TE Connectivity Ltd. Revenue & Financials

TE Connectivity generated exactly $13.61 billion in total revenue for the fiscal year ended September 27, 2024, representing a 15% year-over-year decline from $16.02 billion in fiscal 2023, a contraction driven entirely by severe end-market destocking in industrial automation and a normalization of automotive supply chains following the pandemic-era inventory build, rather than a structural loss of market share or competitive displacement. Despite this significant top-line headwind, the company’s underlying financial profile remains exceptionally robust, demonstrating the extreme operational leverage and pricing power inherent in its highly engineered product portfolio, as management successfully navigated the cyclical trough without compromising the company's long-term strategic investments. TE Connectivity achieved a gross margin of 31.5% for fiscal 2024, a mere 150 basis point decline from the prior year, proving that the company’s rigorous cost-reduction initiatives, automated manufacturing footprint, and strict pricing discipline can effectively absorb significant volume losses without catastrophic margin erosion, a testament to the high value-add nature of its product mix. The company generated $1.5 billion in free cash flow during the fiscal year, representing a massive 11% free cash flow conversion rate relative to revenue, which funded $612 million in capital expenditures aimed at expanding high-voltage and sensor capacity, and $650 million in dividend payments to shareholders, demonstrating the company's commitment to returning capital even during a down-cycle. The balance sheet remains highly fortified, with $1.2 billion in cash and short-term investments and $3.8 billion in total debt, resulting in a net leverage ratio of approximately 2.0x EBITDA, well within the company’s target range and providing ample capacity for strategic, tuck-in acquisitions without the need to issue expensive equity or take on restrictive covenants. The unit economics underpinning these headline numbers are highly favorable; the company’s return on invested capital consistently exceeds 15%, significantly above its weighted average cost of capital, proving that every dollar reinvested into the business generates substantial economic value, and its research and development expenditure of roughly $750 million annually is strictly allocated to high-return, next-generation electrification and sensor technologies, ensuring that the product pipeline remains robust for the next decade. The financial narrative of TE Connectivity in fiscal 2024 is not one of structural decline, but of a highly disciplined, cyclical trough; the company successfully navigated a massive inventory correction by its customers while simultaneously funding its transition into higher-margin electric vehicle and industrial IoT architectures, positioning it for a significant margin expansion and revenue re-acceleration as end-market demand stabilizes, the destocking cycle concludes, and the secular tailwinds of global electrification and automation resume their upward trajectory.