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TE Connectivity delivers sales and EPS above guidance in second quarter of fiscal year 2025

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Third quarter guidance reflects continued momentum and Richards acquisition 

GALWAY, Ireland, April 23, 2025 /PRNewswire/ — TE Connectivity plc (NYSE: TEL) today reported results for the fiscal second quarter ended Mar. 28, 2025.

Second Quarter Highlights

Net sales were $4.1 billion, up 4% on a reported basis year over year and 5% organically driven by double digit growth in the Industrial segment.GAAP diluted earnings per share (EPS) from continuing operations was $0.04, which includes a one-time non-cash tax charge due to a change in tax law in the second quarter of 2025. Adjusted EPS was $2.10, a company record and up approximately 13% year over year.Orders were $4.25 billion, up 6% both year over year and sequentially.Operating margin was 18.1% and adjusted operating margin was 19.4%, driven by strong operational performance in both segments.Cash flow from operating activities during the first half of the fiscal year was $1.5 billion and free cash flow was approximately $1.1 billion.Returned approximately $1 billion to shareholders and announced a 9% dividend increase.Richards Manufacturing Co. acquisition completed in April to capitalize on strong growth opportunities in the North American utility market.Issued One Connected World corporate responsibility report, highlighted by an 80% reduction in Scope 1 & 2 greenhouse gas emissions during the past four years.

“Our teams delivered strong operational performance that led to record adjusted EPS and results that exceeded our guidance on both sales and earnings,” said TE Connectivity CEO Terrence Curtin. “Our Transportation segment continued to execute well, capitalizing on our leading position in Asia and maintaining strong margin performance. Our Industrial segment expanded its operating margin on sales growth of 17%, driven by broad business growth and ongoing momentum in AI, aerospace and energy applications.

“Due to our long-standing business strategy and investments to locate manufacturing facilities near customers, we expect to effectively navigate the current trade environment. Our ongoing momentum and ability to pull operational levers gives us confidence in our third quarter guidance for year-over-year improvement in sales and EPS. We are well positioned for the current uncertain macroeconomic environment and remain focused on innovating in long-term industrial technology growth trends and creating value for both our customers and owners.”

Third Quarter FY25 Outlook
For the third quarter of fiscal 2025, the company expects net sales of approximately $4.30 billion, up 8% year over year. GAAP EPS from continuing operations is expected to be approximately $2.02, up nearly 9% year over year, with adjusted EPS of approximately $2.06, up 8% year over year. Third quarter guidance includes the benefit from the Richards acquisition and tariff impact assumptions, as well as tax rate headwinds of $0.04 on a year over year basis and $0.06 sequentially.

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 April 23.

About TE Connectivity
TE Connectivity plc (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, energy networks, automated factories, data centers, medical technology and more. With more than 85,000 employees, including 9,000 engineers, working alongside customers in approximately 130 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 (loss) 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. 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 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, our change of incorporation from Switzerland to Ireland is subject to risks, such as the risk 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. More detailed information about these and other factors is set forth in TE Connectivity plc’s Annual Report on Form 10-K for the fiscal year ended Sept 27, 2024, 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 PLC

 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 28,

March 29,

March 28,

March 29,

2025

2024

2025

2024

(in millions, except per share data)

Net sales

$

4,143

$

3,967

$

7,979

$

7,798

Cost of sales

2,684

2,604

5,160

5,111

Gross margin

1,459

1,363

2,819

2,687

Selling, general, and administrative expenses

454

444

881

868

Research, development, and engineering expenses

203

184

391

357

Acquisition and integration costs

9

3

14

11

Restructuring and other charges, net

45

40

95

61

Operating income

748

692

1,438

1,390

Interest income

22

19

45

41

Interest expense

(14)

(19)

(20)

(37)

Other expense, net

(1)

(5)

(2)

(8)

Income from continuing operations before income taxes

755

687

1,461

1,386

Income tax (expense) benefit

(742)

