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TE Connectivity delivers double-digit sales and EPS growth in third quarter of fiscal 2025
TE Connectivity delivers double-digit sales and EPS growth in third quarter of fiscal 2025

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TE Connectivity delivers double-digit sales and EPS growth in third quarter of fiscal 2025

Results above guidance driven by strong operational performance and records in sales and cash flow GALWAY, Ireland, July 23, 2025 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal third quarter ended June 27, 2025. Third Quarter Highlights Net sales were a record $4.5 billion, an increase of 14% on a reported basis year over year and 9% organically driven primarily by strong growth in the Industrial segment. GAAP diluted earnings per share (EPS) from continuing operations was $2.14, up 15% year over year. Adjusted EPS was a record $2.27, an increase of approximately 19% year over year. Orders were $4.5 billion, up year over year and sequentially. Operating margin was 18.9% and adjusted operating margin was a record 19.9%, driven by strong operational performance across both segments. Record cash generation for the third quarter and year to date, including: Cash flow from operating activities for the quarter was approximately $1.2 billion and $2.7 billion year to date. Free cash flow for the quarter was $962 million and approximately $2.1 billion year to date. Strong capital deployment year to date, including: Completed Richards acquisition in third quarter for $2.3 billion in the Industrial segment. Returned $1.5 billion to shareholders. "TE's strong third quarter results above guidance demonstrate how the diversity of our portfolio and global positioning enable us to achieve record performance in a dynamic environment to deliver value for our owners and customers," said CEO Terrence Curtin. "Our double-digit sales growth was driven by 30% sales growth in our Industrial segment. Together with the strong performance by our teams, we achieved 20% adjusted operating margins leading to quarterly records in adjusted EPS and cash generation. "The Industrial segment's results were led by the delivery of high-speed connectivity solutions into AI applications, and strong growth in our energy business. In our Transportation segment, we increased sales despite declines in vehicle production due to our strength in Asia and innovations in long-term growth trends such as electrification and next-generation vehicle data connectivity. We expect the momentum to continue, as reflected in our fourth quarter guidance where we expect double-digit sales and adjusted earnings growth." Fourth Quarter FY25 Outlook For the fourth quarter of fiscal 2025, the company expects net sales of approximately $4.55 billion, up 12% on a reported basis and 6% organically. GAAP EPS from continuing operations is expected to be approximately $2.18, an increase of more than 140% year over year, with adjusted EPS of approximately $2.27, up 16% 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: 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 at 11:30 a.m. ET on July 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 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, 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 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 EndedFor the Nine Months EndedJune 27,June 28,June 27,June 28,2025202420252024(in millions, except per share data) Net sales $ 4,534$ 3,979$ 12,513$ 11,777 Cost of sales 2,934 2,593 8,094 7,704 Gross margin1,600 1,386 4,419 4,073 Selling, general, and administrative expenses491 431 1,372 1,299 Research, development, and engineering expenses211 189 602 546 Acquisition and integration costs27 5 41 16 Restructuring and other charges, net14 6 109 67 Operating income857 755 2,295 2,145 Interest income17 20 62 61 Interest expense(28) (18) (48) (55) Other expense, net— (3) (2) (11) Income from continuing operations before income taxes846 754 2,307 2,140 Income tax (expense) benefit(208) (181) (1,128) 778 Income from continuing operations638 573 1,179 2,918 Loss from discontinued operations, net of income taxes— — — (1) Net income $ 638$ 573$ 1,179$ 2,917 Basic earnings per share:Income from continuing operations $ 2.16$ 1.87$ 3.96$ 9.47 Net income2.16 1.87 3.96 9.47 Diluted earnings per share:Income from continuing operations $ 2.14$ 1.86$ 3.93$ 9.41 Net income2.14 1.86 3.93 9.41 Weighted-average number of shares outstanding: Basic296 306 298 308 Diluted298 308 300 310 TE CONNECTIVITY PLC CONSOLIDATED BALANCE SHEETS (UNAUDITED)June 27,September 27,20252024(in millions, except share data) AssetsCurrent assets:Cash and cash equivalents $ 672$ 1,319 Accounts receivable, net of allowance for doubtful accounts of $43 and $32, respectively3,431 3,055 Inventories2,832 2,517 Prepaid expenses and other current assets670 740 Total current assets7,605 7,631 Property, plant, and equipment, net4,213 3,903 Goodwill7,251 5,801 Intangible assets, net2,286 1,174 Deferred income taxes2,624 3,497 Other assets887 848 Total assets $ 24,866$ 22,854 Liabilities, redeemable noncontrolling interests, and shareholders' equityCurrent liabilities:Short-term debt $ 851$ 871 Accounts payable2,024 1,728 Accrued and other current liabilities2,113 2,147 Total current liabilities4,988 4,746 Long-term debt4,846 3,332 Long-term pension and postretirement liabilities817 810 Deferred income taxes223 199 Income taxes426 411 Other liabilities1,042 870 Total liabilities12,342 10,368 Commitments and contingenciesRedeemable noncontrolling interests143 