The following is a summary of the TE Connectivity Ltd. (TEL) Q2 2024 Earnings Call Transcript:

Financial Performance:

• TE Connectivity observed a 13% year-over-year growth in adjusted earnings per share, primarily due to an expansion of 250 basis points in adjusted operating margin.

• The company generated record free cash flow of $1.1 billion in H1 2024, up by over 30% compared to the previous year.

• Over $1.5 billion of capital was deployed with $1.2 billion returned to shareholders and around $350 million being used for the Schaffner acquisition.

• Q2 sales amounted to $3.97 billion, an increase of 3% organically on a sequential basis.

• Expecting approximately $4 billion in Q3 sales, reflecting overall growth.

• Double-digit earnings growth is anticipated for this fiscal year.

Business Progress:

• Transport end markets are expected to see slight growth in global auto production while the Communications segment is likely to return to year-over-year growth in the following quarter.

• The company is ramping up investments in Artificial Intelligence applications, forecasting a revenue doubling from $200 million to $400 million next year and attaining annual revenues of roughly $1 billion in the subsequent years.

• All segments are expected to show strong operational performance and margin expansion by the year-end.

• For the first time in 6 quarters, orders above $4 billion were recorded, showing sequential growth in every segment.

• Despite a complex commercial transportation market, TE Connectivity foresees a positively evolving market environment next year, driven by electrification, AI, and renewables.

More details: TE Connectivity IR

Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.