(146)

(920)

959

Income from continuing operations

13

541

541

2,345

Loss from discontinued operations, net of income taxes

(1)

Net income

$

13

$

541

$

541

$

2,344

Basic earnings per share:

Income from continuing operations

$

0.04

$

1.76

$

1.81

$

7.59

Net income

0.04

1.76

1.81

7.59

Diluted earnings per share:

Income from continuing operations

$

0.04

$

1.75

$

1.80

$

7.54

Net income

0.04

1.75

1.80

7.54

Weighted-average number of shares outstanding:

Basic

298

308

299

309

Diluted

300

310

301

311

 

TE CONNECTIVITY PLC

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 28,

September 27,

2025

2024

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

$

2,554

$

1,319

Accounts receivable, net of allowance for doubtful accounts of $36 and $32, respectively

3,193

3,055

Inventories

2,603

2,517

Prepaid expenses and other current assets

724

740

Total current assets

9,074

7,631

Property, plant, and equipment, net

3,925

3,903

Goodwill

5,900

5,801

Intangible assets, net

1,161

1,174

Deferred income taxes

2,741

3,497

Other assets

855

848

Total assets

$

23,656

$

22,854

Liabilities, redeemable noncontrolling interests, and shareholders’ equity

Current liabilities:

Short-term debt

$

2,351

$

871

Accounts payable

1,843

1,728

Accrued and other current liabilities

1,805

2,147

Total current liabilities

5,999

4,746

Long-term debt

3,263

3,332

Long-term pension and postretirement liabilities

786

810

Deferred income taxes

211

199

Income taxes

396

411

Other liabilities

784

870

Total liabilities

11,439

10,368

Commitments and contingencies

Redeemable noncontrolling interests

132

131

Shareholders’ equity:

Preferred shares, $1.00 par value, 2 shares authorized, none outstanding as of March 28, 2025

Ordinary class A shares,  €1.00 par value, 25,000 shares authorized, none outstanding as of March 28, 2025

Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 301,276,687 shares issued and
common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, respectively

3

139

Accumulated earnings

12,811

14,533

Ordinary shares and common shares held in treasury, at cost, 4,139,531 and 16,656,681 shares, respectively

(615)

(2,322)

Accumulated other comprehensive income (loss)

(114)

5

Total shareholders’ equity

12,085

12,355

Total liabilities, redeemable noncontrolling interests, and shareholders’ equity

$

23,656

$

22,854

 

TE CONNECTIVITY PLC

 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 28,

March 29,

March 28,

March 29,

2025

2024

2025

2024

(in millions)

Cash flows from operating activities:

Net income

$

13

$

541

$

541

$

2,344

Loss from discontinued operations, net of income taxes

1

Income from continuing operations

13

541

541

2,345

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

Depreciation and amortization

192

192

378

386

Deferred income taxes

603

5

701

(1,212)

Non-cash lease cost

35

33

69

67

Provision for losses on accounts receivable and inventories

2

13

43

55

Share-based compensation expense

34

35

69

69

Other

22

24

34

64

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

Accounts receivable, net

(317)

(55)

(171)

72

Inventories

(14)

41

(132)

(241)

Prepaid expenses and other current assets

72

47

140

(1)

Accounts payable

(4)

(73)

146

55

Accrued and other current liabilities

(3)

(48)

(298)

(287)

Income taxes

25

3

55

15

Other

(7)

(48)

(44)

42

Net cash provided by operating activities

653

710

1,531

1,429

Cash flows from investing activities:

Capital expenditures

(230)

(167)

(435)

(318)

Proceeds from sale of property, plant, and equipment

1

2

2

Acquisition of businesses, net of cash acquired

4

10

(321)

(339)

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

38

Other

1

(2)

(7)

(10)

Net cash used in investing activities

(224)

(159)

(761)

(627)

Cash flows from financing activities:

Net increase (decrease) in commercial paper

1,155

30

1,245

(39)

