Amphenol (APH) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 sales of $4.04B, up 26% year-over-year, with strong organic and acquisition-driven growth, especially in IT datacom, mobile, commercial air, and defense markets.

• Record adjusted diluted EPS of $0.50, up 28% year-over-year, and GAAP diluted EPS of $0.48, up 17%, both exceeding guidance.

• Net income attributable to Amphenol was $604.4M for Q3 2024, up from $513.9M in Q3 2023.

• Closed the acquisition of Lutze Europe and CIT, expanding harsh environment solutions; pending acquisition of CommScope's Mobile Networks Business expected to close in Q1 2025.

• Returned $308M to shareholders via share repurchases and dividends in Q3, with a new $2B stock repurchase program authorized.

Financial highlights

• Q3 2024 net sales: $4.04B (+26% year-over-year); nine months: $10.90B (+18%).

• Q3 net income: $604.4M; nine months: $1.68B.

• Q3 adjusted operating income: $883M; adjusted operating margin: 21.9%, up 110 bps year-over-year.

• Q3 free cash flow: $475.7M; nine-month free cash flow: $1.51B.

• EBITDA (excluding acquisition costs) was $1.03B; net leverage ratio at 1.0x.

Outlook and guidance

• Q4 2024 sales expected at $3.95B–$4.05B, adjusted diluted EPS at $0.48–$0.50, representing 19–22% and 17–22% year-over-year growth, respectively.

• Full-year 2024 sales expected at $14.85B–$14.95B, adjusted EPS at $1.82–$1.84, up 18–19% and 21–22% year-over-year.

• Guidance excludes impact of pending acquisitions.

• Management expects continued strong performance, supported by organic growth, acquisitions, and robust liquidity.