stockrowWhat it does
TE Connectivity plc makes connectivity and sensor products that help move power, signals and data through equipment. Its products include connectors, terminals, sensors, relays, cable and protective tubing. Customers use them in vehicles, electrical grids, factories, data centers, aircraft and medical devices.
A connector joins electrical or electronic parts so that power or information can pass between them. TE also makes products for demanding conditions, such as the heat, vibration and exposure encountered by vehicles and industrial equipment. Its sensors serve customers in industries ranging from automotive and commercial transportation to medical and aerospace.
The business has two segments. Transportation Solutions supplies automotive and commercial-vehicle manufacturers as well as sensor customers. Industrial Solutions serves data networks, automation, energy, aerospace and defense, and medical markets. Its products range from power-grid connections to components used in minimally invasive medical procedures.
TE sells primarily to manufacturers, both directly and through distributors, and works with customers on new products and technical solutions. It was founded in 2007 and its headquarters is in Schaffhausen. Terrence Curtin is chief executive officer. TE Connectivity plc is incorporated in Ireland.
How it makes money
TE earns revenue by manufacturing and selling components and solutions to manufacturers and distributors. Direct sales represented approximately 75% of total net sales in fiscal 2025. Orders and demand can fluctuate with economic conditions, and unfilled orders can be cancelled before shipment.
Transportation Solutions sells terminals and connector systems, sensors, heat shrink tubing, relays and application tooling. In fiscal 2025, automotive accounted for 75% of that segment’s net sales. Its products go into vehicle systems including powertrains, safety, infotainment and battery and charging applications. Commercial transportation accounted for 15% of segment sales, with sensors contributing 10%.
Industrial Solutions sells connectors and terminals, medical components, tubing, relays, wire and cable, and filters. Its customers use them in data centers and networks, automation, aerospace and defense, power grids, and medical applications. TE supplies both standard products and custom-designed solutions in parts of this segment.
Fiscal 2026 sales were nearly $20 billion; fiscal fourth-quarter 2026 sales were $5.3 billion.
TE competes on factors including price, product quality, innovation, delivery and service. It expects continuing downward pressure on prices, although some businesses have raised prices in response to higher costs and tariffs. The company has also repriced some backlog after discussions with customers when it did not believe it should bear the inflation risk. Customer relationships typically date back many years, but sales depend on customer orders rather than a stated recurring subscription arrangement.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Transportation Solutions | $9.4 billion | 54.4% | −0.98% |
| Industrial Solutions | $7.9 billion | 45.6% | 23.7% |
Customers and how it sells
TE sells into approximately 130 countries, primarily through direct sales to manufacturers, and also uses third-party distributors. It maintains distribution centers around the world; products generally move from its factories to those centers and then to customers, although some shipments go directly from a factory to a customer.
Customer groups include vehicle manufacturers, electric utilities, industrial equipment makers and companies building networking and data-center equipment. TE also sells to manufacturers in aerospace, defense and medical markets. It works with customers on product development and provides sales and engineering support across regions. No single customer accounted for a significant amount of net sales in fiscal 2025, 2024 or 2023.
In fiscal 2025, Asia–Pacific accounted for 38% of net sales, Europe, the Middle East and Africa for 33%, and the Americas for 29%. Sales are attributed to countries based on the legal entity recording the sale, rather than necessarily the location of the end user. TE employed approximately 93,000 people worldwide at fiscal year-end 2025, including contract employees.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| U.S. | $4.4 billion | 34.8% | 9.65% |
| Switzerland | $3.9 billion | 30.5% | −1.18% |
| Other Asia-Pacific | $1.9 billion | 15.3% | 8.13% |
| Other Europe/Middle East/Africa | $1.7 billion | 13.3% | −3.87% |
| Other Americas | $560.0 million | 4.43% | 0.18% |
| Germany | $193.0 million | 1.53% | −18.2% |
Suppliers and costs
TE manufactures its products using plastic resins, precious metals and other metals. Gold, silver and palladium are used for plating; copper, aluminum, brass and steel are used in cable, contacts and other component parts. Some raw materials are produced in only a limited number of countries or are available from a limited number of suppliers. No individual sole-source supplier is named.
Material prices reflect global supply and demand, while disruptions, trade disputes and inflation have affected prices and availability. TE has also faced higher transportation and energy costs. It has used productivity measures, price increases and sourcing changes to address cost pressures and tariffs.
