Amphenol Corporation (APH) Q4 2025 Earnings Call Transcript

Amphenol Corporation (NYSE: APH) Q4 2025 Earnings Call dated Jan. 28, 2026

Corporate Participants:

Craig Lampo — Executive Vice President & Chief Financial Officer

Adam Norwitt — President and Chief Executive Officer

Analysts:

William Stein — Analyst

Amit Daryanani — Analyst

Luke Junk — Analyst

Wamsi Mohan — Analyst

Samik Chatterjee — Analyst

Andrew Buscaglia — Analyst

Steven Fox — Analyst

Mark Delaney — Analyst

Asiya Merchant — Analyst

Joseph Spak — Analyst

Guy Drummond Hardwick — Analyst

Scott Graham — Analyst

Joseph Giordano — Analyst

Presentation:

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It. Good afternoon everyone. This is Craig Lampo.

operator

Hello and welcome to the fourth quarter 2025 earnings conference call for Amphenol Corporation. Following today’s presentation, there will be a formal question and answer session. Until then, all lines will remain in a listen only mode. 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. Craig Lampo. Sir, you may begin.

Craig Lampo — Executive Vice President & Chief Financial Officer

Great. Thank you so much. Good afternoon everyone. This is Craig Lampow, Ampanov CFO and I’m here together with Adam Norwood, our CEO. We would like to wish everyone a Happy New Year and welcome you to our fourth quarter of 2025 conference call. Our fourth quarter 2025 results were released this morning. I’ll provide some financial commentary and then Adam will give an overview of the business and current market trends. Then we will take your questions. As a reminder, during the call we may refer to certain non GAAP financial measures and make certain forward looking statements. Please refer to the relevant disclosures in our press release for further information.

The company closed the fourth quarter of 2025 with record sales of $6.4 billion and GAAP and adjusted EPS of $0.97 and $0.93 respectively. The fourth quarter sales were up 49% in U.S. dollars, 48% local currencies and 37% organically compared to the fourth quarter of 2024. Sequentially, sales were up 4% in U.S. dollars and in local currencies and up 3% organically. Adam will comment further on trends by market in a few minutes. For the full year 2025 sales were approximately $23.1 billion, up 52% in US dollars, 51% in local currencies and 38% organically compared to 2024.

Craig Lampo — Executive Vice President & Chief Financial Officer

We were very encouraged by our orders.

Craig Lampo — Executive Vice President & Chief Financial Officer

In the quarter which were a record $8,431,000,000, up a strong 68% compared to the fourth quarter of 2024 and up 38% sequentially, resulting in a very strong book to bill ratio of 1.311. This impressive book, the bill in the quarter was primarily driven by robust bookings in the IT Datacom market related to AI applications. We have seen customers open their order window a bit in certain cases which helped to drive these strong bookings. For the full year, orders were $25.4 billion, up 51% compared to 2024, resulting in a book to bill ratio of 1.1 to 1.

GAAP operating income was $1.7 billion in the quarter and GAAP operating margin was 26.8%. GAAP operating margin included $47 million of acquisition related costs, primarily for external transaction costs and the amortization of acquired backlog. Excluding acquisition related costs, adjusted operating margin and adjusted operating operating income was 27.5% and $1.8 billion respectively. On an adjusted basis, operating margin increased by a strong 510 basis points from the prior year quarter and was flat sequentially. The year over year increase in adjusted operating margin was primarily driven by robust operating leverage on the significantly higher sales volumes, which was only modestly offset by the dilutive impact of acquisitions.

For the full year 2025, GAAP operating income was $5.9 billion and included $181 million of acquisition related costs. Excluding these costs, adjusted operating income was $6.1 billion in 2025. For the full year, GAAP operating margin and adjusted operating margin reached annual records of 25.4% and 26.2% respectively. On an adjusted basis, operating margin increased 450 basis points compared to 2024, primarily driven by strong operational performance on the significantly higher sales volumes, which again was only modestly offset by the dilutive impact of acquisitions. I’m extremely proud of the company’s operating margin performance in the fourth quarter and for the full year 2025, both of which reflect continued strong execution by the team.

Breaking down fourth quarter results by segment compared to the fourth quarter of 2024, sales in the Communication Solutions segment were $3.4 billion and increased by 78% in US dollars and 60% organically. Segment operating margin was 32.5%. Sales in the Harsh Environment Solutions segment were $1.7 billion and increased by 31% in US dollars and 21% organically and segment operating margin was 27.6%. Sales in Interconnect and Sensor Systems segment were $1.4 billion, increased by 21% in US dollars and 16% organically and segment operating margin WAS 20.1%, bringing down full year results by segment compared to 2024, sales in the Communication Solutions Segment were $12.1 billion, increased by 91% in US dollars and 71% organically and segment operating margins was 31.1%.

Sales in the Harsh Environment solutions segment were $5.9 billion, increased by 33% in US dollars and 17% organically and segment operating margin Was 26.2% and sales in the Interconnected Sensor Systems segment were $5.2 billion and increased by 15% US dollars and 13% organically and segment operating Margin was 19.5%. For the fourth quarter, the company’s GAAP effective tax rate was 26.9% which compared to 17.4% in 4Q24 and full year 25. GAAP effective tax rate was 23.1% which compared to 18.9% in 2024. On an adjusted basis, the effective tax rate of 25.5% both for the fourth quarter and full year which compared to 24% in the prior year periods.

As we discussed last quarter, the increase in our adjusted effective tax rate in 25 was due to some shift in income mix to higher tax jurisdictions. For modeling purposes, you should assume that this higher tax rate of 25.5% continues into 2026 as our typical practice. Our adjusted tax rate excludes the tax effect of any acquisition related costs as well as excess tax benefit from stock option compensation as well as other discrete tax related items. Specifically, in the fourth quarter and for the full year 2025, our adjusted tax rate excludes $100 million discrete tax accrual related to notices received by certain subsidiaries in China from relevant tax authorities challenging certain taxes taken over the last eight over up to an eight year period.

We believe these tax positions are appropriate and remain engaged in ongoing discussions with the relevant tax authorities. GAAP diluted EPS was $0.93 in the fourth quarter, up 58% compared to the prior year period and on an adjusted basis, diluted EPS was a record 97 cents and increased by 76% compared to the 55 cents in the fourth quarter of 2024. This was an outstanding result for the full year. Gap and adjusted EPS were both a record $3.34, an increase of 74% and 77% respectively. Operating cash flow in the fourth quarter was $1.7 billion or 144% of net income, and free cash flow was $1.5 billion or 123% income and for the full year of 2025, operating cash flow was a record $5.4 billion or 126% of net income and free cash flow was a record $4.4 billion or 103% of net income.

