Amphenol (NYSE:APH) capped fiscal 2025 with record fourth-quarter results, driven by strong demand across most end markets and particularly robust momentum tied to data center and artificial intelligence-related spending. Management said both fourth-quarter sales and adjusted earnings per share exceeded the high end of the company’s guidance, while orders reached a new high.
Record quarter and full-year results
Chief Financial Officer Craig Lampo said fourth-quarter sales were a record $6.4 billion, up 49% in U.S. dollars, 48% in local currencies, and 37% organically versus the prior-year period. Sequentially, sales increased 4% in U.S. dollars and local currencies and 3% organically. GAAP diluted EPS was $0.97, while adjusted diluted EPS was $0.93.
Profitability, cash flow, and capital returns
Fourth-quarter GAAP operating income was $1.7 billion with a GAAP operating margin of 26.8%. Lampo noted the GAAP figure included $47 million of acquisition-related costs, primarily external transaction costs and amortization of acquired backlog. Excluding those costs, adjusted operating income was $1.8 billion and adjusted operating margin was 27.5%, up 510 basis points from the prior-year quarter and flat sequentially. Lampo attributed the year-over-year margin improvement primarily to operating leverage on higher volumes, modestly offset by the dilutive impact of acquisitions.
For full-year 2025, GAAP operating income was $5.9 billion and included $181 million of acquisition-related costs; adjusted operating income was $6.1 billion. GAAP operating margin and adjusted operating margin reached annual records of 25.4% and 26.2%, respectively, according to management.
Amphenol also reported strong cash generation. Lampo said free cash flow was $4.4 billion for the full year, or 103% of net income, with working capital metrics remaining within normal ranges. In the fourth quarter, the company repurchased 1.3 million shares at an average price of approximately $134; combined with dividends, fourth-quarter capital return was about $373 million and nearly $1.5 billion for the full year. Norwitt added that Amphenol bought back nearly 7.5 million shares in 2025 and increased its quarterly dividend by 52%.
Orders surge, led by AI-related data center demand
Management emphasized a sharp acceleration in bookings. Lampo said fourth-quarter orders were a record $8.431 billion, up 38% sequentially, while full-year orders totaled $25.4 billion, producing a full-year book-to-bill ratio of 1.1. Norwitt said orders rose 68% year over year in the quarter and were “driven primarily by data center demand related, in particular, to artificial intelligence investments.”
In response to questions, Norwitt said bookings were broadly strong across end markets, with AI-related investments a primary driver of the quarter’s $8 billion-plus order total. He added that some customers “open[ed] up their order window” tied to significant projects, which he characterized as commitments that give Amphenol comfort to make capital and automation investments rather than “getting in line” due to lead times. He also described the breadth of Amphenol’s AI customer exposure, noting the company did not have any 10% customers in that AI-related business in 2025.
End-market performance highlights
Norwitt provided updates on the company’s served markets, including their share of sales and growth trends in the quarter and full year. He said IT datacom represented 38% of fourth-quarter sales and 36% for the full year, and described that market as a key driver of results. In the fourth quarter, IT datacom sales grew 110% in U.S. dollars and organically, and rose 8% sequentially, driven “essentially” by AI-related applications. For the full year, IT datacom sales increased 124% in U.S. dollars and organically.
Other end markets discussed included:
- Defense: 10% of fourth-quarter sales and 9% for the full year. Fourth-quarter sales increased 44% in U.S. dollars and 29% organically; sales rose 16% sequentially, ahead of management’s mid-single-digit growth expectations. Full-year sales grew 30% in U.S. dollars and 21% organically.
- Commercial air: 5% of sales in the quarter and full year. Fourth-quarter sales rose 21% (19% organic) and were up 10% sequentially. Full-year sales increased 39% in U.S. dollars, with organic growth of 13%.
- Industrial: 18% of fourth-quarter sales and 19% for the full year. Fourth-quarter sales increased 20% in U.S. dollars (18% local currency); organic growth was supported by areas such as medical and industrial instrumentation, with sales up 2% sequentially. Full-year sales rose 21% in U.S. dollars, with organic growth of 10%.
- Automotive: 14% of fourth-quarter sales and 15% for the full year. Fourth-quarter sales rose 12% in U.S. dollars and 9% organically; full-year sales grew 8% in U.S. dollars and 7% organically. Norwitt noted that automotive organic growth was strongest in Europe in the quarter.
- Mobile devices: Management said fourth-quarter sales declined 4% in U.S. dollars, local currency, and organic terms, as growth in tablets, wearables, and accessories was more than offset by lower smartphone-related sales. For the full year, mobile devices sales increased 5% in U.S. dollars and organically.
Acquisitions and balance sheet updates, including CommScope and Trexon
Management highlighted acquisition activity as a strategic pillar. Norwitt said the company completed five acquisitions in 2025—Andrew, Trexon, Narda-MITEQ, LifeSync, and Rochester Sensors—adding nearly $2 billion of annualized sales collectively. In the fourth quarter, Amphenol closed its previously announced acquisition of Trexon, which Norwitt said has annual sales of approximately $290 million and focuses on cable assemblies primarily for the defense market.
Lampo detailed financing and leverage ahead of the CommScope transaction. Total debt at Dec. 31 was $15.5 billion and net debt was $4.1 billion, including $7.5 billion from a U.S. bond offering completed in October in anticipation of the CommScope acquisition. Total liquidity at quarter-end was $17.5 billion, including $11.4 billion of cash and short-term investments plus credit facility availability and $3.1 billion of term loan facilities arranged for the deal. The company closed the CommScope acquisition in early January using cash on hand and the term loan facilities; Lampo said cash on hand was expected to be about $200 million after closing, reflected in first-quarter 2026 guidance. He added that fourth-quarter EBITDA was $2.0 billion and net leverage was 0.6x at quarter-end, with pro forma net leverage including CommScope at approximately 1.8x.
Norwitt said the acquired business “represents a significant expansion of our interconnect capabilities” across IT datacom, communications networks, and industrial building connectivity. He also reiterated prior disclosure that the business is expected to generate full-year 2026 sales of $4.1 billion and add $0.15 to Amphenol’s 2026 adjusted EPS. In Q&A, Norwitt emphasized that the acquisition expands Amphenol’s fiber optic breadth and positions the company to discuss “the entirety of the interconnect spectrum” with customers, spanning copper, fiber, and power needs.
For the first quarter of 2026, Amphenol guided to sales of $6.9 billion to $7.0 billion and adjusted diluted EPS of $0.91 to $0.93, which management said would represent year-over-year growth of 43% to 45% in sales and 44% to 48% in adjusted EPS. Norwitt noted the guidance includes approximately $900 million in sales and $0.02 of adjusted EPS accretion from the CommScope acquisition.
About Amphenol (NYSE:APH)
Amphenol Corporation (NYSE: APH) is a leading global manufacturer of electronic and fiber optic connectors, interconnect systems, and related components. The company designs, engineers and produces a broad range of products including electrical connectors, cable assemblies, fiber optic solutions, sensors, antennas and electromechanical devices used to transfer power, signal and data across complex systems. Its product portfolio spans ruggedized connectors for harsh environments to high-speed solutions for data centers and telecommunications networks.
Amphenol serves a diverse set of end markets, including automotive, broadband and telecom, data communications, mobile devices, industrial, energy, and military/aerospace.