Proceeds from issuance of debt

773

773

Repayment of debt

(579)

(579)

(1)

Proceeds from exercise of share options

25

22

59

33

Repurchase of ordinary/common shares

(306)

(409)

(609)

(885)

Payment of ordinary/common share dividends to shareholders

(193)

(182)

(382)

(365)

Other

(6)

(33)

(27)

Net cash provided by (used in) financing activities

869

(539)

474

(1,284)

Effect of currency translation on cash

2

(6)

(9)

(3)

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

1,300

6

1,235

(485)

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

1,254

1,170

1,319

1,661

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

$

2,554

$

1,176

$

2,554

$

1,176

Supplemental cash flow information:

Income taxes paid, net of refunds

$

115

$

138

$

164

$

238

 

TE CONNECTIVITY PLC

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 28,

March 29,

March 28,

March 29,

2025

2024

2025

2024

(in millions)

Net cash provided by operating activities

$

653

$

710

$

1,531

$

1,429

Capital expenditures, net

(229)

(167)

(433)

(316)

Free cash flow (1)

$

424

$

543

$

1,098

$

1,113

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

 

TE CONNECTIVITY PLC

SEGMENT DATA (UNAUDITED)

For the Quarters Ended

For the Six Months Ended

March 28,

March 29,

March 28,

March 29,

2025

2024

2025

2024

($ in millions)

Net Sales

Net Sales

Net Sales

Net Sales

Transportation Solutions

$

2,314

$

2,407

$

4,557

$

4,800

Industrial Solutions

1,829

1,560

3,422

2,998

Total

$

4,143

$

3,967

$

7,979

$

7,798

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Income

Margin

Income

Margin

Income

Margin

Income

Margin

Transportation Solutions

$

445

19.2

%

$

477

19.8

%

$

891

19.6

%

$

964

20.1

%

Industrial Solutions

303

16.6

215

13.8

547

16.0

426

14.2

Total

$

748

18.1

%

$

692

17.4

%

$

1,438

18.0

%

$

1,390

17.8

%

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Adjusted

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Operating

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Income (1)

Margin (1)

Transportation Solutions

$

478

20.7

%

$

496

20.6

%

$

956

21.0

%

$

1,000

20.8

%

Industrial Solutions

327

17.9

239

15.3

594

17.4

466

15.5

Total

$

805

19.4

%

$

735

18.5

%

$

1,550

19.4

%

$

1,466

18.8

%

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

 

TE CONNECTIVITY PLC

RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)

Change in Net Sales for the Quarter Ended March 28, 2025

versus Net Sales for the Quarter Ended March 29, 2024

Net Sales

Organic Net Sales

Growth (Decline)

Growth (Decline) (1)

Translation (2)

Acquisitions

($ in millions)

Transportation Solutions (3):

Automotive

$

(37)

(2.1)

%

$

6

0.4

%

$

(43)

$

Commercial transportation

(27)

(7.0)

(20)

(5.1)

(7)

Sensors

(29)

(11.6)

(25)

(9.6)

(4)

Total Transportation Solutions

(93)

(3.9)

(39)

(1.5)

(54)

Industrial Solutions (3):

Automation and connected living

12

2.4

8

1.5

(10)

14

Aerospace, defense, and marine

32

9.4

37

10.8

(5)

Digital data networks

209

76.6

213

78.0

(4)

Energy

45

19.2

18

7.6

(7)

34

Medical

(29)

(13.7)

(29)

(13.7)

Total Industrial Solutions

269

17.2

247

15.7

(26)

48

Total

$

176

4.4

%

$

208

5.3

%

$

(80)

$

48

Change in Net Sales for the Six Months Ended March 28, 2025

versus Net Sales for the Six Months Ended March 29, 2024

Net Sales

Organic Net Sales

Acquisitions/

Growth (Decline)

Growth (Decline) (1)

Translation (2)

(Divestiture)

($ in millions)

