TE Connectivity Expects $100M Restructuring Despite 15% Revenue Growth and Raises Dividend 10%
TE Connectivity anticipates $100 million in fiscal 2026 restructuring charges even as Q2 sales rose 15% year-over-year and earnings climbed 24%, supported by record orders exceeding $5 billion. The company generated $1.3 billion in free cash flow during H1 and boosted its quarterly dividend by 10%.
1. Q2 Financial Results
TE Connectivity posted a 15% year-over-year sales increase and a 24% rise in earnings for Q2, driven by robust end-market demand and pricing actions.
2. Record Order Growth and Segment Momentum
The company achieved record orders exceeding $5 billion, with over 70% of order growth from the Industrial segment and strong gains in Digital Data Networks, energy infrastructure, and transportation content.
3. Restructuring Charges and Cost Outlook
TE Connectivity expects roughly $100 million in fiscal 2026 restructuring charges and is managing inflationary pressures through productivity initiatives and strategic program ramp planning, particularly in the AI and data network sectors.
4. Cash Flow and Dividend Increase
Free cash flow reached $1.3 billion in the first half of the year, enabling a 10% quarterly dividend increase and reinforcing the company’s capital return strategy.