APH - Earnings call transcript Q3 2024

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Operator

Hello, and welcome to the third quarter earnings conference call for Amphenol Corporation. [Operator Instructions]. 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. Lampo. Craig begin. may you Sir,

Craig Lampo

to you very Lampo, Adam This Craig welcome afternoon, our call. XXXX much. CFO; and Good you to Amphenol's like with We everyone. third I'm quarter CEO. conference is would Thank our here Norwitt, together

commentary, results of financial the then, current trends. then third business provide quarter and of will give And will released and were Our Adam take course, morning will this I some and overview questions. we an market

the during financial certain statements, the reminder, As may non-GAAP so press we to a to certain our information. call, measures refer refer for in and forward-looking further relevant release make disclosures please

as is completed data basis. per addition, X-for-X share result of on announced on share previously stock in earnings this a and In discussed split split-adjusted call of this a our June year, all

company record with $X.XX, and diluted of EPS closed of record sales of quarter the and GAAP The billion and adjusted XXXX $X.XX third $X.XXX respectively.

up dollars third quarter quarter XX% the Third in of to local were and currencies XX% compared U.S. sales XXXX. organically and in

local were in U.S. minutes. by in few up in X% comment and on dollars, XX% market a Adam XX% trends sales further organically. Sequentially, will currencies

quarter to to primarily strong up were $XX quarter, XX.X%. of $X.XXX Orders operating in $XXX and X.XX:X. was year million the ratio XX% X% acquisition-related GAAP in related compared included GAAP million record the of margin up the sequentially, billion, book-to-bill resulting a costs a and prior CIT. in was operating income

of costs, a third resulting of in in record adjusted adjusted $XXX quarter margin these operating XX.X% million, Excluding operating the was income XXXX.

volumes, sales and levels, increase conversion prior of basis the was increased by partially second during higher by acquisitions, partially operating the basis, particular, by was in points of operating primarily higher closed prior basis, the adjusted in the offset sequentially. dilutive operating year quarter. On basis XXX an reflected XX margin strong sales in a year-over-year impact on margin points by months. leverage adjusted strong on dilutive margin impact operating which sequential completed driven adjusted the The from XX quarter in acquisitions which the increase the CIT, On offset

proud am operating quarter, margin continued strong third our reflects which in the by performance the very execution I company's of teams.

Breaking XX% And and by organically. down organically, by dollars margin quarter Sales billion, and the was by increased was XX% $X.XXX Segment dollars was third compared were $X.XXX quarter U.S. increased Environment in dollars results segment Sensor in margin Interconnect operating and the XXXX, operating X% Systems increased segment Solutions and the the XX.X%. was U.S. to margin in billion sales by third segment segment operating XX.X%. and U.S. and segment X% the XX% Solutions organically, and and billion $X.XXX in in of segment XX.X%. Harsh were sales XX% in and Communications

effective for quarter XX.X%, diluted in the rate XX%, was the which to XX% was GAAP company's of adjusted effective the basis, up $X.XX an the The quarter third increased quarter, third in compared record prior compared on to 'XX. the in XX% $X.XX to the diluted $X.XX period, tax was EPS rate and tax and record adjusted and of third GAAP compared to a 'XX. XX.X% year XX% third EPS a quarter

making the are to our capital in to as we quarter the defense markets. was of XX% of XXX% cash IT we capital flow are the spending, $XXX growth cash elevated or $XXX million net or income. And investments our seeing expected, in strong million free somewhat in And of was Operating income. net flow quarter third support datacom was spending due and net

markets. to continue support these our capital of spending growth to levels have fourth the to we elevated in In quarter, further expect somewhat

days payable working a respectively, inventory From capital sales within XX levels. and standpoint, and days all XX days, were outstanding normal XX, days,

approximately X.X when During an shareholders repurchased the common million quarterly in XXXX stock of $XXX price quarter average quarter, at to capital of was company the combined of and third dividend, with million. our total $XX, shares returned the our normal

September XX was billion, on our was $X.X availability billion, of the debt cash of the liquidity net $X.X at billion, total debt under investments quarter on Total $X.X facilities. hand credit existing and $X.X was which included billion, end plus short-term and and

to interest million 'XX. we the $XX expense fourth income in expect quarter cash on net hand quarterly of addition, In interest be earned on of approximately

of X.Xx. third net Excluding quarter quarter XXXX, the was ratio acquisition-related costs, EBITDA of XXXX end was at leverage third the And billion. $X.XXX

call provide will now current will on commentary trends. who the I turn some over market to Adam,