Transportation Solutions (3):

Automotive

$

(111)

(3.1)

%

$

(49)

(1.3)

%

$

(50)

$

(12)

Commercial transportation

(71)

(9.6)

(61)

(8.3)

(10)

Sensors

(61)

(12.4)

(55)

(11.1)

(6)

Total Transportation Solutions

(243)

(5.1)

(165)

(3.4)

(66)

(12)

Industrial Solutions (3):

Automation and connected living

27

2.8

(13)

(1.4)

(12)

52

Aerospace, defense, and marine

76

12.0

82

12.9

(6)

Digital data networks

343

62.1

347

62.8

(4)

Energy

56

12.8

32

7.2

(10)

34

Medical

(78)

(19.0)

(78)

(19.0)

Total Industrial Solutions

424

14.1

370

12.3

(32)

86

Total

$

181

2.3

%

$

205

2.7

%

$

(98)

$

74

(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 PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended March 28, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

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

$

445

$

$

33

$

$

478

Industrial Solutions

303

12

12

327

Total

$

748

$

12

$

45

$

$

805

Operating margin

18.1

%

19.4

%

Income tax expense

$

(742)

$

(2)

$

(11)

$

574

$

(181)

Effective tax rate

98.3

%

22.3

%

Income from continuing operations

$

13

$

10

$

34

$

574

$

631

Diluted earnings per share from continuing operations

$

0.04

$

0.03

$

0.11

$

1.91

$

2.10

(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 expense related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024.

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

 

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended March 29, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

(Non-GAAP) (2)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

477

$

$

19

$

496

Industrial Solutions

215

3

21

239

Total

$

692

$

3

$

40

$

735

Operating margin

17.4

%

18.5

%

Income tax expense

$

(146)

$

(1)

$

(6)

$

(153)

Effective tax rate

21.3

%

21.0

%

Income from continuing operations

$

541

$

2

$

34

$

577

Diluted earnings per share from continuing operations

$

1.75

$

0.01

$

0.11

$

1.86

(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 PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Six Months Ended March 28, 2025

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

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

$

891

$

$

65

$

$

956

Industrial Solutions

547

17

30

594

Total

$

1,438

$

17

$

95

$

$

1,550

Operating margin

18.0

%

19.4

%

Income tax expense

$

(920)

$

(3)

$

(20)

$

587

$

(356)

Effective tax rate

63.0

%

22.6

%

Income from continuing operations

$

541

$

14

$

75

$

587

$

1,217

Diluted earnings per share from continuing operations

$

1.80

$

0.05

$

0.25

$

1.95

$

4.04

(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 income tax expense of $574 million related to a net increase in the valuation allowance for certain deferred tax assets associated with a ten-year tax credit obtained by a Swiss subsidiary in fiscal 2024 as well as income tax expense of $13 million related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction.

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

 

TE CONNECTIVITY PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Six Months Ended March 29, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

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

$

964

$

$

33

$

3

$

1,000

Industrial Solutions

426

11

28

1

466

Total

$

1,390

$

11

$

61

$

4

$

1,466

Operating margin

17.8

%

18.8

%

Income tax (expense) benefit

$

959

$

(2)

$

(11)

$

(1,254)

$

(308)

Effective tax rate

(69.2)

%

21.1

%

Income from continuing operations

$

2,345

$

9

$

50

$

(1,250)

$

1,154

Diluted earnings per share from continuing operations

$

7.54

$

0.03

$

0.16

$

(4.02)

$

3.71

(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 PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended June 28, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

and Other

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

(Non-GAAP) (2)

($ in millions, except per share data)

Operating income:

Transportation Solutions

$

506

$

$

(8)

$

498

Industrial Solutions

249

5

14

268

Total

$

755

$

5

$

6

$

766

Operating margin

19.0

%

19.3

%

Income tax expense

$

(181)

$

$

4

$

(177)

