[8-K] TE Connectivity plc Reports Material Event
Rhea-AI Filing Summary
TE Connectivity plc reported a strong fiscal Q2 2026, with results above prior guidance. Net sales reached $4.74 billion, up 15% year over year and 7% organically, driven by growth in both Transportation and Industrial segments. GAAP diluted EPS from continuing operations was $2.90, while record adjusted EPS was $2.73, up 24%.
Profitability and cash generation improved meaningfully. GAAP operating margin rose to 20%, with adjusted operating margin at 22% on broad-based operational strength. Orders hit a record $5.3 billion, up 25% with double-digit growth in all businesses. For the first half, operating cash flow was $1.8 billion and free cash flow was $1.3 billion, up 17%, while $1.2 billion was returned to shareholders and the quarterly dividend was raised 10%. The company guides Q3 2026 sales to about $5 billion (up 10%) and adjusted EPS to about $2.83 (up 17%).
Positive
- None.
Negative
- None.
Insights
TE Connectivity posts broad-based double-digit growth and stronger margins with upbeat Q3 outlook.
TE Connectivity delivered fiscal Q2 2026 net sales of $4.74 billion, up 15%, with organic growth of 7%. Both Transportation and Industrial segments grew, and orders reached a record $5.3 billion, up 25%, showing robust demand across automotive, data networks, energy and other end-markets.
Profitability improved, with GAAP operating margin at 20% and adjusted operating margin at 22%, supported by operational performance in both segments. First-half free cash flow was $1.3 billion, up 17%, and the company returned $1.2 billion to shareholders while increasing its quarterly dividend by 10%, highlighting capital return capacity.
Guidance for the quarter ending June 26, 2026 calls for sales of approximately $5 billion, up 10.3%, and adjusted EPS around $2.83, up 17% year over year. Actual performance will depend on sustained order conversion in Industrial and Transportation and the company’s ability to maintain margins near current levels.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
(Jurisdiction of Incorporation) | (IRS Employer Identification Number) |
(Commission File Number)
(Address of Principal Executive Offices, including Zip Code)
(Registrant’s telephone number, including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol | Name of each exchange on which registered | ||
*Issued by Tyco Electronics Group S.A., an indirect wholly-owned subsidiary of TE Connectivity plc
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On April 22, 2026, TE Connectivity plc (the “Company”) issued a press release reporting the Company’s second quarter results for fiscal 2026. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated by reference in this Item 2.02.
Item 7.01. Regulation FD Disclosure
The Company will hold a conference call and webcast on April 22, 2026 (see information in the press release attached hereto as Exhibit 99.1 under “Conference Call and Webcast”). A copy of the slide materials to be discussed at the conference call and webcast is being furnished pursuant to Regulation FD as Exhibit 99.2 and is incorporated herein by reference, and the slide materials also can be accessed at the “Investors” section of the Company’s website (www.te.com).
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit |
| Description |
|
|
|
99.1 |
| Press release issued April 22, 2026 |
|
|
|
99.2 |
| Presentation - TE Connectivity Q2 2026 Earnings Call (April 22, 2026) |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 22, 2026 | TE CONNECTIVITY PLC | |
By: | /s/ Heath A. Mitts Heath A. Mitts | |
Exhibit 99.1
NEWS RELEASE | te.com |
TE Connectivity delivers results above guidance with 15% sales growth and over 20% EPS growth in second quarter of fiscal 2026
Third quarter guidance reflects double digit sales and EPS growth
GALWAY, Ireland – April 22, 2026 – TE Connectivity plc (NYSE: TEL) today reported results for the fiscal second quarter ended March 27, 2026.
Second Quarter Highlights
“Our teams delivered another quarter of results above guidance, including double-digit sales growth and record adjusted EPS,” said CEO Terrence Curtin. “This performance and our record orders were driven by our strategic positioning in key trends including AI, next generation transportation and electric grid modernization, along with the broadening of growth across our portfolio. We’re well positioned to capitalize
on the proliferation of data and power to provide our customers with leading interconnect technologies. Our strong margin performance reflects the resilience we’ve built to mitigate the dynamic environment we continue to operate in around the world.
“Looking ahead to the third quarter, our ongoing orders momentum across all businesses positions us to deliver double digit sales growth to $5 billion, with continued strong operational performance to drive a double-digit increase in EPS. We continue to invest in innovative products and technologies that support our global customers and fuel our future growth.”
Third Quarter FY26 Outlook
For the third quarter of fiscal 2026, the company expects sales of approximately $5 billion, an increase of 10% on a reported basis and 9% organically year over year. Adjusted EPS is expected to be approximately $2.83, an increase of 17% year over year. GAAP EPS from continuing operations is expected to be approximately $2.44, an increase of 14% year over year.
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.com |
| ● | By 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 22. |
About TE Connectivity
TE Connectivity plc (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. As a trusted innovation partner, 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 enabling artificial intelligence, and more. Our more than 90,000 employees, including 10,000 engineers, work alongside customers in approximately 130 countries. In a world that is racing ahead, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Instagram.
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, amortization expense on intangible assets, 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, amortization expense on intangible assets, 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, amortization expense on intangible assets, 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, amortization expense on intangible assets, 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. 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 26, 2025, 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.
