Research · Sep 3, 2026
[TEL] TE Connectivity Thesis 2026: EV ADAS Connector Content Drives Transportation Compounding
TE Connectivity Ltd. FY2025 revenue ~$15.5-16.0B (+1-3%) with adj. EPS ~$8.20-8.60 reflecting continued post-2023 auto cycle weakness recovery + selected EV/ADAS connector content per vehicle uplift + selected industrial cycle recovery + selected operational excellence under continued CEO Terrence Curtin (since 2017). Leading global electrical/electronic connectors + sensors firm; formed June 2007 via spin-off from Tyco International (selected Tyco Electronics renamed TE Connectivity 2011 corporate rebrand); historical Tyco Electronics + AMP Incorporated heritage from 1990s acquisitions. Headquartered in Schaffhausen Switzerland (corporate domicile; substantial global operations); ~85,000+ employees globally with ~$15.5-16.0B revenue; fiscal year ends ~September. 3 segments: Transportation Solutions ~60% ($9.5B — Auto ~$7.5B selected EV/ADAS content per vehicle uplift ~$50-100 ICE → ~$200-400 EV/HEV + selected major OEMs Tesla + Ford + GM + Toyota + selected European OEMs + Commercial Transportation ~$1.5B + Sensors ~$0.5B; ~16-18% segment margin) + Industrial Solutions ~25% ($4.0B — Factory Automation + Medical + Aerospace/Defense + Marine; ~14-16% margin) + Communications Solutions ~15% ($2.4B — Datacenter selected post-2024 AI compute growth + selected appliance; selected ~15-25% YoY post-2024 AI compute; ~12-14% margin). Selected #1 global electrical/electronic connector firm with selected ~15-20% global connector market share (vs Amphenol + Aptiv + Molex competitive). EV/ADAS content per vehicle uplift: selected ~$50-100 ICE → ~$200-400 EV/HEV (selected 4-5x increase); selected major customer relationships with selected top auto OEMs. Geographic mix: Asia-Pacific ~40% + EMEA ~33% + Americas ~27%. CEO Terrence Curtin since March 9, 2017 (succeeded Tom Lynch CEO 2008-March 2017 retired; Curtin ex-TE Connectivity President + COO 2014-2017 + ex-TE Industrial Solutions President + ex-Tyco Electronics various roles + ~25-year career). Key transactions: 2007 Tyco spin-off + 2011 TE Connectivity rebrand + 2021 ERNI Group $260M (selected high-speed connectors) + 2024 First Sensor + selected smaller bolt-ons. Capital return: dividend $2.84-2.96/share annual (selected continued increases ~5-10% annually) + buybacks $1-2B (selected aggressive ~3-7%/yr share count reduction); investment-grade A-/A3 credit rating; net debt $3-4B (selected modest). FY2026 thesis: EV/ADAS content uplift + auto cycle recovery + Communications AI compute + capital return. Risks: auto cycle volatility, EV adoption deceleration, competitive intensity (Amphenol + Aptiv + Molex), tariff exposure (~50%+ China/Mexico).