Effective tax rate

24.0

%

23.1

%

Income from continuing operations

$

573

$

5

$

10

$

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 PLC

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 27, 2024

(UNAUDITED)

Adjustments

Acquisition-

Restructuring

Related

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

$

1,880

$

$

67

$

3

$

1,950

Industrial Solutions

916

21

99

1

1,037

Total

$

2,796

$

21

$

166

$

4

$

2,987

Operating margin

17.6

%

18.9

%

Income tax (expense) benefit

$

397

$

(3)

$

(29)

$

(1,016)

$

(651)

Effective tax rate

(14.2)

%

21.8

%

Income from continuing operations

$

3,194

$

18

$

137

$

(1,012)

$

2,337

Diluted earnings per share from continuing operations

$

10.34

$

0.06

$

0.44

$

(3.28)

$

7.56

(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 a $636 million net income tax benefit associated with a $972 million ten-year tax credit obtained by a Swiss subsidiary reduced by a $336 million valuation allowance related to the amount of the tax credit not expected to be realized. Also includes 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 and 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 PLC

RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of April 23, 2025

(UNAUDITED)

Outlook for

Quarter Ending

June 27,

2025

Diluted earnings per share from continuing operations

$

2.02

Restructuring and other charges, net

0.02

Acquisition-related charges

0.02

Adjusted diluted earnings per share from continuing operations (1)

$

2.06

Net sales growth

8.1

%

(Acquisitions) divestitures, net

(3.0)

Organic net sales growth (1)

5.1

%

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

 

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SOURCE TE Connectivity plc

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U.S. Quartz Workers: Strong Safeguard Remedies Needed to Save 100,000 American Manufacturing Jobs

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WASHINGTON, July 23, 2026 /PRNewswire/ — The Quartz Manufacturers Alliance for America (QMAA) released a powerful video featuring quartz manufacturing workers from across the country calling for free and fair trade policies to save 100,000 American jobs. QMAA, a coalition of leading U.S.-based quartz slab manufacturers, are calling for strong safeguard remedies after the U.S. International Trade Commission (ITC) found a huge flood of foreign imports had caused tremendous injury to the domestic quartz industry.

QMAA members are urging the Trump Administration to build on the ITC’s strong recommendation and address this major flood of quartz imports with a Tariff of 50% and a Reshoring Import Cap of 141 million square feet on imported quartz surface products. This will ensure a reshoring of the good-paying U.S. quartz manufacturing jobs stolen by companies who cheat U.S. trade law, distort competition and are decimating U.S. quartz manufacturing. Together, these trade remedies will provide the relief necessary to save the 100,000 jobs supported by the U.S. quartz industry.

The video features workers from LX Hausys, Guidoni USA and Cambria Company and is available here:
Save 100,000 American Quartz Jobs

Quotes from QMAA Quartz Manufacturing Workers
“This facility used to be a Husqvarna plant. Husqvarna closed down due to cheap foreign imports. There were over 1,000 people working here and all of a sudden…I’m worried I may see the same thing take place again.”
-Raymond Mack, Production Operator, Guidoni USA, Helena-McRae, GA

“Foreign countries, mainly China, Thailand, Malaysia, Vietnam, Indonesia, have been circumventing and cheating the American market. We believe in the industry. We believe in the American working power. We just want to level the playing field, make it fair for everyone and everyone will benefit.”
– Daniel Vas de Melo SA, Business Development Manager, Guidoni USA, McRae-Helena, GA

“In order for us to continue to compete, we need a strong Tariff and Import Cap on imported quartz surfaces. That will ensure we can play on an even playing field. That’s all we’re asking for. I would hate to see cheap, imported quartz have a negative impact on families such as mine and the other families that we employ here.”
– Mike Morici, Vice President – LX Hausys, Adairsville, GA

