Technology

TE Connectivity announces third quarter results for fiscal year 2024

Published

2 years ago

July 24, 2024

Delivered EPS above guidance driven by strong margin expansion; Record year-to-date cash flow

SCHAFFHAUSEN, Switzerland, July 24, 2024 /PRNewswire/ — TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal third quarter ended June 28, 2024.

Third Quarter Highlights

Net sales were $4.0 billion, in line with guidance, down 1% on a reported basis year over year and up 2% organically.GAAP diluted earnings per share (EPS) from continuing operations were $1.86, up 11% year over year. Adjusted EPS exceeded guidance at $1.91, a quarterly record and up 8% year over year.Orders were $4.1 billion, up 4% year over year and 3% sequentially, driven by momentum in artificial intelligence programs.Operating margins were 19% and adjusted operating margins were 19.3%, up 200 basis points year over year and a quarterly record, driven by strong operational performance.Generated record cash flow year to date, including:Cash from operating activities of $2.4 billion, up 22% year over year.Free cash flow of approximately $2.0 billion, up 36% year over year.Deployed over $2.2 billion of capital year to date, with $1.8 billion returned to shareholders

“I’m pleased that our team continued to navigate a dynamic market environment to deliver another strong quarter of performance, highlighted by operating margin expansion of 200 basis points, delivering EPS above guidance and record cash flow generation,” said TE Connectivity CEO Terrence Curtin. “In our Transportation Segment, our automotive business grew 4% organically despite a decline in auto production, and three out of four businesses in our Industrial segment continued their growth trajectories. In our Communications segment, we achieved sales growth of more than 20% along with record orders, driven by momentum in artificial intelligence programs where we are well positioned with multiple customers. We expect to deliver year-over-year earnings growth and margin expansion in the fourth quarter as well as double-digit earnings growth for the full year. As we look to the future, we continue to invest in key long-term growth trends to innovate alongside our valued customers around the world.”

Fourth Quarter FY24 Outlook
For the fourth quarter of fiscal 2024, the company expects net sales of approximately $4.0 billion. GAAP EPS from continuing operations is expected to be approximately $1.80, up 3% year over year, with adjusted EPS of approximately $1.94, up 9% year over year. Fourth quarter guidance includes a $0.10 year-over-year headwind from tax and currency exchange rates.

Information about TE Connectivity’s use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.

Conference Call and Webcast
The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:

At TE Connectivity’s website: investors.te.comBy telephone: For both “listen-only” participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (800) 715-9871 and for international callers, the dial-in number is (646) 307-1963.A replay of the conference call will be available on TE Connectivity’s investor website at investors.te.com at 11:30 a.m. ET on July 24, 2024.

About TE Connectivity
TE Connectivity Ltd. (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, renewable energy, automated factories, data centers, medical technology and more. With more than 85,000 employees, including 8,000 engineers, working alongside customers in approximately 140 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat, Instagram and X (formerly Twitter).

Non-GAAP Financial Measures
We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans.Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any.Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.

Forward-Looking Statements
This release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. In addition, our proposed change of incorporation from Switzerland to Ireland is subject to risks, such as the risk that the change of place of incorporation might not be completed or, if completed, that the anticipated advantages might not materialize, as well as the risks that the price of our stock could decline and our position on stock exchanges and indices could change, and Irish corporate governance and regulatory schemes could prove different or more challenging than currently expected. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions, such as the coronavirus disease 2019 (“COVID-19”) negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. In addition, the extent to which COVID-19 will impact our business and our financial results will depend on future developments, which are highly uncertain and cannot be predicted. More detailed information about these and other factors is set forth in TE Connectivity Ltd.’s Annual Report on Form 10-K for the fiscal year ended Sept 29, 2023, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.

