25.6 | 8.1% |
| Wellington Management Group LLP | 17.3 | 5.5% |
| Fidelity Management & Research Company | 15.0 | 4.7% |
| Other Institutional Investors | 150.4 | 47.8% |
| Total Institutional Ownership | 290.0 | 92.0% |
Insider Ownership
Insider ownership plays a crucial role in aligning the interests of management with those of shareholders. As of 2024, insider ownership is as follows:
| Insider | Shares Held (thousands) | % of Total Shares |
|---|---|---|
| Terrence Curtin (CEO) | 1,200 | 0.4% |
| Other Executives | 800 | 0.3% |
| Board Members | 500 | 0.2% |
| Total Insider Ownership | 2,500 | 0.8% |
Public Ownership
The remaining shares of TE Connectivity are held by individual investors and the general public. The public ownership is estimated to be around 8% of total shares, making it a relatively small but important segment.
Market Capitalization
TE Connectivity's market capitalization as of October 2024 is approximately $40 billion, reflecting its strong position in the connectivity and sensor technology sector.
Recent Share Performance
The stock price of TE Connectivity has shown resilience, closing at $125.50 on October 30, 2024. The year-to-date performance reflects an increase of approximately 15% compared to the previous year.
Conclusion on Ownership Dynamics
With a robust institutional ownership base and active insider participation, TE Connectivity Ltd. demonstrates a solid governance structure. The blend of institutional and public ownership contributes to its financial stability and strategic growth initiatives.
TE Connectivity Ltd. (TEL) Mission Statement
Mission Statement Overview
TE Connectivity Ltd. is committed to creating a safer, sustainable, productive, and connected future through innovative technology solutions. The company aims to leverage its deep expertise in connectivity and sensor technologies to meet the evolving needs of its customers across various industries.
Key Financial Metrics
As of fiscal year 2024, TE Connectivity has demonstrated robust financial performance, reflecting its strategic objectives and mission statement. Below is a summary of key financial metrics:
| Metric | Q4 FY2024 | Q4 FY2023 | FY2024 | FY2023 |
|---|---|---|---|---|
| Net Sales | $4,068 million | $4,035 million | $15,845 million | $16,034 million |
| Operating Income | $755 million | $699 million | $2,987 million | $2,677 million |
| Diluted EPS | $1.95 | $1.75 | $10.34 | $6.01 |
| Operating Margin | 18.6% | 17.3% | 18.9% | 16.7% |
| Free Cash Flow | $833 million | $945 million | $2,813 million | $2,404 million |
Strategic Initiatives
TE Connectivity focuses on various strategic initiatives that align with its mission statement:
- Innovation in Connectivity: Development of advanced connectivity solutions for automotive, industrial, and communication sectors.
- Sustainability Efforts: Commitment to reducing the environmental impact of its operations and products.
- Operational Excellence: Continuous improvement in operational efficiencies to enhance margins and customer satisfaction.
- Market Leadership: Expanding presence in high-growth markets such as electrification and renewable energy.
Recent Developments
In fiscal 2024, TE Connectivity achieved significant milestones that underscore its mission:
- Authorized a $2.5 billion increase in its share repurchase program, demonstrating confidence in its long-term value creation strategy.
- Reported record earnings per share (EPS) of $1.95 for Q4 2024, reflecting strong operational performance and market demand.
- Implemented a new organizational structure, consolidating its reportable segments into Transportation Solutions and Industrial Solutions for better alignment with market trends.
Market Position and Future Outlook
As of the end of 2024, TE Connectivity maintains a strong market position, supported by its commitment to innovation and customer-centric solutions. The company anticipates continued growth, with projected net sales of approximately $3.9 billion for Q1 FY2025.
How TE Connectivity Ltd. (TEL) Works
Company Overview
TE Connectivity Ltd. (NYSE: TEL) is a global industrial technology leader specializing in connectivity and sensor solutions. As of 2024, the company operates through three primary segments: Transportation Solutions, Industrial Solutions, and Communications Solutions.
