Amphenol Q4 2025 Amphenol Corp Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Amphenol Corp Earnings Call
Craig Lampo: Good afternoon, everyone. This is Craig Lampo.
Craig Lampo: Good afternoon, everyone. This is Craig Lampo.
Speaker #1: everyone. This is Craig Lampo.
Speaker #2: Hello, and welcome to the fourth quarter 2025 earnings conference call for Amphenol Corp (DE). Following today's presentation, there will be a formal question-and-answer session.
Operator: Hello, and welcome to the Q4 2025 earnings conference call for Amphenol Corporation. Following today's presentation, there will be a formal question and answer session. Until then, all lines will remain in a listen-only mode. At the request of the company, today's conference is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to introduce today's conference host, Mr. Craig Lampo. Sir, you may begin.
Operator: Hello, and welcome to the Q4 2025 earnings conference call for Amphenol Corporation. Following today's presentation, there will be a formal question and answer session. Until then, all lines will remain in a listen-only mode. At the request of the company, today's conference is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to introduce today's conference host, Mr. Craig Lampo. Sir, you may begin.
Speaker #2: Until then, all lines will remain in a listen-only mode. At the request of the company, today's conference is being recorded. If anyone has any objections, you may disconnect at this time.
Speaker #2: I would now like to introduce today's conference host, Mr. Craig Lampo. Sir, you may proceed.
Speaker #2: begin. Great.
Craig Lampo: Great. Thank you so much. Good afternoon, everyone. This is Craig Lampo, Amphenol's CFO, and I'm here together with Adam Norwitt, our CEO. We would like to wish everyone a happy New Year and welcome you to our Q4 2025 conference call. Our Q4 2025 results were released this morning. I'll provide some financial commentary, and then Adam will give an overview of the business and current market trends. Then we will take your questions. As a reminder, during the call, we may refer to certain non-GAAP financial measures and make certain forward-looking statements. Please refer to the relevant disclosures in our press release for further information. The company closed the Q4 2025 with record sales of $6.4 billion, and GAAP and adjusted diluted EPS of $0.97 and $0.93, respectively.
Craig Lampo: Great. Thank you so much. Good afternoon, everyone. This is Craig Lampo, Amphenol's CFO, and I'm here together with Adam Norwitt, our CEO. We would like to wish everyone a happy New Year and welcome you to our Q4 2025 conference call. Our Q4 2025 results were released this morning. I'll provide some financial commentary, and then Adam will give an overview of the business and current market trends. Then we will take your questions. As a reminder, during the call, we may refer to certain non-GAAP financial measures and make certain forward-looking statements. Please refer to the relevant disclosures in our press release for further information. The company closed the Q4 2025 with record sales of $6.4 billion, and GAAP and adjusted diluted EPS of $0.97 and $0.93, respectively.
Speaker #1: Thank you so much. Good afternoon, everyone. This is Craig Lampo, Amphenol CFO, and I'm here together with Adam Norwitt, our CEO, to welcome you to our fourth quarter earnings call.
Speaker #1: We would like to wish everyone a happy 2025 conference call. Our fourth quarter 2025 results were released this morning. I will provide some financial commentary, and then Adam will give an overview of the business and current market trends.
Speaker #1: Then we will take your questions. As a reminder, during the call, we may refer to certain non-GAAP financial measures and make certain forward-looking statements.
Speaker #1: Please refer to the relevant disclosures in our press release for further information. The company closed the fourth quarter of 2025 with record sales of $6.4 billion.
Speaker #1: And GAAP and adjusted diluted EPS of $0.97 and $0.93, respectively. The fourth quarter sales were up 49% in US dollars, 48% in local currencies, and 37% organically compared to the fourth quarter of 2024.
Craig Lampo: Q4 sales were up 49% in US dollars, 48% in local currencies, and 37% organically compared to Q4 of 2024. Sequentially, sales were up 4% in US dollars and local currencies and up 3% organically. Adam will comment further on trends by market in a few minutes. For the full year of 2025, sales were approximately $23.1 billion, up 52% in US dollars, 51% in local currencies, and 38% organically compared to 2024.
Q4 sales were up 49% in US dollars, 48% in local currencies, and 37% organically compared to Q4 of 2024. Sequentially, sales were up 4% in US dollars and local currencies and up 3% organically. Adam will comment further on trends by market in a few minutes. For the full year of 2025, sales were approximately $23.1 billion, up 52% in US dollars, 51% in local currencies, and 38% organically compared to 2024.
Speaker #1: Sequentially, sales were up 4% in US dollars and in local currencies, and up 3% market. In a few, Adam will comment further on trends by organically.
Speaker #1: For the full year 2025, sales were approximately $23.1 billion, up 52% in US dollars, 51% in local currencies, and 38% organically compared to 2024.
Speaker #1: We are very encouraged by our orders in the quarter, which were a record $8.431 billion, up a strong 68% compared to the fourth quarter of 2024 and up 38% sequentially, resulting in a very strong book-to-bill ratio of 1.31 to 1.
Craig Lampo: We are very encouraged by our orders in the quarter, which were a record $8.431 billion, up a strong 68% compared to the fourth quarter of 2024 and up 38% sequentially, resulting in a very strong book-to-bill ratio of 1.31 to 1. This impressive book-to-bill in the quarter was primarily driven by robust bookings in the IT datacom market related to AI applications. We have seen customers open their order window a bit in certain cases, which helped to drive these strong bookings. For the full year, orders were $25.4 billion, up 51% compared to 2024, resulting in a book-to-bill ratio of 1.1 to 1.
We are very encouraged by our orders in the quarter, which were a record $8.431 billion, up a strong 68% compared to the fourth quarter of 2024 and up 38% sequentially, resulting in a very strong book-to-bill ratio of 1.31 to 1. This impressive book-to-bill in the quarter was primarily driven by robust bookings in the IT datacom market related to AI applications. We have seen customers open their order window a bit in certain cases, which helped to drive these strong bookings. For the full year, orders were $25.4 billion, up 51% compared to 2024, resulting in a book-to-bill ratio of 1.1 to 1.
Speaker #1: This impressive book-to-bill in the quarter was primarily driven by robust bookings in the IT DataCom market related to AI applications. We have seen customers open their order window a bit in certain cases, which helped to drive these strong bookings.
Speaker #1: For the full year, orders were $25.4 billion, up 51% compared to 2024, resulting in a book-to-bill ratio of 1.1 to 1. GAAP operating income was $1.7 billion in the quarter, and GAAP operating margin was 26.8%.
Craig Lampo: GAAP operating income was $1.7 billion in the quarter, and GAAP operating margin was 26.8%. GAAP operating margin included $47 million of acquisition-related costs, primarily for external transaction costs and the amortization of acquired backlog. Excluding acquisition-related costs, adjusted operating margin and adjusted operating income was 27.5% and $1.8 billion, respectively. On an adjusted basis, operating margin increased by a strong 510 basis points from the prior year quarter and was flat sequentially. The year-over-year increase in adjusted operating margin was primarily driven by robust operating leverage on the significantly higher sales volumes, which was only modestly offset by the dilutive impact of acquisitions.
GAAP operating income was $1.7 billion in the quarter, and GAAP operating margin was 26.8%. GAAP operating margin included $47 million of acquisition-related costs, primarily for external transaction costs and the amortization of acquired backlog. Excluding acquisition-related costs, adjusted operating margin and adjusted operating income was 27.5% and $1.8 billion, respectively. On an adjusted basis, operating margin increased by a strong 510 basis points from the prior year quarter and was flat sequentially. The year-over-year increase in adjusted operating margin was primarily driven by robust operating leverage on the significantly higher sales volumes, which was only modestly offset by the dilutive impact of acquisitions.
Speaker #1: GAAP operating margin included $47 million of acquisition-related costs, primarily for external transaction costs and the amortization of acquired backlog. Excluding acquisition-related costs, adjusted operating margin and adjusted operating income was 27.5% and $1.8 billion, respectively.
Speaker #1: On an adjusted basis, operating margin increased by a strong 510 basis points from the prior-year quarter and was flat sequentially. The year-over-year increase in adjusted operating margin was primarily driven by robust operating leverage on the significantly higher sales volumes, which was only modestly offset by the dilutive impact of acquisitions.
Speaker #1: For the full year 2025, GAAP operating income was $5.9 billion and included $181 million of acquisition-related costs. Excluding these costs, adjusted operating income was $6.1 billion in 2025.
Craig Lampo: For the full year of 2025, GAAP operating income was $5.9 billion and included $181 million of acquisition-related costs. Excluding these costs, adjusted operating income was $6.1 billion in 2025. For the full year, GAAP operating margin and adjusted operating margin reached annual records of 25.4% and 26.2%, respectively. On an adjusted basis, operating margin increased 450 basis points compared to 2024, primarily driven by strong operational performance on the significantly higher sales volumes, which again, was only modestly offset by the dilutive impact of acquisitions. I'm extremely proud of the company's operating margin performance in the fourth quarter and for the full year 2025, both of which reflect continued strong execution by the team.
For the full year of 2025, GAAP operating income was $5.9 billion and included $181 million of acquisition-related costs. Excluding these costs, adjusted operating income was $6.1 billion in 2025. For the full year, GAAP operating margin and adjusted operating margin reached annual records of 25.4% and 26.2%, respectively. On an adjusted basis, operating margin increased 450 basis points compared to 2024, primarily driven by strong operational performance on the significantly higher sales volumes, which again, was only modestly offset by the dilutive impact of acquisitions. I'm extremely proud of the company's operating margin performance in the fourth quarter and for the full year 2025, both of which reflect continued strong execution by the team.
Speaker #1: For the full year, GAAP operating margin and adjusted operating margin reached annual records of 25.4% and 26.2%, respectively. On an adjusted basis, operating margin increased 450 basis points compared to 2024, primarily driven by strong operational performance on the significantly higher sales volumes, which again was only modestly offset by the dilutive impact of acquisitions.
Speaker #1: I'm extremely proud of the company's operating margin performance in the fourth quarter and for the full year 2025, both of which reflect continued strong execution by the segment compared to the fourth quarter of the team.
Craig Lampo: Breaking down fourth quarter results by segment compared to the fourth quarter of 2024, sales in the Communication Solution segment were $3.4 billion, and increased by 78% in US dollars and 60% organically. Segment operating margin was 32.5%. Sales in the Harsh Environment Solution segment were $1.7 billion, and increased by 31% in US dollars and 21% organically, and segment operating margin was 27.6%. Sales in Interconnect and Sensor System segment were $1.4 billion, increased by 21% in US dollars and 16% organically, and segment operating margin was 20.1%.
Breaking down fourth quarter results by segment compared to the fourth quarter of 2024, sales in the Communication Solution segment were $3.4 billion, and increased by 78% in US dollars and 60% organically. Segment operating margin was 32.5%. Sales in the Harsh Environment Solution segment were $1.7 billion, and increased by 31% in US dollars and 21% organically, and segment operating margin was 27.6%. Sales in Interconnect and Sensor System segment were $1.4 billion, increased by 21% in US dollars and 16% organically, and segment operating margin was 20.1%.
Speaker #1: Down to fourth quarter results, by breaking out 2024, sales in the Communication Solution segment were $3.4 billion and increased by 78% in US dollars and 60% organically.
Speaker #1: Segment operating margin was 32.5%. Sales in the Harsh Environment Solutions segment were $1.7 billion and increased by 31% in US dollars and 21% organically.
Speaker #1: And segment operating margin was 27.6%. Sales in the Interconnect and Sensor Systems segment were $1.4 billion, increased by 21% in U.S. dollars and 16% organically.
Speaker #1: And segment operating margin was 20.1%. Breaking down full year results by segment compared to 2024, sales in the Communication Solutions segment were $12.1 billion and increased by 91% in US dollars and 71% organically, and segment operating margin was 31.1%.
Craig Lampo: Breaking down full year results by segment compared to 2024, sales in the Communication Solution segment were $12.1 billion, increased by 91% in US dollars and 71% organically, and segment operating margin was 31.1%. Sales in the Harsh Environment Solution segment were $5.9 billion, increased by 33% in US dollars and 17% organically, and segment operating margin was 26.2%. Sales in the Interconnect and Sensor System segment were $5.2 billion, an increase by 15% US dollars and 13% organically, and segment operating margin was 19.5%.
Breaking down full year results by segment compared to 2024, sales in the Communication Solution segment were $12.1 billion, increased by 91% in US dollars and 71% organically, and segment operating margin was 31.1%. Sales in the Harsh Environment Solution segment were $5.9 billion, increased by 33% in US dollars and 17% organically, and segment operating margin was 26.2%. Sales in the Interconnect and Sensor System segment were $5.2 billion, an increase by 15% US dollars and 13% organically, and segment operating margin was 19.5%.
Speaker #1: Sales in the Harsh Environment Solutions segment were $5.9 billion and increased by 33% in US dollars and 17% organically. Segment operating margin was 26.2%.
Speaker #1: And sales in the Interconnect and Sensor System segment were $5.2 billion and increased by 15% in US dollars and 13% organically. Segment operating margin was 19.5%.
Speaker #1: For the fourth quarter, the company's GAAP effective tax rate was 26.9%, which compares to 17.4% in the fourth quarter of '24. And for the full year '25, the GAAP effective tax rate was 23.1%, compared to 18.9% in 2024.
Craig Lampo: For the fourth quarter, the company's GAAP effective tax rate was 26.9%, which compared to 17.4% in the fourth quarter of 2024, and full year 2025, GAAP effective tax rate was 23.1%, which compared to 18.9% in 2024. On an adjusted basis, the effective tax rate of 25.5%, both for the fourth quarter and full year, which compared to 24% in the prior year periods. As we discussed last quarter, the increase in our adjusted effective tax rate in 2025 was due to some shift in income mix to higher tax jurisdictions. For modeling purposes, you should assume that this higher tax rate of 25.5% continues into 2026.
For the fourth quarter, the company's GAAP effective tax rate was 26.9%, which compared to 17.4% in the fourth quarter of 2024, and full year 2025, GAAP effective tax rate was 23.1%, which compared to 18.9% in 2024. On an adjusted basis, the effective tax rate of 25.5%, both for the fourth quarter and full year, which compared to 24% in the prior year periods. As we discussed last quarter, the increase in our adjusted effective tax rate in 2025 was due to some shift in income mix to higher tax jurisdictions. For modeling purposes, you should assume that this higher tax rate of 25.5% continues into 2026.
Speaker #1: On an adjusted basis, the effective tax rate was 25.5% for both the fourth quarter and full year, which compared to 24% in the prior year periods.
Speaker #1: As we discussed last quarter, the increase in our adjusted effective tax rate in '25 was due to some shift in income mix to higher tax jurisdictions.
Speaker #1: For modeling purposes, you should assume that this higher tax rate of 25.5% continues into 2026. As our typical practice, our adjusted tax rate excludes the tax effect of any acquisition-related costs, as well as excess tax benefit from stock option compensation, and other discrete tax-related items.
Craig Lampo: As our typical practice, our adjusted tax rate excludes the tax effect of any acquisition-related costs, as well as excess tax benefit from stock option compensation, as well as other discrete tax-related items. Specifically, in Q4 and for the full year 2025, our adjusted tax rate excludes a $100 million discrete tax accrual related to notices received by certain subsidiaries in China from relevant tax authorities, challenging certain taxes been taken over the last eight, over up to an eight-year period. We believe these tax positions are appropriate and remain engaged in ongoing discussions with the relevant tax authorities.
As our typical practice, our adjusted tax rate excludes the tax effect of any acquisition-related costs, as well as excess tax benefit from stock option compensation, as well as other discrete tax-related items. Specifically, in Q4 and for the full year 2025, our adjusted tax rate excludes a $100 million discrete tax accrual related to notices received by certain subsidiaries in China from relevant tax authorities, challenging certain taxes been taken over the last eight, over up to an eight-year period. We believe these tax positions are appropriate and remain engaged in ongoing discussions with the relevant tax authorities.
Speaker #1: Specifically, in the fourth quarter and for the full year 2025, our adjusted tax rate excludes a $100 million discrete tax accrual related to notices received by certain subsidiaries in China from relevant tax authorities, challenging certain tax decisions taken over the last eight years, or up to an eight-year period.
Speaker #1: We believe these tax decisions are appropriate and remain engaged in ongoing discussions with the relevant tax authorities. GAAP diluted EPS was $0.93 in the fourth quarter, up 58% compared to the prior-year period.
Craig Lampo: GAAP diluted EPS was $0.93 in Q4, up 58% compared to the prior year period, and then on an adjusted basis, diluted EPS was a record $0.97, an increase by 76% compared to the $0.55 in Q4 2024. This was an outstanding result. For the full year, GAAP and adjusted diluted EPS were both a record $30.34, an increase of 74% and 77% respectively. Operating cash flow in Q4 was $1.7 billion or 144% of net income, and free cash flow was $1.5 billion or 123% of income.
GAAP diluted EPS was $0.93 in Q4, up 58% compared to the prior year period, and then on an adjusted basis, diluted EPS was a record $0.97, an increase by 76% compared to the $0.55 in Q4 2024. This was an outstanding result. For the full year, GAAP and adjusted diluted EPS were both a record $30.34, an increase of 74% and 77% respectively. Operating cash flow in Q4 was $1.7 billion or 144% of net income, and free cash flow was $1.5 billion or 123% of income.
Speaker #1: And on an adjusted basis, dilutive EPS was a record $0.97 and increased by 76% compared to the $0.55 in the fourth quarter of 2024.
Speaker #1: This was an outstanding result. For the full year, GAAP and adjusted diluted EPS were both a record $3.03 and increased 74% and $0.77, respectively.
Speaker #1: Operating cash flow in the fourth quarter was $1.7 billion, or 144% of net income, and free cash flow was $1.5 billion, or 123% of net income.
Speaker #1: And for the full year of 2025, operating cash flow was a record $5.4 billion, or 126% of net income, and free cash flow was a record $4.4 billion, or 103% of net income.
Craig Lampo: For the full year of 2025, operating cash flow was a record $5.4 billion, or 126% of net income, and free cash flow was a record $4.4 billion or 103% of net income. Considering the high growth rates we experienced this year, this is a very strong result. From a working capital standpoint, inventory days, day sales outstanding, and payable days were all within a normal range. During the quarter, the company repurchased 1.3 million shares of common stock at an average price of approximately $134. When combined with our normal quarterly dividend, total capital return to shareholders in Q4 2025 was approximately $373 million, and was nearly $1.5 billion for the full year 2025.
For the full year of 2025, operating cash flow was a record $5.4 billion, or 126% of net income, and free cash flow was a record $4.4 billion or 103% of net income. Considering the high growth rates we experienced this year, this is a very strong result. From a working capital standpoint, inventory days, day sales outstanding, and payable days were all within a normal range. During the quarter, the company repurchased 1.3 million shares of common stock at an average price of approximately $134. When combined with our normal quarterly dividend, total capital return to shareholders in Q4 2025 was approximately $373 million, and was nearly $1.5 billion for the full year 2025.
Speaker #1: Considering the high growth rates we experienced this year, this was a very strong result. From a working capital standpoint, inventory days, days sales outstanding, and payable days were all within the normal range.
Speaker #1: During the quarter, the company repurchased 1.3 million shares of common stock at an average price of approximately $134. When combined with our normal quarterly dividend, total capital return to shareholders in the fourth quarter of 2025 was approximately $373 million.
Speaker #1: And was nearly $1.5 billion for the full year of 2025. Total debt at December 31st was $15.5 billion, and net debt was $4.1 billion, which included $7.5 billion from the U.S. bond offering we completed in October in anticipation of the closing of the CCS acquisition.