Considering the high growth rates we experienced this year, this is a very strong result from a working capital standpoint. Inventory days, day sales, outstanding and payable days are all within our normal range. During the quarter, the company repurchased 1.3 million shares of common stock at an average price of approximately $134 when combined with our normal quarterly dividend. Total capital returned to shareholders in the fourth quarter of 2025 was approximately $373 million and was nearly $1.5 billion for the full year of 2025. Total debt at December 31st was $15.5 billion and net debt was $4.1 billion, which included $7.5 billion from the US bond offering we completed in October in anticipation of the closing of the CCS acquisition.

Total liquidity at the end of the fourth quarter was $17.5 billion, which included cash and short term investments on hand of $11.4 billion plus availability under our existing credit facilities and $3.1 billion of term loan facilities put in place in anticipation of the CCS acquisition. In early January, the company closed the CCS acquisition, which was funded with cash on hand, primarily resulting from the October 2025 bond deal as well as the $3.1 billion of term loan facilities. As a result of the acquisition of CCS, we expect 2026 quarterly interest expense net of interest income from cash on hand to be approximately $200 million, which is reflected in our first quarter 2026 guidance.

Adjusting for the impact of the CCS acquisition, our net debt at year end would have been $14.7 billion and our liquidity would have been $6.9 billion, which includes Pro forma cash and short term investments on hand of $3.9 billion. Fourth quarter 2025 EBITDA was $2 billion and our net leverage ratio was 0.6 times at the end of the day quarter pro forma net leverage at the end of 2025 including the CCS acquisition would have been approximately 1.8 times as of December 31, the company had no outstanding borrowings under its revolving credit facility or its commercial paper programs.

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

Adam Norwitt — President and Chief Executive Officer

Well, thank you very much Craig and I also would like to offer my best New Year’s wishes to all of you here. Craig and I are here in the winter wonderland of Wallingford, Connecticut and it’s a real pleasure to talk to you about our fourth quarter and full year achievements. I’ll highlight some of those achievements and then as Craig mentioned, I’m going to discuss the trends across our served markets. We’ll make some comments on the outlook for the first quarter and then of course we’ll have time for questions. Turning to the fourth quarter, there’s no doubt that Amphenol had a strong finish to a very successful 2025 with sales and adjusted diluted earnings per share in the fourth quarter, both exceeding the high end of our guidance.

Sales grew by 49% in US dollars and 48% in local currencies, reaching a new record of $6,439,000,000. And on an organic basis, our sales increased by 37% with robust growth across nearly all of our served markets. As Craig mentioned, we booked a record 8.4 billion of orders in the fourth quarter which represented a very strong book to bill of 131 to 1. These orders grew by 68% from prior year and were up 38% sequentially. And while orders were strong across the board, there’s no doubt that these robust orders were driven primarily by data center demand, related in particular to artificial intelligence investments being planned by a number of our large customers.

We were also pleased in the quarter to have delivered adjusted operating margins of 27.5% in the quarter, which matched our record setting margins in the third quarter and which represented an increase of 510 basis points from prior year. This superior profitability is a direct result of the outstanding execution of the Amphenol team around the world. Our adjusted diluted EPS in The quarter grew by 76% from prior year, reaching a new record of $0.97. Finally, the company generated record operating and free cash flow in the fourth quarter, 1.7 billion and 1.5 billion respectively, both clear reflections of the quality of the company’s earnings.

I just can’t express enough my pride in our team here in the fourth quarter. These results once again reaffirm the value of the discipline and agility of our entrepreneurial organization as we continue to perform well amidst a very dynamic environment. We’re also very excited in the quarter that we closed on the previously announced acquisition of Trexon. With operations in the US and Europe and with annual sales of approximately 290 million. Trexon is a leading provider of high reliability interconnect and cable assemblies, primarily for the defense market. We’re particularly excited that Trexon further expands our value add interconnect offering for the defense market, enabling us to offer our customers in this important area a complete solution of high technology interconnect products, really the broadest in the industry.

We look forward to the Trexon team flourishing as part of the Amphenol family. In addition, just here in January we were excited to have closed on the acquisition of the CCS business from Commscope a bit earlier than we had anticipated. This business, which will be known going forward as Commscope. An Amphenol company represents a significant expansion of our interconnect capabilities across three of our important end markets. As we discussed last year, Commscope adds significant fiber optic interconnect capabilities for the it, datacom and communications networks markets, as well as a diverse range of industrial interconnect products for the building connectivity market, which will be included in our industrial segment.

We look forward to working closely with the Commscope team as they embrace the Amphenol operating culture and are really excited about the potential that this significant acquisition can bring to our company. As previously disclosed, we expect Commscope to generate full year 2026 sales of 4.1 billion and to add $0.15 to Amphenol’s 2026 adjusted earnings per share. As we welcome the outstanding Commscope and Trexon teams to the Amphenol family, we remain confident that our acquisition program will continue to create great value for the company. Our ability to identify and execute upon acquisitions and then to successfully bring these companies into Amphenol remains a core competitive advantage.

And there’s no doubt that as our organization has evolved and scaled, so too has our ability to effectively manage a greater number of acquisitions of all sizes. Now turning to the full year 2025 simply put, 2025 was a uniquely successful year for Amphenol. We expanded our position in the overall market, growing our sales by 52% in US dollars, 51% in local currency and 38% organically, reaching a new sales record of 23 billion or $23.1 billion as we cross 23 billion in sales in 2025. We’re very proud to have more than doubled Amphenol’s revenues in the past four years, a great reflection of our organization’s ability to navigate market dynamics while capitalizing on the broad array of opportunities arising across the electronics industry.

Our full year 2025 adjusted operating margin reached a record 26.2%, and that was a robust increase of 450 basis points from prior year. And this strong level of profitability enabled us to achieve record adjusted diluted EPS of $3.34, an increase of 77% from the 2024 levels. As Craig mentioned, we generated record operating cash flow of 5.4 billion and free cash flow of 4.4 billion, clear confirmations of the company’s superior execution and disciplined balance sheet management. Very proud that our acquisition program again created great value this year. We completed five acquisitions in 2025, including Andrew, our largest acquisition at the time, together with the acquisitions of Trexon Narda, Mitek, Lifesync and Rochester Sensors.