TE CONNECTIVITY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Quarters Ended

For the Nine Months Ended

June 28,

June 30,

June 28,

June 30,

2024

2023

2024

2023

(in millions, except per share data)

Net sales

3,979

3,998

11,777

11,999

Cost of sales

2,593

2,699

7,704

8,229

Gross margin

1,386

1,299

4,073

3,770

Selling, general, and administrative expenses

431

1,299

1,258

Research, development, and engineering expenses

189

176

546

534

Acquisition and integration costs

Restructuring and other charges, net

283

Operating income

755

630

2,145

1,669

Interest income

Interest expense

(18)

(20)

(55)

(61)

Other expense, net

(3)

(4)

(11)

(13)

Income from continuing operations before income taxes

754

624

2,140

1,634

Income tax (expense) benefit

(181)

(96)

778

(283)

Income from continuing operations

573

528

2,918

1,351

Income (loss) from discontinued operations, net of income taxes

—

(1)

Net income

573

528

2,917

1,358

Basic earnings per share:

Income from continuing operations

1.87

1.68

9.47

4.28

Income (loss) from discontinued operations

—

0.02

Net income

1.87

1.68

9.47

4.30

Diluted earnings per share:

Income from continuing operations

1.86

1.67

9.41

4.25

Income (loss) from discontinued operations

—

0.02

Net income

1.86

1.67

9.41

4.27

Weighted-average number of shares outstanding:

Basic

306

315

308

316

Diluted

308

317

310

318

TE CONNECTIVITY LTD.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 28,

September 29,

2024

2023

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

1,469

1,661

Accounts receivable, net of allowance for doubtful accounts of $37 and $30, respectively

2,889

2,967

Inventories

2,669

2,552

Prepaid expenses and other current assets

686

712

Total current assets

7,713

7,892

Property, plant, and equipment, net

3,758

3,754

Goodwill

5,664

5,463

Intangible assets, net

1,177

1,175

Deferred income taxes

3,768

2,600

Other assets

818

828

Total assets

22,898

21,712

Liabilities, redeemable noncontrolling interests, and shareholders’ equity

Current liabilities:

Short-term debt

1,249

682

Accounts payable

1,662

1,563

Accrued and other current liabilities

2,206

2,218

Total current liabilities

5,117

4,463

Long-term debt

2,953

3,529

Long-term pension and postretirement liabilities

720

728

Deferred income taxes

186

185

Income taxes

386

365

Other liabilities

781

787

Total liabilities

10,143

10,057

Commitments and contingencies

Redeemable noncontrolling interests

123

104

Shareholders’ equity:

Common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, and 322,470,281 shares authorized and issued, respectively

139

142

Accumulated earnings

14,253

12,947

Treasury shares, at cost, 12,129,385 and 10,487,742 shares, respectively

(1,647)

(1,380)

Accumulated other comprehensive loss

(113)

(158)

Total shareholders’ equity

12,632

11,551

Total liabilities, redeemable noncontrolling interests, and shareholders’ equity

22,898

21,712

TE CONNECTIVITY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

For the Nine Months Ended

June 28,

June 30,

June 28,

June 30,

2024

2023

2024

2023

(in millions)

Cash flows from operating activities:

Net income

573

528

2,917

1,358

(Income) loss from discontinued operations, net of income taxes

—

(7)

Income from continuing operations

573

528

2,918

1,351

Adjustments to reconcile income from continuing operations to net cash provided by operating activities:

Depreciation and amortization

208

200

594

Deferred income taxes

(51)

(1,190)

(121)

Non-cash lease cost

100

106

Provision for losses on accounts receivable and inventories

Share-based compensation expense

100

Impairment of held for sale business

—

Other

(11)

Changes in assets and liabilities, net of the effects of acquisitions and divestitures:

Accounts receivable, net

(202)

Inventories

114

(50)

(127)

(323)

Prepaid expenses and other current assets

(5)

(30)

Accounts payable

(36)

Accrued and other current liabilities

(37)

(324)

(14)

Income taxes

Other

(22)

(12)