Craig Lampo: Total debt at 31 December was $15.5 billion, and net debt was $4.1 billion, which included $7.5 billion from the US bond offering we completed in October in anticipation of the closing of the CCS acquisition. Total liquidity at the end of Q4 was $17.5 billion, which included cash and short-term investments on hand of $11.4 billion, plus availability under our existing credit facilities, and $3.1 billion of term loan facilities put in place in anticipation of the CCS acquisition. In early January, the company closed the CCS acquisition, which was funded with cash on hand, primarily resulting from the October 2025 bond deal, as well as the $3.1 billion of term loan facilities.
Total debt at 31 December was $15.5 billion, and net debt was $4.1 billion, which included $7.5 billion from the US bond offering we completed in October in anticipation of the closing of the CCS acquisition. Total liquidity at the end of Q4 was $17.5 billion, which included cash and short-term investments on hand of $11.4 billion, plus availability under our existing credit facilities, and $3.1 billion of term loan facilities put in place in anticipation of the CCS acquisition. In early January, the company closed the CCS acquisition, which was funded with cash on hand, primarily resulting from the October 2025 bond deal, as well as the $3.1 billion of term loan facilities.
Speaker #1: Total liquidity at the end of the fourth quarter was $17.5 billion, which included cash and short-term investments on hand of $11.4 billion, plus availability under existing credit facilities.
Speaker #1: And $3.1 billion of term loan facilities put in place in anticipation of the CCS acquisition. In early January, the company closed the CCS acquisition, which was funded with cash on hand, primarily resulting from the October 2025 bond deal as well as the $3.1 billion of term loan facilities.
Speaker #1: As a result of the acquisition of CCS, we expect 2026 quarterly interest expense, net of interest income from cash on hand, to be approximately $200 million, which is reflected in our first quarter 2026 guidance.
Craig Lampo: As a result of the acquisition of CCS, we expect 2026 quarterly interest expense, net of interest income from cash on hand, to be approximately $200 million, which is reflected in our Q1 2026 guidance. Adjusting for the impact of the CCS acquisition, our net debt at year-end would have been $14.7 billion, and our liquidity would have been $6.9 billion, which includes pro forma cash and short-term investments on hand of $3.9 billion. Q4 2025 EBITDA was $2 billion, and our net leverage ratio was 0.6 times at the end of the quarter. Pro forma net leverage at the end of 2025, including the CCS acquisition, would have been approximately 1.8 times.
As a result of the acquisition of CCS, we expect 2026 quarterly interest expense, net of interest income from cash on hand, to be approximately $200 million, which is reflected in our Q1 2026 guidance. Adjusting for the impact of the CCS acquisition, our net debt at year-end would have been $14.7 billion, and our liquidity would have been $6.9 billion, which includes pro forma cash and short-term investments on hand of $3.9 billion. Q4 2025 EBITDA was $2 billion, and our net leverage ratio was 0.6 times at the end of the quarter. Pro forma net leverage at the end of 2025, including the CCS acquisition, would have been approximately 1.8 times.
Speaker #1: Adjusting for the impact of the CCS acquisition, our net debt at year-end would have been $14.7 billion, and our liquidity would have been $6.9 billion, which includes pro forma cash and short-term investments on hand of $3.9 billion.
Speaker #1: Fourth quarter 2025 EBITDA was $2 billion, and our net leverage ratio was 0.6 times at the end of the quarter. Pro forma net leverage at the end of 2025, including the CCS acquisition, would have been approximately 1.8 times.
Speaker #1: As of December 31st, the company had no outstanding borrowings under its revolving credit facility or its commercial paper programs. I'm now turning the call over to Adam, who will provide some commentary on current market.
Craig Lampo: As of 31 December, the company had no outstanding borrowings under its revolving credit facility or its commercial paper programs. I will now turn the call over to Adam, who will provide some commentary on current market trends.
As of 31 December, the company had no outstanding borrowings under its revolving credit facility or its commercial paper programs. I will now turn the call over to Adam, who will provide some commentary on current market trends.
Speaker #1: trends. Well, thank you very
Adam Norwitt: Well, thank you very much, Craig, and I also would like to offer my best New Year's wishes to all of you here. Craig and I are here in the winter wonderland of Wallingford, Connecticut, and it's a real pleasure to talk to you about our fourth quarter and full year achievements. I'll highlight some of those achievements, and then, as Craig mentioned, I'm gonna discuss the trends across our served markets. We'll make some comments on the outlook for the first quarter, and then, of course, we'll have time for questions. Turning to the fourth quarter, there's no doubt that Amphenol had a strong finish to a very successful 2025, with sales and adjusted diluted earnings per share in the fourth quarter, both exceeding the high end of our guidance.
Adam Norwitt: Well, thank you very much, Craig, and I also would like to offer my best New Year's wishes to all of you here. Craig and I are here in the winter wonderland of Wallingford, Connecticut, and it's a real pleasure to talk to you about our fourth quarter and full year achievements. I'll highlight some of those achievements, and then, as Craig mentioned, I'm gonna discuss the trends across our served markets. We'll make some comments on the outlook for the first quarter, and then, of course, we'll have time for questions. Turning to the fourth quarter, there's no doubt that Amphenol had a strong finish to a very successful 2025, with sales and adjusted diluted earnings per share in the fourth quarter, both exceeding the high end of our guidance.
Speaker #2: Much appreciated, Craig, and I also would like to offer my best New Year's wishes to all of you here. Craig and I are here in the winter wonderland of Wallingford, Connecticut, and it's a real pleasure to talk to you about our fourth quarter and full-year achievements.
Speaker #2: I'll highlight some of those achievements and then, as Craig mentioned, I'm going to discuss the trends across our served markets. We'll make some comments on the outlook for the first quarter and then, of course, we'll have time for questions.
Speaker #2: Turning to the fourth quarter, there's no doubt that Amphenol had a strong finish to a very successful 2025, with sales and adjusted diluted earnings per share in the fourth quarter both exceeding the high end of our guidance.
Speaker #2: Sales grew by 49% in US dollars and 48% in local currencies, reaching a new record of $6,439 million. On an organic basis, our sales increased by 37%, with robust growth across nearly all of our served markets.
Adam Norwitt: Sales grew by 49% in US dollars and 48% in local currencies, reaching a new record of $6.439 billion. On an organic basis, our sales increased by 37%, with robust growth across nearly all of our served markets. As Craig mentioned, we booked a record 8.4 billion of orders in the fourth quarter, which represented a very strong book-to-bill of 1.31 to 1. These orders grew by 68% from prior year and were up 38% sequentially. While orders were strong across the board, there's no doubt that these robust orders were driven primarily by data center demand related, in particular, to artificial intelligence investments being planned by a number of our large customers.
Sales grew by 49% in US dollars and 48% in local currencies, reaching a new record of $6.439 billion. On an organic basis, our sales increased by 37%, with robust growth across nearly all of our served markets. As Craig mentioned, we booked a record 8.4 billion of orders in the fourth quarter, which represented a very strong book-to-bill of 1.31 to 1. These orders grew by 68% from prior year and were up 38% sequentially. While orders were strong across the board, there's no doubt that these robust orders were driven primarily by data center demand related, in particular, to artificial intelligence investments being planned by a number of our large customers.
Speaker #2: As Craig mentioned, we booked a record $8.4 billion of orders in the fourth quarter, which represented a very strong book-to-bill of 1.31 to 1.
Speaker #2: These orders grew by 68% from the prior year and were up 38% sequentially. And while orders were strong across the board, there's no doubt that these robust orders were driven primarily by data center demand related in particular to artificial intelligence investments being planned by a number of our large customers.
Speaker #2: We're also pleased in the quarter to have delivered adjusted operating margins of 27.5% in the quarter, which matched our record-setting margins in the third quarter and which represented an increase of 510 basis points from prior year.
Adam Norwitt: We're also pleased in the quarter to have delivered adjusted operating margins of 27.5% in the quarter, which matched our record-setting margins in Q3, and which represented an increase of 510 basis points from prior year. This superior profitability is a direct result of the outstanding execution of the Amphenol team around the world. Our adjusted diluted EPS in the quarter grew by 76% from prior year, reaching a new record of $0.97. Finally, the company generated record operating and free cash flow in Q4 of $1.7 billion and $1.5 billion, respectively, both clear reflections of the quality of the company's earnings. I just can't express enough my pride in our team here in Q4.
We're also pleased in the quarter to have delivered adjusted operating margins of 27.5% in the quarter, which matched our record-setting margins in Q3, and which represented an increase of 510 basis points from prior year. This superior profitability is a direct result of the outstanding execution of the Amphenol team around the world. Our adjusted diluted EPS in the quarter grew by 76% from prior year, reaching a new record of $0.97. Finally, the company generated record operating and free cash flow in Q4 of $1.7 billion and $1.5 billion, respectively, both clear reflections of the quality of the company's earnings. I just can't express enough my pride in our team here in Q4.
Speaker #2: This superior profitability is a direct result of the outstanding execution of the Amphenol team around the world. Our adjusted diluted EPS in the quarter grew by 76% from the prior year, reaching a new record of $0.97.
Speaker #2: Finally, the company generated record operating and free cash flow in the fourth quarter of $1.7 billion and $1.5 billion, respectively—both clear reflections of the quality of the company's earnings.
Speaker #2: I just can't express enough my pride in our team here in the fourth quarter. These results once again reaffirm the value of the discipline and agility of our entrepreneurial organization.
Adam Norwitt: These results once again reaffirm the value of the discipline and agility of our entrepreneurial organization as we continue to perform well amidst a very dynamic environment. We're also very excited in the quarter that we closed on the previously announced acquisition of Trexon. With operations in the US and Europe, and with annual sales of approximately $290 million, Trexon's a leading provider of high reliability interconnect and cable assemblies, primarily for the defense market. We're particularly excited that Trexon further expands our value add interconnect offering for the defense market. Enabling us to offer our customers in this important area a complete solution of high technology interconnect products, really the broadest in the industry. We look forward to the Trexon team flourishing as part of the Amphenol family.
These results once again reaffirm the value of the discipline and agility of our entrepreneurial organization as we continue to perform well amidst a very dynamic environment. We're also very excited in the quarter that we closed on the previously announced acquisition of Trexon. With operations in the US and Europe, and with annual sales of approximately $290 million, Trexon's a leading provider of high reliability interconnect and cable assemblies, primarily for the defense market. We're particularly excited that Trexon further expands our value add interconnect offering for the defense market. Enabling us to offer our customers in this important area a complete solution of high technology interconnect products, really the broadest in the industry. We look forward to the Trexon team flourishing as part of the Amphenol family.
Speaker #2: As we continue to perform well amidst a very dynamic environment, we're also very excited in the quarter that we closed on the previously announced acquisition of Trexon.
Speaker #2: With operations in the US and Europe, and with annual sales of approximately $290 million, Trexon is a leading provider of high-reliability interconnect and cable assemblies, primarily for the defense market.
Speaker #2: We're particularly excited that Trexon further expands our value-add interconnect offering for the defense market, enabling us to offer our customers in this important area a complete solution of high-technology interconnect products.
Speaker #2: Really the broadest in the industry. We look forward to the Trexon team flourishing as part of the Amphenol family. In addition, just here in January, we're excited to have closed on the acquisition of the CCS business from CommScope.
Adam Norwitt: In addition, just here in January, we're excited to have closed on the acquisition of the CCS business from CommScope, a bit earlier than we had anticipated. This business, which will be known going forward as CommScope, an Amphenol company, represents a significant expansion of our interconnect capabilities across three of our important end markets. As we discussed last year, CommScope adds significant fiber optic interconnect capabilities for the IT datacom and communications networks markets, as well as a diverse range of industrial interconnect products for the building connectivity market, which will be included in our industrial segment. We look forward to working closely with the CommScope team as they embrace the Amphenol operating culture, and are really excited about the potential that this significant acquisition can bring to our company.
In addition, just here in January, we're excited to have closed on the acquisition of the CCS business from CommScope, a bit earlier than we had anticipated. This business, which will be known going forward as CommScope, an Amphenol company, represents a significant expansion of our interconnect capabilities across three of our important end markets. As we discussed last year, CommScope adds significant fiber optic interconnect capabilities for the IT datacom and communications networks markets, as well as a diverse range of industrial interconnect products for the building connectivity market, which will be included in our industrial segment. We look forward to working closely with the CommScope team as they embrace the Amphenol operating culture, and are really excited about the potential that this significant acquisition can bring to our company.
Speaker #2: A bit earlier than we had anticipated. This business, which will be known going forward as CommScope and Amphenol Company, represents a significant expansion of our interconnect capabilities across three of our important end markets.
Speaker #2: As we discussed last year, CommScope adds significant fiber optic interconnect capabilities for the IT datacom and communications networks markets, as well as a diverse range of industrial interconnect products for the building connectivity market.
Speaker #2: Which will be included in our Industrial segment. We look forward to working closely with the CommScope team as they embrace the Amphenol operating culture.
Speaker #2: And are really excited about the potential that this significant acquisition can bring to our company. As previously disclosed, we expect CommScope to generate full-year 2026 sales of $4.1 billion.
Adam Norwitt: As previously disclosed, we expect CommScope to generate full year 2026 sales of $4.1 billion, and to add $0.15 to Amphenol's 2026 adjusted earnings per share. As we welcome the outstanding CommScope and Trexon teams to the Amphenol family, we remain confident that our acquisition program will continue to create great value for the company. Our ability to identify and execute upon acquisitions, and then to successfully bring these companies into Amphenol, remains a core competitive advantage. There's no doubt that as our organization has evolved and scaled, so too has our ability to effectively manage a greater number of acquisitions of all sizes. Now, turning to the full year 2025, simply put, 2025 was a uniquely successful year for Amphenol.
As previously disclosed, we expect CommScope to generate full year 2026 sales of $4.1 billion, and to add $0.15 to Amphenol's 2026 adjusted earnings per share. As we welcome the outstanding CommScope and Trexon teams to the Amphenol family, we remain confident that our acquisition program will continue to create great value for the company. Our ability to identify and execute upon acquisitions, and then to successfully bring these companies into Amphenol, remains a core competitive advantage. There's no doubt that as our organization has evolved and scaled, so too has our ability to effectively manage a greater number of acquisitions of all sizes. Now, turning to the full year 2025, simply put, 2025 was a uniquely successful year for Amphenol.
Speaker #2: And to add $0.15 to Amphenol's 2026 adjusted earnings per share. As we welcome the outstanding CommScope and Trexon teams to the Amphenol family, we remain confident their acquisition program will continue to execute upon acquisitions and create great value for the company.
Speaker #2: Our ability to identify and then to successfully bring these companies into Amphenol remains a core competitive advantage. And there's no doubt that as our organization has evolved and scaled, so too has our ability to effectively manage a greater number of acquisitions of all sizes.
Speaker #2: Now turning to the full year 2025, simply put, 2025 was a uniquely successful year for Amphenol. We expanded our position in the overall market, growing our sales by 52% in US dollars, 51% in local currency, and 38% organically, reaching a new sales record of $23 billion, or $23.1 billion.
Adam Norwitt: We expanded our position in the overall market, growing our sales by 52% in US dollars, 51% in local currency, and 38% organically, reaching a new sales record of $23 billion or $23.1 billion. As we crossed $23 billion in sales in 2025, we're very proud to have more than doubled Amphenol's revenues in the past four years, a great reflection of our organization's ability to navigate market dynamics while capitalizing on the broad array of opportunities arising across the electronics industry. Our full year 2025 adjusted operating margin reached a record 26.2%, and that was a robust increase of 450 basis points from prior year.
We expanded our position in the overall market, growing our sales by 52% in US dollars, 51% in local currency, and 38% organically, reaching a new sales record of $23 billion or $23.1 billion. As we crossed $23 billion in sales in 2025, we're very proud to have more than doubled Amphenol's revenues in the past four years, a great reflection of our organization's ability to navigate market dynamics while capitalizing on the broad array of opportunities arising across the electronics industry. Our full year 2025 adjusted operating margin reached a record 26.2%, and that was a robust increase of 450 basis points from prior year.
Speaker #2: As we cross $23 billion in sales in 2025, we're very proud to have more than doubled Amphenol's revenues in the past four years. It's a great reflection of our organization's ability to navigate market dynamics while capitalizing on the industry.
Speaker #2: Our full year 2025 adjusted operating margin reached a record 26.2%. And that was a robust increase of 450 basis points from the prior year. This strong level of profitability enabled us to achieve record adjusted diluted EPS of $3.34.
Adam Norwitt: And this strong level of profitability enabled us to achieve record adjusted diluted EPS of $3.34, an increase of 77% from the 2024 levels. As Craig mentioned, we generated record operating cash flow of $5.4 billion and free cash flow of $4.4 billion. Clear confirmations of the company's superior execution and disciplined balance sheet management. Very proud that our acquisition program again created great value this year. We completed 5 acquisitions in 2025, including Andrew, our largest acquisition at the time, together with the acquisitions of Trexon, Narda-MITEQ, LifeSync, and Rochester Sensors. Collectively, these acquisitions have added to Amphenol annualized sales of nearly $2 billion. In addition, as I just mentioned, and as we announced earlier this month, we also closed on our largest ever acquisition now, which is the CommScope acquisition.
And this strong level of profitability enabled us to achieve record adjusted diluted EPS of $3.34, an increase of 77% from the 2024 levels. As Craig mentioned, we generated record operating cash flow of $5.4 billion and free cash flow of $4.4 billion. Clear confirmations of the company's superior execution and disciplined balance sheet management. Very proud that our acquisition program again created great value this year. We completed 5 acquisitions in 2025, including Andrew, our largest acquisition at the time, together with the acquisitions of Trexon, Narda-MITEQ, LifeSync, and Rochester Sensors. Collectively, these acquisitions have added to Amphenol annualized sales of nearly $2 billion. In addition, as I just mentioned, and as we announced earlier this month, we also closed on our largest ever acquisition now, which is the CommScope acquisition.
Speaker #2: An increase of 77% from the 2024 levels. As Craig mentioned, we generated record operating cash flow of $5.4 billion and free cash flow of $4.4 billion.
Speaker #2: Clear confirmations of the company's superior execution and disciplined balance sheet management. Very proud that our acquisition program again created great value this year. We completed five acquisitions in 2025.
Speaker #2: Including Andrew, our largest acquisition at the time, together with Trexon, Nardomytech, Lifesync, and Rochester Sensors. Collectively, these acquisitions have sales of nearly $2 billion.
Speaker #2: In addition, as I just mentioned and as we announced earlier this month, we also closed on our largest-ever acquisition now, which is the CommScope acquisition.
Adam Norwitt: What is in common across all these acquisitions is that they enhance our position across a broad array of end markets and deep enabling technologies, all while bringing outstanding and talented individuals into the Amphenol family. We also returned substantial cash to shareholders in 2025, buying back nearly 7.5 million shares under our share repurchase program and increasing our quarterly dividend by 52%. This represented a total return of capital to shareholders of nearly $1.5 billion. As we enter 2026, I remain excited about the opportunities ahead of us for Amphenol. Our agile entrepreneurial organization has created a new position of strength for the company, from which we can continue to drive superior long-term performance.
Speaker #2: What is in common across all these acquisitions is that they enhance our position across a broad array of end markets and deep enabling technologies.
What is in common across all these acquisitions is that they enhance our position across a broad array of end markets and deep enabling technologies, all while bringing outstanding and talented individuals into the Amphenol family. We also returned substantial cash to shareholders in 2025, buying back nearly 7.5 million shares under our share repurchase program and increasing our quarterly dividend by 52%. This represented a total return of capital to shareholders of nearly $1.5 billion. As we enter 2026, I remain excited about the opportunities ahead of us for Amphenol. Our agile entrepreneurial organization has created a new position of strength for the company, from which we can continue to drive superior long-term performance.
Speaker #2: All while bringing outstanding and talented individuals into the Amphenol family. We also returned substantial cash to shareholders in 2025, tying back nearly 7.5 million shares under our share repurchase program.