Collectively, these acquisitions have added to Amphenol annualized sales of nearly $2 billion. In addition, as I just mentioned and as we announced earlier this month, we also closed on our largest ever acquisition now, which is the Commscope acquisition. What is in common across all these acquisitions is that they enhance our position across a broad array of end markets and deep enabling technologies, all while bringing outstanding and talented individuals into the Amphenol family. We also returned substantial cash to shareholders in 2025, buying back nearly 7.5 million shares under our share repurchase program and increasing our quarterly dividend by 52%.

This represented a total return of capital to shareholders of nearly $1.5 billion. As we enter 2026, I remain excited about the opportunities ahead of us for Amphenol. Our agile entrepreneurial organization has created a new position of strength for the company from which we can continue to drive superior long term performance. Now turning to our served markets once again, I’m very pleased that the company’s end market exposure remains diversified, balanced and broad, and there’s no doubt that that presence that we have across all these end markets creates great value for the company as we’re allowed to participate across all areas of the global electronics industry wherever there may be new revolutions arising, all while not being disproportionately exposed to the volatility of any given application or market.

Turning first to the defense market, that market represented 10% of our sales in the fourth quarter and 9% of our sales for the full year 2025. Sales in the fourth quarter grew strongly from prior year, increasing by 44% in US dollars and 43% in local currencies. On an organic basis, sales increased by 29% with broad based growth across virtually all defense applications, including in particular radar, space, communications, avionics and unmanned aerial vehicles. Sequentially, sales increased by 16%, well ahead of our expectations for mid single digit growth. For the full year 2025, our sales grew by 30% in US dollars in local currency and by 21% organically, reflecting our superior operational execution as well as growth across all segments of the defense market.

In addition, we’re very pleased that our growth in 2025 was really broad based geographically, reflecting our leading position across the many countries for increasing their defense spending. Looking ahead, we expect sales in the first quarter to increase slightly, largely driven by the benefit of the Trexon acquisition, and we remain encouraged by the company’s leading position in the defense interconnect market where we continue to offer the industry’s widest range of high technology products. Amidst the current dynamic geopolitical environment, countries around the world are further expanding their investments into both current and next generation defense technologies. With our existing offerings as well as the exciting and complementary capabilities from Trexon, we are positioned better than ever to capitalize on this long term demand trend.

The commercial air market represented 5% of our sales in the quarter and for the full year 2025. In the fourth quarter our sales grew by 21% in US dollars and 20% in local currencies. On an organic basis, sales increased by 19% from prior year driven by broad based strength with virtually all commercial aircraft manufacturers. Sequentially, our sales grew by 10% from the third quarter, well above our expectations coming in 90 days ago. For the full year 2025, sales in the commercial air market increased by 39% in US dollars and 38% in local currency as we benefited from accelerating demand across aircraft platforms as well as from acquisitions.

Organically, our sales increased by 13% from prior year, reflecting our robust design and positions on a broad array of jetliners. Looking into the first quarter, we expect sales to moderate seasonally by approximately 10% on a sequential basis. I’m truly proud of our team working in the commercial air market. With the ongoing growth and demand for aircraft, our efforts to expand our product offering both organically and through our successful acquisition program continue to pay real dividends. In particular, I just want to note that we’re very pleased with the progress of the CIT team who have truly embraced being part of Amphenol and have driven outstanding results.

We look forward to further capitalizing on our expanded range of product solutions for the commercial air market long into the future. The industrial market represented 18% of our sales in the quarter and 19% of our sales for the full year 2025. Our sales grew by 20% in US dollars and 18% in local currencies from prior year and on an organic basis, we were pleased that sales grew by 10% driven by relatively broad based growth across the industrial end markets, in particular medical, alternative energy, E mobility, heavy equipment and industrial instrumentation applications. We also grew again in all of our major geographic regions.

On a sequential basis, sales grew by 2% better than our expectations for the full year 2025. Sales grew by 21% in US dollars and 20% in local currency as we benefited from relatively broad based growth as well as from acquisitions. Organically, sales grew by a strong 10% from prior year. Looking into the first quarter, we expect our sales to increase approximately 20% from these fourth quarter levels, driven by the addition of Commscope’s building connectivity business. We remain encouraged by the company’s strength across the many diversified segments of this important market. Over the long term, I’m confident in our strategy to expand our high technology interconnected antenna and sensor offering both organically and through complementary acquisitions.

This strategy has enabled Amphenol to capitalize on the many electronic revolutions that continue to occur across the diversified industrial market and thereby create further opportunities for our outstanding team working in this important market. The automotive market represented 14% of our sales in the fourth quarter and 15% of our sales for the full year. Sales in the fourth quarter grew by 12% in US dollars and 9% in local currencies and organic and that was driven by relatively broad based growth across automotive applications. In addition, we were pleased that once again we realized growth in all three regions.

Sequentially, our automotive sales were flat, but this was better than our expectations coming into the quarter. For the full year 2025, our sales increased by 8% in US dollars and 7% in local currencies and organic with growth in all 3 regions. As we look into the first quarter, we do expect a seasonal moderation in sales from this quarter’s levels of approximately 10%. I remain very proud of our team working in the important automotive market and while there are always areas of uncertainty in the global automotive market, our organization continues to be focused on driving new design wins with customers who are implementing a wide array of new technologies into their vehicles.

We look forward to benefiting from our strengthened position in the automotive market for many years to come. The communications Networks market represented 9% of our sales in the fourth quarter and 10% of our sales for the full year 2025. Sales in this market grew from prior year by 120% in US dollars and 119% in local currency as we benefited from the Andrew acquisition completed earlier last year. Organically, our sales were flat from prior year on a sequential basis, sales declined as expected by 13% from the third quarter and for the full year 2025, our sales to communications networks increased by 134% in US dollars in local currency and by 13% organically as we benefited from the addition of Andrew as well as growth in our products sold into the mobile network operators and wireless equipment manufacturers.

As we look towards the first quarter, we do expect a significant nearly 50% increase in sales as we benefit from the addition of the Commscope business which more than offsets the typical seasonal sales declines that we would see here. With our expanded range of technology offerings. Following the acquisitions of both Commscope and Andrew, we are well positioned with service provider and OEM customers across the global communications networks market. Our deep and broad range of products coupled with an expansive manufacturing footprint have positioned us to support these customers wherever they may be. And as customers in this market continue to drive their systems and networks to higher levels of performance, we look forward to enabling them for many years to come.

The mobile devices market represented 6% of our sales in the quarter and also for the full year and in the fourth quarter. Our sales moderated by 4% in US dollar, local currency, local currency and organic as growth in tablets, wearables and accessories was more than offset by some moderation in sales related to smartphones. On a sequential basis our sales increased by 6%, which was a bit better than our expectations coming into the quarter. And for the full year 2025, sales in the mobile devices market increased by 5% in US dollar and organic and that was really driven by growth across virtually all mobile device applications.