131 Shareholders' equity:Preferred shares, $1.00 par value, 2 shares authorized, none outstanding as of June 27, 2025— — Ordinary class A shares, €1.00 par value, 25,000 shares authorized, none outstanding as of June 27, 2025— — Ordinary shares, $0.01 par value, 1,500,000,000 shares authorized, 301,987,708 shares issued and common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, respectively3 139 Accumulated earnings 13,337 14,533 Ordinary shares and common shares held in treasury, at cost, 6,147,743 and 16,656,681 shares, respectively(916) (2,322) Accumulated other comprehensive income (loss)(43) 5 Total shareholders' equity12,381 12,355 Total liabilities, redeemable noncontrolling interests, and shareholders' equity $ 24,866$ 22,854 TE CONNECTIVITY PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)For the Quarters EndedFor the Nine Months EndedJune 27,June 28,June 27,June 28,2025202420252024(in millions) Cash flows from operating activities:Net income $ 638$ 573$ 1,179$ 2,917 Loss from discontinued operations, net of income taxes— — — 1 Income from continuing operations638 573 1,179 2,918 Adjustments to reconcile income from continuing operations to net cash provided by operating activities:Depreciation and amortization216 208 594 594 Deferred income taxes71 22 772 (1,190) Non-cash lease cost37 33 106 100 Provision for losses on accounts receivable and inventories19 15 62 70 Share-based compensation expense36 31 105 100 Other 26 (11) 60 53 Changes in assets and liabilities, net of the effects of acquisitions and divestitures:Accounts receivable, net(220) 10 (391) 82 Inventories(167) 114 (299) (127) Prepaid expenses and other current assets(109) 13 31 12 Accounts payable152 44 298 99 Accrued and other current liabilities222 (37) (76) (324) Income taxes117 13 172 28 Other149 (22) 105 20 Net cash provided by operating activities1,187 1,006 2,718 2,435 Cash flows from investing activities:Capital expenditures(230) (149) (665) (467) Proceeds from sale of property, plant, and equipment5 10 7 12 Acquisition of businesses, net of cash acquired(2,307) — (2,628) (339) Proceeds from divestiture of business, net of cash retained by business sold — 21 — 59 Other(5) 1 (12) (9) Net cash used in investing activities(2,537) (117) (3,298) (744) Cash flows from financing activities:Net increase (decrease) in commercial paper(1,500) 18 (255) (21) Proceeds from issuance of debt1,458 — 2,231 — Repayment of debt(1) (1) (580) (2) Proceeds from exercise of share options42 19 101 52 Repurchase of ordinary/common shares(301) (416) (910) (1,301) Payment of ordinary/common share dividends to shareholders(212) (199) (594) (564) Other(23) (12) (56) (39) Net cash used in financing activities(537) (591) (63) (1,875) Effect of currency translation on cash5 (5) (4) (8) Net increase (decrease) in cash, cash equivalents, and restricted cash(1,882) 293 (647) (192) Cash, cash equivalents, and restricted cash at beginning of period2,554 1,176 1,319 1,661 Cash, cash equivalents, and restricted cash at end of period $ 672$ 1,469$ 672$ 1,469 Supplemental cash flow information:Income taxes paid, net of refunds $ 20$ 146$ 184$ 384 TE CONNECTIVITY PLC RECONCILIATION OF FREE CASH FLOW (UNAUDITED)For the Quarters EndedFor the Nine Months EndedJune 27,June 28,June 27,June 28,2025202420252024(in millions) Net cash provided by operating activities $ 1,187$ 1,006$ 2,718$ 2,435 Capital expenditures, net(225) (139) (658) (455) Free cash flow (1) $ 962$ 867$ 2,060$ 1,980 (1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures. TE CONNECTIVITY PLCSEGMENT DATA (UNAUDITED) For the Quarters Ended For the Nine Months Ended June 27, June 28, June 27, June 28, 2025 2024 2025 2024 ($ in millions) Net Sales Net Sales Net Sales Net SalesTransportation Solutions $ 2,418 $ 2,351 $ 6,975 $ 7,151Industrial Solutions2,1161,6285,5384,626Total $ 4,534 $ 3,979 $ 12,513 $ 11,777 OperatingOperating OperatingOperating OperatingOperating OperatingOperating IncomeMargin IncomeMargin IncomeMargin IncomeMarginTransportation Solutions $ 46219.1 %$ 50621.5 %$ 1,35319.4 %$ 1,47020.6 % Industrial Solutions39518.724915.394217.067514.6Total $ 85718.9 %$ 75519.0 %$ 2,29518.3 %$ 2,14518.2 %AdjustedAdjusted AdjustedAdjusted AdjustedAdjusted AdjustedAdjusted OperatingOperating OperatingOperating OperatingOperating OperatingOperating Income (1)Margin (1) Income (1)Margin (1) Income (1)Margin (1) Income (1)Margin (1)Transportation Solutions $ 46919.4 %$ 49821.2 %$ 1,42520.4 %$ 1,49820.9 % Industrial Solutions43220.426816.51,02618.573415.9Total $ 90119.9 %$ 76619.3 %$ 2,45119.6 %$ 2,23219.0 % (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 June 27, 2025versus Net Sales for the Quarter Ended June 28, 2024Net Sales Organic Net Sales Growth (Decline) Growth (Decline) (1) Translation (2)Acquisitions($ in millions) Transportation Solutions (3):Automotive $ 573.3 %$ 281.5 %$ 29$ — Commercial transportation143.9102.74 — Sensors(4)(1.7)(9)(3.8)5 — Total Transportation Solutions672.8291.138 — Industrial Solutions (3):Automation and connected living5210.0265.010 16 Aerospace, defense, and marine298.4216.28 — Digital data networks27784.226981.98 — Energy15869.94520.23 110 Medical(28)(13.4)(29)(13.5)1 — Total Industrial Solutions48830.033220.530 126 Total $ 55513.9 %$ 3619.1 %$ 68$ 126Change in Net Sales for the Nine Months Ended June 27, 2025versus Net Sales for the Nine Months Ended June 28, 2024Net Sales Organic Net Sales Acquisitions/Growth (Decline) Growth (Decline) (1) Translation (2)(Divestiture)($ in millions) Transportation Solutions (3):Automotive $ (54)(1.0) %$ (21)(0.4) %$ (21)$ (12) Commercial