Speaker #2: And increasing our quarterly dividend by 52%. This represented a total return of capital to shareholders of nearly $1.5 billion. As we enter 2026, I remain excited about the opportunities ahead of us for Amphenol.
Speaker #2: Our agile, entrepreneurial organization has created a new position of strength for the company, from which we can continue to drive superior long-term performance. Now, turning to our served markets, once again I'm very pleased that the company's end market exposure remains diversified, balanced, and broad.
Adam Norwitt: Now, turning to our served markets, once again, I'm very pleased that the company's end market exposure remains diversified, balanced, and broad. And there's no doubt that that presence that we have across all these end markets creates great value for the company, as we're allowed to participate across all areas of the global electronics industry, wherever there may be new revolutions arising, all while not being disproportionately exposed to the volatility of any given application or market. Turning first to the defense market, that market represented 10% of our sales in Q4 and 9% of our sales for the full year 2025. Sales in Q4 grew strongly from prior year, increasing by 44% in US dollars and 43% in local currencies.
Now, turning to our served markets, once again, I'm very pleased that the company's end market exposure remains diversified, balanced, and broad. And there's no doubt that that presence that we have across all these end markets creates great value for the company, as we're allowed to participate across all areas of the global electronics industry, wherever there may be new revolutions arising, all while not being disproportionately exposed to the volatility of any given application or market. Turning first to the defense market, that market represented 10% of our sales in Q4 and 9% of our sales for the full year 2025. Sales in Q4 grew strongly from prior year, increasing by 44% in US dollars and 43% in local currencies.
Speaker #2: And there's no doubt that the presence that we have across all these end markets creates great value for the company, as we're allowed to participate across all areas of the global electronics industry, wherever there may be new revolutions arising—all while not being disproportionately exposed to the volatility of any given application or market.
Speaker #2: Turning first to the defense market, that market represented 10% of our sales in the fourth quarter and 9% of our sales for the full year 2025.
Speaker #2: Sales in the fourth quarter grew strongly from the prior year, increasing by 44% in US dollars and 43% in local currencies. On an organic basis, sales increased by 29%, with broad-based growth across virtually all defense applications.
Adam Norwitt: On an organic basis, sales increased by 29%, with broad-based growth across virtually all defense applications, including in particular, radar, space, communications, avionics, and unmanned aerial vehicles. Sequentially, sales increased by 16%, well ahead of our expectations for mid-single-digit growth. For the full year of 2025, our sales grew by 30% in US dollars in local currency, and by 21% organically, reflecting our superior operational execution, as well as growth across all segments of the defense market. In addition, we're very pleased that our growth in 2025 was really broad-based geographically, reflecting our leading position across the many countries who are increasing their defense spending. Looking ahead, we expect sales in Q1 to increase slightly, largely driven by the benefit of the Trexon acquisition.
On an organic basis, sales increased by 29%, with broad-based growth across virtually all defense applications, including in particular, radar, space, communications, avionics, and unmanned aerial vehicles. Sequentially, sales increased by 16%, well ahead of our expectations for mid-single-digit growth. For the full year of 2025, our sales grew by 30% in US dollars in local currency, and by 21% organically, reflecting our superior operational execution, as well as growth across all segments of the defense market. In addition, we're very pleased that our growth in 2025 was really broad-based geographically, reflecting our leading position across the many countries who are increasing their defense spending. Looking ahead, we expect sales in Q1 to increase slightly, largely driven by the benefit of the Trexon acquisition.
Speaker #2: Including, in particular, radar, space, communications, avionics, and unmanned aerial vehicles. Sequentially, sales increased by 16%, well ahead of our expectations for mid-single-digit growth. For the full year 2025, our sales grew by 30% in US dollars and local currency, and by 21% organically.
Speaker #2: Reflecting our superior operational execution, as well as growth across all segments of the defense market. In addition, we're very pleased that our growth in 2025 was really broad-based geographically, reflecting our leading position across the many countries that are increasing their defense spending.
Speaker #2: Looking ahead, we expect sales in the first quarter to increase slightly, largely driven by the benefit of the Trexon acquisition. And we remain encouraged by the company's leading position in the defense interconnect market, where we continue to offer the industry's widest range of high-technology products.
Adam Norwitt: We remain encouraged by the company's leading position in the defense interconnect market, where we continue to offer the industry's widest range of high technology products. Amidst the current dynamic geopolitical environment, countries around the world are further expanding their investments into both current and next-generation defense technologies. With our existing offerings, as well as the exciting and complementary capabilities from Trexon, we are positioned better than ever to capitalize on this long-term demand trend. The commercial air market represented 5% of our sales in the quarter and for the full year of 2025. In Q4, our sales grew by 21% in US dollars and 20% in local currencies. On an organic basis, sales increased by 19% from prior year, driven by broad-based strength with virtually all commercial aircraft manufacturers.
We remain encouraged by the company's leading position in the defense interconnect market, where we continue to offer the industry's widest range of high technology products. Amidst the current dynamic geopolitical environment, countries around the world are further expanding their investments into both current and next-generation defense technologies. With our existing offerings, as well as the exciting and complementary capabilities from Trexon, we are positioned better than ever to capitalize on this long-term demand trend. The commercial air market represented 5% of our sales in the quarter and for the full year of 2025. In Q4, our sales grew by 21% in US dollars and 20% in local currencies. On an organic basis, sales increased by 19% from prior year, driven by broad-based strength with virtually all commercial aircraft manufacturers.
Speaker #2: Amidst the current dynamic geopolitical environment, countries around the world are further expanding their investments into both current and next-generation defense technologies. With our existing offerings, as well as the exciting and complementary capabilities from Trexon, we are positioned better than ever to capitalize on this long-term demand trend.
Speaker #2: The commercial air market represented 5% of our sales in the quarter and for the full year 2025. In the fourth quarter, our sales grew by 21% in US dollars and 20% in local currencies.
Speaker #2: On an organic basis, sales increased by 19% from the prior year, driven by broad-based strength with virtually all commercial aircraft manufacturers. Sequentially, our sales grew by 10% from the third quarter, well above our expectations coming in 90 days ago.
Adam Norwitt: Sequentially, our sales grew by 10% from Q3, well above our expectations coming in 90 days ago. For the full year of 2025, sales in the commercial air market increased by 39% in US dollars and 38% in local currency, as we benefited from accelerating demand across aircraft platforms, as well as from acquisitions. Organically, our sales increased by 13% from prior year, reflecting our robust design and positions on a broad array of jetliners. Looking into Q1, we expect sales to moderate seasonally by approximately 10% on a sequential basis. I'm truly proud of our team working in the commercial air market. With the ongoing growth and demand for aircraft, our efforts to expand our product offering, both organically and through our successful acquisition program, continue to pay real dividends.
Sequentially, our sales grew by 10% from Q3, well above our expectations coming in 90 days ago. For the full year of 2025, sales in the commercial air market increased by 39% in US dollars and 38% in local currency, as we benefited from accelerating demand across aircraft platforms, as well as from acquisitions. Organically, our sales increased by 13% from prior year, reflecting our robust design and positions on a broad array of jetliners. Looking into Q1, we expect sales to moderate seasonally by approximately 10% on a sequential basis. I'm truly proud of our team working in the commercial air market. With the ongoing growth and demand for aircraft, our efforts to expand our product offering, both organically and through our successful acquisition program, continue to pay real dividends.
Speaker #2: For the full year 2025, sales in the commercial air market increased by 39% in U.S. dollars and 38% in local currency, as we benefited from accelerating demand across aircraft platforms as well as from acquisitions.
Speaker #2: Organically, our sales increased by 13% from the prior year, reflecting our robust design and positions on a broad array of jetliners. Looking into the first quarter, we expect sales to moderate seasonally by approximately 10% on a sequential basis.
Speaker #2: I'm truly proud of our team working in the commercial air market. With the ongoing growth and demand for aircraft, our efforts to expand our product offering, both organically and through our successful acquisition program, continue to pay real dividends.
Speaker #2: In particular, I just want to note that we're very pleased with the progress of the CIT team, who have truly embraced being part of Amphenol and have driven outstanding results.
Adam Norwitt: In particular, I just want to note that we're very pleased with the progress of the CIT team, who have truly embraced being part of Amphenol and have driven outstanding results. We look forward to further capitalizing on our expanded range of product solutions for the commercial air market long into the future. The industrial market represented 18% of our sales in the quarter and 19% of our sales for the full year 2025. Our sales grew by 20% in US dollars and 18% in local currencies from prior year. On an organic basis, we were pleased that sales grew by 10%, driven by relatively broad-based growth across the industrial end markets, in particular, medical, alternative energy, e-mobility, heavy equipment, and industrial instrumentation applications. We also grew again in all of our major geographic regions.
In particular, I just want to note that we're very pleased with the progress of the CIT team, who have truly embraced being part of Amphenol and have driven outstanding results. We look forward to further capitalizing on our expanded range of product solutions for the commercial air market long into the future. The industrial market represented 18% of our sales in the quarter and 19% of our sales for the full year 2025. Our sales grew by 20% in US dollars and 18% in local currencies from prior year. On an organic basis, we were pleased that sales grew by 10%, driven by relatively broad-based growth across the industrial end markets, in particular, medical, alternative energy, e-mobility, heavy equipment, and industrial instrumentation applications. We also grew again in all of our major geographic regions.
Speaker #2: We look forward to further capitalizing on our expanded range of product solutions for the commercial air market, long into the future. The industrial market represented 18% of our sales in the quarter and 19% of our sales for the full year 2025.
Speaker #2: Our sales grew by 20% in US dollars and 18% in local currencies from the prior year. And on an organic basis, we were pleased that sales grew by 10%, driven by relatively broad-based growth across the industrial end markets.
Speaker #2: In particular, medical, alternative energy, e-mobility, heavy equipment, and industrial instrumentation applications. We also grew again in all of our major geographic regions. On a sequential basis, sales grew by 2%, better than our expectations.
Adam Norwitt: On a sequential basis, sales grew by 2%, better than our expectations. For the full year 2025, sales grew by 21% in US dollars and 20% in local currency, as we benefited from relatively broad-based growth as well as from acquisitions. Organically, sales grew by a strong 10% from prior year. Looking into Q1, we expect our sales to increase approximately 20% from these Q4 levels, driven by the addition of CommScope's building connectivity business. We remain encouraged by the company's strength across the many diversified segments of this important market. Over the long term, I'm confident in our strategy to expand our high-technology interconnect, antenna, and sensor offering, both organically and through complementary acquisitions.
On a sequential basis, sales grew by 2%, better than our expectations. For the full year 2025, sales grew by 21% in US dollars and 20% in local currency, as we benefited from relatively broad-based growth as well as from acquisitions. Organically, sales grew by a strong 10% from prior year. Looking into Q1, we expect our sales to increase approximately 20% from these Q4 levels, driven by the addition of CommScope's building connectivity business. We remain encouraged by the company's strength across the many diversified segments of this important market. Over the long term, I'm confident in our strategy to expand our high-technology interconnect, antenna, and sensor offering, both organically and through complementary acquisitions.
Speaker #2: For the full year 2025, sales grew by 21% in U.S. dollars and 20% in local currency, as we benefited from relatively broad-based growth as well as from acquisitions.
Speaker #2: Organically, sales grew by a strong 10% from the prior year. Looking into the first quarter, we expect our sales to increase approximately 20% from these fourth quarter levels, driven by the addition of CommScope’s Building Connectivity business.
Speaker #2: We, in many diversified segments of this important market, remain encouraged by the company's strength across the market. Over the long term, I'm confident in our strategy to expand our high-technology interconnect, antenna, and sensor offerings both organically and through complementary acquisitions.
Speaker #2: This strategy has enabled Amphenol to capitalize on the many electronic revolutions that continue to occur across the diversified industrial market, and thereby create further opportunities for outstanding teamwork in this important market.
Adam Norwitt: This strategy has enabled Amphenol to capitalize on the many electronic revolutions that continue to occur across the diversified industrial market, and thereby create further opportunities for our outstanding team working in this important market. The automotive market represented 14% of our sales in the Q4 and 15% of our sales for the full year. Sales in the Q4 grew by 12% in US dollars and 9% in local currencies and organic, and that was driven by relatively broad-based growth across automotive applications. In addition, we were pleased that, once again, we realized growth in all three regions. Sequentially, our automotive sales were flat, but this was better than our expectations coming into the quarter.
This strategy has enabled Amphenol to capitalize on the many electronic revolutions that continue to occur across the diversified industrial market, and thereby create further opportunities for our outstanding team working in this important market. The automotive market represented 14% of our sales in the Q4 and 15% of our sales for the full year. Sales in the Q4 grew by 12% in US dollars and 9% in local currencies and organic, and that was driven by relatively broad-based growth across automotive applications. In addition, we were pleased that, once again, we realized growth in all three regions. Sequentially, our automotive sales were flat, but this was better than our expectations coming into the quarter.
Speaker #2: The automotive market represented 14% of our sales in the fourth quarter and 15% of our sales for the full year. Sales in the fourth quarter grew by 12% in US dollars and 9% in local currencies and organically, and that was driven by relatively broad-based growth across automotive applications.
Speaker #2: In addition, we were pleased that once again we realized growth in all three regions. Our expectations coming into the quarter—sequentially, our automotive sales were flat, but this was better than expected.
Speaker #2: For the full year 2025, our sales increased by 8% in US dollars and 7% in local currencies and organically, with growth in all three regions.
Adam Norwitt: For the full year of 2025, our sales increased by 8% in US dollars and 7% in local currencies and organic, with growth in all three regions. As we look into Q1, we do expect a seasonal moderation in sales from this quarter's levels of approximately 10%. I remain very proud of our team working in the important automotive market. While there are always areas of uncertainty in the global automotive market, our organization continues to be focused on driving new design wins with customers who are implementing a wide array of new technologies into their vehicles. We look forward to benefiting from our strength and position in the automotive market for many years to come. The communications networks market represented 9% of our sales in Q4 and 10% of our sales for the full year 2025.
Adam Norwitt: For the full year of 2025, our sales increased by 8% in US dollars and 7% in local currencies and organic, with growth in all three regions. As we look into Q1, we do expect a seasonal moderation in sales from this quarter's levels of approximately 10%. I remain very proud of our team working in the important automotive market. While there are always areas of uncertainty in the global automotive market, our organization continues to be focused on driving new design wins with customers who are implementing a wide array of new technologies into their vehicles. We look forward to benefiting from our strength and position in the automotive market for many years to come. The communications networks market represented 9% of our sales in Q4 and 10% of our sales for the full year 2025.
Speaker #2: As we look into the first quarter, we do expect a seasonal moderation in sales from this quarter's levels of approximately 10%. I remain very proud of our team working in the important automotive market.
Speaker #2: And while there are always areas of uncertainty in the global automotive market, our organization continues to be focused on driving new design wins with customers, who are implementing a wide array of new technologies into their vehicles.
Speaker #2: We look forward to benefiting from our strengthened position in the automotive market for many years to come. The communications networks market represented 9% of our sales in the fourth quarter and 10% of our sales for the full year 2025.
Speaker #2: Sales in this market grew from the prior year by 120% in U.S. dollars and 119% in local currency, as we benefited from the Andrew acquisition completed earlier last year.
Adam Norwitt: Sales in this market grew from prior year by 120% in US dollars and 119% in local currency, as we benefited from the Andrew acquisition completed earlier last year. Organically, our sales were flat from prior year. On a sequential basis, sales declined as expected by 13% from Q3. For the full year of 2025, our sales to communications networks increased by 134% in US dollars and local currency, and by 13% organically, as we benefited from the addition of Andrew, as well as growth in our products sold into the mobile network operators and wireless equipment manufacturers.
Sales in this market grew from prior year by 120% in US dollars and 119% in local currency, as we benefited from the Andrew acquisition completed earlier last year. Organically, our sales were flat from prior year. On a sequential basis, sales declined as expected by 13% from Q3. For the full year of 2025, our sales to communications networks increased by 134% in US dollars and local currency, and by 13% organically, as we benefited from the addition of Andrew, as well as growth in our products sold into the mobile network operators and wireless equipment manufacturers.
Speaker #2: Organically, our sales were flat from the prior year. On a sequential basis, sales declined, as expected, by 13% from the third quarter. And for the full year 2025, our sales to communications networks increased by 134% in US dollars and local currency, and by 13% organically, as we benefited from the addition of Andrew as well as growth in our products sold into the mobile network operators and wireless equipment manufacturers.
Speaker #2: As we look towards the first quarter, we do expect a significant, nearly 50% increase in sales as we benefit from the addition of the CommScope business, which more than offsets the typical seasonal sales declines that we would see here.
Adam Norwitt: As we look towards Q1, we do expect a significant, nearly 50% increase in sales as we benefit from the addition of the CommScope business, which more than offsets the typical seasonal sales declines that we would see here. With our expanded range of technology offerings following the acquisitions of both CommScope and Andrew, we are well positioned with service provider and OEM customers across the global communications networks market. Our deep and broad range of products, coupled with an expansive manufacturing footprint, have positioned us to support these customers wherever they may be. And as customers in this market continue to drive their systems and networks to higher levels of performance, we look forward to enabling them for many years to come. The mobile devices market represented 6% of our sales in the quarter and also for the full year.
As we look towards Q1, we do expect a significant, nearly 50% increase in sales as we benefit from the addition of the CommScope business, which more than offsets the typical seasonal sales declines that we would see here. With our expanded range of technology offerings following the acquisitions of both CommScope and Andrew, we are well positioned with service provider and OEM customers across the global communications networks market. Our deep and broad range of products, coupled with an expansive manufacturing footprint, have positioned us to support these customers wherever they may be. And as customers in this market continue to drive their systems and networks to higher levels of performance, we look forward to enabling them for many years to come. The mobile devices market represented 6% of our sales in the quarter and also for the full year.
Speaker #2: Technology offerings following the acquisitions of both CommScope and, with our expanded range of Andrew, we are well positioned with service provider and OEM customers across the global communications networks market.
Speaker #2: Our deep and broad range of products, coupled with an expansive manufacturing footprint, have positioned us to support these customers wherever they may be. And as customers in this market continue to drive their systems and networks to higher levels of performance, we look forward to enabling them for many years to come.
Speaker #2: The mobile devices market represented 6% of our sales in the quarter and also for the full year, and in the fourth quarter, our sales moderated by 4% in U.S. dollars, local currency and organic, as growth in tablets, wearables, and accessories was more than offset by some moderation in sales related to smartphones.
Adam Norwitt: In the fourth quarter, our sales moderated by 4% in US dollar, local currency, and organic, as growth in tablets, wearables, and accessories was more than offset by some moderation in sales related to smartphones... On a sequential basis, our sales increased by 6%, which was a bit better than our expectations coming into the quarter. For the full year 2025, sales in the mobile devices market increased by 5% in US dollar and organic, and that was really driven by growth across, virtually all mobile device applications. As is typical in the first quarter, we do anticipate a seasonal decline of some magnitude, roughly in the 30% range, as we look into the first quarter.
In the fourth quarter, our sales moderated by 4% in US dollar, local currency, and organic, as growth in tablets, wearables, and accessories was more than offset by some moderation in sales related to smartphones... On a sequential basis, our sales increased by 6%, which was a bit better than our expectations coming into the quarter. For the full year 2025, sales in the mobile devices market increased by 5% in US dollar and organic, and that was really driven by growth across, virtually all mobile device applications. As is typical in the first quarter, we do anticipate a seasonal decline of some magnitude, roughly in the 30% range, as we look into the first quarter.
Speaker #2: On a sequential basis, our sales increased by 6%, which was a bit better than our expectations coming into the quarter. And for the full year 2025, sales in the mobile devices market increased by 5% in US dollars and organic, and that was really driven by growth across virtually all mobile device applications.
