Amphenol reported a standout Q3 2025, delivering strong top-line growth, expanding margins, and robust cash flow. Revenue reached $6.194B, up 53.37% year over year and 9.63% quarter over quarter, while gross margin rose to approximately 38.1% and operating margin to about 27.5%, signaling favorable product mix and pricing power. Net income of $1.245B translated to EPS of roughly $1.02 (basic) and $0.97 (diluted), with year‑over‑year EPS growth of ~104%. The company generated solid cash flow with CFO per share of $1.204 and free cash flow per share of $0.993, supporting a modest payout ratio of 16.2% and a cash per share position of $3.18. Liquidity remains strong (current ratio 2.07) and leverage is manageable (debt ratio 0.297, interest coverage ~21x). The operating cash cycle extended modestly, with DSO of 66 days, DIO of 77 days, and a cash conversion cycle of 85.7 days, reflecting the working capital dynamics in a high-volume, multi-market business. From a strategic lens, Amphenol’s diverse end-market exposure (communications, harsh environment, interconnect and sensor systems) underpins earnings resilience, though valuations appear premium by traditional software/hardware benchmarks. Management commentary, when available, will be critical to confirming guidance and capital allocation plans going forward.
Key Performance Indicators
Revenue
6.19B
QoQ: 9.63% | YoY:53.37%
Gross Profit
2.36B
38.09% margin
QoQ: 14.90% | YoY:73.87%
Operating Income
1.70B
QoQ: 18.98% | YoY:96.82%
Net Income
1.25B
QoQ: 14.15% | YoY:106.11%
EPS
1.02
QoQ: 13.33% | YoY:104.00%
Revenue Trend
Margin Analysis
Key Insights
and reporting-derived ratios appear elevated relative to typical connectors peers; cross-check with the US listing and confirm calculation bases in upcoming filings.
Financial Highlights
Revenue: $6.194B; YoY +53.37%; QoQ +9.63%
Gross Profit: $2.359B; Gross Margin 38.09%; YoY +73.87%; QoQ +14.90%
Operating Income: $1.702B; Operating Margin 27.48%; YoY +96.82%; QoQ +18.98%
Net Income: $1.246B; Net Margin 20.11%; YoY +106.11%; QoQ +14.15%
EPS: Basic $1.02; Diluted $0.97; YoY EPS +104%; QoQ +13.33%
Free Cash Flow per Share: $0.993; Cash Flow from Operations per Share: $1.204; Cash per Share: $3.18
Dividend Payout Ratio: 16.2%; Dividend Yield: 0.133%
Liquidity and Leverage: Current Ratio 2.07; Quick Ratio 1.52; Cash Ratio 0.64; Debt Ratio 0.297; Debt/Equity 0.644; Interest Coverage 21.09
Asset and Efficiency: Asset Turnover 0.228; Receivables Turnover 1.363; Inventory Turnover 1.162; Payables Turnover 1.557; ROA 4.59%; ROE 9.95%; ROCE 8.05%
Capital Allocation and Valuation: P/E 30.34; P/B 12.08; P/S 24.41; EV/EBITDA 80.55; Price to Free Cash Flows 124.59; Free Cash Flow to Operating Cash Flow 0.825; Dividend Yield 0.133%
Note: Several market- and reporting-derived ratios appear elevated relative to typical connectors peers; cross-check with the US listing and confirm calculation bases in upcoming filings.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
6.19B
53.37%
9.63%
Gross Profit
2.36B
73.87%
14.90%
Operating Income
1.70B
96.82%
18.98%
Net Income
1.25B
106.11%
14.15%
EPS
1.02
104.00%
13.33%
Key Financial Ratios
currentRatio
2.07
grossProfitMargin
38.1%
operatingProfitMargin
27.5%
netProfitMargin
20.1%
returnOnAssets
4.59%
returnOnEquity
9.95%
debtEquityRatio
0.64
operatingCashFlowPerShare
$1.2
freeCashFlowPerShare
$0.99
dividendPayoutRatio
16.2%
priceToBookRatio
12.08
priceEarningsRatio
30.34
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings call transcript data were provided in the input. Consequently, a thematic synthesis of management commentary and quotes could not be produced from the supplied materials. Future updates should incorporate direct quotes on demand trajectory, end-market commentary (auto, industrial, communications), pricing discipline, supply chain dynamics, and capital-allocation decisions.
