Amphenol (APH) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 sales of $3.61B, up 18% year-over-year, with strong growth in IT datacom, defense, commercial aerospace, mobile devices, mobile networks, and automotive markets.

• Record adjusted diluted EPS of $0.44, up 22% year-over-year; GAAP diluted EPS rose to $0.41.

• Completed major acquisitions including CIT and Lutze US; announced pending $2.1B acquisition of CommScope's Mobile Networks Business.

• Executed a two-for-one stock split in June 2024; all share and per-share data retroactively adjusted.

• Announced a 50% increase in quarterly dividend to $0.165 per share, effective October 2024.

Financial highlights

• Adjusted operating income was $769M, with a record adjusted operating margin of 21.3%.

• Q2 net income attributable to Amphenol: $524.8M; adjusted net income: $553.8M.

• Operating cash flow was $664M; free cash flow was $528M for Q2 and $1.03B for the first half of 2024.

• Repurchased 3.1M shares for $190M in Q2; total capital return to shareholders exceeded $320M.

• Total debt at $5.4B, net debt at $4.1B, and liquidity at $4.3B as of June 30, 2024.

Outlook and guidance

• Q3 2024 sales expected at $3.7B–$3.8B, with adjusted diluted EPS of $0.43–$0.45, representing 16%–19% sales growth and 10%–15% EPS growth year-over-year.

• Guidance includes CIT and Lutze US, but excludes pending acquisitions; Q3 acquisition-related costs estimated at $50M ($0.03 per share).

• Elevated CapEx expected in coming quarters to support growth in defense and IT data markets.