transportation(57)(5.2)(51)(4.6)(6) — Sensors(65)(8.9)(64)(8.7)(1) — Total Transportation Solutions(176)(2.5)(136)(1.9)(28) (12) Industrial Solutions (3):Automation and connected living795.3130.9(2) 68 Aerospace, defense, and marine10510.710310.52 — Digital data networks62070.461669.94 — Energy21432.27711.6(7) 144 Medical(106)(17.1)(107)(17.2)1 — Total Industrial Solutions91219.770215.2(2) 212 Total $ 7366.2 %$ 5664.8 %$ (30)$ 200 (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 PLCRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURESFor the Quarter Ended June 27, 2025(UNAUDITED) Adjustments Acquisition-RestructuringRelatedand OtherAdjusted U.S. GAAP Charges (1)Charges, Net (1)(Non-GAAP) (2) ($ in millions, except per share data)Operating income:Transportation Solutions $ 462 $ —$ 7$ 469Industrial Solutions39530 7 432Total $ 857 $ 30$ 14$ 901Operating margin18.9 % 19.9 % Income tax expense $ (208) $ (7)$ 1$ (214)Effective tax rate24.6 % 24.0 % Income from continuing operations $ 638 $ 23$ 15$ 676Diluted earnings per share from continuing operations $ 2.14 $ 0.08$ 0.05$ 2.27(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) See description of non-GAAP financial measures. TE CONNECTIVITY PLCRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURESFor the Quarter Ended June 28, 2024(UNAUDITED) Adjustments Acquisition-RestructuringRelatedand OtherAdjusted U.S. GAAP Charges (1)Charges, Net (1)(Non-GAAP) (2) ($ in millions, except per share data)Operating income:Transportation Solutions $ 506 $ —$ (8)$ 498Industrial Solutions2495 14 268Total $ 755 $ 5$ 6$ 766Operating margin19.0 % 19.3 % Income tax expense $ (181) $ —$ 4$ (177)Effective tax rate24.0 % 23.1 % Income from continuing operations $ 573 $ 5$ 10$ 588Diluted 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 PLCRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURESFor the Nine Months Ended June 27, 2025(UNAUDITED) Adjustments Acquisition-RestructuringRelatedand OtherAdjusted U.S. GAAP Charges (1)Charges, Net (1)Tax Items (2)(Non-GAAP) (3) ($ in millions, except per share data)Operating income: Transportation Solutions $ 1,353 $ —$ 72$ —$ 1,425Industrial Solutions94247 37 — 1,026Total $ 2,295 $ 47$ 109$ —$ 2,451 Operating margin18.3 %19.6 %Income tax expense $ (1,128) $ (10)$ (19)$ 587$ (570) Effective tax rate48.9 %23.1 %Income from continuing operations $ 1,179 $ 37$ 90$ 587$ 1,893 Diluted earnings per share from continuing operations $ 3.93 $ 0.12$ 0.30$ 1.96$ 6.31 (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 $13 million related to the revaluation of deferred tax assets as a result of a decrease in the corporate tax rate in a non-U.S. jurisdiction.(3) See description of non-GAAP financial measures. TE CONNECTIVITY PLCRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURESFor the Nine Months Ended June 28, 2024(UNAUDITED) Adjustments Acquisition-RestructuringRelatedand OtherAdjusted U.S. GAAP Charges (1)Charges, Net (1)Tax Items (2)(Non-GAAP) (3) ($ in millions, except per share data)Operating income: Transportation Solutions $ 1,470 $ —$ 25$ 3$ 1,498Industrial Solutions67516 42 1 734Total $ 2,145 $ 16$ 67$ 4$ 2,232 Operating margin18.2 %19.0 %Income tax (expense) benefit $ 778 $ (2)$ (7)$ (1,254)$ (485) Effective tax rate(36.4) %21.8 %Income from continuing operations $ 2,918 $ 14$ 60$ (1,250)$ 1,742 Diluted earnings per share from continuing operations $ 9.41 $ 0.05$ 0.19$ (4.03)$ 5.62 (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 $4 million recorded in selling, general, and administrative expenses for other non-income taxes.(3) See description of non-GAAP financial measures. TE CONNECTIVITY PLCRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURESFor the Quarter Ended September 27, 2024(UNAUDITED) Adjustments Acquisition-RestructuringRelatedand OtherAdjusted U.S. GAAP Charges (1)Charges, Net (1)Tax Items (2)(Non-GAAP) (3) ($ in millions, except per share data)Operating income: Transportation Solutions $ 410 $ —$ 42$ —$ 452Industrial Solutions2415 57 — 303Total $ 651 $ 5$ 99$ —$ 755 Operating margin16.0 %18.6 %Income tax expense $ (381) $ (1)$ (22)$ 238$ (166) Effective tax rate58.0 %21.8 %Income from continuing operations $ 276 $ 4$ 77$ 238$ 595 Diluted earnings per share from continuing operations $ 0.90 $ 0.01$ 0.25$ 0.78$ 1.95 (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 an increase in the valuation allowance for deferred tax assets of a Swiss subsidiary.(3) See description of non-GAAP financial measures. TE CONNECTIVITY PLCRECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURESFor the Year Ended September 27, 2024(UNAUDITED) Adjustments Acquisition-RestructuringRelatedand OtherAdjusted 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$ 1,950Industrial Solutions91621 99 1 1,037Total $ 2,796 $ 21$ 166$ 4$ 2,987 Operating margin17.6 %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 PLCRECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURESTO FORWARD-LOOKING GAAP FINANCIAL MEASURESAs of July 23, 2025(UNAUDITED)Outlook for Quarter Ending September 26, 2025Diluted earnings per share from continuing operations $ 2.18Restructuring and other charges, net0.05Acquisition-related charges0.04Adjusted diluted earnings per share from continuing operations (1) $ 2.27Net sales growth11.9 % Translation(2.8)(Acquisitions) divestitures, net(3.6)Organic net sales growth (1)5.5 % (1) See description of non-GAAP financial measures. 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Lockheed Martin Reports Second Quarter 2025 Financial Results
Lockheed Martin Reports Second Quarter 2025 Financial Results