As is typical in the first quarter. We do anticipate a seasonal decline of some magnitude, roughly in the 30% range as we look into the first quarter, but nevertheless I’m very proud of our team working in the always dynamic mobile devices market as their agility and reactivity have once again enabled us to capture incremental sales in the quarter. I’m confident that with our leading array of antennas, interconnect products and mechanisms designed in across a broad range of next generation mobile devices, we’re well positioned for the long term. Finally, the IT Datacom market represented 38% of our sales in the fourth quarter and 36% of our sales for the full year.

Sales in the fourth quarter grew by very strong 110% in US dollar and organic driven by continued strong demand for our products used in AI applications together with ongoing growth in our base IT Datacom business. On a sequential basis, our sales increased by 8% from the third quarter, which was substantially better than our expectations 90 days ago. This sequential increase was essentially driven by growth in AI related applications. For the full year 2025, our sales in the IT Datacom market grew by a very strong 124% in US dollars and organic as we benefited from strong demand for AI related applications as well as accelerated growth in our non AI IT datacom business.

As we look ahead, we expect a low double digit sequential sales increase in the first quarter driven by the addition of Commscope and on an organic basis. We’re very pleased to anticipate that we will remain at these very elevated levels in the fourth quarter. We are more encouraged than ever by the company’s position in the global IT Datacom market. I just can’t emphasize enough what an outstanding job our team has done not only in securing future business on these next generation IT systems with a really broad array of customers, but in executing upon that demand here in 2025.

There’s no doubt that the revolution in AI continues to create a unique opportunity for Amphenol given our leading high speed and power interconnect products. With now the addition of Commscope, we have the broadest range of high speed power and fiber optic interconnect products, all of which are critical components in these next generation systems. This creates a continued long term growth opportunity for Amphenol. Turning to our outlook and of course assuming the continuation of current market conditions as well as constant exchange rates for the first quarter, we expect sales in the range of 6.9 billion to $7 billion and adjusted diluted EPS in the range of $0.91 to $0.93.

This would represent significant sales growth from prior year of 43 to 45% and adjusted diluted EPS growth of 44 to 48%. I would note that our Q1 guidance includes approximately $900 million in sales and $0.02 of adjusted EPS accretion from the Commscope acquisition. I remain confident in the ability of our outstanding management team to adapt to the many opportunities and challenges present in the current environment, while continuing to grow Amphenol’s market position, all while driving sustainable and strong profitability over the long term. Finally, I’d like to take this opportunity to first thank our customers for the trust that they put in us, and also to thank the entire global team of Amphenolians for their truly outstanding efforts here in the fourth quarter and in the full year 2025.

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

Questions and Answers:

operator

Thank you, Mr. Norwitt. The question and answer period will now begin. Please limit to one question per caller. To ask a question, please press star followed by one on your telephone keypad. Now, if you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. We have a question from William Stein from Trua Securities. Please go ahead.

William Stein

Great. Thanks for taking my question. Congrats on the very strong results and outlook. First, I’d like to ask about the the bookings which was, you know, very strong. I Think you highlighted a 1.31 book to Bill Adam that I imagine must have in it some extended duration orders in the backlog and I wonder whether that’s entirely concentrated or mostly concentrated in IT Datacom. And also if you can talk about what gives rise to that level of orders, is it based on sort of a need for them to place this in order to get in line from a sort of a lead time perspective or is this based perhaps on sort of minimum order requirement in order to, you know, meet capex requirements that you have any color on? That would be really helpful, thank you.

Adam Norwitt

Well, thank you very much Will. Look, no doubt we were very encouraged by the bookings as we came out of the year in 2025. And I’ll say a couple things. I mentioned earlier that in fact our bookings were really broadly strong across all of our end markets with maybe I think only one exception. Our book to Bill was at or above one and in a few cases significantly above one. And but there was certainly the IT Datacom market and specifically related to AI investments was a primary driver of this 1.31 book to bill and record orders for the company to achieve orders of more than 8 billion in the quarter was certainly a milestone for all of us.

Look, I think that as I mentioned and I think Craig alluded to that we have seen customers open up their order window in particular related to significant plans that they have of investments related to AI. This is not because of kind of getting in line, so to speak. I mean I think our team’s done a fabulous job of ramping up. I mean as evidenced by the extraordinary growth that we achieved last year, 124% year over year growth for the full year in it Datacom, there’s no doubt that our team has done an amazing job of ramping up to our customers needs.

But at the same time, and we’ve talked about this in the past because of the technology involved in a lot of these next generation products, really pushing the limits of these systems and pushing the limits of the products. These products do require in certain cases more automation, which fortunately we do the vast majority of that in house, which has been an amazing competitive advantage for Amphenol through this time period. And so we’ve worked with customers because of these sometimes outsized investment requirements and their outsized plans that they provide to us to somehow share the risk of those investments.

And we do that in a variety of ways. Those ways can include customers actually sharing some of the spending, contributing to the spending and otherwise giving us commitments that are solid commitments that give us the comfort to make those investments and drive the ramp ups that ultimately meet those customers demands. And so I think it’s more not and you use the word minimum order. I wouldn’t call it minimum order but rather it’s giving us the comfort through their own commitments to Amphenol that we should then make the commitments in capital and using Amphenol’s hard earned cash and the time of our teams to make those investments.

And I think it’s a great sign. It’s a sign number one of our customers intentions and their plans which are very robust. It’s a sign number two of our customers commitment and confidence in the Amphenol organization. And so no doubt about it, I think it’s a positive and you know we look forward to continuing to drive great success in that market in the future.

operator

Thank you. Our next question comes from Amit Dharianani from Evercore isi.

operator

Please go ahead.

Amit Daryanani

Thanks a lot.

Amit Daryanani

Good afternoon everyone.

Amit Daryanani

Thanks for being my question.

Amit Daryanani

Adam, post the CCS deal, can you.

Amit Daryanani

Just talk about the breadth of your offerings when it comes to serving these AI infrastructure customers? You folks have done really well on a standalone basis. But there’s this view I think out there that Amphenol is driven more by copper and as we move more to optics and fiber, there’s a risk here.

Amit Daryanani

So maybe hoping you can spend some.

Amit Daryanani

Time to help us appreciate the range of offerings you’re going to have post ccs. And how do you see these offerings.

Amit Daryanani

That you get from CCS really being.

Amit Daryanani

Complementary to what Anthenol has today? Thank you.