Speaker #2: As is typical in the first quarter, we do anticipate a seasonal decline of some magnitude—roughly in the 30% range—as we look into the first quarter.
Speaker #2: But nevertheless, I'm very proud of our team working in the always dynamic mobile devices market, as their agility and reactivity have once again enabled us to capture incremental sales in the quarter.
Adam Norwitt: But nevertheless, I'm very proud of our team working in the always dynamic mobile devices market, as their agility and reactivity have once again enabled us to capture incremental sales in the quarter. I'm confident that with our leading array of antennas, interconnect products, and mechanisms designed in across a broad range of next-generation mobile devices, we're well positioned for the long term. Finally, the IT data comm market represented 38% of our sales in Q4 and 36% of our sales for the full year. Sales in Q4 grew by a very strong 110% in USD and organic, driven by continued strong demand for our products used in AI applications, together with ongoing growth in our base IT data comm business.
But nevertheless, I'm very proud of our team working in the always dynamic mobile devices market, as their agility and reactivity have once again enabled us to capture incremental sales in the quarter. I'm confident that with our leading array of antennas, interconnect products, and mechanisms designed in across a broad range of next-generation mobile devices, we're well positioned for the long term. Finally, the IT data comm market represented 38% of our sales in Q4 and 36% of our sales for the full year. Sales in Q4 grew by a very strong 110% in USD and organic, driven by continued strong demand for our products used in AI applications, together with ongoing growth in our base IT data comm business.
Speaker #2: I'm confident that with our leading array of antennas, interconnect products, and mechanisms—designed in across a broad range of next-generation mobile devices—we're well positioned for the long term.
Speaker #2: Finally, the IT DataCom market represented 38% of our sales in the fourth quarter and 36% of our sales for the full year. Sales in the fourth quarter grew by a very strong 110% in US dollar and organic, driven by continued strong demand for our products used in AI applications together with ongoing growth in our base IT DataCom business.
Speaker #2: On a sequential basis, our sales increased by 8% from the third quarter, which was substantially better than our expectations 90 days ago. This sequential increase was essentially driven by growth in AI-related applications.
Adam Norwitt: On a sequential basis, our sales increased by 8% from Q3, which was substantially better than our expectations 90 days ago. This sequential increase was essentially driven by growth in AI-related applications. For the full year 2025, our sales in the IT datacom market grew by a very strong 124% in $ and organic, as we benefited from strong demand for AI-related applications, as well as accelerated growth in our non-AI IT datacom business. As we look ahead, we expect a low double-digit sequential sales increase in Q1, driven by the addition of CommScope. On an organic basis, we're very pleased to anticipate that we will remain at these very elevated levels in Q4. We're more encouraged than ever by the company's position in the global IT datacom market.
On a sequential basis, our sales increased by 8% from Q3, which was substantially better than our expectations 90 days ago. This sequential increase was essentially driven by growth in AI-related applications. For the full year 2025, our sales in the IT datacom market grew by a very strong 124% in $ and organic, as we benefited from strong demand for AI-related applications, as well as accelerated growth in our non-AI IT datacom business. As we look ahead, we expect a low double-digit sequential sales increase in Q1, driven by the addition of CommScope. On an organic basis, we're very pleased to anticipate that we will remain at these very elevated levels in Q4. We're more encouraged than ever by the company's position in the global IT datacom market.
Speaker #2: For the full year 2025, our sales in the IT DataCom market grew by a very strong 124% in US dollars and organically, as we benefited from strong demand for AI-related applications, as well as accelerated growth in our non-AI IT DataCom business.
Speaker #2: As we look ahead, we expect a low double-digit sequential sales increase in the first quarter, driven by the addition of CommScope. On an organic basis, we're very pleased to anticipate that we will remain at these very elevated levels in the fourth quarter.
Speaker #2: We are more encouraged than ever by the company's position in the global IT DataCom market. I just can't emphasize enough what an outstanding job our team has done, not only in securing future business on these next-generation IT systems with a really broad array of customers, but in executing upon that demand here in 2025.
Adam Norwitt: I just can't emphasize enough what an outstanding job our team has done, not only in securing future business on these next-generation IT systems with a really broad array of customers, but in executing upon that demand here in 2025. It's no doubt that the revolution in AI continues to create a unique opportunity for Amphenol, given our leading high-speed and power interconnect products. With now the addition of CommScope, we have the broadest range of high-speed power and fiber optic interconnect products, all of which are critical components in these next-generation systems. This creates a continued long-term growth opportunity for Amphenol.
I just can't emphasize enough what an outstanding job our team has done, not only in securing future business on these next-generation IT systems with a really broad array of customers, but in executing upon that demand here in 2025. It's no doubt that the revolution in AI continues to create a unique opportunity for Amphenol, given our leading high-speed and power interconnect products. With now the addition of CommScope, we have the broadest range of high-speed power and fiber optic interconnect products, all of which are critical components in these next-generation systems. This creates a continued long-term growth opportunity for Amphenol.
Speaker #2: It's no doubt that the revolution in AI continues to create a unique opportunity for Amphenol. Given our leading high-speed and power interconnect products, with now the addition of CommScope, we have the broadest range of high-speed, power, and fiber optic interconnect products, all of which are critical components in these next-generation systems.
Speaker #2: This creates a continued long-term growth opportunity for Amphenol. Turning to our outlook, and of course assuming the continuation of current market conditions as well as constant exchange rates, for the first quarter we expect sales in the range of $6.9 billion to $7 billion and adjusted diluted EPS in the range of $0.91 to $0.93.
Adam Norwitt: Turning to our outlook, and of course, assuming the continuation of current market conditions as well as constant exchange rates, for the first quarter, we expect sales in the range of $6.9 billion to $7 billion, and adjusted diluted EPS in the range of $0.91 to $0.93. This would represent significant sales growth from prior year of 43% to 45% and adjusted diluted EPS growth of 44% to 48%. I would note that our Q1 guidance includes approximately $900 million in sales and $0.02 of adjusted EPS accretion from the CommScope acquisition. I remain confident in the ability of our outstanding management team to adapt to the many opportunities and challenges present in the current environment, while continuing to grow Amphenol's market position, all while driving sustainable and strong profitability over the long term.
Turning to our outlook, and of course, assuming the continuation of current market conditions as well as constant exchange rates, for the first quarter, we expect sales in the range of $6.9 billion to $7 billion, and adjusted diluted EPS in the range of $0.91 to $0.93. This would represent significant sales growth from prior year of 43% to 45% and adjusted diluted EPS growth of 44% to 48%. I would note that our Q1 guidance includes approximately $900 million in sales and $0.02 of adjusted EPS accretion from the CommScope acquisition. I remain confident in the ability of our outstanding management team to adapt to the many opportunities and challenges present in the current environment, while continuing to grow Amphenol's market position, all while driving sustainable and strong profitability over the long term.
Speaker #2: This would represent significant sales growth from the prior year of 43% to 45% and adjusted diluted EPS growth of 44% to 48%. I would note that our Q1 guidance includes approximately $900 million in sales and $0.02 of adjusted EPS accretion from the CommScope acquisition.
Speaker #2: I remain confident in the ability of our outstanding management team to adapt to the many opportunities and challenges present in the current environment, while continuing to grow Amphenol's market position, all while driving sustainable and strong profitability over the long term.
Speaker #2: Finally, I’d like to take this opportunity to first thank our customers for the trust that they put in us, and also to thank the entire global team of Amphenolians for their truly outstanding efforts here in the fourth quarter and in the full year 2025.
Adam Norwitt: Finally, I'd like to take this opportunity to first thank our customers for the trust that they put in us, and also to thank the entire global team of Amphenolians for their truly outstanding efforts here in Q4 and in the full year 2025. With that, operator, we'd be happy to take any questions.
Finally, I'd like to take this opportunity to first thank our customers for the trust that they put in us, and also to thank the entire global team of Amphenolians for their truly outstanding efforts here in Q4 and in the full year 2025. With that, operator, we'd be happy to take any questions.
Speaker #2: And with that, Operator, we’d be happy to take any questions. Thank you, Mr. Norwitt. The question-and-answer period will now begin. Please limit to one question per caller.
Operator: Thank you, Mr. Norwitt. The question and answer period will now begin. Please limit to one question per caller. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. We have a question from William Stein from Truist Securities. Please go ahead.
Operator: Thank you, Mr. Norwitt. The question and answer period will now begin. Please limit to one question per caller. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. We have a question from William Stein from Truist Securities. Please go ahead.
Speaker #2: To ask a question, please press star, followed by one on your telephone keypad now. If you change your mind, please press star followed by two.
Speaker #2: When preparing to ask your question, please ensure your device is unmuted locally. We have a question from William Stein from Truist Securities. Please go ahead.
Speaker #2: ahead. Great, thanks for taking
William Stein: Great. Thanks for taking my question. Congrats on the very strong results and outlook. First, I'd like to ask about the bookings, which was, you know, very strong. I think you highlighted a 1.31 book-to-bill. Adam, that I imagine must have in it some extended duration orders in the backlog, and I wonder whether that's entirely concentrated or mostly concentrated in IT datacom. And also, if you can talk about what gives rise to that level of orders, is it based on sort of a need for them to place this in order to get in line, like from a sort of a lead time perspective?
William Stein: Great. Thanks for taking my question. Congrats on the very strong results and outlook. First, I'd like to ask about the bookings, which was, you know, very strong. I think you highlighted a 1.31 book-to-bill. Adam, that I imagine must have in it some extended duration orders in the backlog, and I wonder whether that's entirely concentrated or mostly concentrated in IT datacom. And also, if you can talk about what gives rise to that level of orders, is it based on sort of a need for them to place this in order to get in line, like from a sort of a lead time perspective?
Speaker #3: My question: Congrats on the very strong results and outlook. First, I'd like to ask about the bookings, which were very strong. I think you highlighted a 1.31 book-to-bill.
Speaker #3: Adam, I imagine that must have in it some extended-duration orders in the backlog, and I wonder whether that's entirely concentrated or mostly concentrated in IT DataCom. And also, if you can talk about what gives rise to that level of orders.
Speaker #3: Is it based on sort of a need for them to place this in order to get in line, from a sort of lead time perspective, or is this based perhaps on a minimum order requirement in order to meet CapEx requirements that you have?
William Stein: Or is this based, perhaps on sort of minimum order requirement in order to, you know, meet CapEx requirements that you have? Any color on that would be really helpful. Thank you.
Or is this based, perhaps on sort of minimum order requirement in order to, you know, meet CapEx requirements that you have? Any color on that would be really helpful. Thank you.
Speaker #3: Any color on that would be really helpful. Thank you.
Adam Norwitt: Well, thank you very much, Will. Look, no doubt, we were very encouraged by the bookings as we came out of the year in 2025, and, you know, I'll say a couple things. I mentioned earlier that, in fact, our bookings were really broadly strong. Across all of our end markets, with maybe, I think, only one exception, our book-to-bill was at or above one, and in a few cases, significantly above one. But there was certainly the IT datacom market, and specifically related to AI investments, was a primary driver of this 1.31 book-to-bill. And record orders, you know, for the company to achieve orders of more than $8 billion in the quarter was certainly a milestone for all of us.
Adam Norwitt: Well, thank you very much, Will. Look, no doubt, we were very encouraged by the bookings as we came out of the year in 2025, and, you know, I'll say a couple things. I mentioned earlier that, in fact, our bookings were really broadly strong. Across all of our end markets, with maybe, I think, only one exception, our book-to-bill was at or above one, and in a few cases, significantly above one. But there was certainly the IT datacom market, and specifically related to AI investments, was a primary driver of this 1.31 book-to-bill. And record orders, you know, for the company to achieve orders of more than $8 billion in the quarter was certainly a milestone for all of us.
Speaker #4: Well, look, no doubt we were very encouraged—well, thank you very much—by the bookings as we came out of 2025, and I'll say a couple of the year-end things.
Speaker #4: I mentioned earlier that, in fact, our bookings were really broadly strong across all of our end markets, with maybe, I think, only one at or above one, and in a few cases, significantly above one.
Speaker #4: But there was certainly the IT DataCom market, and specifically related to AI investments, was a primary driver of this 1.31 book-to-bill. And record orders for the company to achieve orders of more than $8 billion in the quarter was certainly a milestone for all of us.
Adam Norwitt: Look, I think that as I mentioned, and I think Craig alluded to, that we have seen customers open up their order window for in particular related to significant plans that they have of investments related to AI. This is not because of kind of getting in line, so to speak. I mean, I think our team's done a fabulous job of ramping up, I mean, as evidenced by the extraordinary growth that we achieved last year, 124% year-over-year growth for the full year in IT datacom. There's no doubt that our team has done an amazing job of ramping up to our customers' needs.
Speaker #4: Look, I think that, as I mentioned—and I think Craig alluded to—we have seen customers open up their order window, in particular related to significant plans that they have for investments related to AI. This is not because of kind of getting in line, so to speak.
Look, I think that as I mentioned, and I think Craig alluded to, that we have seen customers open up their order window for in particular related to significant plans that they have of investments related to AI. This is not because of kind of getting in line, so to speak. I mean, I think our team's done a fabulous job of ramping up, I mean, as evidenced by the extraordinary growth that we achieved last year, 124% year-over-year growth for the full year in IT datacom. There's no doubt that our team has done an amazing job of ramping up to our customers' needs.
Speaker #4: I mean, I think our team's done a fabulous job of ramping up. I mean, as evidenced by the extraordinary growth that we achieved last year—124% year-over-year growth for the full year in IT DataCom—there's no doubt that our team has done an amazing job of ramping up to our customers' needs.
Speaker #4: But at the same time—and we've talked about this in the past—because of the technology involved in a lot of these next-generation products really pushing the limits of these systems and pushing the limits of the products, these products do require, in certain cases, more automation, which, fortunately, we do the vast majority of that in-house.
Adam Norwitt: But at the same time, and we've talked about this in the past, you know, because of the technology involved in a lot of these next-generation products, really pushing the limits of these systems and pushing the limits of the products, you know, these products do require, in certain cases, more automation, which fortunately, we do the vast majority of that in-house, which has been an amazing competitive advantage for Amphenol through this time period. And so we've worked with customers because of these, you know, sometimes outsized investment requirements and their outsized plans that they provide to us, to somehow share the risk of those investments. And we do that in a variety of ways.
But at the same time, and we've talked about this in the past, you know, because of the technology involved in a lot of these next-generation products, really pushing the limits of these systems and pushing the limits of the products, you know, these products do require, in certain cases, more automation, which fortunately, we do the vast majority of that in-house, which has been an amazing competitive advantage for Amphenol through this time period. And so we've worked with customers because of these, you know, sometimes outsized investment requirements and their outsized plans that they provide to us, to somehow share the risk of those investments. And we do that in a variety of ways.
Speaker #4: Which has been an amazing competitive advantage for Amphenol through this time period. And so we've worked with customers because of these sometimes outsized investment requirements and their outsized plans that they provide to us, to somehow share the risk of those investments.
Speaker #4: And we do that in a variety of ways. Those ways can include customers actually sharing some of the spending, contributing to the spending, and otherwise giving us commitments that are solid commitments that give us the comfort to make those investments and drive the ramp-ups that ultimately meet those customers' demands.
Adam Norwitt: Those ways can include customers actually sharing some of the spending, contributing to the spending, and otherwise, you know, giving us commitments that are solid commitments, that give us the comfort to make those investments and drive the ramp-ups that ultimately meet those customers' demands. And so I think it's more not... And you used the word minimum order. I wouldn't call it minimum order, but rather it's giving us the comfort, through their own commitments to Amphenol, that we should then make the commitments in capital and, you know, using Amphenol's hard-earned, hard-earned cash and the time of our teams to make those investments. And I think it's a great sign. It's a sign, number one, of our customers' intentions and their plans, which are very robust.
Those ways can include customers actually sharing some of the spending, contributing to the spending, and otherwise, you know, giving us commitments that are solid commitments, that give us the comfort to make those investments and drive the ramp-ups that ultimately meet those customers' demands. And so I think it's more not... And you used the word minimum order. I wouldn't call it minimum order, but rather it's giving us the comfort, through their own commitments to Amphenol, that we should then make the commitments in capital and, you know, using Amphenol's hard-earned, hard-earned cash and the time of our teams to make those investments. And I think it's a great sign. It's a sign, number one, of our customers' intentions and their plans, which are very robust.
Speaker #4: And so, I think it's more not—and you used the word 'minimum order.' I wouldn't call it minimum order, but rather it's giving us the comfort, through their own commitments to Amphenol, that we should then make the commitments in capital, and use Amphenol's hard-earned cash and the time of our teams to make those investments.
Speaker #4: And I think it's a great sign. It's a sign, number one, of our customers' intention and their plans, which are very robust. It's a sign, number two, of our customers' commitment and confidence in the Amphenol organization.
Adam Norwitt: It's a sign, number two, of our customers' commitment and confidence in the Amphenol organization. And so no doubt about it, I think it's a positive. You know, we look forward to continuing to drive great success in that market in the future.
It's a sign, number two, of our customers' commitment and confidence in the Amphenol organization. And so no doubt about it, I think it's a positive. You know, we look forward to continuing to drive great success in that market in the future.
Speaker #4: And so, no doubt about it, I think it's a positive. And we look forward to that market continuing to drive great success in the future.
Speaker #2: Thank you. Our next question comes from Amit Daryanani from Evercore ISI. Please go ahead.
Operator: Thank you. Our next question comes from Amit Daryanani from Evercore ISI. Please, go ahead.
Operator: Thank you. Our next question comes from Amit Daryanani from Evercore ISI. Please, go ahead.
Amit Daryanani: Yep, thanks a lot. Good afternoon, everyone. Thanks for taking my question. Adam, you know, post the CCS deal, can you just talk about the breadth of your offerings when it comes to serving these AI infrastructure customers? You folks have done really well on a standalone basis, but, you know, there's this view, I think, out there that Amphenol is driven more by copper, and as we move more to optics and fiber, there's a risk here. So maybe hoping you can spend some time to help us appreciate the range of offerings you're gonna have post-CCS, and how do you see these offerings that you get from CCS really being complementary to what Amphenol has today? Thank you.
Amit Daryanani: Yep, thanks a lot. Good afternoon, everyone. Thanks for taking my question. Adam, you know, post the CCS deal, can you just talk about the breadth of your offerings when it comes to serving these AI infrastructure customers? You folks have done really well on a standalone basis, but, you know, there's this view, I think, out there that Amphenol is driven more by copper, and as we move more to optics and fiber, there's a risk here. So maybe hoping you can spend some time to help us appreciate the range of offerings you're gonna have post-CCS, and how do you see these offerings that you get from CCS really being complementary to what Amphenol has today? Thank you.
Speaker #4: Thanks, Vlad. Good afternoon, everyone. Thanks for taking my question. Adam, on both the CCS deal, can you just talk about the breadth of your offerings when it comes to serving these AI infrastructure customers?
Speaker #4: You folks have done really well on a standalone basis, but there's this view, I think, out there that Amphenol is driven more by copper, and as we move more to optics and fiber, there's a risk here.
Speaker #4: So maybe hoping you can spend some time to help us appreciate the range of offerings you're going to have post-CCS, and how do you see these offerings that you get from CCS really being complementary to what Amphenol has today?
Speaker #4: Thank you. Yeah, well, thank you very much, Amit. Look, there's no doubt about it that we have worked for a long time, and it's kind of ironic.
Adam Norwitt: Yeah, well, thank you very much, Amit. Look, there's no doubt about it that we have worked for a long time, and it's kind of ironic. You know, we just celebrated the 20th anniversary of another foundational acquisition for Amphenol, which was the acquisition of the Teradyne Connection Systems business 20 years ago, which really catapulted Amphenol into a leadership position in high-speed copper interconnect products. I will tell you that at that time, you know, high speed meant 5 gigabits, maybe 10 on the outside. And over those 20 years, we've continued to double down on the excellent capabilities that TCS brought us, the people, most of whom are still with our team today, you know, there to celebrate that same 20th anniversary.