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Lockheed Martin Reports Second Quarter 2025 Financial Results

Sales of $18.2 billion Recorded pre-tax losses on programs of $1.6 billion and other charges of $169 million, which impacted earnings per share by $5.83 Net earnings of $342 million, or $1.46 per share, including impacts of program losses and other charges Cash from operations of $201 million and free cash flow of $(150) million Returned $1.3 billion of cash to shareholders through dividends and share repurchases Reaffirming 2025 guidance for sales and free cash flow BETHESDA, Md., July 22, 2025 /PRNewswire/ -- Lockheed Martin Corporation [NYSE: LMT] today reported second quarter 2025 sales of $18.2 billion, compared to $18.1 billion in the second quarter of 2024. Net earnings in the second quarter of 2025 were $342 million, or $1.46 per share, including $1.6 billion of program losses and $169 million of other charges. This compares to $1.6 billion, or $6.85 per share, in the second quarter of 2024. Cash from operations was $201 million in the second quarter of 2025, compared to $1.9 billion in the second quarter of 2024. Free cash flow was $(150) million in the second quarter of 2025, compared to $1.5 billion in the second quarter of 2024. "Over the course of the past few months, Lockheed Martin systems and platforms once again proved highly effective in combat operations and in deterring further aggression. Our F-35s, F-22s, PAC-3, THAAD, Aegis and many others, crewed by the soldiers, airmen, sailors, marines and guardians of the U.S. and its Allies, and supported by our own dedicated teammates, performed extremely well in the most crucial and challenging situations," said Lockheed Martin Chairman, President and CEO Jim Taiclet. "Based in part on this record of performance as well as the promise of several advanced technologies in development, our U.S. and allied customers are asking us to elevate and accelerate many key programs. For example, several allied nations have recently announced additional F-35 purchases, the U.S. Army has awarded more than $1 billion in missile-related contracts so far, and the U.S. Space Force is ordering additional GPS IIIF satellites. At the same time, our ongoing program review process identified new developments that caused us to re-evaluate the financial position on a set of major legacy programs. As a result, we are taking a number of charges this quarter to address these newly identified risks. We remain committed to delivering these critical capabilities that our customers are counting on and are fully focused on the growth inflection we expect as the result of heightened interest and demand for Lockheed Martin's products and technologies. "Overall, the company's foundation remains solid and resilient. In the second quarter, sales of $18 billion grew sequentially, as we continued to drive supply chain improvements and ramp capacity on needed deterrent capabilities. In addition, we invested $800 million in infrastructure and innovation for growth and returned $1.3 billion to shareholders through dividends and share repurchases. We are maintaining full year 2025 guidance for sales, cash from operations, capital expense, free cash flow, and share repurchases. The program charges taken in the quarter – which resulted from our ongoing rigorous monitoring and review processes – are a necessary step as we continue to take action to improve program execution. We're investing in emerging technologies, and as a proven mission integrator, we remain well positioned to support critical programs like the Golden Dome for America. Our relentless focus on operational performance combined with our disciplined capital allocation strategy will enable us to deliver value to our shareholders, while providing the advanced solutions that America and its allies need to maintain peace through strength for decades to come." Program Losses and Other Charges During the second quarter, the Company took important steps to address challenges on a classified program at its Aeronautics business segment and certain international helicopter programs at its Sikorsky business unit.. The Company also recognized other charges related to asset impairments and a tax matter as described below. Aeronautics Classified Program – Aeronautics has experienced design, integration, and test challenges, as well as other performance issues on this program. These trends continued into 2025 and had a greater impact on schedule and costs than previously estimated. As a result, Aeronautics performed a comprehensive review of its program execution and management processes to achieve the technical requirements of the program, which was completed in the second quarter. Based on this review and ongoing discussions with the customer and suppliers, Aeronautics made significant changes to its processes and testing approach, resulting in significant updates to the program's schedule and cost estimates. As a result, during the second quarter of 2025 the Company recognized additional pretax reach-forward losses of $950 million on the program. Canadian Maritime Helicopter Program (CMHP) – The Company is in ongoing discussions with the customer regarding a potential restructure to certain contractual terms and conditions and to expand the scope of work that would be beneficial to both parties. Communications with the customer during the second quarter of 2025 led to subsequent decisions made by the Company to focus on providing additional mission capabilities, enhanced logistical support, fleet life extension, and revised expectations regarding flight hours. As a result of revised cost and sales estimates for the program during the second quarter of 2025, the Company recognized additional pretax losses of $570 million on this program in RMS' financial results. Türkish Utility Helicopter Program (TUHP) – The Company has been discussing a potential mutually agreeable framework to restructure the program, including changing the scope of work. In light of the status of the continuing discussions with the customer and the current status of the program, RMS revised its cost and sales estimates for this program. As a result, during the second quarter of 2025, the Company recognized additional pretax reach-forward losses of $95 million on this program in RMS' financial results. Other Charges – During the second quarter of 2025, the company recognized a charge of $66 million primarily for the write-off of fixed assets resulting from the U.S. Air Force's Next Generation Air Dominance (NGAD) down-select decision. The company also recognized a charge of $103 million related to uncertain tax positions as part of its income tax expense, resulting from the Internal Revenue Service's proposed adjustments to its tax accounting method change for certain manufacturing contracts. The table below provides supplemental information regarding the impacts of the program losses and other charges described above.(in millions, except per share data)Quarter Ended June 29, 2025 Aeronautics classified program loss$ (950) CMHP program loss(570) TUHP program loss(95) Business segment operating profit(1,615) Fixed asset write-off(66) Unallocated other181 Consolidated operating profit(1,600) Income tax benefit2233 Net earnings$ (1,367) Weighted average shares outstanding234.3 Diluted earnings per share$ (5.83) 1 Reflects the state income tax impact associated with the program losses based on a blended state tax rate of 5%.2 Reflects the federal income tax impact associated with the program losses and fixed asset write-off net of the associated state income taximpacts based on a federal tax rate of 21%, partially offset by the charge of $103 million associated with the uncertain tax position. Summary Financial Results The following table presents the company's summary financial results:(in millions, except per share data)Quarters EndedSix Months Ended June 29, 2025June 30, 2024June 29, 2025June 30, 2024 Sales$ 18,155$ 18,122$ 36,118$ 35,317Business segment operating profit1,2$ 571$ 2,042$ 2,656$ 3,787 Unallocated items FAS/CAS pension operating adjustment379406758812 Impairment and other charges3(66)(87)(66)(87) Intangible asset amortization expense(63)(61)(127)(122) Other, net(73)(152)(101)(213) Total unallocated items177106464390 Consolidated operating profit$ 748$ 2,148$ 3,120$ 4,177Net earnings4$ 342$ 1,641$ 2,054$ 3,186Diluted earnings per share$ 1.46$ 6.85$ 8.75$ 13.24Cash from operations$ 201$ 1,876$ 1,610$ 3,511 Capital expenditures(351)(370)(805)(748) Free cash flow1$ (150)$ 1,506$ 805$ 2,763 1 Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section ofthis news release for more information.2 As previously described, business segment operating profit for the quarter ended June 29, 2025 included losses of $950 million ($713 million, or $3.04 per share, after-tax) on a classified