Contacts: | Media Relations: Eric Mangan TE Connectivity 908-783-6629 Eric.Mangan@te.com | Investor Relations: Sujal Shah TE Connectivity 610-893-9790 Sujal.Shah@te.com |
# # #
TE CONNECTIVITY PLC
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| For the Quarters Ended | | For the Six Months Ended | ||||||||
| March 27, | | March 28, | | March 27, | | March 28, | ||||
| 2026 | | 2025 | | 2026 |
| 2025 | ||||
| (in millions, except per share data) | ||||||||||
Net sales | $ | 4,744 | | $ | 4,143 | | $ | 9,413 | | $ | 7,979 |
Cost of sales | | 2,999 | | | 2,684 | | | 5,929 | | | 5,160 |
Gross margin | | 1,745 | | | 1,459 | | | 3,484 | | | 2,819 |
Selling, general, and administrative expenses | | 536 | | | 454 | | | 1,074 | | | 881 |
Research, development, and engineering expenses | | 237 | | | 203 | | | 462 | | | 391 |
Acquisition and integration costs | | 8 | | | 9 | | | 11 | | | 14 |
Restructuring and other charges, net | | 10 | | | 45 | | | 20 | | | 95 |
Operating income | | 954 | | | 748 | | | 1,917 | | | 1,438 |
Interest income | | 21 | | | 22 | | | 46 | | | 45 |
Interest expense | | (32) | | | (14) | | | (62) | | | (20) |
Other income (expense), net | | (1) | | | (1) | | | 2 | | | (2) |
Income from continuing operations before income taxes | | 942 | | | 755 | | | 1,903 | | | 1,461 |
Income tax expense | | (87) | | | (742) | | | (297) | | | (920) |
Income from continuing operations | | 855 | | | 13 | | | 1,606 | | | 541 |
Loss from discontinued operations, net of income taxes | | — | | | — | | | (1) | | | — |
Net income | $ | 855 | | $ | 13 | | $ | 1,605 | | $ | 541 |
| | | | | | | | | | | |
Basic earnings per share: | | | | | | | | | | | |
Income from continuing operations | $ | 2.92 | | $ | 0.04 | | $ | 5.46 | | $ | 1.81 |
Loss from discontinued operations | | — | | | — | | | — | | | — |
Net income | | 2.92 | | | 0.04 | | | 5.46 | | | 1.81 |
| | | | | | | | | | | |
Diluted earnings per share: | | | | | | | | | | | |
Income from continuing operations | $ | 2.90 | | $ | 0.04 | | $ | 5.43 | | $ | 1.80 |
Loss from discontinued operations | | — | | | — | | | — | | | — |
Net income | | 2.90 | | | 0.04 | | | 5.42 | | | 1.80 |
| | | | | | | | | | | |
Weighted-average number of shares outstanding: | | | | | | | | | | | |
Basic | | 293 | | | 298 | | | 294 | | | 299 |
Diluted | | 295 | | | 300 | | | 296 | | | 301 |
TE CONNECTIVITY PLC
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| March 27, | | September 26, | ||
| 2026 | | 2025 | ||
| (in millions, except share data) | ||||
Assets | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | $ | 1,110 | | $ | 1,255 |
Accounts receivable, net of allowance for doubtful accounts of $52 and $44, respectively | | 3,454 | | | 3,403 |
Inventories | | 2,995 | | | 2,699 |
Prepaid expenses and other current assets | | 682 | | | 609 |
Total current assets | | 8,241 | | | 7,966 |
Property, plant, and equipment, net | | 4,473 | | | 4,312 |
Goodwill | | 7,437 | | | 7,126 |
Intangible assets, net | | 2,145 | | | 2,227 |
Deferred income taxes | | 2,337 | | | 2,507 |
Other assets | | 1,046 | | | 943 |
Total assets | $ | 25,679 | | $ | 25,081 |
Liabilities, redeemable noncontrolling interests, and shareholders' equity | | | | | |
Current liabilities: | | | | | |
Short-term debt | $ | 102 | | $ | 852 |
Accounts payable | | 2,224 | | | 2,021 |
Accrued and other current liabilities | | 2,039 | | | 2,247 |
Total current liabilities | | 4,365 | | | 5,120 |
Long-term debt | | 5,553 | | | 4,842 |
Long-term pension and postretirement liabilities | | 750 | | | 767 |
Deferred income taxes | | 198 | | | 198 |
Income taxes | | 306 | | | 414 |
Other liabilities | | 1,125 | | | 1,010 |
Total liabilities | | 12,297 | | | 12,351 |
Commitments and contingencies | | | | | |
Redeemable noncontrolling interests | | 148 | | | 145 |
Shareholders' equity: | | | | | |
Preferred shares, $1.00 par value, 2 shares authorized, none outstanding | | — | | | — |
Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding | | — | | | — |
Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 295,773,434 and 302,889,075 shares issued, respectively | | 3 | | | 3 |
Accumulated earnings | | 13,900 | | | 13,932 |
Ordinary shares held in treasury, at cost, 3,632,502 and 8,330,931 shares, respectively | | (818) | | | (1,356) |
Accumulated other comprehensive income | | 149 | | | 6 |
Total shareholders' equity | | 13,234 | | | 12,585 |
Total liabilities, redeemable noncontrolling interests, and shareholders' equity | $ | 25,679 | | $ | 25,081 |
TE CONNECTIVITY PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| For the Quarters Ended | | For the Six Months Ended | ||||||||
| March 27, | | March 28, | | March 27, | | March 28, | ||||
| 2026 | | 2025 | | 2026 | | 2025 | ||||
| (in millions) | ||||||||||
Cash flows from operating activities: | | | | | | | | | | | |
Net income | $ | 855 | | $ | 13 | | $ | 1,605 | | $ | 541 |
Loss from discontinued operations, net of income taxes | | — | | | — | | | 1 | | | — |
Income from continuing operations | | 855 | | | 13 | | | 1,606 | | | 541 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | | | | | | | | | | | |
Depreciation and amortization | | 243 | | | 192 | | | 502 | | | 378 |
Deferred income taxes | | 82 | | | 603 | | | 159 | | | 701 |
Non-cash lease cost | | 39 | | | 35 | | | 78 | | | 69 |
Provision for losses on accounts receivable and inventories | | 6 | | | 2 | | | 49 | | | 43 |
Share-based compensation expense | | 42 | | | 34 | | | 92 | | | 69 |
Other | | (29) | | | 22 | | | (25) | | | 34 |
Changes in assets and liabilities, net of the effects of acquisitions and divestitures: | | | | | | | | | | | |
Accounts receivable, net | | 20 | | | (317) | | | (59) | | | (171) |
Inventories | | (30) | | | (14) | | | (331) | | | (132) |
Prepaid expenses and other current assets | | (34) | | | 72 | | | (14) | | | 140 |
Accounts payable | | 38 | | | (4) | | | 177 | | | 146 |
Accrued and other current liabilities | | (47) | | | (3) | | | (264) | | | (298) |
Income taxes | | (129) | | | 25 | | | (84) | | | 55 |
