TE Connectivity posted record sales and orders as AI demand lifted both segments

Record orders led the quarter. TE Connectivity reported fiscal third-quarter net sales of $5.16bn, up 14 percent and 12 percent organically, and orders of $5.7bn, up 27 percent, in results for the period ended June 26 and dated July 22. GAAP diluted earnings per share from continuing operations were $2.55, up 19 percent, and adjusted earnings per share were a record $2.94, up 22 percent. Growth came from both segments.

The Industrial segment grew sales more than 20 percent, and Transportation rose 5 percent on an organic basis. Chief executive Terrence Curtin tied the order strength to artificial intelligence demand in the data center and across energy infrastructure. Margins widened. Adjusted operating margin expanded 90 basis points to 22 percent, free cash flow was $883m, and the company has returned $2.0bn to shareholders so far this year.

TE also announced an acquisition. It agreed to buy Astrodyne TDI, a maker of power management and filtering equipment, for about $1.4bn, adding a business with more than $250m in annual sales to the Industrial segment. For the fourth fiscal quarter the company guided to sales of about $5.25bn and adjusted earnings per share of about $3.05, both up double digits.