Amphenol Reports Q4 and Full Year 2023 Results

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Amphenol Corporation reported fourth quarter and full year 2023 results.

“We are pleased to have closed 2023 with fourth quarter sales and Adjusted Diluted EPS both exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased from prior year by 3%, driven by growth in the commercial air, defense, automotive and IT datacom markets, as well as contributions from the Company’s acquisition program. For the full year, sales were down slightly compared to 2022, with growth in the commercial air, defense and automotive markets as well as contributions from the Company’s acquisition program, offset by moderations in the mobile networks, IT datacom, mobile devices and broadband markets. Despite the moderating demand in the communications-related markets during 2023, we again realized strong profitability with Adjusted Operating Margin of 21.2% and 20.7% in the fourth quarter and full year, respectively. Given the market environment, we are very proud of the Company’s outstanding performance in 2023.”

Throughout 2023, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. During the fourth quarter, the Company purchased 1.3 million shares of its common stock for $115 million and paid dividends of $126 million, resulting in total capital returned to shareholders of $1.09 billion in 2023.

“We remain focused on expanding our growth opportunities through a deep commitment to developing enabling technologies for customers across our served markets, an ongoing strategy of market and geographic diversification as well as an active and successful acquisition program. To that end, we are excited to have closed four acquisitions during the fourth quarter of 2023: TPC Wire & Cable (TPC), Airmar Technology Corporation (Airmar), LID Technologies (LID) and PCTEL, Inc. (PCTEL). Based in Ohio and with annual sales of approximately $110 million, TPC is a value-add provider of harsh environment cable and cable assemblies for the industrial market. Based in New Hampshire and with annual sales of approximately $90 million, Airmar is a global leader in ultrasonic sensors and sensor systems for marine and other industrial applications. Based in France and with annual sales of approximately $40 million, LID is a supplier of pressure sensor products for the industrial and automotive markets. In December, the Company also closed on the previously announced acquisition of PCTEL, a global leader in the engineering and manufacturing of antennas and wireless technology, including purpose-built Industrial IoT products and test and measurement solutions, with annual sales of approximately $85 million. TPC will be included in our Harsh Environment Solutions Segment, Airmar and LID will be included in our Interconnect and Sensor Systems Segment, and PCTEL will be included in our Communications Solutions Segment. All of these acquisitions further expand our offering of high-technology interconnect products across a variety of our end markets, while adding talented management teams to the Amphenol family.”

First Quarter 2024 Outlook

Assuming the continuation of current market conditions as well as constant exchange rates, for the first quarter of 2024, Amphenol expects sales to be in the range of $3.04 billion to $3.10 billion. This represents a 2% to 4% increase over the prior year quarter. Adjusted Diluted EPS is expected to be in the range of $0.71 to $0.73, representing a 3% to 6% increase from the first quarter of 2023.

Mr. Norwitt continued, “I am encouraged by our strong finish to 2023. While we faced many challenges across the global marketplace, the revolution in electronics has continued to accelerate, with new innovations creating exciting growth opportunities for Amphenol across each of our diversified end markets. In turn, we have expanded our range of high technology interconnect products, both through our organic innovation efforts as well as through our successful acquisition program. This expanded technology position coupled with our unique entrepreneurial culture has strengthened our competitive advantage. Our ongoing drive to leverage that competitive advantage and thereby create sustained financial strength has established an excellent base for the Company’s future performance. I am confident in the ability of our outstanding and growing entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Finally, I remain truly grateful to our team for their extraordinary efforts in navigating the many challenges around the world while continuing to strongly support our customers and drive outstanding operating performance.”