R. Norwitt

joining Well, fall so far. and for our beautiful here thank very And day call I Craig, that thank you a much, all in very a you are of nice Wallingford, all on hope Connecticut. enjoying you fall very

discuss markets. And I'm served our on for mentioned, full and Craig in I'll end fourth the we'll course, As the we'll achievements in across of going the our And for And some questions. progress to particular, here the third XXXX. our year at comment outlook have trends quarter. and the highlight quarter then time

in that very in in record were of third earnings per grew dollars in exceeding sales Sales new quarter to from by and a than the and really reaching results local year the high XX% proud of strong We're have strong and stronger end record. a Our U.S. our share. currencies, adjusted very $X.XXX sales billion. actually and expected prior guidance diluted new

record end air talk about IT a details increase basis, devices, organic by of XX%, and book-to-bill IT especially XX% a by The This also the On defense an of networks, mobile was the booked driven sales our market. few I'll $X.XXX robust those by X.XX:X. mobile and orders in growth -- did markets, strength company driven also commercial billion, datacom, continued in moments. in representing datacom

reach generated third is margins $X.XX, demonstration flow yet record, and of third this I $XXX EPS the in and company's extremely quarter. we new year's to I'm the clear quarter, from say, XXX-basis-point a then of last have Our of a finally, cash grew quality a reached diluted quarter. operating new Adjusted the proud from and the XX.X%, quarter, XX% record, represented free adjusted And and in prior year the $XXX Amphenol this the high another earnings. of just million, operating in million team. to respectively, increase

Our reflect once as outperform the organization in again, continue results any of this quarter, to our entrepreneurial strength environment. we

together the cable cable solutions early assembly we're it's in acquisition offering Lutze to strengthens a products markets. of of provider million, Europe Lutze previously diverse industrial industrial Germany of great a in pleased the The worldwide closed interconnect with range here and applications our complement value-add it Europe. important October, market. products And acquisition approximately annual just is high-technology announced is to based the $XXX Now U.S. Lutze market. for of leading interconnect for have Lutze of very our sales with for on very this and broad harsh environment in

CommScope, We great the acquisition the quarter to our that in In businesses pending now remain remain from to value of program acquisition we and addition, transaction expect confident of create for we about continue first Amphenol. Andrew XXXX. that will excited close the

a these bring family identify the and for to upon core company. remains acquisitions companies competitive successfully execute to ability the into advantage new then and Our Amphenol

of create for This end to exposure market because all the value given diversification, balanced to disproportionately turning We're once to the industry application. electronics exposed volatility continues us broad. it any to not question, the served remains while Now areas again and highly no or great enables markets. participate our of pleased company's across Amphenol diversified, being that global market

line in sales growth was by starting and across defense of by quarter, grew a Now market into X%, sales prior and of market, with quarter. avionics, organically. This segments in with defense from out and with most represented grew our communications especially vehicle from the was aircraft XX% sales applications. U.S. the our the dollars expectations coming XX% which by Sequentially, and contributions, strong driven the really ground it our space, year in X%

in quarter, a year into for now these expect to XXXX, the increase defense third fourth increase quarter moderately full market we the look mid-teens sales. expect And we sales the we in levels. As from

We array next-generation interconnect both spending range current our industry's continue new capacities the defense products, broad and importantly, the well potential. capitalize environment, very are where technologies. current positioned by we're geopolitical of world this as With as, dynamic those the strengthening a remain market, offer position well high-technology on the development on the products, widest in the long-term expanding demand investments their encouraged to build Amidst the of around defense company's in to products. countries of we to

we as X% U.S. CIT, from prior increasing market sales air represented we which in dollars by commercial commercial and another quarter closed from The quarter, as had back in in the to the quarter as well addition the quarter. slightly Compared year expectations second our the expanding XX% we air and with organically coming our second sales increased sequentially strong XXX% basis, sales continued in of of lower by XX% and into organic aircraft. on quarter, content this the up and next-generation were an modestly was than progress our commercial in on benefited

expect the Looking sales. year we addition high year, robust XX% by from And well sales XXXX, as a to the by to organic of the in for as increase last CIT fourth quarter, than full driven more single-digit expect increase we growth.

in working of proud the team market. our truly I'm air commercial

offering while for jet to diversifying efforts are market next-generation position liners ongoing product the aircraft With demand our in real our our paying strengthen growth dividends. into

our to see of We benefits to technology of and years this our look offering come. growth realizing the continue into expansion long-term for for initiatives many forward to market, great opportunities the important

organic automation, and and quarter. acquisitions. up mass represented in sales sales benefited quarter of by transportation from was by in market X% industrial were XX% XX% offset second the as X% better grew sales the an our energy, in in medical from and in instrumentation, and year than the expectations did quarter growth our flat dollars our heavy transit by solutions alternative factory we prior On as Sequentially, equipment, coming by somewhat from into gas. which rail The And increase demand was sales were the organically, U.S. our reduced basis, quarter. oil

the of year low to the the we expect from in sales. stronger North digits, encouraged in these sales sales quarter. third partially America to double demand do Europe of with to we quarter moderate XXXX, organic an into benefit this slowed moderation and in looking expect While full quarter, fourth Asia, are acquisitions offset And grow Accordingly, again see did by levels. we the growth for

capabilities occur With to to and through organically acquisitions and expand continue and the long-term opportunities customers And additions our confident I'm and many this electronic has broader even our across we exciting that us industrial strategy teams across that market. Lutze, the of the of positioned both market. on offer products the creates antenna industrial outstanding no to offerings the interconnect will an for diversified range capitalize year CIT high-technology working sensor complementary this around now to world. revolutions have doubt