program at its Aeronautics business segment, and $570 million ($428 million, or $1.83 per share,after-tax) on CMHP and $95 million ($71 million, or $0.30 per share, after-tax) on TUHP at its RMS business segment.3 Impairment and other charges for the quarter ended June 29, 2025 included $66 million ($52 million, or $0.22 per share, after-tax) primarilyfor the write-off of fixed assets at its Aeronautics business segment.4 Net earnings for the quarter ended June 29, 2025 included $103 million of income tax expense related to uncertain tax positions. Cash from operations in the second quarter of 2025 was $201 million with free cash flow of $(150) million compared to $1.9 billion with $1.5 billion in free cash flow in the second quarter of 2024. The decrease in cash from operations was primarily due to an increase in working capital, which is defined as receivables, contract assets, and inventories less accounts payable and contract liabilities. This increase in working capital was driven by four main factors: production and invoice timing impacting receivables, primarily related to the F-35 program at Aeronautics; an increase in contract assets as a result of the timing of milestones, also primarily related to the F-35 program at Aeronautics; an increase in Sikorsky inventory at RMS; and billing cycles impacting contract liabilities primarily related to national security space programs at Space. The decrease in free cash flows was primarily due to these cash from operations drivers. The company's cash activities in the quarter ended June 29, 2025, included the following: paying cash dividends of $771 million; paying $500 million to repurchase 1.0 million shares; receiving net proceeds of $1.4 billion from the issuance of commercial paper; and making a scheduled repayment of $142 million of long-term debt. 2025 Financial Outlook The company's financial outlook for 2025 and other sections of this news release contain forward-looking statements, which reflect the company's judgment based on the information available at the time of this news release. The financial outlook for 2025 does not include the evolving impacts of tariffs or related recoveries, or Executive Orders issued by the Administration. Additionally, it is the company's practice not to incorporate adjustments into its financial outlook for proposed or potential acquisitions, divestitures, ventures, future gains or losses related to changes in valuations of the company's net assets and liabilities for deferred compensation plans or early-stage company investments, pension annuity contracts or discretionary contributions, financing transactions, changes in law, or new accounting standards until such items have been consummated, enacted or adopted. Actual results may differ materially from those projected. For additional factors that may impact the company's actual results, refer to the "Forward-Looking Statements" section in this news release.(in millions, except per share data)Current UpdateApril 2025Sales~$73,750 - $74,750~$73,750 - $74,750Business segment operating profit1~$6,600 - $6,700~$8,100 - $8,200Total FAS/CAS pension adjustment~$1,125~$1,125Diluted earnings per share~$21.70 - $22.00~$27.00 - $27.30Cash from operations~$8,500 - $8,700~$8,500 - $8,700 Capital expenditures~$1,900~$1,900 Free cash flow1~$6,600 - $6,800~$6,600 - $6,800 1 Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this news release for more information. Segment Results The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. The following table presents summary operating results of the company's business segments and reconciles these amounts to the company's consolidated financial results.(in millions)Quarters EndedSix Months Ended June 29, 2025June 30, 2024June 29, 2025June 30, 2024 Sales Aeronautics$ 7,420$ 7,277$ 14,477$ 14,122 Missiles and Fire Control3,4333,1026,8066,095 Rotary and Mission Systems3,9954,5488,3238,636 Space 3,3073,1956,5126,464 Total sales$ 18,155$ 18,122$ 36,118$ 35,317Operating profit (loss) Aeronautics1$ (98)$ 751$ 622$ 1,430 Missiles and Fire Control479450944761 Rotary and Mission Systems2(172)495349925 Space 362346741671 Total business segment operating profit5712,0422,6563,787 Unallocated items FAS/CAS operating adjustment 379406758812 Impairment and other charges3 (66)(87)(66)(87) Intangible asset amortization expense(63)(61)(127)(122) Other, net(73)(152)(101)(213) Total unallocated items177106464390 Total consolidated operating profit$ 748$ 2,148$ 3,120$ 4,177 1 Operating profit for the quarter ended June 29, 2025 included losses of $950 million ($713 million, or $3.04 per share, after-tax) on aclassified program at its Aeronautics business segment as previously described.2 Operating profit for the quarter ended June 29, 2025 included losses of $570 million ($428 million, or $1.83 per share, after-tax) on CMHP and $95 million ($71 million, or $0.30 per share, after-tax) on TUHP at its RMS business segment as previously described.3 Impairment and other charges for the quarter ended June 29, 2025 included $66 million ($52 million, or $0.22 per share, after-tax)primarily for the write-off of fixed assets at its Aeronautics business information on factors impacting comparability of the company's segment sales, operating profit and operating margins, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2024. Consolidated net profit booking rate adjustments decreased segment operating profit by approximately $1.0 billion in the quarter ended June 29, 2025, which includes, as previously described, a loss of $950 million on a classified program at Aeronautics, and losses of $570 million on CMHP and $95 million on TUHP at RMS. Consolidated net profit booking rate adjustments increased segment operating profit by approximately $420 million in the quarter ended June 30, 2024. Aeronautics (in millions)Quarters EndedSix Months Ended June 29, 2025June 30, 2024June 29, 2025June 30, 2024 Sales$ 7,420$ 7,277$ 14,477$ 14,122 Operating (loss) profit(98)7516221,430 Operating margin(1.3 %)10.3 %4.3 %10.1 %Aeronautics' sales during the quarter ended June 29, 2025 increased $143 million, or 2%, compared to the same period in 2024. This increase was primarily attributable to higher sales of $470 million on the F-35 program due to higher volume on production contracts. This increase was partially offset by a $360 million unfavorable cumulative adjustment to sales driven by the loss on a classified contract as previously described. Aeronautics' operating profit during the quarter ended June 29, 2025 decreased $849 million, or 113%, compared to the same period in 2024. The decrease was attributable to the previously described $950 million reach forward loss recognized on a classified contract, which was partially offset by a $90 million increase on the F-35 program due to higher profit booking rate adjustments and volume as described above. Missiles and Fire Control(in millions)Quarters EndedSix Months Ended June 29, 2025June 30, 2024June 29, 2025June 30, 2024 Sales$ 3,433$ 3,102$ 6,806$ 6,095 Operating profit479450944761 Operating margin14.0 %14.5 %13.9 %12.5 %MFC's sales during the quarter ended June 29, 2025 increased $331 million, or 11%, compared to the same period in 2024. This increase was primarily attributable to higher sales of $330 million on tactical and strike missile programs due to production ramp-up on Joint Air-to-Surface Standoff Missile (JASSM), Long Range Anti-Ship Missile (LRASM) and precision fires programs. MFC's operating profit during the quarter ended June 29, 2025 increased $29 million, or 6%, compared to the same period in 2024. This increase was attributable to three primary factors: a $35 million increase from production ramp up as described above, and a $25 million increase from favorable contract mix; partially offset by a $25 million decrease in profit booking rate adjustments. The decrease in profit booking rate adjustments was primarily due to lower favorable profit adjustments on Patriot Advanced Capability-3 (PAC-3). Rotary and Mission Systems(in millions)Quarters EndedSix Months Ended June 29, 2025June 30, 2024June 29, 2025June 30, 2024 Sales$ 3,995$ 4,548$ 8,323$ 8,636 Operating (loss) profit(172)495349925 Operating margin(4.3 %)10.9 %4.2 %10.7 %RMS' sales during the quarter ended June 29, 2025 decreased $553 million, or 12%, compared to the same period in 2024. The decrease was primarily attributable to lower net sales of $370 million on Sikorsky helicopter programs due to the unfavorable cumulative adjustments to sales driven by recognizing losses on CMHP and TUHP as previously described, and lower production volume on Seahawk programs; and a $145 million decrease on integrated warfare systems and sensors (IWSS) programs due to lower volume on radar and the Canadian Surface Combatant (CSC) programs. RMS' operating profit during the quarter ended June 