Adam Norwitt: Yeah, well, thank you very much, Amit. Look, there's no doubt about it that we have worked for a long time, and it's kind of ironic. You know, we just celebrated the 20th anniversary of another foundational acquisition for Amphenol, which was the acquisition of the Teradyne Connection Systems business 20 years ago, which really catapulted Amphenol into a leadership position in high-speed copper interconnect products. I will tell you that at that time, you know, high speed meant 5 gigabits, maybe 10 on the outside. And over those 20 years, we've continued to double down on the excellent capabilities that TCS brought us, the people, most of whom are still with our team today, you know, there to celebrate that same 20th anniversary.
Speaker #4: We just celebrated the 20th anniversary of another foundational acquisition for Amphenol, which was the acquisition of the Teradyne Connection Systems business 20 years ago.
Speaker #4: Which really catapulted Amphenol into a leadership position in high-speed copper interconnect products. I will tell you that at that time, high-speed meant 5 gigabits, maybe 10 on the outside, and over those 20 years, we've continued to double down on the excellent capabilities that TCS brought us—people, most of whom are still with our team today. They're here to celebrate that same 20th anniversary.
Speaker #4: And that has put us in a real leadership position as our customers drive their systems to higher and higher speeds. Now, we have always been a player in fiber optics.
Adam Norwitt: That has put us in a real leadership position as our customers drive their systems to higher and higher speeds. Now, we have always been a player in fiber optics, I mean, going all the way back to, you know, the early foundations of what a fiber optic connector was, you know, half a century ago or more. But there's no question that with CCS, just like at the time with CCS 20 years ago, CCS vaults us into a position of breadth and depth in the technology around fiber optic interconnects, that is a real expansion of our capabilities.
That has put us in a real leadership position as our customers drive their systems to higher and higher speeds. Now, we have always been a player in fiber optics, I mean, going all the way back to, you know, the early foundations of what a fiber optic connector was, you know, half a century ago or more. But there's no question that with CCS, just like at the time with CCS 20 years ago, CCS vaults us into a position of breadth and depth in the technology around fiber optic interconnects, that is a real expansion of our capabilities.
Speaker #4: I mean, going all the way back to the early foundations of what a fiber optic connector was, half a century ago or more. But there's no question, ago, CCS vaults the time with TCS 20 years that with CCS, just like at us into a position of breadth and depth in the technology around fiber optic interconnect that is a real expansion of our capabilities.
Speaker #4: And so, when we go to customers and we talk about data center applications, or when we go to communications networks customers and talk about their next-generation network planning, we can now have that conversation across the entirety of the internet-connect spectrum.
Adam Norwitt: And so when we go to customers and we talk about data center applications, or when we go to communications networks customers and talk about their next-generation network planning, we can now have that conversation across the entirety of the interconnect spectrum. As they think about the various trade-offs that a customer goes through every time they think about their specific system architecture, you know, do they want to use a high-speed copper interconnect here? What's the power situation? How do they bring power into their system, into the rack, into a data center, into a network? And then how do they use fiber optics, you know, which have, of course, fabulous traits, in particular, around high bandwidth, long-distance communications. And customers are making these trade-offs every day.
And so when we go to customers and we talk about data center applications, or when we go to communications networks customers and talk about their next-generation network planning, we can now have that conversation across the entirety of the interconnect spectrum. As they think about the various trade-offs that a customer goes through every time they think about their specific system architecture, you know, do they want to use a high-speed copper interconnect here? What's the power situation? How do they bring power into their system, into the rack, into a data center, into a network? And then how do they use fiber optics, you know, which have, of course, fabulous traits, in particular, around high bandwidth, long-distance communications. And customers are making these trade-offs every day.
Speaker #4: As they think about the various trade-offs that a customer goes through every time they think about their specific system architecture, do they want to use a high-speed copper interconnect here?
Speaker #4: What's the power situation? How do they bring power into their system, into the rack, into a data center, into a network? And then, how do they use fiber optics, which have, of course, fabulous traits, in particular around high bandwidth and long-distance communications?
Speaker #4: And customers are making these trade-offs every day. And now, with the CCS acquisition, what I'm so excited about is the unique position it puts Amphenol in as a company, being able to go in and talk to that entire spectrum of interconnect.
Adam Norwitt: And now with the CCS acquisition, what I'm so excited about is the unique position it puts Amphenol in as a company to be able to go in and talk to that entire spectrum of interconnect. Our customers just wanna get a signal from a place to a place, and it's up to us to work with them to figure out the best way to do that, whether they're getting a signal from a GPU to a GPU or from a central office to a home somewhere or anything in between. And I think now we're able to come to them with a total solution of leading interconnect products that ultimately allow us to have a seat at the table as a partner with those customers for many, many years and many generations to come.
And now with the CCS acquisition, what I'm so excited about is the unique position it puts Amphenol in as a company to be able to go in and talk to that entire spectrum of interconnect. Our customers just wanna get a signal from a place to a place, and it's up to us to work with them to figure out the best way to do that, whether they're getting a signal from a GPU to a GPU or from a central office to a home somewhere or anything in between. And I think now we're able to come to them with a total solution of leading interconnect products that ultimately allow us to have a seat at the table as a partner with those customers for many, many years and many generations to come.
Speaker #4: Our customers just want to get a signal from a place to a place, and it's up to us to work with them to figure out the best way to do that.
Speaker #4: Whether they're getting a signal from a GPU to a GPU, or from a central office to a home somewhere, or anything in between. And I think now we were able to come to them with a total solution of leading interconnect products that ultimately allow us to have a seat at the table as a partner with those customers for many, many years and many generations to come.
Operator: Thank you. Our next question comes from Luke Junk from Baird. Please go ahead.
Operator: Thank you. Our next question comes from Luke Junk from Baird. Please go ahead.
Speaker #2: Thank you. Our next question comes from Luke Junk from Baird. Please go ahead.
Speaker #2: ahead. Great.
Luke Junk: Great. Thanks for taking the question. Adam, maybe to bridge on that, the comments you just made, I'm just wondering if you could maybe speak to integration first steps at CommScope, and, you know, like you mentioned, the deal got closed a little sooner than you had expected. Just how important is that in terms of bringing this new, fuller, broader portfolio to Baird and data center, especially given how quickly this, this market's moving right now? Thank you.
Luke Junk: Great. Thanks for taking the question. Adam, maybe to bridge on that, the comments you just made, I'm just wondering if you could maybe speak to integration first steps at CommScope, and, you know, like you mentioned, the deal got closed a little sooner than you had expected. Just how important is that in terms of bringing this new, fuller, broader portfolio to Baird and data center, especially given how quickly this, this market's moving right now? Thank you.
Speaker #5: Thanks for taking the question. Adam, maybe to bridge on that—the comments you just made to integration first steps at CommScope, and like you mentioned, the made.
Speaker #5: I'm just wondering if you could maybe speak to what you had expected. Just how important is that in terms of bringing this new, fuller, broader portfolio to Baird and Data Center, especially given how quickly this market's moving right now?
Speaker #5: Thank
Speaker #5: you. Well, thanks very
Adam Norwitt: Well, thanks very much, Luke. Luke, I'll answer the second question. I mean, you know, you get one of these deals done, you gotta get a lot of approvals in a lot of different places, and I think our team did a great job of working with the various authorities to get those approvals a bit faster. And I'm really grateful also to the folks who sold us this company, and, you know, they've renamed their company now, and I wish them all the best. It was really a great experience, I think, for all sides, and we worked really well together to bring this deal to fruition. Quite a bit faster than, you know, we thought it was gonna be at the time that we originally announced the deal.
Adam Norwitt: Well, thanks very much, Luke. Luke, I'll answer the second question. I mean, you know, you get one of these deals done, you gotta get a lot of approvals in a lot of different places, and I think our team did a great job of working with the various authorities to get those approvals a bit faster. And I'm really grateful also to the folks who sold us this company, and, you know, they've renamed their company now, and I wish them all the best. It was really a great experience, I think, for all sides, and we worked really well together to bring this deal to fruition. Quite a bit faster than, you know, we thought it was gonna be at the time that we originally announced the deal.
Speaker #4: Much, Luke. Look, I'll answer the second question. I mean, you get one of these deals done, you've got to get a lot of approvals in a lot of different places.
Speaker #4: And I think our team did a great job of working with the various authorities to get those approvals a bit faster. And I'm really grateful also to the folks who sold us this company, and they've renamed their company now.
Speaker #4: And I wish them all the best. It was really a great experience, I think, for all sides. And we worked really well together to bring this deal to fruition.
Speaker #4: Quite a bit faster than we thought it was going to be. At the time that we originally announced the deal, I would say so. The speed—I don't think the fact that we closed it early in the quarter versus end of the quarter, that doesn't change our position in the marketplace.
Adam Norwitt: I would say. So, the speed, I don't think the fact that we closed it early in the quarter versus end of the quarter, that doesn't change our position in the marketplace. Obviously, as soon as we announced the deal, you can imagine that our customers around the world wanted to talk to us about what that meant for the long term. And so we've been having those conversations for quite some time already. In terms of the integration, I mean, you know, that word integration is not a word in the Amphenol lexicon. You know, there are two words we don't use, integration and synergy. And but what we do talk about is letting them evolve into the Amphenol family, letting them be who they were, 'cause it's a fabulous organization.
I would say. So, the speed, I don't think the fact that we closed it early in the quarter versus end of the quarter, that doesn't change our position in the marketplace. Obviously, as soon as we announced the deal, you can imagine that our customers around the world wanted to talk to us about what that meant for the long term. And so we've been having those conversations for quite some time already. In terms of the integration, I mean, you know, that word integration is not a word in the Amphenol lexicon. You know, there are two words we don't use, integration and synergy. And but what we do talk about is letting them evolve into the Amphenol family, letting them be who they were, 'cause it's a fabulous organization.
Speaker #4: Obviously, as soon as we announced the deal, you can imagine that our customers around the world were wanting to talk to us about what that meant for the long term.
Speaker #4: And so we've been having those conversations for quite some time already. In terms of the integration—I mean, that word 'integration' is not a word in the Amphenol lexicon.
Speaker #4: There are two words we don't use: integration and synergy. But what we do talk about is letting them evolve into the Amphenol family; letting them be who they were.
Speaker #4: Because it's a fabulous organization. I mean, the leadership of the company is still the same leadership—the people are still the same people. We're not parachuting people in.
Adam Norwitt: I mean, the leadership of the company is still the same leadership. The people are still the same people. We're not parachuting people in. We're not merging and morphing things into one or another, synergizing and restructuring. We're actually working with the team on day one to say: What are the opportunities that now that you're part of Amphenol, you could hope to achieve that you maybe couldn't have done as part of your former company? I was so happy, you know, on the first day of the acquisition, that right after we announced it, I went to really one of the nerve centers of the company. As you know, you know, the CommScope, we've talked about this. In many ways, it is a collection of extraordinary, iconic businesses in its own right.
I mean, the leadership of the company is still the same leadership. The people are still the same people. We're not parachuting people in. We're not merging and morphing things into one or another, synergizing and restructuring. We're actually working with the team on day one to say: What are the opportunities that now that you're part of Amphenol, you could hope to achieve that you maybe couldn't have done as part of your former company? I was so happy, you know, on the first day of the acquisition, that right after we announced it, I went to really one of the nerve centers of the company. As you know, you know, the CommScope, we've talked about this. In many ways, it is a collection of extraordinary, iconic businesses in its own right.
Speaker #4: We're not merging and morphing things into one or another, synergizing and restructuring. We're actually working with the team on day one to say, what are the opportunities that, now that you're part of Amphenol, you could hope to achieve that you maybe couldn't have done as part of your former company?
Speaker #4: I was so happy on the first day of the acquisition that, right after we announced it, I went to really one of the nerve centers of the company.
Speaker #4: As you know, the ConfScope—we've talked about this—in many ways, it's a collection of extraordinary, iconic businesses in its own right. The ConfScope business was founded nearly 50 years ago by Frank Drendell as a supplier into the broadband networks market.
Adam Norwitt: The CommScope business that was founded nearly 50 years ago by Frank Drendel as a supplier into the broadband networks market. The SYSTIMAX business, which is an amazing, iconic business, selling into building connectivity, and the ADC Communications, which was a long legacy leader in fiber optic interconnect. And so I was really happy to go to Shakopee, Minnesota, which is really the nerve center of the fiber optics capability of this company, and meet with these engineers and the product managers and the folks leading that business. And I can tell you, they're so excited to be part of Amphenol.
The CommScope business that was founded nearly 50 years ago by Frank Drendel as a supplier into the broadband networks market. The SYSTIMAX business, which is an amazing, iconic business, selling into building connectivity, and the ADC Communications, which was a long legacy leader in fiber optic interconnect. And so I was really happy to go to Shakopee, Minnesota, which is really the nerve center of the fiber optics capability of this company, and meet with these engineers and the product managers and the folks leading that business. And I can tell you, they're so excited to be part of Amphenol.
Speaker #4: The Systemax business, which is an amazing, iconic business selling into building connectivity. And the ADC Communications, which was a long legacy leader in fiber optic interconnect.
Speaker #4: And so I was really happy to go to Shakopee, Minnesota, which is really the capability of this nerve center of the fiber optics company.
Speaker #4: And meet with these engineers and the product managers and the folks leading that business. And I can tell you, they're so excited to be part of Amphenol.
Speaker #4: And we broadcast a welcome around the world and just a kind of, almost a universal excitement to be part of this company called Amphenol, to become Amphenolians, as they all now know that word.
Adam Norwitt: And we broadcast a welcome around the world, and the just a kind of almost universal excitement to be part of this company called Amphenol, to become Amphenolians, as they all now know that word. And so, you know, the first steps is, you know, meet the people, get excited, find opportunities to go accelerate the business, and that's all well underway today.
And we broadcast a welcome around the world, and the just a kind of almost universal excitement to be part of this company called Amphenol, to become Amphenolians, as they all now know that word. And so, you know, the first steps is, you know, meet the people, get excited, find opportunities to go accelerate the business, and that's all well underway today.
Speaker #4: And so the first steps is meet the people, get excited, find opportunities to go accelerate the business. And that's all well underway.
Speaker #4: today. Thank you.
Operator: Thank you. Our next question comes from Vamsee Mohan from Bank of America. Please go ahead.
Operator: Thank you. Our next question comes from Wamsi Mohan from Bank of America. Please go ahead.
Speaker #2: Our next question comes from Walmsay Mohan from Bank of America. Please go ahead.
Wamsi Mohan: Yes, thank you so much. Adam, I was hoping you could maybe parse the Q1 IT Datacom guide of flattish organically, excluding CCS. Within that, should we be expecting the traditional sort of, you know, enterprise-centric market, double-digit decline and the AI workloads to grow? Is that the right way to think about it? And within the AI context, is that more programs for you, more units in existing programs? Any color you can share around what you're hearing from your larger AI customers in terms of just trajectory, given especially your comments about very strong orders.
Speaker #6: Yes, thank you so much. Adam, I was hoping you could maybe parse the Q1 IT datacom guide of flattish organically, excluding CCS.
Wamsi Mohan: Yes, thank you so much. Adam, I was hoping you could maybe parse the Q1 IT Datacom guide of flattish organically, excluding CCS. Within that, should we be expecting the traditional sort of, you know, enterprise-centric market, double-digit decline and the AI workloads to grow? Is that the right way to think about it? And within the AI context, is that more programs for you, more units in existing programs? Any color you can share around what you're hearing from your larger AI customers in terms of just trajectory, given especially your comments about very strong orders.
Speaker #6: Expecting the, within that, should we be traditional sort of enterprise-centric market, double-digit decline in the AI workloads to grow? Is that the right way to think about it?
Speaker #6: And within the AI context, is that more programs for you, more units in existing programs—any color you can share around that? So, what are you hearing from your larger AI customers in terms of just trajectory, given especially your comments about very strong—
Speaker #6: orders? Yeah.
Adam Norwitt: Yeah. Well, thanks very much, Vamsee. Look, I mean, it's hard for me to give too much of a parse of what that flat organic means. I mean, you're correct. Traditionally, the base IT Datacom cycle would be down in Q1. So I think probably there's some of that here as well. But look, in terms of our ongoing growth in AI, I mean, I wanna emphasize one thing, which is just the breadth of that business.
Yeah. Well, thanks very much, Wamsi. Look, I mean, it's hard for me to give too much of a parse of what that flat organic means. I mean, you're correct. Traditionally, the base IT Datacom cycle would be down in Q1. So I think probably there's some of that here as well. But look, in terms of our ongoing growth in AI, I mean, I wanna emphasize one thing, which is just the breadth of that business.
Speaker #4: Well, thanks very much, Walmsay. Look, I mean, it's hard for me to give too much of a parse of what that 'flat organic' means.
Speaker #4: I mean, you're correct. Traditionally, the base IT data comm cycle would be down in the first quarter. So I think probably there's some of that here as well.
Speaker #4: But look, in terms of our ongoing growth in AI, I mean, I want to emphasize one thing, which is just the breadth of that business.
Adam Norwitt: You know, we have an enormous position with a lot of different customers up and down the stack of AI, you know, from the folks who are making the investments, the big web-scale folks, and otherwise, including like, you know, the cloud, the neo cloud, whatever you guys all call these folks, the equipment manufacturers, all the way down to, of course, the significant companies who are designing the chips and the architecture around those chips. I mean, I will say that, you know, as we come out of 2025, that breadth is reflected in the fact that we didn't have any 10% customers in 2025. You know, we have significant customers, but we have also a lot of breadth around that business.
Speaker #4: We have an enormous position with a lot of different customers, up and down the stack of AI. From the folks who are making the investments—the big web-scale folks and otherwise, including the cloud, the NeoCloud, whatever you guys all call these folks—the equipment manufacturers, all the way down to, of course, the significant companies who are designing the chips and the architecture around those chips.
You know, we have an enormous position with a lot of different customers up and down the stack of AI, you know, from the folks who are making the investments, the big web-scale folks, and otherwise, including like, you know, the cloud, the neo cloud, whatever you guys all call these folks, the equipment manufacturers, all the way down to, of course, the significant companies who are designing the chips and the architecture around those chips. I mean, I will say that, you know, as we come out of 2025, that breadth is reflected in the fact that we didn't have any 10% customers in 2025. You know, we have significant customers, but we have also a lot of breadth around that business.
Speaker #4: I mean, I will say that as we come out of 2025, that breadth is reflected in the fact that we didn't have any 10% customers in 2025.
Speaker #4: We have significant customers, but we also have a lot of breadth around that business. And so, as our customers think about the forward potential of AI, I mean, I think there are a few factors.
Adam Norwitt: And so as our customers think about the forward potential of AI, I mean, I think there's a few factors. Number one is their investment plans are all going up. There's no doubt that there continues to be a very robust plan of continuing to drive accelerated computing at a very strong level. And there's upgrades of the technology embedded in those data centers, which requires a higher technology, more complex, higher content degree of interconnect. We're also very excited that not only are we participating, you know, as we have traditionally, bringing the power in, power to the racks and the like, the data communication within racks, within adjacent racks, but also now with CommScope participating in the broader fiber optic opportunity associated with those data centers.
And so as our customers think about the forward potential of AI, I mean, I think there's a few factors. Number one is their investment plans are all going up. There's no doubt that there continues to be a very robust plan of continuing to drive accelerated computing at a very strong level. And there's upgrades of the technology embedded in those data centers, which requires a higher technology, more complex, higher content degree of interconnect. We're also very excited that not only are we participating, you know, as we have traditionally, bringing the power in, power to the racks and the like, the data communication within racks, within adjacent racks, but also now with CommScope participating in the broader fiber optic opportunity associated with those data centers.