The did market, while America X% Asia represented which than in was of a market were the the sales by automotive our declined in sales in into increased the flat market, and to organically. industrial year. XX% the coming by our and sales Similar and U.S. X% bit Europe dollars grew prior our better quarter, expectations Sequentially, quarter, sales automotive in from our North QX. we in from grow second

range from For mid-single-digit we compared the expect levels. And the decline modestly prior to sales sales year. expect we for XXXX, quarter third year to to fourth in increase full quarter, the these

remain I of automotive our in market. team proud working the

technologies shown slowing, wins wide While are focused signs our implementing the on a of array team driving as come. from market there These are we have as customers of market some drivetrains years automotive into design include remains to that to with many well new our who some new a other of areas strong in applications, forward for the their vehicles. benefiting exciting position electrified and multitude look automotive of

increased strength by was XX% market higher mobile increased The in was the Sequentially, across that driven by the mobile across also represented much market. all broad-based in the organically, market. XX% and stronger-than-expected and dollars Sales our XX%, driven a devices by quarter. segments our really of XX% this devices applications mobile devices U.S. sales in sales of sales by and

the to sales the to higher our to single-digit up And compared levels. in sales year, high anticipate be at we for XXXX. to Looking the range we these fourth quarter, expect full remain

across mobile once in our our proud sales dynamic mobile to antennas, as always the term. team in I'm the I'm again agility with of of the positioned interconnect market next-generation capture in reactivity for very devices, quarter. well have of range leading devices their and designed us a broad array working products long we confident enabled and mechanisms that incremental are

of in dollars XX% and XX% as coming represented into equipment increased organically mobile the networks in by grew continue strong recovery our operators as a U.S. in basis, demand to mobile quarter, X%, a sales our better market bit we by sales see sales manufacturers. The from a both X% and our network expectations was well which wireless the On as quarter. than sequential a

expect For grow we full And in year, seasonally decline single-digit sales the sales we for to fourth the the to quarter, now year. the range versus last mid-teens. anticipate high in

We're recent market. networks encouraged mobile strengthening by the in the

next-generation world. As on next-generation to team realizing of our systems, expand operators around focused our and ramp the position our in in long-term remains up their investments networks the equipment benefits efforts

more to in even the pending acquisition years from businesses come. of for participating the CommScope, With look to networks these many we Andrew strongly forward

used in our and datacom growth our in driven by a business. expectations The XX% in artificial in quarter second into by Sales sales coming strong continued the XX% base products by a with IT of very the represented quarter, On was basis, datacom organically, and better quarter. for increased robust in third market intelligence IT into dollars substantially U.S. our sales our the in acceleration sequential the coming IT this the in quarter. than XX% grew XX% the demand together -- applications, from datacom

to year expect ever As we datacom market. by quarter, IT in look than the the these more more sales towards XXXX. I further from fourth compared XXXX, third we we're say levels. encouraged in IT than to we datacom increase sequential grow XX% company's And mid-single-digit position for to have that expect the full quarter do a the global by

is revolution for power a industry power no create amazing created this job components doing to a there's or products. critical AI, has interconnect, Amphenol. interconnect unique those and on in growth and products interconnect high-speed, around that Whether for opportunity who systems, securing optic and networks, leading particularly team high-speed are next-generation continues just next-generation business Our these Amphenol world given our the IT our an long-term fiber in in enabling doubt for opportunity this the AI future

market a which X%, and in their were into broadband U.S. X% Finally, organically sales represented quarter, our XX% basis, our broadband the down sales quarter. to moderate the procurement with were of in levels. coming continued the sales and dollars XX% by line On sequential as roughly in expectations down operators was

sales continuing For full year. investments in consumer fourth around remain the customers to single-digit the encouraged the resume company's support when look forward we demand current expect a world by quarter, the and muted we our to environment, we high bandwidth this further a and Regardless expand XXXX, in market, year their reduction sales, to growing from we service provider to prior and mid-teens broadband the and of enterprise they position their coverage customers. expect decline more for

and obviously, as outlook exchange constant the rates. well as market to conditions assuming current Now our turning continuation of