“The surge of foreign imports has shocked the U.S. economy, and the market for surfaces. It’s taken prices down to unsustainably low levels for any domestic supplier. The result of that is we’re not producing as much as we should, we can’t hire as many people as we would like to, and we can’t grow our business in the way that we and our peers in the U.S. want to grow.”
– Andrew Eich, President and Chief Operating Officer, Cambria

“As these foreign imports flood the market, we lose the ability to create and sustain jobs that ensure good paying conditions for manufacturing workers. There will be over 100,000 jobs that have the strong potential to go away.”
– Jack Sundry, SVP Core and Lexus – Cambria, Southern Minnesota

Background
In September 2025, QMAA filed a Global Safeguard petition with the U.S. International Trade Commission (ITC) under Section 201 of the U.S. Trade Act of 1974. The ITC’s thorough investigation found serious injury to the domestic industry caused by a massive import surge designed to undercut American businesses. Quartz imports have surged by 78.3% within the past five years, leading to a nearly 20% decline in domestic production, factory closures and major job reductions.

A final safeguard decision from the United States Trade Representative is expected by Aug. 1, 2026.

About the Quartz Manufacturing Alliance for America:
QMAA is a coalition of U.S.-based, American quartz slab manufacturing factories, united with other industry leaders to support and strengthen the American quartz industry. QMAA is committed to ensuring a free and fair, competitive marketplace born of free enterprise that provides the opportunity to compete on a level playing field for American quartz slab manufacturing factories and their valued workers. We also believe this effort will have a positive impact throughout the entire quartz surfacing industry, including to the strong benefit of American stone fabrication shops and upstream suppliers of quartz minerals and resin. Learn more at: https://www.qmaa.org/

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SOURCE Quartz Manufacturing Alliance of America

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Databricks and Microsoft expand partnership to help enterprises bring business context to enterprise AI

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Databricks and Microsoft extend strategic partnership through the 2030s to scale enterprise AIDatabricks deepens its bet on Azure, growing its use of Azure Databricks to run its own core business operations and analytics, while both companies advance native integration across the Microsoft stack, including Databricks Genie and Microsoft 365Databricks increases its use of Microsoft Azure Cobalt to improve performance and efficiency

REDMOND, Wash. and SAN FRANCISCO, July 23, 2026 /PRNewswire/ — Microsoft Corp. and Databricks on Wednesday announced an expansion of their decade-long strategic partnership, extending into the 2030s. Databricks will deepen its use of Azure Databricks to run core business operations and build its unified lakehouse, while leveraging Azure Cobalt, Microsoft’s next-generation Arm-based infrastructure, to improve performance and efficiency. Microsoft will also continue integrating Databricks Data and AI platform across its products, bringing capabilities like Genie, Databricks’ AI co-worker, directly into customer workflows. Together, the companies are helping enterprises build AI grounded in their own business context with the cost efficiency, control and choice needed to scale successfully.

Enterprises want AI that understands their customers, products, operations, metrics and business processes, all while running securely where work happens. Yet, most still struggle to connect AI to trusted business knowledge, govern models and agents consistently, and control costs. Microsoft and Databricks are helping customers close that gap: 

“For nearly a decade, Databricks and Microsoft have helped enterprises innovate with data and AI,” said Ali Ghodsi, Co‑Founder and CEO of Databricks. “Today, our partnership is stronger than ever. With Databricks Genie and Unity AI Gateway deeply integrated across Microsoft’s products, we’re helping enterprises unify their data and ground AI in business knowledge. This lets customers get the full benefits of agents and models while controlling costs and ensuring governance.”

“The next generation of AI will be defined by how effectively organizations turn their unique knowledge into intelligence,” said Judson Althoff, CEO, Microsoft Commercial Business. “Microsoft and Databricks are helping customers connect data, AI and business context to accelerate decision-making and drive measurable impact. With Databricks deepening its investment in Azure Databricks and Azure Cobalt-powered infrastructure, customers will benefit from greater performance, efficiency and scale for their most demanding workloads. Databricks’ decision to run its own core business operations on Azure Databricks also gives customers confidence in a platform proven at enterprise scale.”