Financial Performance
For the fiscal year ending September 27, 2024, TE Connectivity reported:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $15.845 billion | $16.034 billion |
| Gross Margin | $5.456 billion | $5.055 billion |
| Operating Income | $2.796 billion | $2.304 billion |
| Net Income | $3.193 billion | $1.910 billion |
| GAAP EPS | $10.34 | $6.01 |
| Adjusted EPS | $7.56 | $6.01 |
| Operating Margin | 17.6% | 14.4% |
Segment Performance
TE Connectivity's operations are divided into three main segments, each contributing to the overall financial results:
| Segment | Net Sales (2024) | Operating Income (2024) | Operating Margin (2024) |
|---|---|---|---|
| Transportation Solutions | $9.398 billion | $1.847 billion | 19.7% |
| Industrial Solutions | $4.481 billion | $0.588 billion | 13.1% |
| Communications Solutions | $1.966 billion | $0.361 billion | 18.4% |
Cash Flow and Return to Shareholders
In 2024, TE Connectivity generated:
| Metric | Amount |
|---|---|
| Cash Flow from Operating Activities | $3.477 billion |
| Free Cash Flow | $2.813 billion |
| Total Returned to Shareholders | $2.8 billion |
Market Trends and Outlook
TE Connectivity is positioned to capitalize on long-term growth trends, including:
- Electrification in the automotive sector
- Data connectivity advancements
- Renewable energy solutions
- Artificial intelligence applications
For the first quarter of fiscal 2025, TE Connectivity expects net sales of approximately $3.9 billion, with GAAP EPS projected at $1.64 and adjusted EPS at $1.88.
Debt and Equity Position
As of September 27, 2024, TE Connectivity's balance sheet reflects the following:
| Metric | Amount |
|---|---|
| Total Assets | $22.854 billion |
| Total Liabilities | $10.368 billion |
| Long-term Debt | $3.332 billion |
| Shareholders' Equity | $12.355 billion |
Investments and Acquisitions
In 2024, TE Connectivity allocated approximately $340 million for a bolt-on acquisition, further enhancing its market position.
How TE Connectivity Ltd. (TEL) Makes Money
Overview of Revenue Streams
TE Connectivity Ltd. (TEL) operates primarily through three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. For the fiscal year ending September 27, 2024, TE Connectivity reported total net sales of $15.8 billion.
| Segment | Net Sales (2024) | Operating Income (2024) | Operating Margin (2024) |
|---|---|---|---|
| Transportation Solutions | $9.398 billion | $1.847 billion | 19.7% |
| Industrial Solutions | $4.481 billion | $0.588 billion | 13.1% |
| Communications Solutions | $1.966 billion | $0.361 billion | 18.4% |
Transportation Solutions
This segment includes automotive components and solutions for commercial transportation. In 2024, Transportation Solutions generated $9.398 billion in net sales, with a significant contribution from electric and hybrid vehicle components. The operating income for this segment was $1.847 billion, reflecting a robust operating margin of 19.7%.
Industrial Solutions
TE Connectivity's Industrial Solutions segment serves various industries, including energy, medical, and aerospace. In 2024, it achieved net sales of $4.481 billion, with an operating income of $0.588 billion. The operating margin stood at 13.1%.
Communications Solutions
The Communications Solutions segment focuses on connectivity solutions for data and telecommunications. It reported net sales of $1.966 billion in 2024, with an operating income of $0.361 billion, yielding an operating margin of 18.4%.
Financial Performance
For the fiscal year 2024, TE Connectivity reported:
- Total net sales: $15.8 billion
- Gross margin: $5.456 billion
- Operating income: $2.796 billion
- Net income: $3.193 billion
- GAAP diluted earnings per share: $10.34
Cash Flow and Shareholder Returns
In 2024, TE Connectivity generated cash flow from operating activities of approximately $3.5 billion. The free cash flow for the year was $2.8 billion, with approximately $2.8 billion returned to shareholders through dividends and share repurchases.
Future Outlook
TE Connectivity anticipates continued growth in its key segments, driven by trends in electrification and data connectivity. The company expects net sales of approximately $3.9 billion for the first quarter of fiscal 2025.
Segment Performance Summary
The following table summarizes the performance metrics for each segment in fiscal 2024:
| Segment | Net Sales | Operating Income | Operating Margin |
|---|---|---|---|
| Transportation Solutions | $9.398 billion | $1.847 billion | 19.7% |
| Industrial Solutions | $4.481 billion | $0.588 billion | 13.1% |
| Communications Solutions | $1.966 billion | $0.361 billion | 18.4% |
| Total | $15.845 billion | $2.796 billion | 17.6% |
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Article updated on 8 Nov 2024
Resources:
- TE Connectivity Ltd. (TEL) Financial Statements – Access the full quarterly financial statements for Q4 2024 to get an in-depth view of TE Connectivity Ltd. (TEL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TE Connectivity Ltd. (TEL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.