in expect $X.XXX a of $X.XX fourth range diluted would $X.XXX the adjusted increase quarter the diluted increase an quarter, XX%, and of represent of of to billion the For to to compared range XXXX. EPS we billion XX% sales and XX% adjusted in $X.XX. to to XX% sales of fourth EPS the This

billion, billion full $X.XX. quarter as to adjusted year of fourth EPS for year of diluted $X.XX full well sales $XX.XXX an guidance $XX.XXX Our to represents expectation as

and sales This respectively. increases outlook to EPS would and represent to full XX% of year adjusted XX% XX%, XX%

and continue I and the while management position the This many into profitability outstanding to in to long very to year thus the current our grow of ability remain this environment a and the XXXX, has strong far in market adapt to term. challenges team driving Amphenol confident year in sustainable opportunities through strong and been for our and

deliver, thank And of hard to worked truly for our them. finally, and level especially quarter. to I'm the I'd outstanding their here global that like to extremely take no to in grateful efforts this they this opportunity team third There's entire truly growth, doubt

happy operator, questions. that, be to with take And we'd any

Operator

first BNP. [Operator is Buscaglia with question Instructions] Our Andrew from

Andrew Buscaglia

than datacom. And slightly you quarter said obviously, expected. very better IT you even robust So a for maybe

So to I you datacom, to improve. non-AI alluding the also portion, were quarter think IT starting last

how So could is improvement sequential non-AI? of much you from help us AI parse this out versus

R. Norwitt

exactly thanks IT very, quarter much did that market this I is datacom, start would IT easy Yes. stronger tell -- obviously, Look, Andrew, it's assessment second the question. we here being the actually what our we show into it to underlying last application. see of the for so growth goes little always did I with very datacom not Well, the the the what bit that underlying quarter, But of think quarter. And quarter to tell you best a third product strong performance. caveat in

we Now I into and that our terms than AI same will the AI represented of products about the tell that a growth of more roughly -- the you sequential. bit sell in year-over-year half overall

So strong anything to performance AI. very related for

quite with next-generation consumers, we a in service that know We no is that this power encouraged has recovery the like. here driving the have that there's there data a of demand quarter. And were that's encouraged, rush equip position grown. see these is enterprises, centers, the the all in providers switching datacom significant And AI, a as with that you for well, to IT bit us very doubt a associated think very today I and with but to a real underlying significant in products compute way in

Operator

with question is next from Junk Baird. Luke Our

Luke Junk

Clearly, automotive now very Adam, right of dynamic volatility. production just hoping to double overall market your click in a terms on business.

especially Europe, et cetera. mentioned EV moderation, You

the of above to market above bookings you're Just continue ability to curious or especially given to right at seeing relative that pipeline growth the your terms be now, potential now? actually the right drive in backdrop, constraining all this Is historically. company perspective. I do has growth appreciate levels driven help from Or your market Amphenol in at need more the the environment? what OEMs

R. Norwitt

Luke. year-to-date a so on I mean, in let I I mean done to fabulous Well, a outperform navigating but unwrap automotive. lot there, I'm a our mean thanks continuing say are team and and of this. is just what, as much, the we've really down multifaceted. proud these for basis, me And job of is world automotive There's go to about but very drivetrain dynamic market. this. hole, much of the going a of choice, rabbit dynamics not worldwide so you that talking I'm dynamic term, sure, sort to

offset think demand the been in North is, we certain where and and Europe. industrial. this on demand But see did have geographies reported, Europe, robust dynamic related there a of pleased overall an not what in a in in part that America on And challenges automotive. look just you basis probably Asia There's I'm basis at that say year-over-year in in still if was some with first particular, I'm overall that also are I European in moderation a by growth in and and the it's really least widely we basis, quarter, organic on to the

So OEMs, drivetrains, continuing the on Amphenol and continues in a next-generation applications to whether confidence over. the our next-generation antennas, every outperform, that a the connectivity, in offerings enabling capabilities that the put new whether those with gaining world like, very content around those with the have of we breadth be be to fulfill to product offerings we've global electronics question that content, your basis, sensors strong to those automotive we customers and position about us specific have, world, cars, had momentum in the the communications,

in a in those is just vehicle, of something proliferation made But dynamics Asia, is, news team engine, good internal to electronics regardless there whether as whether continuing our a those a of be a navigate And made or they the America, electric North combustion hybrid has full Europe, in cars. is full of regardless to made all of is something across are.

into to our team sure drive we platforms to that positioned up so to to our it's I'm around confident next-generation And do is those products us make the And continue world. well that that.

Operator

Daryanani is Amit Evercore. question next with Our from

Amit Daryanani

around quarter. AI about comes the breadth really XPU to And a to number AI-driven. your way deployments. revenue of even I hyperscale breadth content how base growth fair nice when the there providers, of there's talk and would up Adam, comes year-over-year just just think it the versus amount sort Congrats your there's guess, customer half been do AI to about it of a Can on of stack the be you said about if of deployments? I is your your just when if a And offering of maybe noise think you helpful.