Speaker #4: Number one is their investment plans are all going up. There's no doubt that they're continuing to be a very robust plan of continuing to drive accelerated computing at a very strong level.
Speaker #4: And there's upgrades of the technology embedded in those data centers, which requires a higher technology, more complex, higher-content degree of interconnect. We're also very excited that not only are we participating as we have traditionally—bringing the power in, power to the racks and the like, the data communication within racks, within adjacent racks—but also now with CommScope participating in the broader fiber optic opportunity associated with those data centers.
Speaker #4: And there's no doubt that that also creates a strong opportunity for the company going forward.
Adam Norwitt: You know, there's no doubt that also creates a strong opportunity for the company going forward.
You know, there's no doubt that also creates a strong opportunity for the company going forward.
Speaker #4: forward. Thank
Speaker #2: You. Our next question comes from Salma Chatterjee from J.P. Morgan. Please go ahead.
Operator: Thank you. Our next question comes from Saumik Chatterjee from JP Morgan. Please go ahead.
Operator: Thank you. Our next question comes from Samik Chatterjee from JP Morgan. Please go ahead.
Speaker #2: ahead.
Samik Chatterjee: Oh, hi. Thanks for taking my question, and Happy New Year. Adam, I'm wondering, when you mentioned sort of customers opening up their order books a bit when it pertains to your IT Datacom business, are you seeing anything similar for the CCS business? And the reason I ask is we saw one of the competitors in the space, Corning, announce agreement with Meta securing supply. So are you seeing hyperscalers or customers on that front come to you to sort of engage in those discussions to secure supply, and what that would mean for your investment pro- sort of support for this business? Thank you.
Samik Chatterjee: Oh, hi. Thanks for taking my question, and Happy New Year. Adam, I'm wondering, when you mentioned sort of customers opening up their order books a bit when it pertains to your IT Datacom business, are you seeing anything similar for the CCS business? And the reason I ask is we saw one of the competitors in the space, Corning, announce agreement with Meta securing supply. So are you seeing hyperscalers or customers on that front come to you to sort of engage in those discussions to secure supply, and what that would mean for your investment pro- sort of support for this business? Thank you.
Speaker #7: Hi, thanks for that. Adam, I'm wondering when you're taking my question, and happy New Year.
Speaker #7: You mentioned the sort of customers opening up their order books a bit when it pertains to your IT Data Comm business. Are you seeing anything similar for the CCS business?
Speaker #7: And the reason I ask is, we saw one of the competitors in the space, Corning, announce an agreement with Meta securing supply. So, are you seeing hyperscalers or customers on that front come to you to sort of engage in those discussions to secure supply?
Speaker #7: And what would that mean for your investment sort of support for this business? Thank you.
Speaker #7: you. Yeah.
Adam Norwitt: Yeah. Well, thank you very much, Saumik. Yeah, look, no doubt, we had very strong orders, and I would tell you that the CommScope business, as we call it now, we're not calling it anymore CCS, it has also had very strong orders. And, for sure, I mean, there have been plenty of announcements and, you know, by really wonderful companies out there. And, you know, we're really proud to be considered in the same breadth as some of these amazing companies that have also been in the public eye of late. And there's no doubt that the CCS is participating. I mean, we've talked about the fact that their exposure into the data center, their strong growth that they've seen in that area.
Adam Norwitt: Yeah. Well, thank you very much, Saumik. Yeah, look, no doubt, we had very strong orders, and I would tell you that the CommScope business, as we call it now, we're not calling it anymore CCS, it has also had very strong orders. And, for sure, I mean, there have been plenty of announcements and, you know, by really wonderful companies out there. And, you know, we're really proud to be considered in the same breadth as some of these amazing companies that have also been in the public eye of late. And there's no doubt that the CCS is participating. I mean, we've talked about the fact that their exposure into the data center, their strong growth that they've seen in that area.
Speaker #4: Well, thank you very much, Salmaq. Yeah. Look, no doubt we had very strong orders, and I would tell you that the ConfScope business, as we call it now—we're not calling it anymore CCS—has also had very strong orders.
Speaker #4: And for sure, I mean, there have been plenty of announcements, and by really wonderful companies out there. And we're really proud to be considered in the same breadth as some of these amazing companies that have also been in the public eye of late.
Speaker #4: And there's no doubt that the CCS is participating. I mean, we've talked about the fact that their exposure into the data center, their strong growth that they've seen in that area.
Adam Norwitt: You know, I would also just point out, you know, at the time we acquired, and we announced the acquisition then of CCS, we talked about acquiring a company of roughly $3.6 billion in sales at a 26% EBITDA margin, and that, you know, implied a price of just over 11x that we paid for it. By the time we closed, we're now talking about a business of more than $4 billion in annualized sales.
Speaker #4: I would also just point out, at the time we acquired and announced the acquisition then of CCS, we talked about acquiring a company of roughly $3.6 billion in sales at a 26% EBITDA margin.
You know, I would also just point out, you know, at the time we acquired, and we announced the acquisition then of CCS, we talked about acquiring a company of roughly $3.6 billion in sales at a 26% EBITDA margin, and that, you know, implied a price of just over 11x that we paid for it. By the time we closed, we're now talking about a business of more than $4 billion in annualized sales.
Speaker #4: And that implied a price of just over 11 times what we paid for it. By the time we closed, we're now talking about a business of more than $4 billion in annualized sales.
Adam Norwitt: That is a great momentum, strong orders, positive book-to-bill, and all of that, and obviously implies as well that, you know, on at least on a current year basis here in 2026, we, this is a great deal for Amphenol and really the high single digits in terms of an EBITDA multiple. So I think it's a great company with a great prospects and, and yes, does see those same trends. In terms of investments, I mean, look, I, we don't see any, you know, significant abnormal kind of things vis-a-vis investments with CCS.
Speaker #4: That is a great momentum—strong orders, positive book-to-bill, and all of that. And obviously, it implies as well that at least on a current year basis here in 2026, this is a great deal for Amphenol, and really in the high single digits in terms of an EBITDA multiple.
That is a great momentum, strong orders, positive book-to-bill, and all of that, and obviously implies as well that, you know, on at least on a current year basis here in 2026, we, this is a great deal for Amphenol and really the high single digits in terms of an EBITDA multiple. So I think it's a great company with a great prospects and, and yes, does see those same trends. In terms of investments, I mean, look, I, we don't see any, you know, significant abnormal kind of things vis-a-vis investments with CCS.
Speaker #4: So, I think it's a great company with great prospects. And yes, we do see those same trends. In terms of investments, I mean, look, we don't see any significant abnormal kind of things vis-à-vis investments with CCS.
Speaker #4: But I will say this—and that's something we've talked about in the past—it's a different thing for CCS to be a part of a company that, for very obvious reasons, was somewhat balance sheet constrained. And now they're part of Amphenol, where we're more than willing to help them stimulate the virtuous cycle that so many of our companies are on by making prudent investments that allow great returns and allow them to capitalize upon the opportunities in the marketplace.
Adam Norwitt: But I will say this, and that's something we've talked about in the past: it's a different thing for CCS to be a part of a company that, you know, for very obvious reasons, was somewhat balance sheet constrained. And now they're part of Amphenol, where we're more than willing to help them stimulate the virtuous cycle that so many of our companies are on by making prudent investments that allow great returns and allow them to capitalize upon the opportunities in the marketplace. And so there—it's not that we're just going to give them all blank checks here, but you can imagine that it's a different environment for CCS in terms of their ability to grow into the opportunities as part of Amphenol than maybe it would have been in the past.
But I will say this, and that's something we've talked about in the past: it's a different thing for CCS to be a part of a company that, you know, for very obvious reasons, was somewhat balance sheet constrained. And now they're part of Amphenol, where we're more than willing to help them stimulate the virtuous cycle that so many of our companies are on by making prudent investments that allow great returns and allow them to capitalize upon the opportunities in the marketplace. And so there—it's not that we're just going to give them all blank checks here, but you can imagine that it's a different environment for CCS in terms of their ability to grow into the opportunities as part of Amphenol than maybe it would have been in the past.
Speaker #4: And so, it's not that we're just going to give them all blank checks here. But you can imagine that it's a difference of their ability to environment for CCS in terms of growing into the opportunities as part of Amphenol than maybe it would have been in the past.
Speaker #2: Thank you. Our next question comes from the line of Andrew Boscaglia from BNP Paribas. Please go ahead.
Operator: Thank you. Our next question comes from the line of Andrew Buscaglia from BNP Paribas. Please go ahead.
Operator: Thank you. Our next question comes from the line of Andrew Buscaglia from BNP Paribas. Please go ahead.
Speaker #8: Hey, good morning,
Andrew Buscaglia: Hey, good morning, everyone.
Andrew Buscaglia: Hey, good morning, everyone.
Speaker #8: everyone. Good
Adam Norwitt: Good morning, or good afternoon.
Adam Norwitt: Good morning, or good afternoon.
Speaker #8: Or good morning. afternoon.
Speaker #4: How are you? Good
Andrew Buscaglia: Yeah, maybe just shifting away from the AI and IT Datacom story for a minute. I think another kind of underlying trend this quarter or a positive thing we're seeing is some momentum in, you know, a lot of other areas. In your markets, which are pretty beat up. And I'm thinking like industrial, automotive, mobile devices, specifically, the markets seem to be turning a corner. Where would you say that's most pronounced? Maybe what surprised you in the quarter, if anything? You know, where do you see some of these sort of battered end markets going in 2026?
Speaker #4: afternoon. Yeah,
Andrew Buscaglia: Yeah, maybe just shifting away from the AI and IT Datacom story for a minute. I think another kind of underlying trend this quarter or a positive thing we're seeing is some momentum in, you know, a lot of other areas. In your markets, which are pretty beat up. And I'm thinking like industrial, automotive, mobile devices, specifically, the markets seem to be turning a corner. Where would you say that's most pronounced? Maybe what surprised you in the quarter, if anything? You know, where do you see some of these sort of battered end markets going in 2026?
Speaker #8: Maybe shifting away from the AI and IT data comm story for a minute, I think another kind of underlying trend this quarter, or a positive thing we're seeing, is some momentum in a lot of other areas in your markets that are pretty beat up.
Speaker #8: And I'm thinking, like, industrial, automotive, mobile devices specifically just seem to—the markets seem to be turning a corner. Where would you say that's most pronounced?
Speaker #8: Maybe, what surprised you in the quarter, if anything? Where do you see some of these sort of battered end-markets going in
Speaker #8: 2026? Yeah.
Adam Norwitt: Yeah. Well, thanks very much, Andrew. I mean, there's no doubt. I mean, we saw really broad-based strength as we through the year and as we finished the year. I mentioned in my prepared remarks that we're especially encouraged in if you take automotive and industrial as, as two pretty broad global markets, that we saw growth organically in, in both of those markets across all of the territories that they operate in. I would highlight there, in particular, Europe....
Adam Norwitt: Yeah. Well, thanks very much, Andrew. I mean, there's no doubt. I mean, we saw really broad-based strength as we through the year and as we finished the year. I mentioned in my prepared remarks that we're especially encouraged in if you take automotive and industrial as, as two pretty broad global markets, that we saw growth organically in, in both of those markets across all of the territories that they operate in. I would highlight there, in particular, Europe....
Speaker #4: Well, thanks very much, Andrew. I mean, there's no doubt. I mean, we saw really broad-based strength as we went through the year and as we finished the year.
Speaker #4: And I mentioned in my prepared remarks that we're especially encouraged—if you take automotive and industrial as two pretty broad global markets—that we saw growth organically in both of those markets across all of the territories that they operate in.
Speaker #4: And I would highlight there, in particular, Europe. I mean, the world has been so down on Europe for so long. And I think we've started to see in our company, especially in the second half of the year, that our teams in Europe, who have held their heads high through this whole kind of malaise, if you will, and have continued to pursue opportunities to gain things—driving now robust, are doing really amazing market share—to enable our customers, who [drive] organic growth in Europe in automotive and in industrial for the full year.
Adam Norwitt: I mean, you know, the world has been so down on Europe for so long, and I think we've started to see in our company, especially in the second half of the year, that our teams in Europe who have held their heads high through this whole kind of malaise, if you will, and have continued to pursue opportunities to gain market share, to enable our customers who are doing really amazing things, you know, driving now, you know, robust organic growth in Europe, in automotive, and in industrial for the full year. And I would even say that in the fourth quarter, amazingly, our strongest organic growth in automotive was in Europe. So, you know, that's definitely a different thing than we've been talking about and that the world's been talking about for some time.
I mean, you know, the world has been so down on Europe for so long, and I think we've started to see in our company, especially in the second half of the year, that our teams in Europe who have held their heads high through this whole kind of malaise, if you will, and have continued to pursue opportunities to gain market share, to enable our customers who are doing really amazing things, you know, driving now, you know, robust organic growth in Europe, in automotive, and in industrial for the full year. And I would even say that in the fourth quarter, amazingly, our strongest organic growth in automotive was in Europe. So, you know, that's definitely a different thing than we've been talking about and that the world's been talking about for some time.
Speaker #4: And I would even say that in the fourth quarter, amazingly, our strongest organic growth in automotive was in Europe. So that's definitely a different thing than we've been talking about, and that the world's been talking about, for some time.
Adam Norwitt: And, and I think we're excited about our continued position there. And mobile devices, you know, it's a different thing. I wouldn't call that as much of a regional market, but there's just a lot of innovation. Look, I always start the year at the Consumer Electronics Show in Las Vegas, and I think I even had the chance to run across a couple of you guys, who are on the call here today, in the lobbies of The Venetian or wherever. And I go to that show always because I find it so inspirational to see what folks are doing. And what I find so interesting is, everybody is talking about AI and the build-out of the networks of AI and the capability.
Speaker #4: And I think we're excited about our continued position there. And mobile devices—it's a different thing. I wouldn't call that as much of a regional market, but there's just a lot of innovation.
And, and I think we're excited about our continued position there. And mobile devices, you know, it's a different thing. I wouldn't call that as much of a regional market, but there's just a lot of innovation. Look, I always start the year at the Consumer Electronics Show in Las Vegas, and I think I even had the chance to run across a couple of you guys, who are on the call here today, in the lobbies of The Venetian or wherever. And I go to that show always because I find it so inspirational to see what folks are doing. And what I find so interesting is, everybody is talking about AI and the build-out of the networks of AI and the capability.
Speaker #4: Look, I always start the year at the Consumer Electronics Show in Las Vegas. And I think I even had the chance to run across a couple of you guys who are on the call here today.
Speaker #4: In the lobbies of the Venetian or wherever. And I go to that show always because I find it so inspirational to see what folks are talking about doing, and what I find so interesting is everybody is AI and the build-out of the networks of AI and the capability. But what I find long-term, maybe even more exciting or at least equally exciting, is what's going to come from that.
Adam Norwitt: But what I find long-term, maybe even more exciting or at least equally exciting, is what's gonna come from that. What's it gonna mean that we're gonna have this ubiquitous, accelerated compute capability all the way to the edge of technology? And when you walk around CES, you see it. Now, look, I don't know, you know, what is that all going to mean. I personally am not gonna be front of the line to buy, like, an AI-enabled toilet. But, you know, well, one day, as a former fan of Star Wars, as we come to the almost 50-year anniversary, will we each have our own C-3PO that'll have great AI capabilities? Who knows? I mean, these kind of things are possible.
But what I find long-term, maybe even more exciting or at least equally exciting, is what's gonna come from that. What's it gonna mean that we're gonna have this ubiquitous, accelerated compute capability all the way to the edge of technology? And when you walk around CES, you see it. Now, look, I don't know, you know, what is that all going to mean. I personally am not gonna be front of the line to buy, like, an AI-enabled toilet. But, you know, well, one day, as a former fan of Star Wars, as we come to the almost 50-year anniversary, will we each have our own C-3PO that'll have great AI capabilities? Who knows? I mean, these kind of things are possible.
Speaker #4: What's it going to mean that we're going to have this ubiquitous, accelerated compute capability all the way to the edge of technology? And when you walk around CS, you see it.
Speaker #4: Now, look, I don't know what that's all going to mean. I personally am not going to be at the front of the line to buy an AI-enabled toilet.
Speaker #4: But we'll one day, as a former fan of Star Wars, as we come to the almost 50-year anniversary, we'll each have our own C-3PO that'll have great AI capabilities.
Speaker #4: Who knows? I mean, these kinds of things are possible. And I think the places like in driving, in industrial, where you automate with autonomous—see, so many different things are happening on the edge, where things get smart: robotics and the like, and mobile devices. Those three markets that you mentioned—I think each of those stands to have a fundamental step function in their capabilities and their potential because of what's happening today in the build-out of this AI network.
Adam Norwitt: And I think the places like in automotive with autonomous driving, in industrial, where you see so many different things happening on the edge, where things get smart, robotics and the like, and mobile devices, you know, those three markets that you mentioned, I think each of those stands to have a fundamental step function in their capabilities and their potential because of what's happening today in the build-out of this AI network. And I think long term, that's something that I'm really excited about. And I think back on the other revolutions, like the microprocessor, the internet, the mobile internet, and the like, and each of those had, later on, a carry-on benefit to those markets: automotive, industrial, mobile devices, and the like. And, you know, I'd be surprised if we don't see something like that in many years to come.
And I think the places like in automotive with autonomous driving, in industrial, where you see so many different things happening on the edge, where things get smart, robotics and the like, and mobile devices, you know, those three markets that you mentioned, I think each of those stands to have a fundamental step function in their capabilities and their potential because of what's happening today in the build-out of this AI network. And I think long term, that's something that I'm really excited about. And I think back on the other revolutions, like the microprocessor, the internet, the mobile internet, and the like, and each of those had, later on, a carry-on benefit to those markets: automotive, industrial, mobile devices, and the like. And, you know, I'd be surprised if we don't see something like that in many years to come.
Speaker #4: And I think, long-term, that's something that I'm really excited about. And I think back on the other revolutions, like the microprocessor, the Internet, the mobile Internet, and the like, and each of those had, later on, a carry-on benefit to those markets: automotive, industrial, mobile devices, and the like.
Speaker #4: And I'd be surprised if we don't see something like that in many years to come.
Speaker #4: come. Thank
Operator: Thank you. Our next question comes from Steven Fox, from Fox Advisors. Please go ahead.
Operator: Thank you. Our next question comes from Steven Fox, from Fox Advisors. Please go ahead.
Speaker #2: You. Our next question comes from Steven Fox from Fox Advisors. Please go ahead.
Steven Fox: Hi. Excuse me. Good afternoon. I guess I just was curious, big picture, Adam, you've obviously just completed a really strong growth year and generate cash flows. But with the orders now that you're looking at, can you just sort of talk about, you know, sort of the management challenges? You mentioned adding more automation, and I'm wondering about, like, higher metals prices, supply chain constraints. How do you look at this in terms of new challenges, especially as your demand is broadening out? Thanks.
Steven Fox: Hi. Excuse me. Good afternoon. I guess I just was curious, big picture, Adam, you've obviously just completed a really strong growth year and generate cash flows. But with the orders now that you're looking at, can you just sort of talk about, you know, sort of the management challenges? You mentioned adding more automation, and I'm wondering about, like, higher metals prices, supply chain constraints. How do you look at this in terms of new challenges, especially as your demand is broadening out? Thanks.
Speaker #5: Hi. Excuse me. Good afternoon. I guess I just was curious, big picture, Adam. You've obviously just completed a really strong growth year and generated cash flows.
Speaker #5: But with the orders now that you're looking at, can you just sort of talk about the management challenges? You mentioned adding more automation.
Speaker #5: And I'm wondering about higher metals prices and supply chain constraints. How do you look at this in terms of new challenges, especially as your demand is broadening out?