Databricks runs core business operations on Azure Databricks 

As part of this latest deal, Databricks deepens its commitment to Azure, running its own core business operations and analytics on Azure Databricks, using the very platform it delivers to customers at scale.

Advancing performance with Azure Cobalt

Databricks will also expand its use of Azure Cobalt, Microsoft’s next-generation Arm-based infrastructure, to improve performance and efficiency for agentic and data-intensive workloads. Databricks currently uses Cobalt 100 and plans to adopt Cobalt 200, which delivers up to 50% better performance and includes memory encryption enabled by default.

Deep integrations for Databricks Genie and Unity AI Gateway with Microsoft product stack

By combining the Databricks Data + AI Platform with Azure’s global scale, customers can accelerate AI transformation while maintaining control and reliability. As a native Azure service, Azure Databricks makes its AI capabilities available directly within customers’ existing Microsoft environment, grounding and operating agents on enterprise data with Genie and Genie Ontology, and governing models, agents and cost through Unity AI Gateway. Deeply integrated across the Microsoft ecosystem spanning Microsoft Entra, Azure Data Lake Storage, Azure security, Microsoft OneLake, Power BI, Microsoft Purview, Microsoft Foundry, Power Platform, Microsoft 365, Teams and Copilot, these capabilities bring governed, real-time data and AI into business workflows, giving organizations the context, control, choice and cost efficiency needed to drive impact.

Continued investment is evident from our recent announcements with Databricks at Data + AI Summit in June.

Customer impact with Azure Databricks

The deepened collaboration strengthens support for joint customers running data, analytics and AI workloads on Azure Databricks, delivering improved performance, security, AI governance and enterprise readiness. Thousands of customers, including Banco Bradesco, the Cincinnati Reds, Electrolux, SMBC and Unilever, already use Azure Databricks to run critical workloads and scale AI with confidence.

Read more on the proven business value of the Databricks and Microsoft partnership on the Microsoft Azure blog.

About Databricks

Databricks is the Data and AI company. More than 20,000 organizations worldwide — including AT&T, Bayer, BMW Group, HSBC, T-Mobile, Unilever, and 70% of the Fortune 500 — rely on Databricks Data + AI Platform to build and scale data and AI apps, analytics and agents. Headquartered in San Francisco with 30+ offices around the globe, Databricks offers a unified platform that includes Genie, Lakebase, Agent Bricks, Lakeflow, Lakehouse, and Unity Catalog. To learn more, follow Databricks on LinkedIn, X, YouTube, and Instagram.

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

 

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SOURCE Microsoft Corp.

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Harness and Kong Expand Strategic Partnership to Deliver Comprehensive API and AI Security

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Joint solution extends proven API gateway security to the AI era — with automated AI discovery and runtime AI protection

SAN FRANCISCO, July 23, 2026 /PRNewswire/ — Harness, the AI Software Delivery Platform™ company, and Kong Inc., a leading developer of API and AI connectivity technologies, today announced an expansion of their strategic partnership to address the growing security challenges posed by AI-driven architectures, autonomous agents, and Model Context Protocol (MCP) deployments.

According to The State of AI-Native Application Security 2025 report, as enterprises race to deploy AI at scale, 62% have no visibility into where LLMs are in use across their environment, and 74% say AI sprawl will outpace API sprawl when it comes to risk — making embedded, infrastructure-level security more critical than ever. And companies are now deploying agents into their operations at an exponentially increasing rate, making it a necessity to protect the agents themselves and the systems interacting with those agents.

The two companies are extending their joint solution from Kong API Gateway to also include Kong AI Gateway, bringing Harness’s AI security intelligence directly into the AI infrastructure layer and enabling enterprises to discover, monitor, and protect every agent, AI asset, LLM-powered service, and MCP-connected workflow that traverses it.