Other | | (109) | | | (7) | | | (74) | | | (44) |
Net cash provided by operating activities | | 947 | | | 653 | | | 1,812 | | | 1,531 |
Cash flows from investing activities: | | | | | | | | | | | |
Capital expenditures | | (270) | | | (230) | | | (528) | | | (435) |
Proceeds from sale of property, plant, and equipment | | 3 | | | 1 | | | 4 | | | 2 |
Acquisition of businesses, net of cash acquired | | (200) | | | 4 | | | (200) | | | (321) |
Other | | (3) | | | 1 | | | — | | | (7) |
Net cash used in investing activities | | (470) | | | (224) | | | (724) | | | (761) |
Cash flows from financing activities: | | | | | | | | | | | |
Net increase in commercial paper | | 100 | | | 1,155 | | | 100 | | | 1,245 |
Proceeds from issuance of debt | | 750 | | | 773 | | | 750 | | | 773 |
Repayment of debt | | (851) | | | (579) | | | (851) | | | (579) |
Proceeds from exercise of share options | | 20 | | | 25 | | | 64 | | | 59 |
Repurchase of ordinary shares | | (414) | | | (306) | | | (819) | | | (609) |
Payment of ordinary share dividends to shareholders | | (208) | | | (193) | | | (417) | | | (382) |
Other | | (12) | | | (6) | | | (58) | | | (33) |
Net cash provided by (used in) financing activities | | (615) | | | 869 | | | (1,231) | | | 474 |
Effect of currency translation on cash | | (3) | | | 2 | | | (2) | | | (9) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | | (141) | | | 1,300 | | | (145) | | | 1,235 |
Cash, cash equivalents, and restricted cash at beginning of period | | 1,251 | | | 1,254 | | | 1,255 | | | 1,319 |
Cash, cash equivalents, and restricted cash at end of period | $ | 1,110 | | $ | 2,554 | | $ | 1,110 | | $ | 2,554 |
| | | | | | | | | | | |
Supplemental cash flow information: | | | | | | | | | | | |
Income taxes paid, net of refunds | $ | 135 | | $ | 115 | | $ | 223 | | $ | 164 |
TE CONNECTIVITY PLC
RECONCILIATION OF FREE CASH FLOW (UNAUDITED)
| For the Quarters Ended | | For the Six Months Ended | ||||||||
| March 27, | | March 28, | | March 27, | | March 28, | ||||
| 2026 | | 2025 | | 2026 | | 2025 | ||||
| (in millions) | ||||||||||
Net cash provided by operating activities | $ | 947 | | $ | 653 | | $ | 1,812 | | $ | 1,531 |
Capital expenditures, net | | (267) | | | (229) | | | (524) | | | (433) |
Free cash flow (1) | $ | 680 | | $ | 424 | | $ | 1,288 | | $ | 1,098 |
| | | | | | | | | | | |
(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 27, | | | March 28, | | | March 27, | | | March 28, | | ||||||||||||
| | 2026 | | | 2025 | | | 2026 | | | 2025 | | ||||||||||||
| | ($ in millions) | | |||||||||||||||||||||
| | Net Sales | | | | | Net Sales | | | | | Net Sales | | | | | Net Sales | | | | ||||
Transportation Solutions | | $ | 2,422 | | | | | $ | 2,314 | | | | | $ | 4,889 | | | | | $ | 4,557 | | | |
Industrial Solutions | | | 2,322 | | | | | | 1,829 | | | | | | 4,524 | | | | | | 3,422 | | | |
Total | | $ | 4,744 | | | | | $ | 4,143 | | | | | $ | 9,413 | | | | | $ | 7,979 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Operating | | Operating | | | Operating | | Operating | | | Operating | | Operating | | | Operating | | Operating | | ||||
| | Income | | Margin | | | Income | | Margin | | | Income | | Margin | | | Income | | Margin | | ||||
Transportation Solutions | | $ | 503 | | 20.8 | % | | $ | 445 | | 19.2 | % | | $ | 1,004 | | 20.5 | % | | $ | 891 | | 19.6 | % |
Industrial Solutions | | | 451 | | 19.4 | | | | 303 | | 16.6 | | | | 913 | | 20.2 | | | | 547 | | 16.0 | |
Total | | $ | 954 | | 20.1 | % | | $ | 748 | | 18.1 | % | | $ | 1,917 | | 20.4 | % | | $ | 1,438 | | 18.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | 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 | | $ | 522 | | 21.6 | % | | $ | 495 | | 21.4 | % | | $ | 1,045 | | 21.4 | % | | $ | 990 | | 21.7 | % |
Industrial Solutions | | | 507 | | 21.8 | | | | 351 | | 19.2 | | | | 1,020 | | 22.5 | | | | 640 | | 18.7 | |
Total | | $ | 1,029 | | 21.7 | % | | $ | 846 | | 20.4 | % | | $ | 2,065 | | 21.9 | % | | $ | 1,630 | | 20.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
(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 27, 2026 | ||||||||||||||||
| versus Net Sales for the Quarter Ended March 28, 2025 | ||||||||||||||||
| Net Sales | | | Organic Net Sales | | | | | | ||||||||
| Growth (Decline) | | | Growth (Decline) (1) | | | Translation (2) | | Acquisition | ||||||||
| ($ in millions) | ||||||||||||||||
Transportation Solutions: | | | | | | | | | | | | | | | | | |
Automotive | $ | 27 | | 1.6 | % | | $ | (67) | | (3.8) | % | | $ | 94 | | $ | — |
Commercial transportation | | 76 | | 21.3 | | | | 62 | | 17.1 | | | | 14 | | | — |
Sensors | | 5 | | 2.3 | | | | (7) | | (3.0) | | | | 12 | | | — |
Total Transportation Solutions | | 108 | | 4.7 | | | | (12) | | (0.5) | | | | 120 | | | — |
Industrial Solutions: | | | | | | | | | | | | | | | | | |
Digital data networks | | 232 | | 48.1 | | | | 222 | | 46.1 | | | | 10 | | | — |
Automation and connected living | | 67 | | 13.1 | | | | 42 | | 8.2 | | | | 25 | | | — |
Aerospace, defense, and marine | | 34 | | 9.1 | | | | 21 | | 5.4 | | | | 13 | | | — |
Energy | | 166 | | 59.5 | | | | 31 | | 11.2 | | | | 15 | | | 120 |
Medical | | (6) | | (3.3) | | | | (7) | | (3.5) | | | | 1 | | | — |
Total Industrial Solutions | | 493 | | 27.0 | | | | 309 | | 16.9 | | | | 64 | | | 120 |
Total | $ | 601 | | 14.5 | % | | $ | 297 | | 7.2 | % | | $ | 184 | | $ | 120 |
| | | | | | | | | | | | | | | | | |
| Change in Net Sales for the Six Months Ended March 27, 2026 | ||||||||||||||||
| versus Net Sales for the Six Months Ended March 28, 2025 | ||||||||||||||||
| Net Sales | | | Organic Net Sales | | | | | | ||||||||
| Growth | | | Growth (Decline) (1) | | | Translation (2) | | Acquisitions | ||||||||
| ($ in millions) | ||||||||||||||||
Transportation Solutions: | | | | | | | | | | | | | | | | | |
Automotive | $ | 190 | | 5.5 | % | | $ | 45 | | 1.3 | % | | $ | 145 | | $ | — |
Commercial transportation | | 134 | | 20.0 | | | | 113 | | 16.7 | | | | 21 | | | — |
