TE Connectivity Announces Fourth Quarter and Full Year 2022 Financial Results

Fourth quarter sales and EPS exceeded expectations with growth across all solutions; fiscal year sales up 9% with double-digit EPS growth

Schaffhausen, Switzerland – November 4, 2022 – TE Connectivity (TE) recently released its fourth quarter and full year financial results ending September 30, 2022. The financial results already include the impact of an extra week in the fourth quarter.

Fourth Quarter Highlights

• Net sales were $4.4 billion, up 14% year-over-year and 21% organically compared to fiscal 2021. Growth was achieved across all solutions. On a comparable 13-week computing cycle basis, sales were $4.05 billion .

GAAP diluted earnings per share from continuing operations were $2.21. Adjusted earnings per share were $1.88, up 11% year-over-year from fiscal 2021.

• Orders were $4.3 billion, with a book-to-bill ratio of 0.98.

• Cash flow from operating activities was $944 million and free cash flow was $745 million, both record highs; continuing to demonstrate a strong cash generation model.

Fiscal Year Highlights

• Fiscal year net sales reached a record high of $16.3 billion, an increase of 9% year-over-year and 12% organically compared to fiscal 2021.

• GAAP EPS from continuing operations was $7.47, up 10% year-over-year from fiscal 2021; adjusted EPS was $7.33, up 13% year-over-year from fiscal 2021. Both GAAP EPS and adjusted EPS from continuing operations were record highs.

• Industrial Solutions and Communications Electronics Solutions both achieved year-on-year profit growth compared to fiscal 2021.

• Cash flow from operating activities was $2.5 billion, free cash flow was $1.8 billion, and approximately $2.1 billion was returned to shareholders.

TE Connectivity CEO Terrence Curtin said: "TE's strong closing and record performance in fiscal 2022 benefited from the strategic positioning of TE's business portfolio and the continued execution of TE's global team in a dynamically changing macro environment. In fiscal 2022, we achieved double-digit organic growth in net sales, with growth in all major solutions; earnings per share also achieved double-digit growth. We continue to focus on co-innovation with global customers to enhance TE's leadership in long-term growth and sustainable development trends. These trends include electric vehicles, cloud computing, renewable energy, and factory automation applications. TE's order amount and backlog trends remain good. Entering fiscal 2023, we may experience cycles in some markets due to broader macroeconomic challenges. But we believe that TE is well positioned to seize long-term trends, which will drive future growth and bring value to our shareholders; while creating a safer, sustainable, efficient and interconnected future."

Outlook for the first quarter of fiscal year 2023

For the first quarter of fiscal 2023, the company expects net sales to be approximately $3.75 billion, which is expected to be a year-on-year decrease of approximately 2% and an organic increase of approximately 9%. GAAP earnings per share from continuing operations are expected to be approximately $1.31, and adjusted earnings per share are expected to be approximately $1.50.

Information About TE Connectivity’s Use of Non-GAAP Financial Measures (Non-GAAP Measures)