R. Norwitt

we with offering throughout money, we've the to companies. stack the there's web the we're of AI mean, so Amit, particular, really the universe market the I of into about -- those, an in starts and the look, people thanks starts What's very have only those unique that of working outstanding about is that's into well related with and And with this think the Yes, it customers applications And limited I IT much. who AI. positioned datacom that And chain. breadth entire we're and, a have in providers. past. service talked

us build the designs those the people things aspect or and it's out really to I into comprehensive down who of artificial sell individual the of of the sometimes about OEMs way those the that not collective configurations who are Through in product, who way. the a well companies all about served program big our equipment it's are that creating efforts of whatever, think chip data because an individual industry an to the kind centers intelligence make And to has centers, used. data relationships outfit the OEMs,

I are so different aspects. And that that, efforts think happening in many collective

used. being chips You have different types of

what perspective to leading latency, use create the where highest being from architectures we power. And an come products, value to customers the They into all at because got the the them together is have you've of things speed on and other are X and and side and those them efficiency interconnect latency have things. latencies. high-speed we -- for help industry's X You speed, operating high where and less low speed lowest have used. on ties different But play be we the power highest one our the the

have all on We our everything connectors, the architectures, working down the chips. And complex like, and as gets power products, way leading bus those from industry's assemblies, to that power-hungry interconnect everything the efficient power bars power these have for with many world that engineers over. strong a our and done has years, this really customers a us capacity with together out so can put we the basis global scaling in position demand meet on capability

And so share I here of or about our wouldn't fair program the would we're, more much more of overall get that sure, noise fact hung up that. another think the capturing on opportunity I and than configuration, one or is for that

Operator

Samik JPMorgan. Chatterjee Our next from is question with

Samik Chatterjee

Congrats hard on in guess I to your your to about win in you results. talked systems. remarks question I'll or what secure follow prepared Amit's up Adam, datacom business was. working on team the strong next-generation IT

fronts? in IT in sort datacom, some talk next-generation unit seeing sort opportunities of of positioned going system? your numbers a generation systems? How in those to today visibility both And more what How in you looks growth about basis, the per that content we next you're you are growth are do think getting in relation a system to relation what seeing you in you robust copper whether terms on when sort how to on or fiber? of like next-generation are content uses cases, of Can much

R. Norwitt

to create fact these learning, you to mean the architecture each very can so machine of all about systems, unique call in the much, a that have talked chips network, neural that the them, we've very I AI, Samik. whatever to low-latency essentially past that is other. high-speed, fabric Yes. mesh talk look, you Thanks the want

that the and it requirements I that -- systems. plays there that's it. word these these going role. we to the you engineer, I are -- can But on that from in the a let greater type farthest an that thing interconnect functioning tell this use just the I greater And role about just talk interconnection but is in me electrical these mean, change means of of unbelievable content, that systems. And not and am is content

and whether talk operate. even model low the out really obsolete enough can't to do, interconnect completed. each build systems becomes language or to other at of Because you're go it's role too thing these becomes other large speed the and complex a it and fundamental can the just whatever a enough to chips the latency, trying then high to a long at before takes If model

customers, chip, chooses that, described will what with have someone go strong regardless very of across again, And who so we to and up. opportunity and rapid link come regardless ability chips these to the how has many content gone continue And that have probabilities to a the stack these in comparisons up calculations to on thus, architect that position a the content is, as across dependent that. and makes And ways, that interconnect I that earlier. of

and as present innovator to power. copper think and both, and copper. acquisitions think news a possible made in you of I we're Amphenol each. usage to because great about also know And Relative very well to been that But fiber for there the much we've in as well higher strong good fiber, as in advantages as has power, copper is use much you optics want when are you a

demand. the so than ultra-high capabilities And that's X that And these copper value we of can been stretching the we've for create it something our for more such doing bandwidth that is decades. by can meet customers

achieving your aspirational XXX high-speed copper. of through beyond brought that. create as copper. Back by over engineering into that to XXX, we're then, about value And expertise. are create on our things an Systems that or maybe copper you stretching gigabits of capabilities years an aspiring real value knows When position technology, leadership X things Connection we XX the that's copper. Today, of over acquisition for you the through engineering and incredible doing is customers think can and This I and can aspirational I Teradyne like us think teams being that XX who over and and back a talking of ago, kind speed were like the XXX gigabits as

Operator

Our next with Asiya from is question Citi. Merchant

Asiya Merchant

results. on CapEx. the can I on Congratulations little bit a If

I bit CapEx think here. a little elevated mentioned on Craig

understand And exist? Are growth? end the you me support help putting IT to so if at rate we CapEx expect could the the we do this of in how run long to datacom you that guys are CapEx