Sensors | | 8 | | 1.9 | | | | (12) | | (2.7) | | | | 20 | | | — |
Total Transportation Solutions | | 332 | | 7.3 | | | | 146 | | 3.2 | | | | 186 | | | — |
Industrial Solutions: | | | | | | | | | | | | | | | | | |
Digital data networks | | 526 | | 58.8 | | | | 510 | | 57.0 | | | | 16 | | | — |
Automation and connected living | | 137 | | 13.8 | | | | 97 | | 9.8 | | | | 39 | | | 1 |
Aerospace, defense, and marine | | 81 | | 11.4 | | | | 57 | | 8.0 | | | | 24 | | | — |
Energy | | 356 | | 71.9 | | | | 63 | | 12.7 | | | | 22 | | | 271 |
Medical | | 2 | | 0.6 | | | | 1 | | 0.4 | | | | 1 | | | — |
Total Industrial Solutions | | 1,102 | | 32.2 | | | | 728 | | 21.3 | | | | 102 | | | 272 |
Total | $ | 1,434 | | 18.0 | % | | $ | 874 | | 11.0 | % | | $ | 288 | | $ | 272 |
| | | | | | | | | | | | | | | | | |
(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. | |||||||||||||||||
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended March 27, 2026
(UNAUDITED)
| | | | | Adjustments | | | | | ||||||||||
| | | | Acquisition- | | Restructuring | | | | | | | | ||||||
| | | | Related | | and Other | | Amortization | | | | Adjusted | | ||||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | Tax Items (2) | | (Non-GAAP) (3) | | ||||||
| ($ in millions, except per share data) | | |||||||||||||||||
Operating income: | | | | | | | | | | | | | | | | | | | |
Transportation Solutions | $ | 503 | | | $ | — | | $ | 1 | | $ | 18 | | $ | — | | $ | 522 | |
Industrial Solutions | | 451 | | | | 8 | | | 9 | | | 39 | | | — | | | 507 | |
Total | $ | 954 | | | $ | 8 | | $ | 10 | | $ | 57 | | $ | — | | $ | 1,029 | |
| | | | | | | | | | | | | | | | | | | |
Operating margin | | 20.1 | % | | | | | | | | | | | | | | | 21.7 | % |
| | | | | | | | | | | | | | | | | | | |
Income tax expense | $ | (87) | | | $ | (2) | | $ | 2 | | $ | (12) | | $ | (114) | | $ | (213) | |
| | | | | | | | | | | | | | | | | | | |
Effective tax rate | | 9.2 | % | | | | | | | | | | | | | | | 20.9 | % |
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations | $ | 855 | | | $ | 6 | | $ | 12 | | $ | 45 | | $ | (114) | | $ | 804 | |
| | | | | | | | | | | | | | | | | | | |
Diluted earnings per share from continuing operations | $ | 2.90 | | | $ | 0.02 | | $ | 0.04 | | $ | 0.15 | | $ | (0.39) | | $ | 2.73 | |
| | | | | | | | | | | | | | | | | | | |
(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 a net income tax benefit related primarily to the settlement of prior period tax matters. | | ||||||||||||||||||
(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 28, 2025
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | |
| | | | | Adjustments | | | | | ||||||||||
| | | | Acquisition- | | Restructuring | | | | | | | | ||||||
| | | | Related | | and Other | | Amortization | | | | Adjusted | | ||||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | Tax Items (2) | | (Non-GAAP) (3) | | ||||||
| ($ in millions, except per share data) | | |||||||||||||||||
Operating income: | | | | | | | | | | | | | | | | | | | |
Transportation Solutions | $ | 445 | | | $ | — | | $ | 33 | | $ | 17 | | $ | — | | $ | 495 | |
Industrial Solutions | | 303 | | | | 12 | | | 12 | | | 24 | | | — | | | 351 | |
Total | $ | 748 | | | $ | 12 | | $ | 45 | | $ | 41 | | $ | — | | $ | 846 | |
| | | | | | | | | | | | | | | | | | | |
Operating margin | | 18.1 | % | | | | | | | | | | | | | | | 20.4 | % |
| | | | | | | | | | | | | | | | | | | |
Income tax expense | $ | (742) | | | $ | (2) | | $ | (11) | | $ | (8) | | $ | 574 | | $ | (189) | |
| | | | | | | | | | | | | | | | | | | |
Effective tax rate | | 98.3 | % | | | | | | | | | | | | | | | 22.2 | % |
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations | $ | 13 | | | $ | 10 | | $ | 34 | | $ | 33 | | $ | 574 | | $ | 664 | |
| | | | | | | | | | | | | | | | | | | |
Diluted earnings per share from continuing operations | $ | 0.04 | | | $ | 0.03 | | $ | 0.11 | | $ | 0.11 | | $ | 1.91 | | $ | 2.21 | |
| | | | | | | | | | | | | | | | | | | |
(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 Six Months Ended March 27, 2026
(UNAUDITED)
| | | | | Adjustments | | | | | ||||||||||
| | | | Acquisition- | | Restructuring | | | | | | | | ||||||
| | | | Related | | and Other | | Amortization | | | | Adjusted | | ||||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | Tax Items (2) | | (Non-GAAP) (3) | | ||||||
| ($ in millions, except per share data) | | |||||||||||||||||
Operating income: | | | | | | | | | | | | | | | | | | | |
Transportation Solutions | $ | 1,004 | | | $ | — | | $ | 5 | | $ | 36 | | $ | — | | $ | 1,045 | |
Industrial Solutions | | 913 | | | | 14 | | | 15 | | | 78 | | | — | | | 1,020 | |
Total | $ | 1,917 | | | $ | 14 | | $ | 20 | | $ | 114 | | $ | — | | $ | 2,065 | |
| | | | | | | | | | | | | | | | | | | |
Operating margin | | 20.4 | % | | | | | | | | | | | | | | | 21.9 | % |
| | | | | | | | | | | | | | | | | | | |
Income tax expense | $ | (297) | | | $ | (3) | | $ | (1) | | $ | (23) | | $ | (114) | | $ | (438) | |
| | | | | | | | | | | | | | | | | | | |
Effective tax rate | | 15.6 | % | | | | | | | | | | | | | | | 21.4 | % |
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations | $ | 1,606 | | | $ | 11 | | $ | 19 | | $ | 91 | | $ | (114) | | $ | 1,613 | |
| | | | | | | | | | | | | | | | | | | |
Diluted earnings per share from continuing operations | $ | 5.43 | | | $ | 0.04 | | $ | 0.06 | | $ | 0.31 | | $ | (0.39) | | $ | 5.45 | |
| | | | | | | | | | | | | | | | | | | |
(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 a net income tax benefit related primarily to the settlement of prior period tax matters. | | ||||||||||||||||||
(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 28, 2025
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | |
| | | | | Adjustments | | | | | ||||||||||
| | | | Acquisition- | | Restructuring | | | | | | | | ||||||
| | | | Related | | and Other | | Amortization | | | | Adjusted | | ||||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | Tax Items (2) | | (Non-GAAP) (3) | | ||||||
| ($ in millions, except per share data) | | |||||||||||||||||