Adam Norwitt

Yeah, well, thank you very much, Amit. Look, there’s no doubt about it that we have worked for a long time and it’s kind of ironic, you know, we just celebrated the 20th anniversary of another foundational acquisition for Amphenol which was the acquisition of the Teardyne connection systems business 20 years ago, which really catapulted Amphenol into a leadership position in high speed copper interconnect products. I will tell you that at that time, you know, high speed meant 5 gigabits, maybe 10 on the outside. And over those 20 years we’ve continued to double down on the excellent capabilities that TCS brought us.

The people, most of whom are still with our team today, you know, there to celebrate that same 20th anniversary. And that has put us in a real leadership position as our customers drive their systems to higher and higher speeds. Now we have always been a player in fiber optics. I mean going all the way back to the early foundations of what a fiber optic connector was half a century ago or more. But there’s no question that with CCS, just like at the time with CCS 20 years ago, CCS vaults us into a position of breadth and depth in the technology around fiber optic interconnect.

That is a real expansion of our capabilities. And so when we go to customers and we talk about data center applications, or when we go to communications networks, customers and talk about their next generation network planning, we can now have that conversation across the entirety of the Internet connect of the interconnect spectrum. As they think about the various trade offs that a customer goes through, every time they think about their specific system architecture, you know, do they want to use a high speed copper interconnect here? What’s the power situation? How do they bring power into their system, into the rack, into a data center, into a network? And then how do they use fiber optics, you know, which have of course, fabulous traits in particular around high bandwidth long distance communications.

And customers are making these trade offs every day. And now with the CCS acquisition, what I’m so excited about is the unique position it puts Amphenol in as a company, be able to go in and talk to that entire spectrum of interconnect. Our customers just want to get a signal from a place to a place, and it’s up to us to work with them to figure out the best way to do that, whether they’re getting a signal from a GPU to a GPU or from a central office to a home somewhere or anything in between.

And I think now we were able to come to them with a total solution of leading interconnect products that ultimately allow us to have a seat at the table as a partner with those customers for many, many years and many generations to come.

operator

Thank you. Our next question comes from Luke Junk from Baird. Please go ahead. Great.

Luke Junk

Thanks for taking the question. Adam, maybe to bridge on that, the comments you just made, I’m just wondering if you could maybe speak to integration first steps at Conscope. And you know, like you mentioned, the deal got closed a little sooner than you had expected. Just how important is that in terms of bringing this new, fuller, broader portfolio to bear in data Center, Especially given how quickly this, this market’s moving right now.

Luke Junk

Thank you.

Adam Norwitt

Well, thanks very much, Luke. I’ll answer the second question. I mean, you know, you get one of these deals done, you got to get a lot of approvals in a lot of different places. And I think our team did a great job of working with the various authorities to get those approvals a bit faster. And I’m really grateful also to the folks who sold us this company and, you know, they’ve renamed their company now and I wish them all the best. It was really a great experience, I think, for all sides. And we worked really well together to bring this deal to fruition.

Quite a bit faster than we thought it was going to be at the time that we originally announced the deal, I would say. So the speed, I don’t think the fact that we closed it early in the quarter versus end of the quarter, that doesn’t change our position in the marketplace. Obviously, as soon as we announced the deal, you can imagine that our customers around the world were wanted to talk to us about what that meant for the long term. And so we’ve been having those conversations for quite some time already. In terms of the integration, I mean, you know, that word integration is not a word in the Amphenol lexicon.

You know, there are two words we don’t use, integration and synergy. But what we do talk about is letting them evolve into the Amphenol family, letting them be who they were, because it’s a fabulous organization. I mean, the leadership of the company is still the same leadership. The people are still the same people. We’re not parachuting people in. We’re not merging and morphing things into one or another, synergizing and restructuring. We’re actually working with the team on day one to say, what are the opportunities that now that you’re part of Amphenol you could hope to achieve that you maybe couldn’t have done as part of your former company? I was so happy, you know, on the first day of the acquisition that right after we announced it, I went to really one of the nerve centers of the company, as you know, the Commscope.

We’ve talked about this. In many ways, it is a collection of extraordinary iconic businesses in its own right. The Commscope business that was founded nearly 50 years ago by Frank Drendel as a supplier into the broadband networks market. The System X business, which is an amazing iconic business selling into building connectivity and the ADC Communications, which was a long legacy leader in fiber optic interconnect. And so I was really happy to go to Shakopee, Minnesota, which is really the nerve center of the fiber optics capability of this company, and meet with these engineers and the product managers and the folks leading that business.

And I can tell you they’re so excited to be part of Amphenol. And we broadcast a welcome around the world and just a kind of almost a universal excitement to be part of this company called Amphenol to become Amphenolians as they all now know that word. And so, you know, the first steps is, you know, meet the people, get excited, find opportunities to go accelerate the business. And that’s all well underway today.

operator

Thank you. Our next question comes from Wamsi Mohan from Bank of America. Please go ahead.

Wamsi Mohan

Yes, thank you so much.

Wamsi Mohan

Adam.

Wamsi Mohan

I was hoping you could maybe parse the 1 1st quarter IT data comm guide of flattish organically excluding CCS. Within that, should we be expecting the traditional sort of, you know, enterprise centric market, double digit decline and the AI workloads to grow. Is that the right way to think about it? And within the AI context is that more programs for you, more units in existing programs, any color you can share around. So what you’re hearing from your larger AI customers in terms of just trajectory given, especially your comments about racial waters.

Adam Norwitt

Yeah, well, thanks very much, Wamsi. Look, I mean, it’s hard for me to give too much of a parse of what that flat organic means. I mean, you’re correct. Traditionally the base IT datacom cycle would be down in the first quarter. So I think probably there’s some of that here as well. But look, in terms of our ongoing growth in AI, I mean, I want to emphasize one thing which is just the breadth of that business. We have an enormous position with a lot of different customers up and down the stack of AI from the folks who are making the investments, the big web scale folks and otherwise, including the cloud, the NEO cloud, whatever you guys all call these folks, the equipment manufacturers, all the way down to of course, the significant companies who are designing the chips and the architecture around those chips.

I mean, I will say that, you know, as we come out of 2025, that breadth is reflected in the fact that we didn’t have any 10% customers in 2025. You know, we have significant customers, but we have also a lot of breadth around that business. And so as our customers think about the forward potential of AI, I mean, I think there’s a few factors. Number one is their investment plans are all going up. There’s no doubt that there continues to be a very robust plan of continuing to drive accelerated computing at a very strong level.