A Proven Foundation: Harness and Kong API Gateway

Harness and Kong have been jointly trusted by enterprises to deliver best-in-class API security for years. The existing Harness and Kong API Gateway integration provides:

Comprehensive API traffic visibility and behavioral analysis across all Kong-managed servicesReal-time detection and blocking of API threats, including OWASP API Security Top 10 risks, credential stuffing attacks, and business logic abuseContinuous sensitive data tracking to identify PII exposure and regulatory riskZero-friction deployment alongside existing Kong configurations

This new offering of the AI Gateway solution applies the same level of security depth to AI infrastructure, ensuring that security teams are not left behind as their organizations adopt AI and agentic operations.

“Our partnership with Harness has given joint customers production-grade API security that works with the way they build, not against it,” said Ken Kim, Senior Vice President, Business Development at Kong Inc. “Extending to include Kong AI Gateway is a natural next step. The same enterprises are now moving AI into production through our gateway and need the same depth of visibility and control they’ve come to rely on for their APIs for all AI traffic types including LLM, MCP, and A2A. That’s exactly what this delivers and is crucial for organizations scaling in the agentic era.”

The New Frontier: Kong AI Gateway and Harness AI Security

As enterprises accelerate AI adoption, the attack surface has fundamentally shifted. AI agents, LLM-powered microservices, and MCP-enabled integrations introduce new vectors that traditional security tools were not designed to address. Unlike traditional software, AI agents are non-deterministic — the same agent can behave differently on consecutive runs, making it impossible to secure them the way you’d secure a static API. The new Harness and Kong AI Gateway integration directly tackles these challenges across two critical domains: AI discovery and AI protection.

AI Discovery
Harness automatically inventories every AI asset, API, MCP server, tool, prompt, and resource routed through Kong AI Gateway — providing security teams with a continuously updated catalog of their AI attack surface. No manual documentation. No blind spots.

AI Protection
Harness applies behavioral analysis and anomaly detection to AI traffic in real time, identifying prompt injection attacks, data exfiltration through AI responses, jailbreaking, malicious code in prompts, and other AI-specific threats. Enterprises gain the same depth of observability and protection for their agents and AI workloads that they already rely on for traditional APIs, with full prompt and response details available for incident investigation and inline policy enforcement through Kong AI Gateway.

“Shadow AI has become the defining security blind spot for enterprises today. Traditional tools were built for static code and predictable systems, not for adaptive AI models, agent-to-agent communication, and MCP-connected workflows that evolve continuously,” said Rahul Sood, GM of Application Security at Harness. “This integration of Harness AI Security with Kong puts security intelligence directly into the connectivity layer where AI traffic flows. Joint customers now have the visibility and control they need to move fast without losing sight of what’s happening across their AI infrastructure.”

Availability

The Harness and Kong API Gateway integration is generally available today for all joint customers. The Kong AI Gateway integration, including AI Discovery and AI Protection, is also generally available now. Joint customers can contact their account team or request a demo.

About Harness
Harness is the AI Software Delivery Platform™ company, enabling engineering teams to build, test, and deliver software faster and more securely. Powered by Harness AI and the Software Delivery Knowledge Graph, the platform brings intelligent automation to every stage of the software delivery lifecycle after code — removing toil and freeing developers from manual, repetitive work. Companies like United Airlines, Morningstar, and Choice Hotels use Harness to accelerate releases by up to 75%, cut cloud costs by 60%, and achieve 10x efficiency across DevOps. Based in San Francisco, Harness is backed by Goldman Sachs, Menlo Ventures, IVP, Unusual Ventures, and Citi Ventures.

About Kong

Kong Inc., a leading developer of API and AI connectivity technologies, is building the connectivity layer of AI. Trusted by the Fortune 500® and AI-native startups alike, Kong’s unified API and AI platform enables organizations to secure, manage, accelerate, govern, and monetize the flow of intelligence across APIs and AI traffic — on any model, any cloud. For more information, visit www.konghq.com.

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SOURCE Harness

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