185

Net cash provided by operating activities

1,006

779

2,435

1,994

Cash flows from investing activities:

Capital expenditures

(149)

(166)

(467)

(538)

Proceeds from sale of property, plant, and equipment

Acquisition of businesses, net of cash acquired

—

(339)

(108)

Proceeds from divestiture of businesses, net of cash retained by businesses sold

(3)

Other

(1)

(9)

Net cash used in investing activities

(117)

(169)

(744)

(573)

Cash flows from financing activities:

Net increase (decrease) in commercial paper

(21)

(82)

Proceeds from issuance of debt

—

499

Repayment of debt

(1)

—

(2)

(591)

Proceeds from exercise of share options

Repurchase of common shares

(416)

(208)

(1,301)

(674)

Payment of common share dividends to shareholders

(199)

(186)

(564)

(541)

Other

(12)

(2)

(39)

(30)

Net cash used in financing activities

(591)

(380)

(1,875)

(1,386)

Effect of currency translation on cash

(5)

(4)

(8)

Net increase (decrease) in cash, cash equivalents, and restricted cash

293

226

(192)

Cash, cash equivalents, and restricted cash at beginning of period

1,176

905

1,661

1,088

Cash, cash equivalents, and restricted cash at end of period

1,469

1,131

1,469

1,131

Supplemental cash flow information:

Interest paid on debt, net

Income taxes paid, net of refunds

146

131

384

354

TE CONNECTIVITY LTD.

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

For the Nine Months Ended

June 28,

June 30,

June 28,

June 30,

2024

2023

2024

2023

(in millions)

Net cash provided by operating activities

1,006

779

2,435

1,994

Capital expenditures, net

(139)

(165)

(455)

(535)

Free cash flow (1)

867

614

1,980

1,459

(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.

TE CONNECTIVITY LTD.

CONSOLIDATED SEGMENT DATA (UNAUDITED)

For the Quarters Ended

For the Nine Months Ended

June 28,

June 30,

June 28,

June 30,

2024

2023

2024

2023

($ in millions)

Net Sales

Transportation Solutions

2,330

2,433

7,087

7,175

Industrial Solutions

1,133

1,141

3,301

3,392

Communications Solutions

516

424

1,389

1,432

Total

3,979

3,998

11,777

11,999

Operating

Income

Margin

Income

Margin

Income

Margin

Income

Margin

Transportation Solutions

498

21.4

425

17.5

1,443

20.4

1,040

14.5

Industrial Solutions

153

13.5

150

13.1

451

13.7

440

13.0

Communications Solutions

104

20.2

13.0

251

18.1

189

13.2

Total

755

19.0

630

15.8

2,145

18.2

1,669

13.9

Adjusted

Operating

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Transportation Solutions

490

21.0

452

18.6

1,471

20.8

1,221

17.0

Industrial Solutions

171

15.1

180

15.8

499

15.1

529

15.6

Communications Solutions

105

20.3

14.2

262

18.9

228

15.9

Total

766

19.3

692

17.3

2,232

19.0

1,978

16.5

(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.

TE CONNECTIVITY LTD.

RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)

Change in Net Sales for the Quarter Ended June 28, 2024

versus Net Sales for the Quarter Ended June 30, 2023

Net Sales

Organic Net Sales

Acquisition/

Growth (Decline)

Growth (Decline) (1)

Translation (2)

(Divestiture)

($ in millions)

Transportation Solutions (3):

Automotive

(20)

(1.1)

3.6

(39)

(44)

Commercial transportation

(40)

(9.9)

(34)

(8.4)

(6)

—

Sensors

(43)

(15.2)

(37)

(13.1)

(6)

—

Total

(103)

(4.2)

(8)

(0.3)

(51)

(44)

Industrial Solutions (3):

Industrial equipment

(70)

(16.5)

(98)

(23.6)

(8)

Aerospace, defense, and marine

17.7

18.7

(1)