Operating income: | | | | | | | | | | | | | | | | | | | |
Transportation Solutions | $ | 891 | | | $ | — | | $ | 65 | | $ | 34 | | $ | — | | $ | 990 | |
Industrial Solutions | | 547 | | | | 17 | | | 30 | | | 46 | | | — | | | 640 | |
Total | $ | 1,438 | | | $ | 17 | | $ | 95 | | $ | 80 | | $ | — | | $ | 1,630 | |
| | | | | | | | | | | | | | | | | | | |
Operating margin | | 18.0 | % | | | | | | | | | | | | | | | 20.4 | % |
| | | | | | | | | | | | | | | | | | | |
Income tax expense | $ | (920) | | | $ | (3) | | $ | (20) | | $ | (15) | | $ | 587 | | $ | (371) | |
| | | | | | | | | | | | | | | | | | | |
Effective tax rate | | 63.0 | % | | | | | | | | | | | | | | | 22.4 | % |
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations | $ | 541 | | | $ | 14 | | $ | 75 | | $ | 65 | | $ | 587 | | $ | 1,282 | |
| | | | | | | | | | | | | | | | | | | |
Diluted earnings per share from continuing operations | $ | 1.80 | | | $ | 0.05 | | $ | 0.25 | | $ | 0.22 | | $ | 1.95 | | $ | 4.26 | |
| | | | | | | | | | | | | | | | | | | |
(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 $13 million related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction. | | ||||||||||||||||||
(3) See description of non-GAAP financial measures. | | ||||||||||||||||||
TE CONNECTIVITY PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended June 27, 2025
(UNAUDITED)
| | | | | | | | | | | | | | | | |
| | | | | Adjustments | | | | | |||||||
| | | | Acquisition- | | Restructuring | | | | | | |||||
| | | | Related | | and Other | | Amortization | | Adjusted | | |||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | (Non-GAAP) (2) | | |||||
| ($ in millions, except per share data) | | ||||||||||||||
Operating income: | | | | | | | | | | | | | | | | |
Transportation Solutions | $ | 462 | | | $ | — | | $ | 7 | | $ | 17 | | $ | 486 | |
Industrial Solutions | | 395 | | | | 30 | | | 7 | | | 35 | | | 467 | |
Total | $ | 857 | | | $ | 30 | | $ | 14 | | $ | 52 | | $ | 953 | |
| | | | | | | | | | | | | | | | |
Operating margin | | 18.9 | % | | | | | | | | | | | | 21.0 | % |
| | | | | | | | | | | | | | | | |
Income tax expense | $ | (208) | | | $ | (7) | | $ | 1 | | $ | (11) | | $ | (225) | |
| | | | | | | | | | | | | | | | |
Effective tax rate | | 24.6 | % | | | | | | | | | | | | 23.9 | % |
| | | | | | | | | | | | | | | | |
Income from continuing operations | $ | 638 | | | $ | 23 | | $ | 15 | | $ | 41 | | $ | 717 | |
| | | | | | | | | | | | | | | | |
Diluted earnings per share from continuing operations | $ | 2.14 | | | $ | 0.08 | | $ | 0.05 | | $ | 0.14 | | $ | 2.41 | |
| | | | | | | | | | | | | | | | |
(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 26, 2025
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | |
| | | | | Adjustments | | | | | ||||||||||
| | | | Acquisition- | | Restructuring | | | | | | | | ||||||
| | | | Related | | and Other | | Amortization | | | | Adjusted | | ||||||
| U.S. GAAP | | | Charges (1) | | Charges, Net (1) | | Expense (1) | | Tax Items (2) | | (Non-GAAP) (3) | | ||||||
| ($ in millions, except per share data) | | |||||||||||||||||
Operating income: | | | | | | | | | | | | | | | | | | | |
Transportation Solutions | $ | 1,818 | | | $ | — | | $ | 75 | | $ | 70 | | $ | — | | $ | 1,963 | |
Industrial Solutions | | 1,393 | | | | 57 | | | 51 | | | 120 | | | — | | | 1,621 | |
Total | $ | 3,211 | | | $ | 57 | | $ | 126 | | $ | 190 | | $ | — | | $ | 3,584 | |
| | | | | | | | | | | | | | | | | | | |
Operating margin | | 18.6 | % | | | | | | | | | | | | | | | 20.8 | % |
| | | | | | | | | | | | | | | | | | | |
Income tax expense | $ | (1,361) | | | $ | (12) | | $ | (13) | | $ | (37) | | $ | 618 | | $ | (805) | |
| | | | | | | | | | | | | | | | | | | |
Effective tax rate | | 42.5 | % | | | | | | | | | | | | | | | 22.5 | % |
| | | | | | | | | | | | | | | | | | | |
Income from continuing operations | $ | 1,843 | | | $ | 45 | | $ | 113 | | $ | 153 | | $ | 618 | | $ | 2,772 | |
| | | | | | | | | | | | | | | | | | | |
Diluted earnings per share from continuing operations | $ | 6.16 | | | $ | 0.15 | | $ | 0.38 | | $ | 0.51 | | $ | 2.07 | | $ | 9.27 | |
| | | | | | | | | | | | | | | | | | | |
(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 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 $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards. | | ||||||||||||||||||
(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 22, 2026
(UNAUDITED)
| Outlook for | | |
| Quarter Ending | | |
| June 26, | | |
| 2026 | | |
Diluted earnings per share from continuing operations | $ | 2.44 | |
Acquisition-related charges | | 0.02 | |
Restructuring and other charges, net | | 0.22 | |
Amortization expense | | 0.15 | |
Adjusted diluted earnings per share from continuing operations (1) | $ | 2.83 | |
| | | |
| | | |
Net sales growth | | 10.3 | % |
Translation | | (1.1) | |
(Acquisitions) divestitures, net | | — | |
Organic net sales growth (1) | | 9.2 | % |
| | | |
(1) See description of non-GAAP financial measures. | |||
Exhibit 99.2
| EVERY CONNECTION COUNTS TE Connectivity Second Quarter 2026 Earnings April 22, 2026 |
| Forward-Looking Statements and Non-GAAP Financial Measures 2 Forward-Looking Statements This presentation 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 presentation 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. 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. 26, 2025, 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. Non-GAAP Financial Measures Where we have used non-GAAP financial measures, reconciliations to the most comparable GAAP measure are provided, along with a disclosure on the usefulness of the non-GAAP financial measure, in this presentation. |
