Amphenol Reports 26% Revenue Growth, Strong Organic Growth and Acquisitions Drive Results

As of September 30, 2024, Amphenol Corporation reported total assets of $19,585.6 million, a significant increase from $16,526.4 million at the end of 2023. Total current assets rose to $7,772.8 million, up from $6,835.3 million, with cash and cash equivalents increasing to $1,563.0 million from $1,475.0 million. Accounts receivable also saw a notable rise to $3,130.3 million, compared to $2,618.4 million at the end of 2023. However, total current liabilities increased to $3,901.7 million from $3,152.7 million, and long-term debt rose to $5,081.0 million from $3,983.5 million.

For the third quarter of 2024, Amphenol reported net sales of $4,038.8 million, a 26% increase from $3,199.2 million in Q3 2023. For the nine months ended September 30, 2024, net sales reached $10,904.9 million, up from $9,227.2 million in the same period of 2023. Gross profit for Q3 2024 was $1,356.9 million, compared to $1,048.5 million in Q3 2023, while operating income increased to $819.5 million from $657.9 million. Net income for Q3 2024 was $608.9 million, up from $518.3 million in Q3 2023.

The company’s performance was driven by strong organic growth in the Communications Solutions segment and contributions from acquisitions, including the acquisition of Carlisle Interconnect Technologies (CIT) for approximately $1,995.3 million, completed on May 21, 2024. This acquisition is expected to enhance Amphenol's offerings in harsh environment interconnect solutions. The company also announced plans to acquire CommScope’s Mobile Networks-related Businesses for approximately $2,100 million, pending regulatory approvals.

Amphenol's selling, general, and administrative expenses for Q3 2024 were $492.0 million, or 12.2% of net sales, compared to $381.6 million, or 11.9% of net sales in Q3 2023. Research and development expenses increased to approximately 3.1% of net sales for Q3 2024, up from 2.7% in the prior year. The effective tax rate for Q3 2024 was 21.4%, compared to 18.2% in Q3 2023.

The company declared dividends totaling $198.9 million for Q3 2024, an increase from $125.6 million in Q3 2023, with the quarterly dividend rate raised to $0.165 per share. Amphenol also repurchased 4.5 million shares for $294.8 million during the nine months ended September 30, 2024, under its stock repurchase program.

Overall, Amphenol's financial results reflect robust growth across its segments, strategic acquisitions, and a solid balance sheet, positioning the company for continued success in the upcoming quarters.