—

Energy

(4)

(1.7)

3.4

(12)

—

Medical

7.2

—

Total

(8)

(0.7)

(23)

(2.1)

(21)

Communications Solutions (3):

Data and devices

30.6

31.8

(3)

—

Appliances

8.7

11.7

(5)

—

Total

21.7

100

23.7

(8)

—

Total

(19)

(0.5)

1.7

(80)

(8)

Change in Net Sales for the Nine Months Ended June 28, 2024

versus Net Sales for the Nine Months Ended June 30, 2023

Net Sales

Organic Net Sales

Acquisitions/

Growth (Decline)

Growth (Decline) (1)

Translation (2)

(Divestitures)

($ in millions)

Transportation Solutions (3):

Automotive

1.2

220

4.2

(46)

(113)

Commercial transportation

(53)

(4.6)

(49)

(4.2)

(4)

—

Sensors

(96)

(11.6)

(90)

(10.9)

(6)

—

Total

(88)

(1.2)

1.1

(56)

(113)

Industrial Solutions (3):

Industrial equipment

(279)

(21.2)

(344)

(26.2)

—

Aerospace, defense, and marine

122

14.3

137

16.2

(18)

Energy

2.0

1.8

(19)

Medical

9.3

—

Total

(91)

(2.7)

(142)

(4.2)

(16)

Communications Solutions (3):

Data and devices

1.4

2.0

(5)

—

Appliances

(55)

(9.8)

(46)

(8.2)

(9)

—

Total

(43)

(3.0)

(29)

(2.0)

(14)

—

Total

(222)

(1.9)

(90)

(0.7)

(86)

(46)

(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.

(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.

(3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended June 28, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

(Non-GAAP) (2)

($ in millions, except per share data)

Operating income:

Transportation Solutions

498

—

(8)

490

Industrial Solutions

153

171

Communications Solutions

104

—

105

Total

755

766

Operating margin

19.0

19.3

Income tax expense

(181)

—

(177)

Effective tax rate

24.0

23.1

Income from continuing operations

573

588

Diluted earnings per share from continuing operations

1.86

0.02

0.03

1.91

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) See description of non-GAAP financial measures.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended June 30, 2023

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

(Non-GAAP) (2)

($ in millions, except per share data)

Operating income:

Transportation Solutions

425

—

452

Industrial Solutions

150

180

Communications Solutions

Total

630

692

Operating margin

15.8

17.3

Income tax expense

(96)

(2)

(27)

(125)

Effective tax rate

15.4

18.2

Income from continuing operations

528

561

Diluted earnings per share from continuing operations

1.67

0.02

0.08

1.77

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) See description of non-GAAP financial measures.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Nine Months Ended June 28, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

1,443

—

1,471

Industrial Solutions

451

499

Communications Solutions

251

—

262

Total

2,145

2,232

Operating margin

18.2

19.0

Income tax (expense) benefit

778

(2)

(7)

(1,254)

(485)

Effective tax rate

(36.4)

21.8

Income from continuing operations

2,918

(1,250)

1,742

Diluted earnings per share from continuing operations

9.41

0.05

0.19

(4.03)

5.62

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Includes an $874 million net income tax benefit associated with a ten-year tax credit obtained by a Swiss subsidiary and a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland. Also includes a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Nine Months Ended June 30, 2023

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

(Non-GAAP) (2)

($ in millions, except per share data)

Operating income:

Transportation Solutions

1,040

179

1,221

Industrial Solutions

440

529

Communications Solutions

189

228

Total

1,669

283

1,978

Operating margin

13.9

16.5

Income tax expense

(283)

(5)

(82)

(370)

Effective tax rate

17.3

19.0

Income from continuing operations

1,351

201

1,573

Diluted earnings per share from continuing operations

4.25

0.07

0.63

4.95

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) See description of non-GAAP financial measures.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended September 29, 2023