| Q2 Results Exceeded Guidance with an Increase of 15% in Sales and 24% in Adjusted EPS Y/Y ▪ Sales of $4.74B, increased 15% reported and 7% on an organic basis Y/Y ▪ Record Orders of $5.3B, increased 25% Y/Y and 4% sequentially; book to bill of 1.12 ▪ Adjusted Operating Margins of 22%, expanded 130bps Y/Y driven by strong operational performance ▪ Record Adjusted EPS of $2.73, increased 24% Y/Y ▪ Strong Free Cash Flow generation of $1.3B in 1H FY26, increased 17% Y/Y ▪ Returned $1.2B to shareholders in 1H FY26 ▪ Announced 10% increase in quarterly cash dividend Earnings Highlights 3 Organic Net Sales Growth (Decline), Adjusted Operating Margin, Adjusted EPS, and Free Cash Flow are non-GAAP financial measures; see Appendix for descriptions and reconciliations Q3 Guidance Reflects Double-Digit Sales and EPS Growth ▪ Expect Sales of ~$5.0B, increasing 10% reported and 9% organically Y/Y ▪ Expect Y/Y and sequential growth in both segments reinforcing broadening growth across the portfolio ▪ Adjusted EPS of ~$2.83, increasing 17% Y/Y |
| Reported FY25 Q2 FY26 Q1 FY26 Q2 Q2 Growth Y/Y Q/Q Industrial 1,931 2,734 2,703 40% (1)% Transportation 2,315 2,386 2,621 13% 10% Total TE 4,246 5,120 5,324 25% 4% Book to Bill 1.02 1.10 1.12 Segment Orders Summary ($ in millions) 4 ▪ Book to bill above 1.0 in both segments ▪ Industrial segment order trends reflecting momentum in all businesses ▪ Transportation segment orders grew Y/Y and Q/Q in every business Record order levels with Y/Y increases in every business |
| Industrial Solutions Q2 SALES Reported Up 27% Organic Up 17% Q2 ADJUSTED OPERATING MARGIN Margin expansion of 260bps driven by strong operational performance and higher volume Adjusted EBITDA Margin 22.1% 25.3% 5 Q2 BUSINESS PERFORMANCE Y/Y Growth Rates Reported Organic Digital Data Networks (DDN) $714 48% 46% Automation & Connected Living (ACL) 579 13% 8% Energy 445 60% 11% Aerospace, Defense and Marine (AD&M) 408 9% 5% Medical 176 (3)% (4)% Industrial Solutions $2,322 27% 17% $ in Millions ▪ Digital Data Networks Strong growth driven by ongoing momentum in AI applications ▪ Automation & Connected Living Growth across all regions driven by factory automation applications ▪ Energy Growth over market driven by grid hardening, data center, and clean energy applications, with benefit from acquisitions ▪ AD&M Performance reflects ongoing strength in commercial air and defense markets ▪ Medical Sales as expected, with sequential growth $1,829 $2,322 Q2 2025 Q2 2026 19.2% 21.8% Q2 2025 Q2 2026 Double-digit sales growth building momentum for 2H Organic Net Sales Growth (Decline), Adjusted Operating Margin, and Adjusted EBITDA Margin are non-GAAP financial measures; see Appendix for descriptions and reconciliations. |
| Transportation Solutions Q2 SALES Reported Up 5% Organic Down 1% Q2 ADJUSTED OPERATING MARGIN Strong margin performance reflecting continued execution by our teams Adjusted EBITDA Margin 25.6% 25.9% 6 $2,314 $2,422 Q2 2025 Q2 2026 Q2 BUSINESS PERFORMANCE Y/Y Growth Rates Reported Organic Automotive $1,762 2% (4)% Commercial Transportation 433 21% 17% Sensors 227 2% (3)% Transportation Solutions $2,422 5% (1)% $ in Millions 21.4% 21.6% Q2 2025 Q2 2026 ▪ Automotive Sales as expected, with growth in Europe offset by market declines in North America and Asia ▪ Commercial Transportation Strong growth over market across all regions ▪ Sensors Sales reflect growth in Asia, offset by weakness in North America and Europe Organic Net Sales Growth (Decline), Adjusted Operating Margin, and Adjusted EBITDA Margin are non-GAAP financial measures; see Appendix for descriptions and reconciliations. Continue to outperform end markets with strong operational resiliency |
| Q2 Financial Summary 7 ($ in Millions, except per share amounts) Q2 FY25 Q2 FY26 Net Sales $ 4,143 $ 4,744 Operating Income $ 748 $ 954 Operating Margin 18.1% 20.1% Acquisition-Related Charges 12 8 Restructuring & Other Charges, Net 45 10 Amortization Expense 41 57 Adjusted Operating Income $ 846 $ 1,029 Adjusted Operating Margin 20.4% 21.7% Earnings Per Share* $ 0.04 $ 2.90 Acquisition-Related Charges 0.03 0.02 Restructuring & Other Charges, Net 0.11 0.04 Amortization Expense 0.11 0.15 Tax Items 1.91 (0.39) Adjusted EPS $ 2.21 $ 2.73 Adjusted Effective Tax Rate 22.2% 20.9% *Represents Diluted Earnings Per Share from Continuing Operations Adjusted Operating Income, Adjusted Operating Margin, Adjusted Earnings Per Share, and Adjusted Effective Tax Rate are non-GAAP financial measures; see Appendix for descriptions and reconciliations. |
| Q2 Financial Performance 8 20.4% 21.7% Q2 2025 Q2 2026 SALES ADJUSTED OPERATING MARGIN ADJUSTED EPS FREE CASH FLOW Delivered Growth of 15% in Sales and 24% in Adjusted EPS Y/Y; Increasing Dividend by 10% Y/Y $ in Billions $ in Billions Up 17% Y/Y $1.1 $1.3 YTD 2025 YTD 2026 Up 24% Y/Y $4.1 $4.7 Q2 2025 Q2 2026 130bps of margin expansion Organic Net Sales Growth, Adjusted Operating Margin, Adjusted Earnings Per Share, and Free Cash Flow are non-GAAP financial measures; see Appendix for descriptions and reconciliations. Sales up 15% reported and 7% organic Y/Y $2.21 $2.73 Q2 2025 Q2 2026 ADJUSTED OPERATING MARGIN |
| EVERY CONNECTION COUNTS Additional Information |
| Y/Y Q2 2026 10 Sales (in millions) Adjusted EPS Q2 2025 Results $4,143 $2.21 Operational Performance 417 0.42 FX Impact 184 0.06 Tax Rate Impact - 0.04 Q2 2026 Results $4,744 $2.73 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation. |
| Y/Y Q3 2026 11 Sales (in millions) Adjusted EPS Q3 2025 Results $4,534 $2.41 Operational Performance 415 0.37 FX Impact 51 0.02 Tax Rate Impact - 0.03 Q3 2026 Guidance $5,000 $2.83 Adjusted Earnings Per Share is a non-GAAP financial measure; see Appendix for description and reconciliation. |
| Balance Sheet and Cash Flow Summary 12 ($ in Millions) Q2 2025 Q2 2026 Beginning Cash Balance $1,254 $1,251 Free Cash Flow 424 680 Dividends (193) (208) Share repurchases (306) (414) Net increase (decrease) in debt 1,349 (1) Acquisition of businesses, net of cash acquired 4 (200) Other 22 2 Ending Cash Balance $2,554 $1,110 Total Debt $5,614 $5,655 A/R $3,193 $3,454 Days Sales Outstanding* 69 66 Inventory $2,603 $2,995 Days on Hand* 85 89 Accounts Payable $1,843 $2,224 Days Outstanding* 62 67 Free Cash Flow and Working Capital Liquidity, Cash and Debt ($ in Millions) Q2 2025 Q2 2026 Cash from Operating Activities $653 $947 Capital expenditures, net (229) (267) Free Cash Flow $424 $680 Free Cash Flow is a non-GAAP financial measure, see Appendix for description and reconciliation * Calculated on a quarterly basis and adjusted to exclude the impact of acquisitions and divestitures |