Speaker #4: Yeah.
Adam Norwitt: Yeah. Well, thanks very much, Steve. Sorry, I didn't save my Star Wars reference for you. Look, this is not an easy thing to do, to grow a company by 38% organically, let alone those operations within the company who have grown by so much more than that. I mean, you can imagine, we've got folks who've more than doubled the size of their individual operations. But what sets us apart, and what has always been the core of why we are able to do hard things, is that unique operating culture of Amphenol. The fact that we rely on what is now 145 or so general managers, 16 operating groups, you know, the CommScope, we talked earlier about the, quote, integration. Well, there's not an integration.
Adam Norwitt: Yeah. Well, thanks very much, Steve. Sorry, I didn't save my Star Wars reference for you. Look, this is not an easy thing to do, to grow a company by 38% organically, let alone those operations within the company who have grown by so much more than that. I mean, you can imagine, we've got folks who've more than doubled the size of their individual operations. But what sets us apart, and what has always been the core of why we are able to do hard things, is that unique operating culture of Amphenol. The fact that we rely on what is now 145 or so general managers, 16 operating groups, you know, the CommScope, we talked earlier about the, quote, integration. Well, there's not an integration.
Speaker #4: Well, thanks very much. Thanks, Steve. Sorry I didn't save my Star Wars reference for you. Look, this is not an easy thing to do—to grow a company by 38% organically.
Speaker #4: Let alone those operations within the company who have grown by so much more than that. I mean, you can imagine we've got folks who've more than doubled the size of their individual operations.
Speaker #4: But what sets us apart, and what has always been the core of why we are able to do hard things, is that unique operating culture of Amphenol.
Speaker #4: The fact that we rely on what is now 145 or so general managers, 16 operating groups, the CommScope, we talked earlier about the 'integration.' Well, there's not an integration.
Speaker #4: The CommScope team—the person who ran it is now a group general manager at Amphenol, and he's running his team as he ran it before.
Adam Norwitt: The CommScope team is, you know, the person who ran it is now a group general manager of Amphenol, and he's running his team as he ran it before. So the management challenges, and you know, you list a couple of things, supply chain, the cost of metals, which are extraordinary, you know, geopolitics, you know, whatever, shipping. I mean, there's so many things. And I think we don't fixate on one or another of those things. What I fixate on is making sure that if you're a general manager in Amphenol, you've got all the authority to deal with whatever comes your way. And that empowerment and enablement of people to go figure it out... And yes, if they need some help, we're here. We've got this amazing organization driving collaboration, communication across the company.
The CommScope team is, you know, the person who ran it is now a group general manager of Amphenol, and he's running his team as he ran it before. So the management challenges, and you know, you list a couple of things, supply chain, the cost of metals, which are extraordinary, you know, geopolitics, you know, whatever, shipping. I mean, there's so many things. And I think we don't fixate on one or another of those things. What I fixate on is making sure that if you're a general manager in Amphenol, you've got all the authority to deal with whatever comes your way. And that empowerment and enablement of people to go figure it out... And yes, if they need some help, we're here. We've got this amazing organization driving collaboration, communication across the company.
Speaker #4: So, the management challenges—and you list a couple of things: supply chain, the cost of metals, which are extraordinary, the geopolitics, whatever, shipping. I mean, there are so many things.
Speaker #4: And I think we don't fixate on one or another of those things. What I fixate on is making sure that if you're a general manager in Amphenol, you've got all the authority to deal with whatever comes your way.
Speaker #4: And that empowerment and enablement of people to go figure it out. And yes, if they need some help, we're here. We've got this amazing organization driving collaboration and communication across the company.
Speaker #4: But at the end of the day, the buck stops on 145 desks. And if that means doubling the size of your business, figuring out how to set up factories in four different countries, doing things with technology that have never been done before, ramping up automation machines that we've never built before but now can build extraordinarily—probably one of the world's best automation companies that exist—they make it happen.
Adam Norwitt: But at the end of the day, the buck stops on 145 desks. And if that means doubling the size of your business, figuring out how to set up factories in 4 different countries, doing things with technology that have never been done before, ramping up automation machines that we've never built before, but now can build extraordinarily, probably one of the world's best automation companies that exists, they make it happen. They make it happen. And so I think when I think about growing the company as we have, doubling the size of Amphenol, really, in the last 4 years,
But at the end of the day, the buck stops on 145 desks. And if that means doubling the size of your business, figuring out how to set up factories in 4 different countries, doing things with technology that have never been done before, ramping up automation machines that we've never built before, but now can build extraordinarily, probably one of the world's best automation companies that exists, they make it happen. They make it happen. And so I think when I think about growing the company as we have, doubling the size of Amphenol, really, in the last 4 years,
Speaker #4: They make it happen. And so I think, when I think about growing the company as we have, doubling the size of Amphenol really in the last four years, for me, the biggest singular focus is how do we do that while still preserving that entrepreneurial culture?
Craig Lampo: ...For me, the biggest singular focus is how do we do that while still preserving that entrepreneurial culture? And I'm so proud that we've done it. If, if you think about a big change in the company four years ago, which I'm not gonna say is the thing that created that doubling, but it certainly enabled it, was when we moved to three divisions with three division presidents, when we expanded the number of operating groups in the company, all with the goal of securing, strengthening, and scaling that unique entrepreneurial culture of Amphenol. And I don't think it's a coincidence that we took that step four years ago, and now here we are, four years hence, celebrating doubling the size of Amphenol.
For me, the biggest singular focus is how do we do that while still preserving that entrepreneurial culture? And I'm so proud that we've done it. If, if you think about a big change in the company four years ago, which I'm not gonna say is the thing that created that doubling, but it certainly enabled it, was when we moved to three divisions with three division presidents, when we expanded the number of operating groups in the company, all with the goal of securing, strengthening, and scaling that unique entrepreneurial culture of Amphenol. And I don't think it's a coincidence that we took that step four years ago, and now here we are, four years hence, celebrating doubling the size of Amphenol.
Speaker #4: And I'm so proud that we've done it. If you think about a big change in the company, four years ago—which I'm not going to say is the thing that created that doubling, but it certainly enabled it—was when we moved to three divisions with three division presidents, when we expanded the number of operating groups in the company, all with the goal of securing, strengthening, and scaling that unique entrepreneurial culture of Amphenol.
Speaker #4: And I don't think it's a coincidence that we took that step four years ago, and now here we are four years hence, celebrating doubling the size of Amphenol.
Craig Lampo: So I do believe that the management challenges, which are countless, on every day, thousands of challenges that our people face, they're equipped to deal with them no matter what they are. That gives me not only a confidence for the future, but enthusiasm for the future, because whatever comes along, we know for sure the world is not predictable. But what I can predict is that Amphenolians will be there, and we'll make it happen regardless.
Speaker #4: And so I do believe that the management challenges, which are countless every day—thousands of challenges that our people face—they're equipped to deal with them, no matter what they are.
So I do believe that the management challenges, which are countless, on every day, thousands of challenges that our people face, they're equipped to deal with them no matter what they are. That gives me not only a confidence for the future, but enthusiasm for the future, because whatever comes along, we know for sure the world is not predictable. But what I can predict is that Amphenolians will be there, and we'll make it happen regardless.
Speaker #4: And that gives me not only a confidence for the future, but enthusiasm for the future, because whatever comes along, we know for sure the world is not predictable.
Speaker #4: But what I can predict is that Amphenolians will be there, and we'll make it happen.
Speaker #4: regardless.
Speaker #2: Thank
Operator: Thank you. Our next question comes from Mark Delaney from Goldman Sachs. Please go ahead.
Operator: Thank you. Our next question comes from Mark Delaney from Goldman Sachs. Please go ahead.
Speaker #2: Our next question comes from Mark Delaney from Goldman Sachs. Please go ahead.
Speaker #6: Yes, good afternoon. Thank you very much for taking the question, and happy New Year to all of you as well. I was hoping you could speak a bit more on the margin outlook. The company sustained a record-high EBIT margin, again, in the fourth quarter at 27.5%.
Mark Delaney: Yes, good afternoon, and thank you very much for taking the question, and, Happy New Year to all of you as well. So when you could speak a bit more on the margin outlook, the company sustained a record-high EBIT margin, again, in Q4 at 27.5%. But there's a number of factors, as you go into 2026. You have some big deals, like CommScope, you also alluded to, but metals are up quite a bit, but then the company is growing quite fast. So any color you can share on how to think about incremental margins this year and some of the key puts and takes? Thanks.
Mark Delaney: Yes, good afternoon, and thank you very much for taking the question, and, Happy New Year to all of you as well. So when you could speak a bit more on the margin outlook, the company sustained a record-high EBIT margin, again, in Q4 at 27.5%. But there's a number of factors, as you go into 2026. You have some big deals, like CommScope, you also alluded to, but metals are up quite a bit, but then the company is growing quite fast. So any color you can share on how to think about incremental margins this year and some of the key puts and takes? Thanks.
Speaker #6: But there are a number of factors as you go into 2026. You have some big deals, like CommScope. You also alluded to it, but metals are up quite a bit.
Speaker #6: But then the company is growing quite fast. So, any color you can share on how to think about incremental margins this year, and some of the key puts and takes?
Speaker #6: Thanks.
Speaker #4: Yeah, thanks, Mark. Appreciate the question. Yeah, I mean, I'll start off by just really quickly addressing metals. I mean, Adam just mentioned kind of a bit about it.
Craig Lampo: Yeah, thanks, Mark. Appreciate the question. Yeah, I mean, I'll start off by just quickly addressing metals. I mean, Adam just mentioned kind of a bit about it, but, you know, from a margin perspective, I mean, you know, certainly we're working hard. I mean, metals are certainly something that we have as part of our cost of sales. It's not a significant cost that when you kind of take into account the significant value we create within the facility, but certainly it has an impact.
Craig Lampo: Yeah, thanks, Mark. Appreciate the question. Yeah, I mean, I'll start off by just quickly addressing metals. I mean, Adam just mentioned kind of a bit about it, but, you know, from a margin perspective, I mean, you know, certainly we're working hard. I mean, metals are certainly something that we have as part of our cost of sales. It's not a significant cost that when you kind of take into account the significant value we create within the facility, but certainly it has an impact.
Speaker #4: But from a margin perspective, I mean, certainly we're working hard. I mean, metals are certainly something that we have as part of our cost of sales.
Speaker #4: It's not a significant cost when you take into account the significant value we create within the facility. But certainly, it does have an impact.
Speaker #4: I mean, it's like any other cost that we work through. And the general managers do a great job of working through kind of offsets to those cost increases.
Craig Lampo: I mean, it's like any other cost, you know, that we work through, and the general managers do a great job of working through kind of offsets to those cost increases, through anything from design of products to, you know, things in the factory, to working with vendors, to a whole host of different things. So I wouldn't say that, at least as of now, we see having any significant impact on kind of our margin outlook as we're moving into '26, and certainly hasn't had any evident impact, certainly with these record, you know, operating margins that we've seen here in the fourth quarter and for the full year.
I mean, it's like any other cost, you know, that we work through, and the general managers do a great job of working through kind of offsets to those cost increases, through anything from design of products to, you know, things in the factory, to working with vendors, to a whole host of different things. So I wouldn't say that, at least as of now, we see having any significant impact on kind of our margin outlook as we're moving into '26, and certainly hasn't had any evident impact, certainly with these record, you know, operating margins that we've seen here in the fourth quarter and for the full year.
Speaker #4: Through anything from design of products to things in the factory to working with vendors to a whole host of different things. So I wouldn't say that, at least as of now, we see having any significant impact on kind of our margin outlook as we're moving into '26, and certainly hasn't had any evident impact, certainly with these record operating margins that we've seen here in the fourth quarter and for the full year.
Craig Lampo: You know, as we move into Q1, I mean, the main puts and takes here, I mean, organically, we have a slight sequential, you know, decrease in our sales, which is normal seasonality that we typically see, you know, during Q1. And we're converting kind of in the mid-30s, even the lower mid-30s in regards to that organic change. And that's typical given our profitability levels and kind of where I would expect. So the company is really doing a great job managing, you know, a seasonal sequential decrease. You know, the bigger impact on our margins in Q1 really is just the impact of CCS.
You know, as we move into Q1, I mean, the main puts and takes here, I mean, organically, we have a slight sequential, you know, decrease in our sales, which is normal seasonality that we typically see, you know, during Q1. And we're converting kind of in the mid-30s, even the lower mid-30s in regards to that organic change. And that's typical given our profitability levels and kind of where I would expect. So the company is really doing a great job managing, you know, a seasonal sequential decrease. You know, the bigger impact on our margins in Q1 really is just the impact of CCS.
Speaker #4: Quarter, I mean, the main puts. And as we move into the first takes here, I mean, organically, we have a slight sequential decrease in our sales, which is normal seasonality that we typically see during our first quarter.
Speaker #4: And we're converting kind of in the mid-30s, even the lower mid-30s, in regard to that organic change, and that's typical given our profitability levels and kind of where I would expect.
Speaker #4: So, the company is really doing a great job managing a seasonal sequential decrease. And the bigger impact on our margins in the first quarter really is just the impact of CCS.
Speaker #4: We talked about CCS being in the high teens for the full year. And from an operating margin basis, kind of where we expect, I would tell you in the first quarter, just because of the seasonality of their sales and the lower sales in the first quarter, that their operating margins are just a bit under kind of that high teens rate.
Craig Lampo: We talked about CCS, being in the high teens for the full year, and from an operating margin basis to kind of where we expect. I would tell you in the first quarter, just because of the seasonality of their sales and the lower sales in the first quarter, that their operating margins are just a bit under kind of that high teens rate. So they're having, you know, a bit over 100 basis point impact on our margins in the first quarter. You know, as we progress throughout the year, we're not guiding in 2026, but certainly we expect normal kind of, you know, operating margins. We expect that kind of 30%, you know, kind of targeted conversion margins that we target on, on, you know, incremental sales as we grow.
We talked about CCS, being in the high teens for the full year, and from an operating margin basis to kind of where we expect. I would tell you in the first quarter, just because of the seasonality of their sales and the lower sales in the first quarter, that their operating margins are just a bit under kind of that high teens rate. So they're having, you know, a bit over 100 basis point impact on our margins in the first quarter. You know, as we progress throughout the year, we're not guiding in 2026, but certainly we expect normal kind of, you know, operating margins. We expect that kind of 30%, you know, kind of targeted conversion margins that we target on, on, you know, incremental sales as we grow.
Speaker #4: So, they're having a bit over a 100 basis point impact on our margins in the first quarter. As we progress throughout the year, we're not guiding in '26, but certainly we expect normal kind of operating margins.
Speaker #4: We expect that kind of 30% targeted conversion margin that we target on incremental sales as we grow. And with CCS, again, we target that getting up to, over time, up to the company average.
Craig Lampo: You know, CCS, again, we target that getting up to over time, up to the company average, and certainly that will be an adder over time to our operating margin potential. So, I'm really, you know, happy with, you know, our operating margins that we've achieved in 2025, and certainly very optimistic as to where we are in 2026.
You know, CCS, again, we target that getting up to over time, up to the company average, and certainly that will be an adder over time to our operating margin potential. So, I'm really, you know, happy with, you know, our operating margins that we've achieved in 2025, and certainly very optimistic as to where we are in 2026.
Speaker #4: And certainly, that will be an added, over time, to our operating margin potential. So I'm really happy with '25 and certainly very optimistic as to where we are with our operating margins that we've achieved and are in.
Speaker #4: '26. Thank
Speaker #2: You. Our next question comes from Asiya Merchant from Citigroup. Please go ahead.
Operator: Thank you. Our next question comes from Asiya Merchant, from Citigroup. Please go ahead.
Operator: Thank you. Our next question comes from Asiya Merchant, from Citigroup. Please go ahead.
Speaker #2: ahead. So great.
Asiya Merchant: Oh, great. Thank you very much. Just, you know, given the strong order book momentum and, you know, the AI momentum that you guys also talked about, just, Craig, if you could just talk about CapEx and how we should be thinking about investments into 2026, as a result of that. Sorry if I missed that earlier.
Asiya Merchant: Oh, great. Thank you very much. Just, you know, given the strong order book momentum and, you know, the AI momentum that you guys also talked about, just, Craig, if you could just talk about CapEx and how we should be thinking about investments into 2026, as a result of that. Sorry if I missed that earlier.
Speaker #7: Thank you very much. Just given the strong order book momentum and the AI momentum that you guys also talked about—just, Craig, if you could talk about CapEx and how we should be thinking about investments into 2026 as a result of that.
Speaker #7: Sorry if I missed that earlier.
Speaker #4: No, no. Thanks for the question. No, we didn't talk about that specifically earlier. No, from a capital perspective, and as we talked about in 2025, we were certainly spending at a bit higher level.
Craig Lampo: No, no, thanks for the question. No, we didn't talk about it specifically earlier. You know, no, from a capital perspective, and as we talked about in 2025, we were certainly, you know, spending at a bit higher level. But, but honestly, with the growth we have seen, we kind of ended the year just a bit over 4%, which, you know, 3 to 4%, we say, is our historic range. We, we ended the year just a bit over that 4%. You know, and, and I would say as we go into 2026, and we continue to see, you know, you know, certainly opportunities for growth, and certainly we've had these strong orders here we talked about in Q4.
Craig Lampo: No, no, thanks for the question. No, we didn't talk about it specifically earlier. You know, no, from a capital perspective, and as we talked about in 2025, we were certainly, you know, spending at a bit higher level. But, but honestly, with the growth we have seen, we kind of ended the year just a bit over 4%, which, you know, 3 to 4%, we say, is our historic range. We, we ended the year just a bit over that 4%. You know, and, and I would say as we go into 2026, and we continue to see, you know, you know, certainly opportunities for growth, and certainly we've had these strong orders here we talked about in Q4.
Speaker #4: But honestly, with the growth we have seen, we kind of ended the year just a bit over 4%, which—3% to 4%—we say is our historic range.
Speaker #4: We ended the year just a bit over that 4%. And I would say, as we go into '26 and we continue to see certainly opportunities for growth—and certainly we've had these strong orders here we talked about in the fourth quarter—we expect that capital spending to still be certainly at that upper end of that 4% range.
Craig Lampo: We expect that capital spending to still be certainly at that upper end of that 4% range, and certainly we have quarters that certainly exceed that 4%, for capital spending into the, you know, into 2026. So I think that, you know, the fact that we're still spending kind of in our, you know, historic range and roughly there, is really just a testament to the, you know, just the discipline of the organization, the ability to, you know, to spend wisely and really support the growth, the significance of growth that we're seeing still with, you know, pretty reasonable spending, I think. So, and I think I would expect, you know, more of the same in 2026. And as we continue to grow, I think that 3% to 4% range will continue to be that.
We expect that capital spending to still be certainly at that upper end of that 4% range, and certainly we have quarters that certainly exceed that 4%, for capital spending into the, you know, into 2026. So I think that, you know, the fact that we're still spending kind of in our, you know, historic range and roughly there, is really just a testament to the, you know, just the discipline of the organization, the ability to, you know, to spend wisely and really support the growth, the significance of growth that we're seeing still with, you know, pretty reasonable spending, I think. So, and I think I would expect, you know, more of the same in 2026. And as we continue to grow, I think that 3% to 4% range will continue to be that.
Speaker #4: And certainly, we have quarters that exceed that 4% for capital spending into '26. So, I think that the fact that we're still spending kind of in our historic range, and roughly there, is really just a testament to the discipline of the organization—the ability to spend wisely and really support the significant growth that we're seeing, still with pretty reasonable spending, I think.
Speaker #4: And I think I would expect more of the same in '26. And as we continue to grow, I think that 3% to 4% range will continue to be that.