And there’s upgrades of the technology embedded in those data centers, which requires a higher technology, more complex, higher content, degree of interconnect. We’re also very excited that not only are we participating, you know, as we have Traditionally bringing the power in power to the RACs and the like, the data communication within RACs, within adjacent RACs, but also now with Commscope participating in the broader fiber optic opportunity associated with those data centers. And, you know, there’s no doubt that that also creates a strong opportunity for the company going forward.

operator

Thank you. Our next question comes from sonic Chatterjee from JPMorgan. Please go ahead.

Samik Chatterjee

Hi. Thanks for taking my question and Happy New Year. Adam, I’m wondering, when you mentioned the sort of customers opening up their order.

Samik Chatterjee

Books a bit, when it pertains to.

Samik Chatterjee

Your IT Datacom business, are you seeing.

Samik Chatterjee

Anything similar for the CCS business? And the reason I ask is we.

Samik Chatterjee

Saw one of the competitors in the Space Corning announce agreement with Meta securing supply. So are you seeing hyperscalers or customers on that front come to you to sort of engage in those discussions to secure supply and what that would mean for your investment, sort of support for this business? Thank you.

Adam Norwitt

Yeah, well, thank you very much, Sonic. Yeah, look, no doubt we had very strong orders and I would tell you that the Commscope business, as we call it now, we’re not calling it anymore, ccs, has also had very strong orders and for sure, I mean, there have been plenty of announcements and you know, by really wonderful companies out there. And you know, we’re really proud to be considered in the same breath as some of these amazing companies that have also been in the public eye of late. And there’s no doubt that the CCS is participating.

I mean, we’ve talked about the fact that their exposure into the data center, their strong growth that they’ve seen in that area. You know, I would also just point out, you know, at the time we acquired and we announced the acquisition then of CCS, we talked about acquiring a company of roughly $3.6 billion in sales at a 26% EBITDA margin. And that, you know, implied a price of just over 11 times that we paid for it by the time we closed. We’re now talking about a business of more than $4 billion in annualized sales. That is a great momentum, strong orders, positive books to Bill and all of that, and obviously implies as well that you know, on a, at least on a current year basis here in 2026, this is a great deal for amphenol and really the high single digits in terms of an EBITDA multiple.

So I think it’s a great company with great prospects and yes, does see those same trends in terms of investments. I mean, look, we don’t see any significant, abnormal kind of things vis a vis investments of ccs. But I will say this, and that’s something we’ve talked about in the past. It’s a different thing for CCS to be a part of a company that, you know, for very obvious reasons was somewhat balance sheet constrained and now they’re part of Amphenol where we’re more than willing to help them stimulate the virtuous cycle that so many of our companies are on by making prudent investments that allow great returns and allow them to capitalize upon the opportunities in the marketplace.

And so it’s not that we’re just going to give them all blank checks here, but you can imagine that it’s a different environment for CCS in terms of their ability to grow into the opportunities as part of Amphenol than maybe it would have been in the past.

operator

Thank you. Our next question comes from the line of Andrew Boscaglia from BNP Paribas. Please go ahead.

Andrew Buscaglia

Hey, good morning everyone.

Andrew Buscaglia

Good morning or good afternoon or yeah, good afternoon.

Andrew Buscaglia

Maybe shifting away from the AI and IT Datacom story for a minute. I think another kind of underlying trend this quarter or a positive thing we’re seeing is some momentum in a lot of other areas in your the new markets are pretty beat up. I’m thinking like industrial automotive, mobile devices specifically just seem to start. The markets seem to be turning a corner. Where you say that’s most pronounced. Maybe what surprised you in the quarter, if anything, you know, where do you see some of these sort of battered end markets going in 2026?

Adam Norwitt

Yeah, well, thanks very much, Andrew. I mean there’s no doubt, I mean we saw really broad based strength as we through the year and as we finish the year. And I mentioned my prepared remarks that we’re especially encouraged if you take automotive and industrial as two pretty broad global markets that we saw growth organically in both of those markets across all of the territories that they operate in. And I would highlight there in particular Europe. I mean the world has been so down on Europe for so long and I think we’ve started to see in our company, especially in the second half of the year, that our teams in Europe who have held their heads high through this whole kind of malaise, if you will, and have continued to pursue opportunities to gain market share to enable our customers who are doing really amazing things driving now, robust organic growth in Europe in automotive and in industrial for the full year.

And I would even say that in the fourth quarter, amazingly our strongest organic growth in automotive was in Europe. So that’s definitely a different thing than we’ve been talking about and that the world’s been talking about for some time. And I think we’re excited about our continued position there. And mobile devices, it’s a different thing. I wouldn’t call that as much of a regional market, but there’s just a lot of innovation. Look, I always start the year at the Consumer Electronics show in Las Vegas. And I think I even had the chance to run across a couple of you guys who are on the call here today in the lobbies of the Venetian or wherever.

And I go to that show always because I find it so inspirational to see what folks are doing. And what I find so interesting is everybody is talking about AI and the build out of the networks of AI and the capability. But what I find long term, maybe even more exciting, or at least equally exciting, is what’s going to come from that? What’s it going to mean that we’re going to have this ubiquitous accelerated compute capability all the way to the edge of technology? And when you walk around cs, you see it now, look, I don’t know what is that all going to mean? I personally am not going to be front of the line to buy an AI enabled toilet.

But one day, as a former fan of Star wars, as we come to the almost 50 year anniversary, will we each have our own C3PO that’ll have great AI capabilities, who knows, these kind of things are possible. And I think the places like in automotive, with autonomous driving, in industrial, where you see so many different things happening on the edge, where things get smart, robotics and the like, and mobile devices, you know those three markets that you mentioned, I think each of those stands to have a fundamental step function in their capabilities and their potential because of what’s happening today in the build out of this AI network.

And I think long term that’s something that I’m really excited about. And I think back on the other revolutions like the microprocessor, the Internet, the mobile Internet and the like. And each of those had later on a carry on benefit to those markets, automotive, industrial, mobile devices and the like. And you know, I’d be surprised if we don’t see something like that in many years to come.

operator

Thank you. Our next question comes from Steven Fox from Fox Advisors. Please go ahead.

Steven Fox

Hi, excuse me. Good afternoon. I guess I just was curious. Big picture, Adam, you’ve obviously just completed a really strong growth year and generate cash flows. But with the orders now that you’re looking at, can you just sort of talk about you know, sort of the management challenges you mentioned, adding more automation, and I’m wondering about, like, higher metals prices, supply chain constraints.

Steven Fox

How do you look at this in.

Steven Fox

Terms of new challenges, especially as your.

Steven Fox

Demand is broadening out?

Steven Fox

Thanks.