29, 2025 decreased $667 million, or 135%, compared to the same period in 2024. This decrease was attributable to a $610 million decrease in profit booking rate adjustments primarily due to a $570 million loss recognized on CMHP and a $95 million loss recognized on TUHP as previously described. Space (in millions)Quarters EndedSix Months Ended June 29, 2025June 30, 2024June 29, 2025June 30, 2024 Sales$ 3,307$ 3,195$ 6,512$ 6,464 Operating profit362346741671 Operating margin10.9 %10.8 %11.4 %10.4 %Space's sales during the quarter ended June 29, 2025 increased $112 million, or 4%, compared to the same period in 2024. This increase was primarily attributable to higher sales of $115 million for commercial civil space programs primarily due to higher volume on the Orion program; and $80 million for strategic and missile defense programs due to higher volume on Next Generation Interceptor (NGI) and Fleet Ballistic Missile (FBM) programs. These increases were partially offset by a decrease of $95 million on national security space programs due to program lifecycle on the Next Generation Overhead Persistent Infrared (Next Gen OPIR) system. Space's operating profit during the quarter ended June 29, 2025 increased $16 million, or 5%, compared to the same period in 2024. This increase was attributable to a $20 million increase in profit booking rate adjustments primarily due to favorable performance at completion on certain commercial civil space programs. Total equity earnings (ULA) represented approximately $10 million, or 3%, of Space's operating profit for both the quarter ended June 29, 2025, and the same period in 2024. Income Taxes The company's effective income tax rate was 18.0% and 15.8% for the quarters ended June 29, 2025 and June 30, 2024. The higher effective income tax rate for the quarter was primarily attributable to increased interest expense on the company's uncertain tax position partially offset by changes in pre-tax earnings due to program losses previously described. The rates for all periods benefited from tax deductions for foreign derived intangible income, research and development tax credits, dividends paid to the company's defined contribution plans with an employee stock ownership plan feature and employee equity awards. Use of Non-GAAP Financial Measures This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by U.S. Securities and Exchange Commission (SEC) Regulation G). While management believes that these non-GAAP financial measures may be useful in evaluating the financial performance of the company, this information should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. In addition, the company's definitions for non-GAAP financial measures may differ from similarly titled measures used by other companies or analysts. Business segment operating profit Business segment operating profit represents operating profit from the company's business segments before unallocated income and expense. This measure is used by the company's senior management in evaluating the performance of its business segments and is a performance goal in the company's annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.(in millions) Current UpdateApril 2025 Business segment operating profit (non-GAAP)~$6,600 - $6,700~$8,100 - $8,200 FAS/CAS operating adjustment1~1,520~1,520 Intangible asset amortization expense~(255)~(240) Other, net~(335)~(465) Consolidated operating profit (GAAP)~$7,530 - $7,630~$8,915 - $9,015 1 Reflects the amount by which total CAS pension cost of $1.6 billion exceeds FAS pension service cost and excludes non-service FAS pensionexpense. Refer to the supplemental table "Selected Financial Data" included in this news release for a detail of the FAS/CAS operatingadjustment. Free cash flow Free cash flow is cash from operations less capital expenditures. The company's capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity and it is a performance goal in the company's annual and long-term incentive plans. The company believes free cash flow is a useful measure for investors because it represents the amount of cash generated from operations after reinvesting in the business and that may be available to return to stockholders and creditors (through dividends, stock repurchases and debt repayments) or available to fund acquisitions or other investments. The entire free cash flow amount is not necessarily available for discretionary expenditures, however, because it does not account for certain mandatory expenditures, such as the repayment of maturing debt and future pension contributions. Webcast and Conference Call Information Lockheed Martin Corporation will webcast live the earnings results conference call (listen-only mode) on Tuesday, July 22, 2025, at 11:00 a.m. ET on the Lockheed Martin Investor Relations website at The accompanying presentation slides and relevant financial charts are also available at For additional information, visit the company's website: About Lockheed Martin Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security® vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at Forward-Looking Statements This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on Lockheed Martin's current expectations and assumptions. The words "believe," "estimate," "anticipate," "project," "intend," "expect," "plan," "outlook," "scheduled," "forecast" and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as: the company's reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company's ability to negotiate favorable contract terms; budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms, the debt ceiling and the potential for government shutdowns, and changing funding and acquisition priorities; risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program; planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment and rare earth minerals; the timing of contract awards or contract definitization, decisions by government customers to impose contract terms following undefinitized contract actions, achievement of performance milestones, customer acceptance of product deliveries, and receipt of customer payments; the company's ability to recover costs under U.S. Government contracts and the mix of fixed-price and cost-reimbursable contracts; customer procurement and other policies, laws, regulations and executive actions that affect the company and its industry, programs, future opportunities, and financial performance, including those relating to mission priorities, competing domestic and international spending, contracting terms (such as fixed-price requirements), treatment of contractor performance issues, and contractor access to competitive opportunities; performance and/or financial viability of key suppliers, teammates, joint ventures (including United Launch Alliance), joint venture partners, subcontractors and customers; economic, industry, business and political conditions including their effects on governmental policy; the impact of inflation and other cost pressures; government actions that restrict or prevent the sale or delivery of the company's products (such as delays in approvals for exports requiring Congressional notification); foreign policy and international trade actions taken by governments such as tariffs, sanctions, embargoes, export and import controls, buying preferences, and other trade restrictions; the company's success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales, including potential effects from fluctuations in currency exchange rates; changes in non-U.S. national priorities and government budgets and planned orders; the competitive environment for the company's products and services; the company's ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities; the company's ability to benefit fully from or adequately protect its intellectual property rights; the company's ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions; cyber or other security threats or other disruptions faced by the company or its suppliers; the company's ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions; the accuracy of the company's estimates and projections; changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension annuity contracts and associated settlement charges; realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market; the company's efforts to increase the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives; the risk of an impairment of the company's assets, including the potential impairment of goodwill and intangibles; the availability and adequacy of the company's insurance and indemnities; compliance with laws, regulations, policies, and customer requirements relating to environmental matters; the impact of public health crises, natural disasters and other severe weather conditions on the company's business and financial results, including supply chain disruptions and delays, employee absences, and program delays; changes in accounting, U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; and the outcome of legal proceedings, bid protests, environmental remediation efforts, audits, administrative reviews, government investigations or government allegations that the company has failed to comply with law, other contingencies and U.S. Government identification of deficiencies in its business systems. These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company's filings with the U.S. Securities and Exchange Commission including, but not limited to, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the company's most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q. The company's filings may be accessed through the Investor Relations page of its website, or through the website maintained by the SEC at The company's actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its issuance. