TE Connectivity (” TE “) today announced its financial results for the first quarter of fiscal year 2024 ended December 29, 2023.

First quarter highlights

Net sales of $3.83 billion were in line with expectations and were essentially flat compared to sales in the first quarter of fiscal 2023, a natural decrease of 1%.
GAAP diluted earnings per share from continuing operations were $5.76, which includes a one-time tax-related gain. Adjusted earnings per share were $1.84, up 20 percent from a year earlier.
Order volume was $3.8 billion, up 4% year over year, with all solutions achieving year-over-year growth.
Operating margin was 18.2% and adjusted operating margin was 19.1%, an increase of 290 basis points.
Cash flow from operating operations was $719 million and free cash flow was $570 million, both fiscal first quarter records.
Approximately $1 billion of capital was deployed during the quarter, of which approximately $600 million was returned to shareholders and approximately $350 million was used to acquire Schaffner.

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TE is included in the Dow Jones Sustainability Index for the twelfth consecutive year.
Mr. Terrence Curtin, Chief Executive Officer of TE Connectivity, said, “I am pleased that TE delivered such a strong performance in the first quarter. In a continuously dynamic market environment, the TE team delivered higher than expected earnings, driven by significant margin growth and record free cash flow. TE’s innovative technology and global position in automotive connectivity, including a strong presence in Asia, once again enabled us to outperform the market and achieve year-over-year growth in mobility solutions. In the industrial solutions segment, TE continues to benefit from growth in renewable energy, commercial aviation and medical applications. TE Communications Electronics Solutions has a margin of nearly 20%, and we expect revenue growth in AI applications this year. As we continue to capitalize on our operational grasp and benefit from our diversified business portfolio and positioning around key long-term growth trends, we expect the company to deliver strong margin performance throughout fiscal 2024.”

Fiscal 2024 second quarter Results Outlook

For the second quarter of fiscal 2024, the Company expects net sales of approximately $3.95 billion. GAAP earnings per share from continuing operations are expected to be approximately $1.75, an increase of 31% over the prior fiscal year. Adjusted earnings per share are expected to be approximately $1.82, an increase of 10% year-over-year.