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

411

—

444

Industrial Solutions

162

—

184

Communications Solutions

—

Total

635

—

699

Operating margin

15.7

17.3

Income tax expense

(81)

(1)

(3)

(49)

(134)

Effective tax rate

12.8

19.2

Income from continuing operations

553

(49)

564

Diluted earnings per share from continuing operations

1.75

0.02

0.17

(0.16)

1.78

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax benefits associated with a decrease in the valuation allowance for certain tax loss and credit carryforwards.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 29, 2023

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Tax Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating income:

Transportation Solutions

1,451

211

—

1,665

Industrial Solutions

602

—

713

Communications Solutions

251

—

299

Total

2,304

340

—

2,677

Operating margin

14.4

16.7

Income tax expense

(364)

(6)

(85)

(49)

(504)

Effective tax rate

16.0

19.1

Income from continuing operations

1,904

255

(49)

2,137

Diluted earnings per share from continuing operations

6.01

0.09

0.80

(0.15)

6.74

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Represents income tax benefits associated with a decrease in the valuation allowance for certain tax loss and credit carryforwards.

(3) See description of non-GAAP financial measures.

TE CONNECTIVITY LTD.

RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of July 24, 2024

(UNAUDITED)

Outlook for

Quarter Ending

September 27,

2024

Diluted earnings per share from continuing operations

1.80

Restructuring and other charges, net

0.12

Acquisition-related charges

0.02

Adjusted diluted earnings per share from continuing operations (1)

1.94

Net sales growth (decline)

(0.9)

Translation

1.4

(Acquisitions) divestitures, net

0.2

Organic net sales growth (1)

0.7

(1) See description of non-GAAP financial measures.

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SOURCE TE Connectivity, LTD

Technology

DCCM Acquires Dynamic Solutions, LLC Expanding Water Resources Expertise

Published

27 minutes ago

May 4, 2026

DCCM has acquired Dynamic Solutions, LLC, a consulting firm recognized for advanced water resources, hydraulic, and hydrodynamic modeling. Dynamic Solutions expands DCCM’s technical capabilities in water and environmental modeling to better serve complex infrastructure and water-related client needs. Dynamic Solutions, founded in 1996 and offering services including watershed/hydrology studies, sediment transport, water quality, and ecological modeling, will continue operating with its existing leadership and team.

HOUSTON, May 4, 2026 /PRNewswire-PRWeb/ — DCCM, a national provider of design, consulting, and program and construction management professional services, is pleased to announce the acquisition of Dynamic Solutions, LLC, a specialized consulting firm known for advanced water resources, hydraulic, and hydrodynamic modeling.

Founded in 1996, Dynamic Solutions is nationally recognized for its expertise in hydraulic and hydrodynamic modeling, watershed and hydrology studies, sediment transport, water quality, and ecological modeling. The firm supports clients across federal, state, and local markets, as well as select technical advisory engagements, delivering analytical solutions for complex water and environmental challenges.

Dynamic Solutions operates from offices in Knoxville, Tennessee; Baton Rouge, Louisiana; Columbus, Mississippi; and Hamilton, Ohio, supporting projects nationwide.

“This acquisition expands DCCM’s technical capabilities in advanced water and environmental modeling while strengthening our ability to serve clients facing complex infrastructure and water-related challenges,” said James F. (Jim) Thompson, PE, Chairman and CEO of DCCM. “Dynamic Solutions brings a depth of expertise and a reputation for technical excellence that aligns well with our long-term growth strategy.”

Dynamic Solutions will continue to operate with its existing leadership and team, maintaining its specialized service offerings and longstanding client relationships.

“Joining DCCM allows us to build on the outstanding work our team is known for while gaining access to broader resources and a national platform,” said Julie Wallen of Dynamic Solutions. “We look forward to continuing to deliver the same high level of service to our clients as part of the DCCM organization.”