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Forward Guidance
Explicit forward guidance or quantitative targets were not disclosed in the provided data. The absence of stated targets necessitates relying on the quarterly results and trend signals to gauge trajectory. Investors should monitor the forthcoming 10-Q/quarterly commentary for any updates on full-year guidance, segmental expectations, gross margin trajectory, and capital deployment plans (e.g., share repurchases, dividends, or acquisitions). Given the strong FCF generation and conservative leverage, a constructive bias would favor stability in capital return policy pending demand signals and supply-chain normalization.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0HFB.L Focus
38.09%
27.50%
9.95%
30.34%
0HVB.L
1.00%
1.60%
2.61%
13.71%
0J5Q.L
56.30%
24.90%
4.02%
18.71%
0KV3.L
0.00%
0.00%
0.00%
0.00%
0JQR.L
1.00%
0.62%
2.43%
10.52%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the combination of strong top-line growth, expanding margins, and robust free cash flow, Amphenol presents a positive long‑term growth profile within the technology hardware/connectors space. The Q3 2025 results indicate durable demand across multiple end-markets and a favorable mix, underpinning earnings resilience. However, valuation appears elevated relative to many traditional hardware peers, increasing sensitivity to any deceleration in OEM capex or a shift in end-market demand. The stock should be considered a moderate buy/accumulate for investors with a long-term horizon and a tolerance for high-valuation scenarios, provided macro conditions remain favorable and management maintains a disciplined capital-return strategy. Key catalysts to watch include continued strength in automotive/connectors, stabilization of supply chains, potential margin expansion through pricing and mix, and any clarity on full-year guidance and capital allocation plans in upcoming filings.
Key Investment Factors
Growth Potential
Diversified exposure across harsh environment solutions, communications, and interconnect/sensor systems affords broad-based demand tailwinds from automotive electrification, 5G/industrial data, and data-center infrastructure. The Q3 top-line strength implies continued growth momentum, supported by a favorable mix toward higher-margin interconnect and sensor offerings.
Profitability Risk
Cyclicality in capital equipment and electronics demand; potential supply-chain volatility; currency/FX exposure due to the cross-border listing; high valuation multiples relative to some benchmarks may compress on growth normalization; customer concentration and exposure to large OEM capex cycles remain a consideration.
Financial Position
Healthy liquidity with current ratio 2.07 and interest coverage ~21x; moderate leverage (debt ratio 0.297, debt/equity 0.644) and strong cash generation (CFO per share $1.204; FCF per share $0.993) support continued capital returns and potential deleveraging if desired. Cash per share of $3.18 provides cushion against near-term volatility.
SWOT Analysis
Strengths
Leading global provider of connectors and interconnect systems across harsh environment, data/comms, and sensor solutions.
Strong profitability with gross margin ~38% and operating margin ~27.5%; scalable model as volumes rise.
Robust free cash flow generation and prudent capital allocation (payout policy, cash position).
Solid liquidity metrics (current ratio 2.07) and manageable leverage (debt ratio ~0.30; interest coverage ~21x).
Weaknesses
Valuation appears premium relative to some hardware peers, raising the bar for upside.
Extended working capital cycle (CCC ~86 days) may pressure cash conversion in softer demand environments.
Potential exposure to macro volatility and customer concentration in large OEM programs.
Opportunities
Auto electrification and advanced driver-assistance systems increasing demand for high-reliability connectors.
Growth in 5G/IoT, data center, and industrial automation driving incremental interconnect demand.
Opportunities for portfolio enhancement through product line expansion or selective acquisitions in high-growth connector segments.
Threats
Macro slowdown and cyclical capex declines could temper order flow.
Competitive intensity from peers (e.g., TE Connectivity and other component manufacturers).
FX volatility and cross-border regulatory/compliance considerations related to LSE listing.