| EVERY CONNECTION COUNTS Appendix |
| 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, amortization expense on intangible assets, 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, amortization expense on intangible assets, 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, amortization expense on intangible assets, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. Non-GAAP Financial Measures 14 |
| ▪ 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, amortization expense on intangible assets, 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. ▪ Adjusted EBITDA and Adjusted EBITDA Margin – represent net income and net income as a percentage of net sales, respectively, (the most comparable GAAP financial measures) before interest expense, interest income, income taxes, depreciation, and amortization, as adjusted for net other income (expense), income (loss) from discontinued operations, and special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. ▪ 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. ▪ Free Cash Flow Conversion – represents Free Cash Flow as a percentage of Adjusted Income from Continuing Operations. We use Free Cash Flow Conversion as an indicator of our ability to convert earnings to cash. Non-GAAP Financial Measures (cont.) 15 |
| Segment Summary 16 Transportation Solutions $ 2,422 $ 2,314 $ 4,889 $ 4,557 Industrial Solutions 2,322 1,829 4,524 3,422 Total $ 4,744 $ 4,143 $ 9,413 $ 7,979 O perating O perating O perating O perating Margin Margin Margin Margin Transportation Solutions $ 503 20.8 % $ 445 19.2 % $ 1,004 20.5 % $ 891 19.6 % Industrial Solutions 451 19.4 303 16.6 913 20.2 547 16.0 Total $ 954 20.1 % $ 748 18.1 % $ 1,917 20.4 % $ 1,438 18.0 % Adjusted Adjusted Adjusted Adjusted O perating O perating O perating O perating Margin (1) Margin (1) Margin (1) Margin (1) Transportation Solutions $ 522 21.6 % $ 495 21.4 % $ 1,045 21.4 % $ 990 21.7 % Industrial Solutions 507 21.8 351 19.2 1,020 22.5 640 18.7 Total $ 1,029 21.7 % $ 846 20.4 % $ 2,065 21.9 % $ 1,630 20.4 % (1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures. 2026 2025 ($ in millions) Adjusted O perating Income (1) Adjusted O perating Adjusted O perating Income (1) Net Sales Net Sales Net Sales Income (1) Adjusted O perating Income (1) Income O perating O perating Income 2025 For the Q uarters Ended March 27, March 28, March 27, March 28, For the Six Months Ended Net Sales O perating Income O perating Income 2026 |
| Reconciliation of Net Sales Growth 17 Transportation Solutions: Automotive $ 27 1.6 % $ (67) (3.8) % $ 94 $ — Commercial transportation 76 21.3 62 17.1 14 — Sensors 5 2.3 (7) (3.0) 12 — Total Transportation Solutions 108 4.7 (12) (0.5) 120 — Industrial Solutions: Digital data networks 232 48.1 222 46.1 10 — Automation and connected living 67 13.1 42 8.2 25 — Aerospace, defense, and marine 34 9.1 21 5.4 13 — Energy 166 59.5 31 11.2 15 120 Medical (6) (3.3) (7) (3.5) 1 — Total Industrial Solutions 493 27.0 309 16.9 64 120 Total $ 601 14.5 % $ 297 7.2 % $ 184 $ 120 ($ in millions) Translation (2) Acquisition Net Sales Growth (Decline) O rganic Net Sales Growth (Decline) (1) Change in Net Sales for the Q uarter Ended March 27, 2026 versus Net Sales for the Q uarter Ended March 28, 2025 Transportation Solutions: Automotive $ 190 5.5 % $ 45 1.3 % $ 145 $ — Commercial transportation 134 20.0 113 16.7 21 — Sensors 8 1.9 (12) (2.7) 20 — Total Transportation Solutions 332 7.3 146 3.2 186 — Industrial Solutions: Digital data networks 526 58.8 510 57.0 16 — Automation and connected living 137 13.8 97 9.8 39 1 Aerospace, defense, and marine 81 11.4 57 8.0 24 — Energy 356 71.9 63 12.7 22 271 Medical 2 0.6 1 0.4 1 — Total Industrial Solutions 1,102 32.2 728 21.3 102 272 Total $ 1,434 18.0 % $ 874 11.0 % $ 288 $ 272 (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. Translation (2) Acquisitions Change in Net Sales for the Six Months Ended March 27, 2026 versus Net Sales for the Six Months Ended March 28, 2025 ($ in millions) Net Sales O rganic Net Sales Growth Growth (Decline) (1) |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 27, 2026 18 Operating income: Transportation Solutions $ 503 $ — $ 1 $ 18 $ — $ 522 Industrial Solutions 451 8 9 39 — 507 Total $ 954 $ 8 $ 10 $ 57 $ — $ 1,029 Operating margin 20.1 % 21.7 % Income tax expense $ (87) $ (2) $ 2 $ (12) $ (114) $ (213) Effective tax rate 9.2 % 20.9 % Income from continuing operations $ 855 $ 6 $ 12 $ 45 $ (114) $ 804 Diluted earnings per share from continuing operations $ 2.90 $ 0.02 $ 0.04 $ 0.15 $ (0.39) $ 2.73 (3) See description of non-GAAP financial measures. (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. U.S. GAAP Charges (1) (Non-GAAP) (3) Charges, Net (1) ($ in millions, except per share data) Tax Items (2) (2) Represents a net income tax benefit related primarily to the settlement of prior period tax matters. Expense (1) Adjustments Related and O ther Adjusted Acquisition- Restructuring Amortization |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended March 28, 2025 19 Operating income: Transportation Solutions $ 445 $ — $ 33 $ 17 $ — $ 495 Industrial Solutions 303 12 12 24 — 351 Total $ 748 $ 12 $ 45 $ 41 $ — $ 846 Operating margin 18.1 % 20.4 % Income tax expense $ (742) $ (2) $ (11) $ (8) $ 574 $ (189) Effective tax rate 98.3 % 22.2 % Income from continuing operations $ 13 $ 10 $ 34 $ 33 $ 574 $ 664 Diluted earnings per share from continuing operations $ 0.04 $ 0.03 $ 0.11 $ 0.11 $ 1.91 $ 2.21 (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. Charges (1) Charges, Net (1) Expense (1) ($ in millions, except per share data) (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. Adjustments (3) See description