About Dynamic Solutions, LLC

Dynamic Solutions, LLC is a consulting firm specializing in hydraulic and hydrodynamic modeling, watershed and hydrology studies, sediment transport, water quality, and ecological modeling. Founded in 1996, the firm serves public sector and institutional clients across the United States.

About DCCM

DCCM is a provider of design, consulting, and program and construction management professional services focused on infrastructure across the public and private sectors. Through a national platform, DCCM serves a diverse range of end markets.

DCCM is a portfolio company of Court Square Capital Partners.

For more information, please visit www.dccm.com.

Media Contact

Jessica Steglich, DCCM, 1 7138749162, marketing@dccm.com, dccm.com

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SOURCE DCCM

Technology

Modine to Participate in Upcoming Oppenheimer Virtual Conference on May 5, 2026

Published

27 minutes ago

May 4, 2026

RACINE, Wis., May 4, 2026 /PRNewswire/ — Modine (NYSE: MOD), a diversified global leader in thermal management technology and solutions, announced today that it will participate in the Oppenheimer 21st Annual Industrial Growth Conference on Tuesday, May 5, 2026.

Neil D. Brinker, Modine President and Chief Executive Officer, and Michael B. (Mick) Lucareli, Executive Vice President and Chief Financial Officer, will participate in a virtual fireside chat during the conference on Tuesday, May 5, 2026, at 1:30 p.m. Eastern time (12:30 p.m. Central Time).

Live webcasts of the event will be available in the Investor Relations section of Modine’s website www.modine.com. Recordings of the events will be available for 365 days following the webcast.

About Modine
For more than 100 years, Modine has solved the toughest thermal management challenges for mission-critical applications. Our purpose of Engineering a Cleaner, Healthier World™ means we are always evolving our portfolio of technologies to provide the latest heating, cooling, and ventilation solutions. Through the hard work of more than 11,000 employees worldwide, our Climate Solutions, Data Centers, and Performance Technologies segments advance our purpose with systems that improve air quality, reduce energy and water consumption, lower harmful emissions, and enable the transition to a more sustainable future. Modine is a global company headquartered in Racine, Wisconsin (U.S.), with operations in North America, South America, Europe, and Asia. For more information about Modine, visit modine.com.

Investor Contact
Kathleen Powers
(262) 636-1687
kathleen.t.powers@modine.com

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SOURCE Modine

Technology

Blaize and Winmate Sign Strategic Partnership Agreement to Bring AI to Rugged Systems for Defense and Critical Infrastructure

Published

27 minutes ago

May 4, 2026

Joint solutions combine Blaize’s energy-efficient and industrial-grade AI chips with Winmate’s rugged platforms – including drones, handhelds, vehicle-mounted units, and embedded edge devices used by defense, border security, maritime, and healthcare operators.

TAIPEI and EL DORADO HILLS, Calif., May 4, 2026 /PRNewswire/ — Blaize Holdings, Inc. (Nasdaq: BZAI, Nasdaq: BZAIW) (“Blaize,” the “Company,” “we,” “our,” or “us”), and Winmate Inc., a publicly traded company in Taiwan, today announced they have signed a Strategic Partnership Agreement (“Agreement”) with an intent to close approximately $15 million in business during the first year. The two companies will integrate Blaize’s AI chips into Winmate’s rugged systems, including drones, handhelds, vehicle-mounted units, and embedded devices that have to keep working in the field, often in places where regular hardware can’t survive.

The companies expect the Agreement to be the start of a much larger, multi-year relationship.

Why this partnership matters

Most AI today runs in large data centers rather than at the edge, where decisions must be made in real time. This model is often impractical for soldiers at remote posts, Coast Guard crew at sea, or medics in field clinics. They often don’t have a reliable network connection, and even when they do, they can’t afford to wait for an application to respond from halfway across the globe.