Craig Lampo

Asiya. Thanks, Yes.

growth So little we our seeing as a the year, well. to extent, the to both we so bit, to that as, this not the datacom elevated for talked of certainly yet in levels as we're significant giving mean we next we we're I capital and I'm guidance just this of certain if not market being well IT quarters to kind in last drive support for defense a you for elevated fourth a I said expect But this necessarily think expect reiterated kind continue to spend, quarter to to spend expect and quarter, about here that perspective. quarter. on we of the next do And comment kind be target would to couple capital going for bit of of X% of X% from at kind what specifically of capital XXXX. we sales kind about certainly be

XXXX be kind years, our be expect middle growth, yes, expectation our we end kind of would of of tend changed so. growth or business other structurally from kind and the capital strong going in see range years, that kind higher of going has of range the or in at years I we're as lower to of to to think certainly that the more long-term nothing see I that we in forward. Certainly, of such mid- kind of spend maintain to over in here,

as elevated point. expect specifically our we the if we year Certainly, we'll So I enter levels this capital XXXX year. see that's think that we next how about talk at more

Operator

Spak Our question is next UBS. with from Joe

Joseph Spak

ones. One, from America, Maybe in okay, if just impact you the wanted And quarter, know tough. you guidance understand, and green some to you X gave, mentioned significant? then I Asia, assumed whether shoots, at last today talked North I industrial you all ongoing and quick aerospace Europe any about strike that's the that

that you're Just of there's, if further and seeing China any any guess, impact I wondering stimulus if in sprouting, the region? from any

R. Norwitt

workforce. your to their within all have strikes, aerospace that our our all specifically relations always wish guidance have mean, world, they around relative customers tell I'll Joe. you peaceful we much, without that very with from and on on And first market. our look, Thanks the of information customer, any I incorporates question Yes. look, for I commenting we the including that that mean customers

In terms sequential organic the green it's from of the mean, an we industrial see we absolutely did The this seeing green some industrial. talk did shoots look, shoots, basis I about And quarter. some growth last in case. prior quarter, on quarter,

basis in We market Europe trends probably and ago. we'll we've are tick the and seen industrial automotive at year-over-year And down as a the sequentially, But incremental I industrial watch. The industrial Asia. in both our market on maybe both fairly they well. more and think little in a I Europe you in what muted quarter organically to mean -- America of were and for but a seen we've probably look an view grew mean in pleased are will I than hip what say automotive know regions, that have North there, the to with Europe. tied we're in I the industry

somewhat big on European lot You which like, of the who and a economy. of and industries machine the dependent tool that come cycles from are automakers such have the component are investment factory automation the a

we this, watch we'll tighten what belt it put high to in team scenario and is business. how head some -- it see and go proceeds. and organization, our think this take is But have to your Like I your like you where so that and very look, but not be up cavalier mean, I to it you our is. And used about

they moderation come there geographies, -- to these to team a our like place capitalize as the the opportunities Europe, in automotive, in playbook. along. work to a are industrial fair and those knows that than extent our that. in And deal we'll a there in We've more is, that got and And upon to extent so how other with share take

Operator

is Delaney next question with from Mark Sachs. Our Goldman

Mark Delaney

EBIT CIT record full of even acquisition. at high, margins the in with contribution came quarter a a

CIT So and already the incremental strength about the this at margins running us on at understand to where point, level you levels better if think led I'm you're what hoping past And investors should they're can Maybe forward? this going margins to set are targeting? margin how quarter?

Craig Lampo

quarter. this here Yes. Thanks, really without Mark. I saying really operating in we third done execution, We're the our really really, this of job mean, year, the quarter. really proud have goes a third of margins and great here in

a still CIT strong about The their But to talk so margin margins, team for I contributor was quarter execution the we've the the here the team wasn't third on ability and much here would of the strong we're just in the their really I would maximize say growth margins. profitability the the improvement, say, That seen. journey. going margin really ultimately, improvement on to to really, they're the specifically that just not

And well seen still forward, the long quarters. And kind really better conversion we've as talk grow, grow. XX% growth recent we but to that, kind kind execute the we to we think, margins over this, we strong We've able of go over think has be the the we'll well been about I is margin. the to increase continue than recently. done would term, about executing very continue this things, as I I on XX% way clearly we of that of as think that those and expect team

days so how would the would happy we will long the XX average. kind company the so I talk to CIT I ultimately, get ago, but to say think, very exactly really it As optimistic that to going it's far. how certainly I'm And much at going that, today, even relates CIT we're to we're progress us average, get even not certainly, say, versus more take with to about of long company

They're team. great those to strides a And part great just goals. They're really Amphenol. great be is think to some this need to really extremely get making the of they're But motivated. they I excited to steps take