At fiscal year-end 2025, approximately 55,000 employees worked in manufacturing. TE has pursued factory-footprint consolidation, cost reductions and the elimination of excess capacity. It is also expanding engineering and manufacturing capacity to support design wins and expected growth. The company continues to experience inflationary pressure on resins, metals and freight.
- Revenue$19.9B
- Cost of revenue−$12.7B
- Research and development−$942.0M
- Selling, general and administrative−$2.1B
- Other operating costs−$149.0M
- Operating income$4.0B
Competitive position
TE competes with thousands of companies, from multinational groups to local manufacturers. Competition depends on product range, innovation, price, quality, delivery and service. In transportation, its named competitors include Yazaki, Aptiv, Sumitomo, Sensata, Honeywell, Molex and Amphenol. In industrial markets, competitors include Amphenol, Hubbell, Carlisle Companies, Integer Holdings, Molex, Omron, JST and Korea Electric Terminal.
TE works with customers on new products and technologies and supports them with sales and engineering teams across regions. It also offers both standard and custom-designed products. Our reading: these relationships and design capabilities can help TE retain business, but the evidence does not establish how costly it is for customers to switch suppliers.
The company owns patents and trademarks and relies on trade secrets, manufacturing know-how and continuing innovation. It does not consider its position dependent on any single patent or group of related patents. Our reading: its combined technical capabilities offer a more meaningful potential defense than any individual patent, though price pressure and a large field of competitors limit that protection.
TE’s range spans vehicles, industrial equipment, energy and data networks. Our reading: that breadth can help it serve customers across applications, but it does not remove exposure to downturns in individual markets.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Yazaki | Transportation connectivity and sensors | High |
| Aptiv | Transportation connectivity and sensors | High |
| Sumitomo | Transportation connectivity and sensors | High |
| Sensata | Transportation connectivity and sensors | Medium |
| Honeywell | Transportation connectivity and sensors | Medium |
| Molex | Transportation and industrial components | High |
| Amphenol | Transportation and industrial components | High |
| Hubbell | Industrial components | Medium |
Growth opportunities
TE sizes the combined market served by its two segments at approximately $200 billion as of fiscal year-end 2025. Its opportunities include increased vehicle electrification and data connectivity, investment in electrical grids, factory automation and the power and data connections needed in data centers.
In fiscal 2026, sales increased 15% year over year. Digital data networks and energy together accounted for approximately half of organic sales growth. TE said its digital data networks orders grew roughly 70% for the full year, driven by hyperscale customers. It expects to add over $1 billion of digital data networks revenue in fiscal 2027, mostly from AI applications, and expects more than half of that growth in the second half of the fiscal year.
The company is investing in engineering and manufacturing capacity and has made acquisitions to expand its optics and power-filtering offerings. Its optical work includes fiber-attachment technology for connections near or on a chip; TE is conducting engineering validation with certain customers.
In transportation, TE expects vehicle data connections, powertrain electrification and greater use of electronics to support growth in content per vehicle. It is also working with manufacturers on humanoid robot designs and estimates up to $500 of potential TE content per robot. The company identifies the number of robots ultimately produced as an uncertainty.
- $16.3BFY2022
- $16.0BFY2023
- $15.8BFY2024
- $17.3BFY2025
- $19.9BFY2026
Structural risks
- Cyclical demand: TE depends on automotive and other industries in which periodic downturns have materially affected results. Vehicle production influences its automotive sales, while customer orders can change with economic and market conditions.
- Materials and costs: Shortages, lower quality or higher prices for raw materials could materially hurt results. Some inputs come from a limited number of countries or suppliers, and the company continues to face pressure on resins, metals and freight.
- Competition and pricing: Electronic components markets are highly competitive. TE expects continued downward pricing pressure, and its position depends on product performance, service, technology development and participation in emerging markets.
- Global operations and trade: Tariffs, trade disputes, sanctions, import and export rules, political instability and local labor conditions can affect sales, profitability and procurement. Some products require government import or export licenses.
- Execution and technology: Future acquisitions may not be successful. TE’s ability to compete also depends in part on protecting proprietary products and technology; its fiber-attached technology is still undergoing engineering validation with some customers.
Bottom line
Our reading
Our reading: TE is a component manufacturer whose customer relationships and engineering capabilities span transportation and industrial markets. Its data-network and energy businesses are contributing to growth, while automotive demand and input costs remain important exposures. Design work and manufacturing breadth can support its competitive position, but the company still faces pricing pressure and must turn newer optical opportunities into scaled production.