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws. Lockheed Martin Corporation Consolidated Statements of Earnings1 (unaudited; in millions, except per share data) Quarters EndedSix Months EndedJune 29, 2025June 30, 2024June 29,2025June 30,2024Sales$ 18,155$ 18,122$ 36,118$ 35,317Operating costs and expenses2(17,421)(15,992)(33,061)(31,194)Gross profit7342,1303,0574,123Other income, net 14186354Operating profit37482,1483,1204,177Interest expense(274)(261)(542)(516)Non-service FAS pension (expense) income(99)15(197)31Other non-operating income, net42467291Earnings before income taxes4171,9482,4533,783Income tax expense4(75)(307)(399)... (597)Net earnings$ 342$ 1,641$ 2,054$ 3,186Effective tax rate18.0 %15.8 %16.3 %15.8 %Earnings per common shareBasic$ 1.46$ 6.87$ 8.78$ 13.29Diluted$ 1.46$ 6.85$ 8.75$ 13.24Weighted average shares outstandingBasic233.5238.9234.0239.8Diluted234.3239.6234.8240.6Common shares reported in stockholders' equity at end of period232237 1 The company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on June 29, for the second quarter of 2025 and June 30, for the second quarter of 2024. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the company's fiscal year ends on Dec. 31. 2 Operating costs and expenses for the quarter ended June 29, 2025 included $66 million ($52 million, or $0.22 per share, after-tax) primarily for the write-off of fixed assets at its Aeronautics business segment. 3 As previously described, operating profit for the quarter ended June 29, 2025 included losses of $950 million ($713 million, or $3.04 per share, after-tax) on a classified program at its Aeronautics business segment, and $570 million ($428 million, or $1.83 per share, after-tax) on CMHP and $95 million ($71 million, or $0.30 per share, after-tax) on TUHP at its RMS business segment. 4 Income tax expense for the quarter ended June 29, 2025 included interest expense of $103 million related to uncertain tax positions. Lockheed Martin Corporation Business Segment Summary Operating Results (unaudited; in millions) Quarters EndedSix Months EndedJune 29,2025June 30,2024% ChangeJune 29,2025June 30,2024% ChangeSalesAeronautics$ 7,420$ 7,2772 %$ 14,477$ 14,1223 %Missiles and Fire Control3,4333,10211 %6,8066,09512 %Rotary and Mission Systems3,9954,548(12 %)8,3238,636(4 %)Space 3,3073,1954 %6,5126,4641 %Total sales$ 18,155$ 18,122— %$ 36,118$ 35,3172 %Operating profit (loss)Aeronautics1$ (98)$ 751(113 %)$ 622$ 1,430(57 %)Missiles and Fire Control4794506 %94476124 %Rotary and Mission Systems2(172)495(135 %)349925(62 %)Space 3623465 %74167110 %Total business segment operating profit5712,042(72 %)2,6563,787(30 %)Unallocated itemsFAS/CAS operating adjustment 379406758812Impairment and other charges (66)(87)(66)(87)Intangible asset amortization expense(63)(61)(127)(122)Other, net(73)(152)(101)(213)Total unallocated items17710667 %46439019 %Total consolidated operating profit$ 748$ 2,148(65 %)$ 3,120$ 4,177(25 %)Operating marginAeronautics1(1.3 %)10.3 %4.3 %10.1 %Missiles and Fire Control14.0 %14.5 %13.9 %12.5 %Rotary and Mission Systems2(4.3 %)10.9 %4.2 %10.7 %Space 10.9 %10.8 %11.4 %10.4 %Total business segment operating margin3.1 %11.3 %7.4 %10.7 %Total consolidated operating margin4.1 %11.9 %8.6 %11.8 % 1 Operating profit for the quarter ended June 29, 2025 included losses of $950 million ($713 million, or $3.04 per share, after-tax) at its Aeronautics business segment as a result of the programs losses previously described. 2 Operating profit for the quarter ended June 29, 2025 included losses of $570 million ($428 million, or $1.83 per share, after-tax) on CMHP and $95 million ($71 million, or $0.30 per share, after-tax) on TUHP at its RMS business segment as a result of the programs losses previously described. Lockheed Martin Corporation Consolidated Balance Sheets (in millions, except par value)June 29,2025Dec. 31, 2024(unaudited) AssetsCurrent assetsCash and cash equivalents$ 1,293$ 2,483Receivables, net3,3062,351Contract assets14,89612,957Inventories3,6993,474Other current assets794584Total current assets23,98821,849Property, plant and equipment, net8,6708,726Goodwill11,30911,067Intangible assets, net2,0132,015Deferred income taxes4,0703,557Other noncurrent assets8,8208,403Total assets$ 58,870$ 55,617Liabilities and equityCurrent liabilitiesAccounts payable$ 3,653$ 2,222Salaries, benefits and payroll taxes2,7613,125Contract liabilities9,8619,795Current maturities of long-term debt and commercial paper3,118643Other current liabilities4,9613,635Total current liabilities24,35419,420Long-term debt, net18,52019,627Accrued pension liabilities4,8384,791Other noncurrent liabilities5,8245,446Total liabilities53,53649,284Stockholders' equityCommon stock, $1 par value per share232234Additional paid-in capital——Retained earnings13,25914,551Accumulated other comprehensive loss(8,157)(8,452)Total stockholders' equity5,3346,333Total liabilities and equity$ 58,870$ 55,617 Lockheed Martin Corporation Consolidated Statements of Cash Flows (unaudited; in millions)Six Months Ended June 29,2025June 30,2024 Operating activities Net earnings$ 2,054$ 3,186 Adjustments to reconcile net earnings to net cash provided by operating activities Depreciation and amortization796710 Stock-based compensation141154 Deferred income taxes(561)(145) Impairment and other charges 6687 Program losses1,615165 Changes in assets and liabilities Receivables, net(955)(798) Contract assets(2,178)(724) Inventories(461)35 Accounts payable1,5001,052 Contract liabilities(360)(9) Income taxes25121 Qualified defined benefit pension plans223(1) Other, net(521)(222) Net cash provided by operating activities1,6103,511Investing activities Capital expenditures(805)(748) Other, net(340)4 Net cash (used for) investing activities(1,145)(744)Financing activities Issuance of long-term debt, net of related costs—1,980 Repayments of long-term debt(142)(168) Proceeds from commercial paper, net1,449— Repurchases of common stock(1,250)(1,850) Dividends paid(1,567)(1,532) Other, net(145)(116) Net cash (used for) financing activities(1,655)(1,686)Net change in cash and cash equivalents(1,190)1,081 Cash and cash equivalents at beginning of period2,4831,442 Cash and cash equivalents at end of period$ 1,293$ 2,523 Lockheed Martin Corporation Selected Financial Data (unaudited; in millions) 2025 Outlook2024 ActualTotal FAS (expense) income and CAS costFAS pension (expense) income$ (445)$ 2Less: CAS pension cost1,5701,684Total FAS/CAS pension adjustment$ 1,125$ 1,686Service and non-service cost reconciliationFAS pension service cost$ (50)$ (60)Less: CAS pension cost1,5701,684FAS/CAS pension operating adjustment1,5201,624Non-service FAS pension (expense) income (395)62Total FAS/CAS pension adjustment$ 1,125$ 1,686 Lockheed Martin Corporation Other Financial and Operating Information (unaudited; in millions, except for aircraft deliveries and weeks) BacklogJune 29, 2025Dec. 31, 2024Aeronautics$ 52,165$ 62,763Missiles and Fire Control40,25038,783Rotary and Mission Systems 38,58438,117Space35,53136,377Total backlog$ 166,530$ 176,040Quarters EndedSix Months EndedAircraft DeliveriesJune 29,2025June 30,2024June 29,2025June 30,2024F-3550—97—F-163477C-130J1529Government helicopter programs24103323Commercial helicopter programs——1—International military helicopter programs —5—5 Number of Weeks in Reporting Period1 2025 2024First quarter13 13Second quarter13 13Third quarter13 13Fourth quarter13 131 Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on Dec. 31. As a result, the number of weeks in a reporting quarter may vary slightly during the year and for comparable prior year periods. View original content to download multimedia: SOURCE Lockheed Martin Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Is Texas Instruments (TXN) a Halal Dividend Stock for Tech-Savvy Investors?
Is Texas Instruments (TXN) a Halal Dividend Stock for Tech-Savvy Investors?