Operator

next Guy Capital from Freedom with is Our Markets. Hardwick question

Guy Hardwick

results. on Congratulations fantastic QX the

news sort that any Does -- earlier mean than great than you expected. or little have that you close may a obviously, closer can bit Andrew Just encountered it's of antitrust receiving? that issues

R. Norwitt

were mean, a on know of geographies. knew of can global a much. look, thanks very be Andrew be to operates lot things basis take. going would Well, there that different thought Yes. but those because issues, be antitrust meaningful to filings long never any never in I how And we done you lots we there

And be thought in think to I but first again, the never any is we're were to we to reiterate, we confidence process just opposed there how in half. think But by going really encouraged -- sometime a do. it's always to and the as that first that substantive issues, the just there's to us quarter gives the going process antitrust

Operator

is next Our from question Steven Advisors. Fox Fox with

Steven Fox

device back you I was market. could step wondering the mobile on if

the talk data about think You that is called growth, an going out you even see and if for single growth Can comprised the interesting doing roughly? few how of, what you you're of it in next of for sort kind what down content are quarters, high you of think just to a implies much it's year, markets digits what off it's is 'XX. high single-digit that now which point, year maybe

R. Norwitt

let bit devices question let I'm this. not in much, on X very mobile Steve. next punt the quarters, part your because I several forecasting of thanks your do Well, even me but good a Yes. at quarter, alone very will little last

team I devices such done job again phenomenal in working mobile Our year. this has a this is mean, organization. a fabulous just

there's the obviously, like on doubt of years of the we're these we And the years, back if these entirety calls as phrase that I've working that I think you about connectors, obviously, content that the participate expand. the continues antennas, in things for a products, in, technologies doing here almost CEO. used content mechanisms no in. probably And to XX many, my that nearly many And think breadth many

for that can question that really, And result innovations more hardware devices there them, our make customers. the And the value our for out. there's are coming to is ultimately ultimately team customers, continued And really create opportunity then value the in our and the us. things themselves the no see creates just is products. when beautiful that those functionality those more that and It's beautiful for into you the products products helping in comes

this that caveat fickle Now the very volatile look, you all to tell of a is that is market. with dynamic

all ultimately, a be just and sort these I'm these fourth mobile line mean allow devices. I user And so spot power tablet, of at around on even you on not And communicate extraordinary productive. we're is gets in hopefully, be market they period that a use a quarter them devices. in has but I levels usually I'm I'll hearable And doubt. guiding told with times. But but the right a sitting pretty phone becomes them think, robust guiding used The learned, devices. between we device. how all the mean -- mobile things, of I wearable, we to there time in third that XX-day about in have do maybe a no and mobile blurred a I have all stay quarter. what at that the to achieved things the of be constantly. They that, to these -- me -- I to here can you

I communication our to the that product. of such limits productivity customers ultimately that And and push think consumers want to buy the continue that

we that's I stand where and -- So think today.

to Steve, it's knows be, going Next year, shall who see. what we

Operator

with next Research is from Partners. Seaport Graham Scott Our question

Scott Graham

maybe I comment which you versus maybe would those orders organic was weaker? perhaps hoping and in were were call stronger out on verticals the quarter which

R. Norwitt

being about about we a mean something mean you're company being acquire companies we than if I I book-to-bill is we growth own, prior our that like organic book-to-bill of to their revenues, Amphenol. a really on think organic strong greater Yes. not they part is this. that's is our don't because of book-to-bill, still I like talk or bookings what total the and orders, reflection talking order have it

Operator

of from Wamsi America. Bank next question with Mohan is Our

Wamsi Mohan

out aperture that, of And how visibility next? Like on these you are? the a out would I far orders, helpful? some orders? these current maybe beyond maybe can Are versus even how that be would fulfill orders quarter these much about talk again, stretched Adam, of was could comment these you if order you maybe like wondering that number, the have one, you maybe, around strong very

R. Norwitt

quarter Well, And these Look, mentioned, we very very it to that again I somewhat the Wamsi. aperture I'll last comm thanks And bit reiterate books-to-bill. air have defense appreciate IT strong see of lesser in I first those much, Yes. in question. quarter, I and we this think, are datacom the there's that strong a seen order opening. and doubt books-to-bill have a probably extent. and no particular,

about than I a is already orders. actually be Craig And used spending can have imagine relate assurance used, that that and talked to we're of sure that And customers when capital the to And little we about that to to assurance fact make think we're work comes spending on would spending. CapEx. in also more that, more you form the often capital with going we that on we capital, bit