That’s the gap Blaize and Winmate intend to address through this partnership. Blaize’s chips were designed to industrial grade specifications and run AI directly on the device, with no cloud dependency. Winmate’s systems are purpose-built to perform in extreme environments, including heat, cold, dust, vibration, and rough handling. Together, they deliver real-time AI capabilities exactly where it’s needed, whether in drones, field units, the patrol vehicles, or diagnostic devices.

A fast-growing market

Demand for on-device AI is accelerating. According to BCC Research[1], the global edge AI market is projected to grow from $11.8 billion in 2025 to $56.8 billion by 2030, a 36.9% compound annual growth rate. Defense agencies, governments, hospitals, ports, and critical infrastructure operators all demand AI that can run securely on their equipment, without sending sensitive data over public networks.

From the leaders

“Our customers can’t wait, and they often can’t rely on the cloud. They need AI that runs where the work happens. Winmate makes some of the most capable rugged systems in the industry, and our chips are designed to run AI inside exactly those kinds of devices. This partnership turns a years-long vision into a practical, deployable answer for defense and critical infrastructure operators,” said Dinakar Munagala, CEO of Blaize, Inc.

“Our platforms are deployed on naval vessels, in border outposts, on industrial sites, and in disaster zones – environments where most hardware fails. With Blaize, we can now deliver those same systems with on-device AI built in, giving customers real-time intelligence wherever they operate,” said Ken Lu, Chairman and CEO of Winmate Inc.

Target applications

Border security and surveillance: Real-time threat detection and perimeter monitoringMobile command and control: On-site intelligence and situational awareness for field teamsDrones and unmanned systems: Autonomous navigation and mission execution for UAVs and ground vehiclesCritical infrastructure: Continuous monitoring and predictive analytics for power, ports, and transportationMaritime domain awareness: Vessel tracking and anomaly detection at seaField healthcare: Portable diagnostics and decision support in remote and disaster environments

Deal at a glance

First-year revenue: the parties intend to work in good faith to close approximately $15 million in business, expected to scale meaningfully in subsequent yearsTerm: Three-year initial term, with automatic renewalNext steps: Joint engineering, sales, and marketing execution to bring integrated systems to market, with additional opportunities to be added through follow-on programs

[1] BCC Research, “Global Edge AI Market,” October 2025

About Blaize, Inc.

Blaize delivers a programmable AI platform, purpose-built for AI inference workloads in real-world environments. Its Hybrid AI architecture combines the Blaize GSP (Graph Streaming Processor) with GPU-based infrastructure, enabling AI inference workloads to run across edge, cloud, and data center. Blaize solutions support computer vision, multimodal AI, and sensor-driven applications across smart cities, industrial automation, telecommunications, retail, logistics, and defense. Blaize is headquartered in El Dorado Hills, California, with a global presence across North America, Europe, the Middle East, and Asia. Visit www.blaize.com or follow us on LinkedIn @blaizeinc.

About Winmate Inc.

Winmate Inc. is a publicly traded global leader in rugged computing systems, delivering industrial-grade platforms – including handhelds, tablets, vehicle-mounted units, panel PCs, and embedded modules – for demanding environments across defense, transportation, energy, healthcare, and industrial markets.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are based on beliefs and assumptions and on information currently available to Blaize, including expectations and scope of customer contracts, including the Strategic Partnership Agreement with Winmate, the potential value and the timing of revenue pursuant to such contracts, preliminary estimates of results of operations and guidance on results for future periods, the industry in which Blaize operates, market opportunities, and product offerings. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, although not all forward-looking statements contain these words. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to those factors discussed under the heading “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 24, 2026, and other documents filed by Blaize from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Blaize assumes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. Blaize does not give any assurance that it will achieve its expectations.

Blaize Contact

press@blaize.com
www.blaize.com

Investors

ir@blaize.com
www.blaize.com

Winmate Inc.

Liu, Chih-Yuan
Tel: +886-2-8511-0288
Email: spokesman1@winmate.com.tw
https://www.winmate.com/

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SOURCE Blaize Inc.