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Mar 28

TAL Education Q4 2025 Earnings Report

TE Connectivity reported strong results with sales and adjusted EPS above guidance for Q2 FY25.

Key Takeaways

The company delivered robust performance driven by Industrial segment strength and strong operational execution, achieving record adjusted EPS despite a GAAP tax charge.

Net sales reached $4.1 billion, growing 4% YoY on a reported basis.

Adjusted EPS of $2.10 marked a company record.

Net income was significantly impacted by a one-time non-cash tax charge.

Industrial segment posted 17% sales growth with expanded margins.

Total Revenue
$4.14B
Previous year: $430M
+864.5%
EPS
$2.1
Previous year: $0.08
+2525.0%
Adj. Operating Margin
19.4%
Orders
$4.25B
Operating Margin
18.1%
Gross Profit
$1.46B
Previous year: $227M
+541.8%
Cash and Equivalents
$2.55B
Previous year: $3.47B
-26.4%
Free Cash Flow
$424M
Previous year: $193M
+119.2%
Total Assets
$23.7B
Previous year: $4.93B
+380.0%

TAL Education

TAL Education

TAL Education Revenue by Segment

Forward Guidance

TE Connectivity expects continued momentum in Q3 FY25 supported by the Richards acquisition and robust industrial demand.

Positive Outlook

  • Expected Q3 net sales of approximately $4.30 billion.
  • GAAP EPS forecasted at $2.02, up nearly 9% YoY.
  • Adjusted EPS projected at $2.06, up 8% YoY.
  • Continued strength in Industrial segment including AI and aerospace demand.
  • Benefits from Richards Manufacturing acquisition factored into guidance.

Challenges Ahead

  • Tax rate headwinds expected to reduce EPS by $0.04 YoY.
  • Sequential EPS impact from tax rate changes estimated at $0.06.
  • Currency fluctuations may affect reported sales.
  • Ongoing macroeconomic uncertainty may impact demand.
  • Trade environment could pose supply chain challenges despite localized manufacturing.

Revenue & Expenses

Visualization of income flow from segment revenue to net income