It can of also come guarantees. in or the contributions form

typical. of give aperture extent we'll some be there's more that is security us that the order that's little longer comfort may and that to those so is there which a significant And than be bit investments, making

occasional anything any fulfilled numbers. be internally. a even our within occasionally, those more book how of of I think, there a accounting that's couple -- don't on within poke are say tell the out of I be rule we'll quarters majority record quarters. a an you couple quarters. And of some basis. would would sort mean, majority vast But out, of terms that far But vast can't than some of, that of out orders into In I sort booking be the an X look, I never our would That's out we in could year

Operator

And our Cowen. last Giordano TD from Joe comes question with

Joseph Giordano

and in about currently there not at doing curious I'm it is markets spending not the just that go historically one. you're how markets now done in current new money scale what are find your guys to that on business you've using and you're there calls it, Adam, it? and it's in AI an new Like like success to you you hinted you're if having, you ability the this, your people motivate to said

And of this, XX% high tilt full that growing now, kind of it's going be them to you in to meet at business starts that sector the make do when I other to to hit like year how side are not running when guess growth the and prepare IT levels the a to times ultimately of stays demand people moderate? kind sure that for

R. Norwitt

mean, way. talking working I new to X with sides they I first, you're here, kind about that's get business question. excellent Joe. mean, that of as volatility? get look, don't can Yes, people you to -- it? here you do think when how you they Amphenolian maybe motivate motivate really keep always have to And do knowing I how as hard people do there And maybe the be what

applications. kind of mean you the of to that words get and aggressively is our if other culture essence thing. I the proliferate ways to seeds, same And agility, X entrepreneurship, of reactivity, difficult a which into flexibility, really understand there to those technology that. mean about I that out -- time, means just you're it boils planting your -- going kind thinking always of are down in you're you are finding

and the ways environment. $XX, and down $XXX connectors, just by they may our of the dropped there at doing I of in mean I oil folks price realized multitude oil be XX%, selling high-power that products in of business anecdotally really high-voltage, who that. the went gas still a than to ultra-harsh oil XX% selling and into more weren't they like remember time when from necessarily gas worked And were that they

you now grew again. it. no on stool. By or they stable third comes a once gas. go for that of a year-over-year strong opportunities products working technologies and folks token, time, and some more our you and recovering new may be market new second got maybe harsh a leg work I some you've about there's a and find those that for a ultra-high-voltage, the behold, market, develop So basis. then those when you're the ultra oil And that IT in kind for And in XX% environment base, lo how along not of and do really you application mean, do same doubt datacom,

lot than imagine. that We heck more by have a operations of individual a grew that, can you

their bear working prepared mean sacrifices I hard I remarks, the I on This that it but they have just in are, on putting and have but commend weekends, travel, their these and Amphenol, inevitably what work. earlier is one our events what the to talk folks me the each and to and they're thinking investment, put on this I products heart just where get I the numbers of humbling soul enough foot these regardless nights, have let a achieved to cycle? just like. goes witness they're cannot these is thereby, the they here, the said and gas matter. But tell into some made -- They're my down, missing and accordingly. me, managing in folks if I around there one what about personally, business it family world everybody is if hard, which -- to done with -- And brake. always it's you, guys mean

diversified mean, So that one company. day, when there a is cycle, I we're a

the like on this over I we've are cataclysmic through the global around been And not maximize of when the the moderate whether to that moderated we've think of XX strong. decades -- in couple that on know cycles. for our those it's We've downside. to business goes the cycles every strong cycles where those are And in a are big burst, demonstrated Internet job We business years. when crisis, and financial impact the cycle, impact bubble those our COVID, cycles

they these our X having mobile of they done of devices with deals one XX% little our the in cycles. And QX who a margins team points trough by in basis it cycle times year. I peak quarter, massively. mobile look, in Our we've those example mean, every QX. probably cycles are, XXX mean the sequentially devices' growing just best I businesses, those to from being dropping to grew also team across each cycles,

to that they're amount And probably a in time. QX, decent by going go down at

doubt their and with we families and And AI, stuff that Internet -- through it. working out of was the kind of datacom of flood this cycles, it and team, thereafter. this IT of up And they is all the the building COVID, and have thereby, about own a so there's inventory when that their coming happened COVID, all communicate on of was could so demand, the relatives, through no of saw that the built people also team who whether gone before

confident to the But we'll not not maximize inevitably that that be for And cycle to be, performance going so one only their as going I'm when certainly and been. to pick comes, team in will it I'm very are when here. ready always cycle our they Amphenolians be a have

Operator

our And I for Norwitt closing that was to last question. any turn back Mr. will it remarks.

R. Norwitt

I'm really I And on all to here talk say you to wish all. grateful a the XXXX. today, it, have finish to much you. year. very we'll to and you that you phone have thank the hard And in you Thank great all Well, of to but

Craig Lampo

much. you Thank very

Operator

attending for you conference, Thank and today's a nice day. have

Amphenol (APH) 23 Oct 242024 Q3 Earnings call transcript