Adam Norwitt

Yeah, well, thanks very much, Steve. Sorry I didn’t save my Star wars reference for you. Look, the. This is not an easy thing to do, to grow a company by 38% organically, let alone those operations within the company who have grown by so much more than that. I mean, you can imagine we’ve got folks who more than doubled the size of their individual operations. But what sets us apart and what has always been the core of why we are able to do hard things is that unique operating culture of Amphenol. The fact that we rely on what is now 145 or so general managers, 16 operating groups.

You know, the Commscope. We talked earlier about the, quote, integration. Well, there’s not an integration. The Commscope team is. The person who ran it is now a group general manager of Amphenol, and he’s running his team as he ran it before. So the management challenges, and you list a couple of things. Supply chain, the cost of metals, which are extraordinary. Geopolitics, whatever, shipping. I mean, there’s so many things, and I think we don’t fixate on one or those things. What I fixate on is making sure that if you’re a general manager in Amphenol, you’ve got all the authority to deal with whatever comes your way.

And that empowerment and enablement of people to go figure it out. And yes, if they need some help, we’re here. We’ve got this amazing organization driving collaboration, communication across the company. But the end of the day, the buck stops on 145 desks. And if that means doubling the size of your business, figuring out how to set up factories in four different countries, doing things with technology that have never been done before, ramping up automation machines that we’ve never built before but now can build extraordinarily, probably one of the world’s best automation companies that exist. They make it happen.

They make it happen. And so I think when I think about growing the company as we have, doubling the size of Amphenol, really, in the last four years, for me, the biggest singular focus is how do we do that while still preserving that entrepreneurial culture. And I’m so proud that we’ve done it. If you think about a big change in the company four years ago, which I’m not going to say is the thing that created that doubling, but it certainly enabled it was when we moved to three divisions with three division presidents, when we expanded the number of operating groups in the company, all with the goal of securing, strengthening and scaling that unique entrepreneurial culture of Amphenol.

And I don’t think it’s a coincidence that we took that step four years ago. And now here we are, four years hence, celebrating doubling the size of Amphenol. And so I do believe that the management challenges, which are countless on every day, thousands of challenges that our people face, they’re equipped to deal with them no matter what they are. And that gives me not only a confidence for the future, but enthusiasm for the future. Because whatever comes along, we know for sure. The world is not predictable, but what I can predict is that amphenolians will be there and we’ll make it happen regardless.

operator

Thank you. Our next question comes from Mark Delaney from Goldman Sachs. Please go ahead.

Mark Delaney

Yes, good afternoon. Thank you very much for taking the question. And Happy New Year to all of you as well. I was hoping you could speak a bit more on the margin outlook. The company sustained a record high EBIT margin again in the fourth quarter at 27.5%. But there’s a number of factors.

Mark Delaney

As.

Mark Delaney

You go into 2026, you have some big deals like Commscope you also alluded to, but metals are up quite a bit. But then the company is growing quite.

Mark Delaney

F any color you can share on.

Mark Delaney

How to think about incremental margins this year and some of the key puts and takes. Thanks.

Craig Lampo

Yeah, thanks, Mark. Appreciate the question. Yeah, I mean, I’ll start off by just really quickly addressing metals. I mean, Adam just mentioned kind of a bit about it. But you know, from a margin perspective, I mean, you know, certainly we’re, we’re working hard. I mean, metals are certainly something that we have as part of our cost of sales. It’s not a significant cost when you kind of take into account the significant value we create within the facility. But certainly it certainly has an impact. I mean, it’s like any other cost, you know, that, that we work through and the general managers do a great job of working through kind of offsets to those cost increases through anything from design of products to, you know, things in the factory to working with vendors, to a whole host of different things.

So I wouldn’t say that that at least as of now, we see having any significant impact on kind of our margin outlook as we Moving into, into 2016 certainly hasn’t had any evident impact, certainly with these record, you know, operating Margins that we’ve seen here in the fourth quarter and for the full year, you know, as we move into the first quarter, I mean the main puts and takes here, I mean organically we have, we have a slight sequential, you know, decrease in our, in our sales, which is normal seasonality that we typically see, you know, during, during the first quarter.

And we’re, we’re converting kind of in the, you know, mid-30s, even lower mid-30s. And you know, in regards to that organic change. And that’s typical given our profitability levels and kind of where I would expect. So the company is really doing a great job managing a seasonal sequential decrease. And you know, the bigger impact on our margins in the first quarter really is just the impact of ccs. We talked about CCS being in the high teens for the full year and from an operating margin basis that kind of where we expect, I would tell you in the first quarter just because of the seasonality of their sales and the lower sales in the first quarter that their operating margins are just a bit under, kind of that, that high teens rate.

So they’re having, you know, a bit over 100 basis point impact on our margins in the first quarter. You know, as we progress throughout the year. We’re not guiding in 26, but certainly we expect normal kind of, you know, operating margins. We expect that kind of 30%, you know, kind of targeted conversion margins that we target on, you know, incremental sales as we grow. And you know, ccs again, we target that getting up to, over time, up to the company average and certainly that will be an adder over time to our operating margins potential. So I’m really, you know, happy with, you know, our operating margins that we’ve achieved in 25 and certainly very optimistic as to where we are in 26.

operator

Thank you. Our next question comes from Asea Merchant from Citigroup. Please go ahead.

Asiya Merchant

Oh great. Thank you very much. Just, you know, given the strong order book momentum and you know, the AI momentum that you guys also talked about. Just Craig, if you could just talk about capex and how we should be thinking about investments into 2026 as a result of that. Sorry if I missed that earlier.

Craig Lampo

No, no, thanks for the question. No, we didn’t talk about specifically earlier. You know, from a capital perspective and as we Talked about in 2025, we were certainly, you know, spending at a bit higher level. But honestly with the growth we have seen, we kind of ended the year just a bit over 4%, which 3 to 4, 4% we say is our historic range. We, we ended the year just a bit over that 4%, you know, and I would say as we go into 26 and we continue to see, you know, you know, certainly opportunities for growth.

And certainly we had these strong orders here we talked about in the fourth quarter. We expect that capital spending to still be certainly at that upper end of that 4% range. And certainly we could have quarters that certainly exceed that 4% for capital spending into, you know, into 26. So, so I think that the fact that we’re still spending kind of in our historic range and roughly there is really just a testament to just the discipline of the organization, the ability to spend wisely and really support the growth, the significant growth that we’re seeing still with pretty reasonable spending.

I think, I think I would expect more of the same in 26. And as we continue to grow, I think that 3 to 4% range will continue to be that. And I think as we, these growth rates are a little higher, I would say that will be probably towards the upper end of that 4% range. And you’ll give or take in the quarter.

operator

Thank you. Our next question comes from Joe Speck from ubs. Please go ahead.

