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 air, mobile networks, mobile devices, and automotive markets.

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

• Orders reached a record $4.06B, up 33% YoY, with a book-to-bill ratio of 1.12.

• Closed CIT acquisition and announced deals for Lutze and CommScope's OWN/DAS businesses; Lutze Europe expected to close in Q3.

• Completed a two-for-one stock split in June 2024 and increased quarterly dividend by 50% to $0.165 per share.

Financial highlights

• Q2 net sales: $3.61B (up 18% YoY); adjusted operating income: $769M (21.3% margin); GAAP net income: $524.8M; adjusted net income: $553.8M.

• Adjusted diluted EPS: $0.44 (up from $0.36 YoY); GAAP diluted EPS: $0.41.

• Operating cash flow: $664M; free cash flow: $528M for Q2, $1.03B for first half 2024.

• Repurchased 3.1M shares for $190M and returned over $320M to shareholders in Q2.

• Net leverage ratio at 1.2x; total liquidity of $4.3B; net debt at $4.1B; total debt $5.4B.

Outlook and guidance

• Q3 2024 sales expected at $3.7B–$3.8B, adjusted EPS $0.43–$0.45, representing 16–19% sales growth and 10–15% EPS growth YoY.

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

• Continued elevated CapEx expected to support growth in defense and IT data markets.