Yahoo

timea day ago

  • Business
  • Yahoo

Is Texas Instruments (TXN) a Halal Dividend Stock for Tech-Savvy Investors?

Texas Instruments Incorporated (NASDAQ:TXN) is included among the 11 Best Halal Dividend Stocks to Buy Now. A robotic arm in the process of assembling a complex circuit board - showing the industrial scale the company operates at. On July 18, the company declared a quarterly dividend of $1.36 per share, which was in line with its previous dividend. It has been growing its payouts for 21 consecutive years. The stock supports a dividend yield of 2.51%, as of July 18. Texas Instruments Incorporated (NASDAQ:TXN)'s cash position showed the strength of its dividend. The company's operating cash flow over the past 12 months totaled $6.2 billion, highlighting the strength of its business model, the quality of its product offerings, and the advantages of 300mm production. Free cash flow during the same period amounted to $1.7 billion. Over the past year, the company allocated $3.8 billion to research and development and selling, general, and administrative expenses, invested $4.7 billion in capital expenditures, and returned $6.4 billion to shareholders. Texas Instruments Incorporated (NASDAQ:TXN) operates with a solid business model focused on analog and embedded processing solutions, backed by durable competitive advantages. A central aspect of its long-term strategy for growing free cash flow per share is its disciplined capital allocation. This involves selectively funding R&D initiatives, expanding capabilities, investing in manufacturing infrastructure, considering strategic acquisitions, and consistently returning value to shareholders. While we acknowledge the potential of TXN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio

Verizon Reports Record Q2 EBITDA Growth
Verizon Reports Record Q2 EBITDA Growth

Globe and Mail

time2 days ago

  • Business
  • Globe and Mail

Verizon Reports Record Q2 EBITDA Growth

Verizon Communications (NYSE:VZ) reported Q2 2025 results on July 21, 2025, achieving record quarterly adjusted EBITDA of $12.8 billion (up 4.1% year-over-year), wireless service revenue of $20.9 billion (up 2.2% year-over-year), and free cash flow of $5.2 billion. Management raised full-year 2025 guidance for adjusted EBITDA growth to 2.5%-3.5%, adjusted EPS to 1%-3% growth, and free cash flow guidance to $19.5 billion-$20.5 billion, citing operational outperformance, accelerated infrastructure deployment, and unexpected tax reform benefits. Verizon Raised 2025 Financial Guidance on Surging Cash Flow Year-to-date free cash flow reached $8.8 billion, representing a 3.6% increase versus the prior year period, while operating cash flow climbed to $16.8 billion. The recently approved federal tax reform law is expected to contribute $1.5 billion to $2 billion in additional free cash flow in 2025, significantly improving capital allocation flexibility. "We are raising our 2025 free cash flow guidance to a range of $19.5 billion to $20.5 billion. The increase is driven by an estimated benefit of $1.5 billion to $2 billion from the recently enacted tax legislation, as well as the disciplined operational execution that drove our strong adjusted EBITDA and free cash flow performance in the first half of the year." — Tony Skiadas, Chief Financial Officer Stronger free cash flow and tax benefits in 2025 enable faster deleveraging and position the company for greater flexibility in strategic investments and potential buybacks after the Frontier Communications merger closes. Verizon Has an Accelerated Infrastructure Build and Hit a Fixed Wireless Milestone The company surpassed 5 million fixed wireless access (FWA) subscribers, delivering 278,000 FWA net adds in the quarter and maintaining momentum toward its target of 8 million to 9 million FWA subscribers by 2028. The C-band spectrum deployment is now tracking ahead of schedule, expected to reach 80%-90% of planned sites by year-end, while the fiber build is also exceeding plan, aiming for 650,000 new passings this year. "Our fixed wireless base has surpassed 5 million subscribers, and our fiber build is tracking ahead of its plan. This demonstrates disciplined execution across our entire portfolio." — Hans Vestberg, Chairman and Chief Executive Officer Rapid network expansion broadens the addressable market and drives incremental revenue streams. Verizon Managed Disciplined Customer Strategy Amid Churn and Promotional Pressures Despite persistent consumer postpaid phone churn at 0.9% and increased industry promotional intensity, Verizon reduced consumer postpaid phone net losses to 51,000 versus 109,000 in the prior year period and improved core prepaid net additions by 62,000 year over year. Four consecutive quarters of core prepaid net adds have pushed prepaid ARPU above $32, marking a turning point for prepaid revenue contribution. "We have now reached an inflection point where, after four quarters of volume growth, we expect prepaid to positively contribute to wireless service revenue growth for the remainder of 2025." — Tony Skiadas, Chief Financial Officer The transformation in prepaid economics reduces reliance on postpaid for service revenue growth and reflects effective brand segmentation and execution across diverse customer tiers. Looking Ahead Verizon raised its full-year 2025 guidance for adjusted (non-GAAP) EBITDA growth to 2.5%-3.5%, adjusted EPS growth guidance to 1%-3%, and free cash flow guidance to $19.5-$20.5 billion for 2025, factoring in benefits from tax reform and superior first-half execution. The C-band build-out is on track to cover 80%-90% of planned sites by year-end, and fiber expansion targets 650,000 new passings for the full year. Management confirmed the Frontier acquisition remains on schedule for an early 2026 close. As Verizon nears the closing of the Frontier acquisition, the company will provide an update on its broadband expansion and capital allocation strategy; no additional quantitative guidance for 2026 or post-acquisition integration has been provided at this time. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,048%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 21, 2025

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