Joseph Spak

Thanks. Good morning. Just a quick one for me relating to circling back to Commscope and that business. I know it’s still early days in being the official owners, but any sense of how large their order book looks here going forward?

Adam Norwitt

Yeah, thanks very much, Joe. I mean, I think I mentioned earlier that Commscope’s also had a nicely positive book to bill over the recent quarters. And so I think it has a positive order book from that perspective.

operator

Thank you. Our next question comes from Guy Hardwick from Barclays. Please go ahead.

Guy Drummond Hardwick

Hi. Hi. Good afternoon. Just a quick one on the order book. Obviously it’s a fantastic result of 8.4 billion. Just how do we square that with the Q1 revenue guidance of 7 billion, which obviously the Q4 order book didn’t include CCS, but assumed Trexon. Is it the orders, the window that you talked about? And is that 8.4 already kind of a sustainable number over the next few quarters?

Adam Norwitt

Thanks very much, Guy. I mean, look, I think I talked about the fact that we have seen customers extend their order window. Craig mentioned that as well. And in addition, as we continue to ramp up for our customers new programs, particularly related to AI, there is that that kind of confidence that we like to get before making investments that our customers can give us in a variety of ways, including through orders. I’m not going to guide to what our orders are going to be in a given quarter. I mean, you can imagine our sales folks are out there trying to pursue every order possible.

But these were really outstanding orders and they will carry through longer than just here in the first quarter.

operator

Thank you. Our next question comes from Scott Graham from Seaport Research Partners. Please go ahead.

Scott Graham

Hey, good afternoon. Congratulations on the print. My question is about defense. Obviously the current administration’s thinking is at some point we need to push the budget up to 1.5 trillion. Is there any part of your defense sales that are maybe not subject to whether it’s just an upgrade, next gen technologies, the golden dome. I don’t know how closely you’ve looked.

Scott Graham

At.

Scott Graham

Some of the articles that have come out on this, but is there anything that you see that you know, maybe doesn’t give you maybe full dibs or most dibs on that? And then on the other side of it, are you concerned at all about the administration’s, you know, sort of negative rhetoric around with the, with NATO and what that might do to some of your international sales in defense?

Scott Graham

Thanks.

Adam Norwitt

Well, thanks very much, Scott. Look, I think, I think as the leader in defense interconnect, I wouldn’t tell you that we take that for granted. But do we have dibs on this market? We got dibs on this market. I mean, and we have that because of a broad array of technologies and deep investments that we have made. I mean, the one thing that I think sets us apart in particular related here to we’ll talk about the US and then we’ll talk global, is that we have continued to double down, number one on technology innovation and number two on scaling our capacity to enable the defense industry to continue to meet the levels that they need to.

And so whether that means, you know, today’s budget or higher budgets in the future, I can tell you that the breadth of our offering coupled with the depth of our capacity and capability is something that puts us in a really strong position across really all programs. And you know, you mentioned a few programs. Our folks are deep into every program that is involved. I will also add to that with the acquisition of Trexon, while only, you know, just under 300 million in sales, it really does expand the prominence of our value add interconnect capabilities, which is an enormous additional opportunity and additional growth potential for the company long term.

We’ve always been a leader in the discrete connector solutions, a broad array of them. I mean, you cannot imagine how broad that array is. But now being able to support the value add products across programs, across applications, land, sea, Air and everything in between, I think Trexon really rounds out our position and expands the potential of what we can do to support this. Now, relative to your question around NATO and international, our approach as a company has always been not to be a sort of US flag in the front of our factory kind of an operation.

When we operate around the world, we operate, you know, 350 factories across more than 40 countries around the world, and we don’t have expats, period. We operate our company as a local company. So when we’re in France, we’re a local French company. When we’re in the uk, we’re a local UK company in Denmark, in Germany, in Italy, or wherever that may be. And that focus on being a local provider in the defense market. And, you know, our defense position in Europe is very, very strong. We’ve had really outperformance in Europe here for a number of years in terms of the strength of our business.

You know, I’m never going to say that you’re insulated from anything, but the way that we’ve structured our company, the culture around our company, how we interact with our customers, is as a local partner in those places, and we do that in all of our businesses. That’s just how we run the company. But I will tell you that in a geopolitically interesting world that we are in today, the way that we’ve always operated is a pretty good way to operate in today’s world. And I think that will, in many ways protect us from any politics that could inject themselves into this.

Our customers, at the end of the day, want the best product, and they want it at the time that they need it. And if we can focus on continuing to do that and do it locally, I think our defense business has a great future.

operator

Thank you. Our last question comes from Joe Giordano from TD Cowan. Please, go ahead.

Joseph Giordano

Great. Thanks for getting me in, guys. Appreciate it. Adam, you mentioned ces, and I think one of the things coming out of there was an ultimate move at some point towards like 800 volt DC power for data centers. And, you know, there’s major implications on what that means for copper and what that means for the ability to do things at different dimension, at different diameters. Just curious, as your portfolio broadens out and you have these fiber capabilities, what does, like, the. You know, if you. If you think through the potential positives and negatives for such a dynamic, like, how do you.

How do you think that nets out for you guys?

Adam Norwitt

Yeah, look, I think what we care about, Joe, is that there’s more of everything. And so as folks make changes, they go to different voltages, they go to different speeds of transmission, they go to more nodes, they go to more tokens, they go to more density. Whatever. It is the ultimate, what comes out of that is more complexity. And so for us, whether it’s one type or another, I talked earlier about the fact that we today, especially with the Commscope acquisition, have the broadest offering in the industry and the broadest ability to enable our customers as they face these really challenging, as they face these really challenging technological trade offs.

And so I think we’re in a really great position to be able to do that and even stronger than we were before pre the Commscope acquisition. And you know, whether it’s different voltages or different speeds or, or different densities or all the various things that our customers are looking at, I think we’re going to have a great seat at the table working with them to enable these exciting next generation systems.

operator

Thank you. We currently have no further questions, so I’ll hand it back to Mr. Norwit for closing remarks.

Adam Norwitt

Well, thank you very much. And again, I’d like to offer my gratitude to everybody here for taking the time with us today and, and we look forward to seeing you in 90 days. And I hope you all, at least those of you who are not too far from us here in Connecticut, hope you’re able to stay warm. Thanks.

Craig Lampo

Thanks, everybody.

operator

This concludes today’s call. Thank you for joining. You may now disconnect your lines.

Adam Norwitt

Sam.