of non-GAAP financial measures. Adjusted Tax Items (2) (Non-GAAP) (3) Related and O ther Amortization Acquisition- Restructuring U.S. GAAP |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 27, 2026 20 Operating income: Transportation Solutions $ 1,004 $ — $ 5 $ 36 $ — $ 1,045 Industrial Solutions 913 14 15 78 — 1,020 Total $ 1,917 $ 14 $ 20 $ 114 $ — $ 2,065 Operating margin 20.4 % 21.9 % Income tax expense $ (297) $ (3) $ (1) $ (23) $ (114) $ (438) Effective tax rate 15.6 % 21.4 % Income from continuing operations $ 1,606 $ 11 $ 19 $ 91 $ (114) $ 1,613 Diluted earnings per share from continuing operations $ 5.43 $ 0.04 $ 0.06 $ 0.31 $ (0.39) $ 5.45 Acquisition- Restructuring Adjustments ($ in millions, except per share data) (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 a net income tax benefit related primarily to the settlement of prior period tax matters. (3) See description of non-GAAP financial measures. Related and O ther Adjusted U.S. GAAP Charges (1) Charges, Net (1) Tax Items (2) (Non-GAAP) (3) Amortization Expense (1) |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Six Months Ended March 28, 2025 21 Operating income: Transportation Solutions $ 891 $ — $ 65 $ 34 $ — $ 990 Industrial Solutions 547 17 30 46 — 640 Total $ 1,438 $ 17 $ 95 $ 80 $ — $ 1,630 Operating margin 18.0 % 20.4 % Income tax expense $ (920) $ (3) $ (20) $ (15) $ 587 $ (371) Effective tax rate 63.0 % 22.4 % Income from continuing operations $ 541 $ 14 $ 75 $ 65 $ 587 $ 1,282 Diluted earnings per share from continuing operations $ 1.80 $ 0.05 $ 0.25 $ 0.22 $ 1.95 $ 4.26 ($ in millions, except per share data) (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. Related and O ther Adjusted U.S. GAAP Charges (1) Charges, Net (1) Tax Items (2) (Non-GAAP) (3) Amortization Expense (1) Adjustments Acquisition- Restructuring |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Quarter Ended June 27, 2025 22 Operating income: Transportation Solutions $ 462 $ — $ 7 $ 17 $ 486 Industrial Solutions 395 30 7 35 467 Total $ 857 $ 30 $ 14 $ 52 $ 953 Operating margin 18.9 % 21.0 % Income tax expense $ (208) $ (7) $ 1 $ (11) $ (225) Effective tax rate 24.6 % 23.9 % Income from continuing operations $ 638 $ 23 $ 15 $ 41 $ 717 Diluted earnings per share from continuing operations $ 2.14 $ 0.08 $ 0.05 $ 0.14 $ 2.41 Related and O ther Amortization U.S. GAAP Charges (1) Charges, Net (1) Expense (1) Acquisition- Restructuring Adjustments Adjusted (Non-GAAP) (2) ($ in millions, except per share data) (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. |
| Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures for the Year Ended September 26, 2025 23 Operating income: Transportation Solutions $ 1,818 $ — $ 75 $ 70 $ — $ 1,963 Industrial Solutions 1,393 57 51 120 — 1,621 Total $ 3,211 $ 57 $ 126 $ 190 $ — $ 3,584 Operating margin 18.6 % 20.8 % Income tax expense $ (1,361) $ (12) $ (13) $ (37) $ 618 $ (805) Effective tax rate 42.5 % 22.5 % Income from continuing operations $ 1,843 $ 45 $ 113 $ 153 $ 618 $ 2,772 Diluted earnings per share from continuing operations $ 6.16 $ 0.15 $ 0.38 $ 0.51 $ 2.07 $ 9.27 (3) See description of non-GAAP financial measures. Charges, Net (1) Tax Items (2) Amortization Expense (1) (2) Represents 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 $44 million related to an increase in the valuation allowance for certain U.S. tax loss and credit carryforwards. Adjustments Adjusted (Non-GAAP) (3) ($ in millions, except per share data) (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. Acquisition- Restructuring Related and O ther U.S. GAAP Charges (1) |
| Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin 24 Net income $ 855 $ 13 Income tax expense 87 742 Other expense, net 1 1 Interest expense 32 14 Interest income (21) (22) Operating income 954 748 Acquisition-related charges 8 12 Restructuring and other charges, net 10 45 Amortization expense 57 41 Adjusted operating income (1) 1,029 846 Depreciation 186 151 Adjusted EBITDA (1) $ 1,215 $ 997 Net sales $ 4,744 $ 4,143 Net income as a percentage of net sales 18.0 % 0.3 % Adjusted EBITDA margin (1) 25.6 % 24.1 % Operating income $ 503 $ 451 $ 954 $ 445 $ 303 $ 748 Acquisition-related charges — 8 8 — 12 12 Restructuring and other charges, net 1 9 10 33 12 45 Amortization expense 18 39 57 17 24 41 Adjusted operating income (1) 522 507 1,029 495 351 846 Depreciation 106 80 186 98 53 151 Adjusted EBITDA (1) $ 628 $ 587 $ 1,215 $ 593 $ 404 $ 997 Net sales $ 2,422 $ 2,322 $ 4,744 $ 2,314 $ 1,829 $ 4,143 Operating margin 20.8 % 19.4 % 20.1 % 19.2 % 16.6 % 18.1 % Adjusted operating margin (1) 21.6 % 21.8 % 21.7 % 21.4 % 19.2 % 20.4 % Adjusted EBITDA margin (1) 25.9 % 25.3 % 25.6 % 25.6 % 22.1 % 24.1 % (1) See description of non-GAAP financial measures. ($ in millions) Transportation Industrial Solutions Solutions Total Solutions Solutions Total March 27, 2026 March 28, 2025 For the Q uarters Ended ($ in millions) March 27, 2026 March 28, 2025 Transportation Industrial For the Q uarters Ended |
| Reconciliation of Free Cash Flow 25 |
| Reconciliation of Forward-Looking Non-GAAP Financial Measures to Forward-Looking GAAP Financial Measures 26 Diluted earnings per share from continuing operations $ 2.44 Acquisition-related charges 0.02 Restructuring and other charges, net 0.22 Amortization expense 0.15 Adjusted diluted earnings per share from continuing operations (2) $ 2.83 Net sales growth 10.3 % Translation (1.1) (Acquisitions) divestitures, net — Organic net sales growth (2) 9.2 % Effective tax rate 23.1 % 19.4 % Effective tax rate adjustments (3) (0.1) 2.7 Adjusted effective tax rate (2) 23.0 % 22.1 % Q uarter Ending O utlook for 2026 (1) June 26, O utlook for Fiscal 2026 (1) (3) Includes adjustments for special tax items and the tax effect of acquisition-related charges and net restructuring and other charges, calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction. (1) Outlook is as of April 22, 2026. (2) See description of non-GAAP financial measures. |