Speaker #4: And I think, as we see these growth rates are a little higher, I would say that we'll be probably towards the upper end of that 4% range.
Craig Lampo: And I think these growth rates are a little higher. I would say that will be probably that towards the upper end of that 4% range, and, you know, give or take in a quarter.
And I think these growth rates are a little higher. I would say that will be probably that towards the upper end of that 4% range, and, you know, give or take in a quarter.
Speaker #4: And give or take in that.
Speaker #4: quarter. Thank you.
Operator: Thank you. Our next question comes from Joe Spak from UBS. Please go ahead.
Operator: Thank you. Our next question comes from Joe Spak from UBS. Please go ahead.
Speaker #2: Our next question comes from Joe Speck from UBS. Please go ahead.
Joseph Spak: Thanks this morning. Just a quick one for me, relating to circling back to CommScope and that business. I know it's still early days in being the official owners, but any sense of how large their order book looks here going forward?
Speaker #6: Thanks for the morning. Just a quick one from me. Relating to circling back to CommScope and that business, I know it's still early days in being the official owners, but any sense of how large their order book looks here going?
Joseph Spak: Thanks this morning. Just a quick one for me, relating to circling back to CommScope and that business. I know it's still early days in being the official owners, but any sense of how large their order book looks here going forward?
Speaker #6: forward? Yeah.
Adam Norwitt: Yeah, thanks very much, Joe. I mean, I think I mentioned earlier that CommScope's also had a nicely positive book-to-bill over the recent quarters, and so I think it has a positive order book from that perspective.
Adam Norwitt: Yeah, thanks very much, Joe. I mean, I think I mentioned earlier that CommScope's also had a nicely positive book-to-bill over the recent quarters, and so I think it has a positive order book from that perspective.
Speaker #4: Thanks very much, Joe. I mean, I think I mentioned earlier that CommScope's also had a nicely positive book-to-bill over the recent quarters.
Speaker #4: And so I think it has a positive order book from that.
Speaker #4: perspective.
Speaker #2: Thank you. Our
Operator: Thank you. Our next question comes from Guy Hardwick from Barclays. Please go ahead.
Operator: Thank you. Our next question comes from Guy Hardwick from Barclays. Please go ahead.
Speaker #2: Next question comes from Guy Hardwick from Barclays. Please go ahead.
Speaker #8: Hi, good afternoon. Just a quick one on the order book. Obviously, it's a fantastic result of $8.4 billion. Just how do we square that with the Q1 revenue guidance of $7 billion?
Guy Hardwick: Hi. Hi, good afternoon. Just a quick one on the order book. Obviously, it's a fantastic result of $8.4 billion. Just how do we square that with the Q1 revenue guidance of $7 billion? Which, obviously, the Q4 order book didn't include CCS, but I assume it seemed Trexon. Is it the orders, the window that you talked about and is that $8.4 really kind of a sustainable number over the next few quarters?
Guy Hardwick: Hi. Hi, good afternoon. Just a quick one on the order book. Obviously, it's a fantastic result of $8.4 billion. Just how do we square that with the Q1 revenue guidance of $7 billion? Which, obviously, the Q4 order book didn't include CCS, but I assume it seemed Trexon. Is it the orders, the window that you talked about and is that $8.4 really kind of a sustainable number over the next few quarters?
Speaker #8: Which, obviously, the Q4 order book didn't include CCS, but I assume it assumed Trexon. Is it the orders window that you talked about?
Speaker #8: And is that 8.4 already kind of a sustainable number over the next few—
Speaker #8: quarters? Well, thanks very much,
Adam Norwitt: Well, thanks very much, Guy. I mean, look, I think I talked about the fact that we have seen customers extend their order window. Craig mentioned that as well. And in addition, as we continue to ramp up for our customers' new programs, particularly related to AI, there is that kind of confidence that we like to get before making investments, that our customers can give us in a variety of ways, including through orders. I'm not gonna guide to what our orders are going to be in a given quarter. I mean, you can imagine our sales folks are out there trying to pursue every order possible, but these are really outstanding orders, and they will carry through longer than just here in Q1.
Adam Norwitt: Well, thanks very much, Guy. I mean, look, I think I talked about the fact that we have seen customers extend their order window. Craig mentioned that as well. And in addition, as we continue to ramp up for our customers' new programs, particularly related to AI, there is that kind of confidence that we like to get before making investments, that our customers can give us in a variety of ways, including through orders. I'm not gonna guide to what our orders are going to be in a given quarter. I mean, you can imagine our sales folks are out there trying to pursue every order possible, but these are really outstanding orders, and they will carry through longer than just here in Q1.
Speaker #4: Guy, I mean, look, I think I talked about the fact that we have seen customers extend their order window. Craig mentioned that as well.
Speaker #4: And in addition, as we continue to ramp up for our customers—new programs, particularly related to AI—there is that kind of confidence that we like to get before making ways, including through orders.
Speaker #4: I'm not going to guide to what our orders are going to be in a given quarter. I mean, you can imagine our sales folks are out there trying to pursue every order possible.
Speaker #4: But these were really outstanding orders, and they will carry through longer than just here in the first quarter.
Speaker #2: Thank you. Our next question comes from Scott Graham from Seaport Research Partners. Please go ahead.
Operator: Thank you. Our next question comes from Scott Graham from Seaport Research Partners. Please go ahead.
Operator: Thank you. Our next question comes from Scott Graham from Seaport Research Partners. Please go ahead.
Speaker #3: Hey, good afternoon. Congratulations on the print. My question is about defense. Obviously, the current administration is thinking at some point we need to push the budget up to $1.5 trillion.
Scott Graham: Hey, good afternoon. Congratulations on the print. My question is about defense, and obviously, the current administration's thinking is, at some point, we need to push the budget up to $1.5 trillion. Is there any part of your defense sales that are maybe not subject to, you know, whether it's just an upgrade, next-gen technologies, the Golden Dome? I don't know how closely you've looked at some of the, you know, some of the articles that have come out on this, but is there anything that you see that, you know, maybe doesn't give you maybe full dibs or most dibs on that?
Scott Graham: Hey, good afternoon. Congratulations on the print. My question is about defense, and obviously, the current administration's thinking is, at some point, we need to push the budget up to $1.5 trillion. Is there any part of your defense sales that are maybe not subject to, you know, whether it's just an upgrade, next-gen technologies, the Golden Dome? I don't know how closely you've looked at some of the, you know, some of the articles that have come out on this, but is there anything that you see that, you know, maybe doesn't give you maybe full dibs or most dibs on that?
Speaker #3: Is there any part of your defense sales that are maybe not subject to whether it's just an upgrade, next-gen technologies, the golden dome? I don't know how much how closely you've looked at some of the some of the articles that have come out on this, but is there anything that you see that maybe doesn't give you maybe full dibs or most dibs on that?
Speaker #3: And then, on the other side of it, are you concerned at all about the administration's sort of negative rhetoric around NATO, and what that might do to some of your international sales in defense?
Scott Graham: And then on the other side of it, are you concerned at all about the administration's, you know, sort of negative rhetoric around with the, with NATO and what that might do to some of your international sales in defense? Thanks.
And then on the other side of it, are you concerned at all about the administration's, you know, sort of negative rhetoric around with the, with NATO and what that might do to some of your international sales in defense? Thanks.
Speaker #3: Thanks.
Speaker #4: Well, thanks very much, Scott. Look, I think as the leader in defense interconnect, I wouldn't tell you that we take that for granted. But do we have dibs on this market?
Adam Norwitt: Well, thanks very much, Scott. Look, I think as the leader in defense interconnect, I wouldn't tell you that we take that for granted, but do we have dibs on this market? We got dibs on this market. I mean, and we have that because of a broad array of technologies and deep investments that we have made. I mean, the one thing that I think sets us apart, in particular, related here to, we'll talk about US, and then we'll talk global, is that we have continued to double down, number one, on technology innovation, and number two, on scaling our capacity to enable the defense industry to continue to meet the levels that they need to.
Adam Norwitt: Well, thanks very much, Scott. Look, I think as the leader in defense interconnect, I wouldn't tell you that we take that for granted, but do we have dibs on this market? We got dibs on this market. I mean, and we have that because of a broad array of technologies and deep investments that we have made. I mean, the one thing that I think sets us apart, in particular, related here to, we'll talk about US, and then we'll talk global, is that we have continued to double down, number one, on technology innovation, and number two, on scaling our capacity to enable the defense industry to continue to meet the levels that they need to.
Speaker #4: We got dibs on this market. I mean, and we have a broad array of technologies, and deep investments that we have made. I mean, the one thing that I think sets us apart, in particular related here to—we'll talk about the US, and then we'll talk global.
Speaker #4: Is that we have continued to double down, number one, on technology innovation, and number two, on scaling our capacity to enable the defense industry to continue to. And so, whether that means meet the levels that they need to.
Adam Norwitt: So whether that means, you know, today's budget or higher budgets in the future, I can tell you that the breadth of our offering, coupled with the depth of our capacity and capability, is something that puts us in a really strong position across really all programs. You know, you mentioned a few programs. Our folks are deep into every program that is involved. I will also add to that, with the acquisition of Trexon, while only, you know, just under $300 million in sales, it really does expand the prominence of our value add interconnect capabilities, which is an enormous additional opportunity and additional growth potential for the company long term. We've always been a leader in the discrete connector solutions, well, broad array of them. I mean, you cannot imagine how broad that array is.
So whether that means, you know, today's budget or higher budgets in the future, I can tell you that the breadth of our offering, coupled with the depth of our capacity and capability, is something that puts us in a really strong position across really all programs. You know, you mentioned a few programs. Our folks are deep into every program that is involved. I will also add to that, with the acquisition of Trexon, while only, you know, just under $300 million in sales, it really does expand the prominence of our value add interconnect capabilities, which is an enormous additional opportunity and additional growth potential for the company long term. We've always been a leader in the discrete connector solutions, well, broad array of them. I mean, you cannot imagine how broad that array is.
Speaker #4: Today's budget or higher budgets in the future—I can tell you that the breadth of our offering, coupled with the depth of our capacity and capability, is something that puts us in a really strong position across really all programs. And you mentioned a few programs; our folks are deep into every program that is involved.
Speaker #4: I will also add to that. With the acquisition of Trexon, while only just under $300 million in sales, it really does expand the prominence of our value-add interconnect capabilities.
Speaker #4: Which is an enormous additional opportunity and additional growth potential for the company long term. We've always been a leader in discrete connector solutions, a broad array of them.
Speaker #4: I mean, you cannot imagine how broad that array is. But now, being able to support the value-add products across programs, across applications—land, sea, air, and everything in between—I think Trexon really rounds out our position and expands the potential of what we can do to support this growth.
Adam Norwitt: But now being able to support the value add products across programs, across applications, land, sea, air, and everything in between, I think Trexon really rounds out our position and expands the potential of what we can do to support this growth. Now, relative to your question around NATO and international, our approach as a company has always been not to be a sort of US flag in the front of our factory, kind of an operation when we operate around the world. We operate, you know, 350 factories across more than 40 countries around the world, and we don't have expats, period. We operate our company as a local company. So when we're in France, we're a local French company.
But now being able to support the value add products across programs, across applications, land, sea, air, and everything in between, I think Trexon really rounds out our position and expands the potential of what we can do to support this growth. Now, relative to your question around NATO and international, our approach as a company has always been not to be a sort of US flag in the front of our factory, kind of an operation when we operate around the world. We operate, you know, 350 factories across more than 40 countries around the world, and we don't have expats, period. We operate our company as a local company. So when we're in France, we're a local French company.
Speaker #4: Now, relative to your question around NATO and international, our approach as a company has always been not to be a sort of 'U.S. flag in the front of our factory' kind of operation when we operate around the world.
Speaker #4: We operate 350 factories across more than 40 countries around the world. And we don't have expats, period. We operate our company as a local company.
Speaker #4: So, when we're in France, we're a local French company. When we're in the UK, we're a local UK company. In Denmark, in Germany, in Italy, or wherever that may be.
Adam Norwitt: When we're in the UK, we're a local UK company, in Denmark, in Germany, in Italy, or wherever that may be. And that focus on being a local provider in the defense market, and, you know, our defense position in Europe is very, very strong. We've had really outperformance in Europe here for a number of years in terms of the strength of our business. You know, I'm never gonna say that you're insulated from anything. But the way that we've structured our company, the culture around our company, how we interact with our customers, is as a local partner in those places, and we do that in all of our businesses. That's just how we run the company.
When we're in the UK, we're a local UK company, in Denmark, in Germany, in Italy, or wherever that may be. And that focus on being a local provider in the defense market, and, you know, our defense position in Europe is very, very strong. We've had really outperformance in Europe here for a number of years in terms of the strength of our business. You know, I'm never gonna say that you're insulated from anything. But the way that we've structured our company, the culture around our company, how we interact with our customers, is as a local partner in those places, and we do that in all of our businesses. That's just how we run the company.
Speaker #4: And that focus on being a local provider in the defense market—and our defense position in Europe is very, very strong. We've had really strong outperformance in Europe here for a number of years.
Speaker #4: In terms of the strength of our business, I'm never going to say that you're insulated from anything. But the way that we've structured our company, the culture around our company, how we interact with our customers, is as a local partner in those places.
Speaker #4: And we do that in all of our businesses. That's just how we run the company. But I will tell you that in a geopolitically interesting world that we're in today, the way that we've always operated is a pretty good way to operate in today's world.
Adam Norwitt: But I will tell you that in a geopolitically interesting world that we're in today, the way that we've always operated is a pretty good way to operate in today's world. And I think that will, in many ways, protect us from any politics that could inject themselves into this world. Our customers, at the end of the day, want the best product, and they want it at the time that they need it. And if we can focus on continuing to do that and do it locally, I think our defense business has a great future.
But I will tell you that in a geopolitically interesting world that we're in today, the way that we've always operated is a pretty good way to operate in today's world. And I think that will, in many ways, protect us from any politics that could inject themselves into this world. Our customers, at the end of the day, want the best product, and they want it at the time that they need it. And if we can focus on continuing to do that and do it locally, I think our defense business has a great future.
Speaker #4: And I think that will, in many ways, protect us from any politics that could inject themselves into this world. Our customers, at the end of the day, want the best product, and they want it at the time that they need it.
Speaker #4: And if we can focus on continuing to do that and do it locally, I think our defense business has a great—
Speaker #4: future. Thank you.
Operator: Thank you. Our last question comes from Joe Giordano from TD Cowen. Please go ahead.
Operator: Thank you. Our last question comes from Joe Giordano from TD Cowen. Please go ahead.
Speaker #2: Our last question comes from Joe Giordano from D.D. Cowen. Please go ahead.
Speaker #3: Hey, thanks, Adam. You mentioned CES, and I think one of the things coming out of there was an ultimate move, at some point, towards something like 800-volt DC power for data centers.
Joseph Giordano: Hey, thanks for getting me in, guys. I appreciate it. Adam, you, you've mentioned CES, and I think one of the things coming out of there was an ultimate move at some point towards, like, 800-volt DC power for data centers. And, you know, there's major implications on what that means for copper and what that means for the ability to do things at different dimensions at different diameters. Just curious, as your portfolio broadens out and you have these fiber capabilities, what is like the, you know, if you, if you think through the potential positives and negatives for such a dynamic, like, how do you think that nets out for you guys?
Joseph Giordano: Hey, thanks for getting me in, guys. I appreciate it. Adam, you, you've mentioned CES, and I think one of the things coming out of there was an ultimate move at some point towards, like, 800-volt DC power for data centers. And, you know, there's major implications on what that means for copper and what that means for the ability to do things at different dimensions at different diameters. Just curious, as your portfolio broadens out and you have these fiber capabilities, what is like the, you know, if you, if you think through the potential positives and negatives for such a dynamic, like, how do you think that nets out for you guys?
Speaker #3: Getting me in, guys. I appreciate it.
Speaker #3: And there's major implications on what that means for copper, and what that means for the ability to do things at different dimensions, at different diameters.
Speaker #3: Just curious, as your portfolio broadens out and you have these fiber capabilities, if you think through the potential positives and negatives for such a dynamic, how do you think that nets out for you guys?
Speaker #4: Yeah, look, I think what we care about, Joe, is that there's more of everything. And so as folks make changes, they go to different voltages, they go to different speeds of transmission, they go to more nodes, they go to more tokens, they go to more density—whatever it is.
Adam Norwitt: Yeah, look, I think what we care about, Joe, is that there's more of everything. And so as folks make changes, they go to different voltages, they go to different speeds of transmission, they go to more nodes, they go to more tokens, they go to more density, whatever it is, the ultimate what comes out of that is more complexity. And so for us, you know, whether it's one type or another, I talked earlier about the fact that we today, especially with the CommScope acquisition, have the broadest offering in the industry and the broadest ability to enable our customers as they face these really challenging, as they face these really challenging technological trade-offs.
Adam Norwitt: Yeah, look, I think what we care about, Joe, is that there's more of everything. And so as folks make changes, they go to different voltages, they go to different speeds of transmission, they go to more nodes, they go to more tokens, they go to more density, whatever it is, the ultimate what comes out of that is more complexity. And so for us, you know, whether it's one type or another, I talked earlier about the fact that we today, especially with the CommScope acquisition, have the broadest offering in the industry and the broadest ability to enable our customers as they face these really challenging, as they face these really challenging technological trade-offs.
Speaker #4: The ultimate what comes out of that is more complexity. And so for us, whether it's one type or another, I talked earlier about the fact that we, today, especially with the CommScope acquisition, have the broadest offering in the industry and the broadest ability to enable our customers as they face these really challenging as they face these really challenging technological trade-offs.
Speaker #4: And so I think we're in a really great position to be able to do that, and even stronger than we were before, pre the CommScope acquisition.
Adam Norwitt: I think we're in a really great position to be able to do that, and even stronger than we were before, pre the CommScope acquisition. You know, whether it's different voltages or different speeds or different densities or all the various things that our customers are looking at, I think we're going to have a great seat at the table working with them to enable these exciting next-generation systems.
I think we're in a really great position to be able to do that, and even stronger than we were before, pre the CommScope acquisition. You know, whether it's different voltages or different speeds or different densities or all the various things that our customers are looking at, I think we're going to have a great seat at the table working with them to enable these exciting next-generation systems.
Speaker #4: And whether it's different voltages, or different speeds, or different densities, or all the various things that our customers are looking at, I think we're going to have a great seat at the table working with them to enable these exciting next-generation systems.
Speaker #2: Thank you. We currently have no further questions, so I'll hand it back to Mr. Norwitt for closing remarks.
Operator: Thank you. We currently have no further questions, so I'll hand it back to Mr. Norwitt for closing remarks.
Operator: Thank you. We currently have no further questions, so I'll hand it back to Mr. Norwitt for closing remarks.
Speaker #3: Well, thank you very much. And again, I'd like to offer my gratitude to everybody here for taking the time with us today, and we look forward to seeing at least those of you who are not too far from us in 90 days.
Adam Norwitt: Well, thank you very much. And again, I'd like to offer my gratitude to everybody here for taking the time with us today, and we look forward to seeing you in 90 days. And I hope you all, at least those of you who are not too far from us here in Connecticut, I hope you're able to stay warm. Thanks. Thanks, everybody.
Adam Norwitt: Well, thank you very much. And again, I'd like to offer my gratitude to everybody here for taking the time with us today, and we look forward to seeing you in 90 days. And I hope you all, at least those of you who are not too far from us here in Connecticut, I hope you're able to stay warm. Thanks. Thanks, everybody.
Speaker #3: And I hope you all here in Connecticut—I hope you're able to stay warm. Thanks.
Speaker #4: Thanks,
Speaker #4: everybody.
Operator: This concludes today's call. Thank you for joining. You may now disconnect your lines.
Operator: This concludes today's call. Thank you for joining. You may now disconnect your lines.
