Amphenol Corp New — Income Statement, Cash Flows & Balance Sheet

Is Amphenol profitable?

Amphenol delivered exceptional revenue and profit growth in 2025, largely powered by acquisitions.

Revenue surged more than 50% — but a significant portion of this reflects the acquisitions of Andrew (closed January 2025) and Trexon (closed November 2025). Profitability expanded even faster than revenue, pushing gross margins meaningfully higher, which tells us the acquired businesses are accretive to the overall margin profile.

One-time acquisition costs and a notable tax charge add noise to the reported numbers.

The effective tax rate jumped partly because of a $100M charge relating to Chinese tax authority notices challenging positions over up to eight years — with potential exposure up to $300M. Stripping out acquisition costs and this discrete tax item would make underlying earnings look somewhat stronger than the reported figures.

Where does Amphenol's revenue come from?

The Communications Solutions segment drove nearly all of Amphenol's growth in 2025, roughly doubling in size.

The Andrew acquisition (antenna and interconnect products for wireless networks) landed entirely in Communications Solutions, which explains why that segment nearly doubled. The other two segments grew organically and from smaller bolt-on deals, with Harsh Environment Solutions also benefiting from the Trexon acquisition. Interconnect and Sensor Systems posted the slowest growth at around 15%.

Communications Solutions also contributes the most profit, and its margin premium widened.

All three segments improved their operating margins year over year. Communications Solutions is now by far the largest profit contributor, and its segment margin expanded the most dramatically, suggesting the acquired businesses came with attractive economics.

Does Amphenol generate cash?

Amphenol's operating cash flow nearly doubled, demonstrating the business generates substantial real cash.

Free cash flow (operating cash flow minus capital spending — a non-GAAP measure not separately labeled by the company) more than doubled, comfortably covering both the dividend payout and buybacks. The sharp rise in capex reflects ongoing investment in manufacturing capacity globally.

Amphenol raised nearly $9 billion in new debt in 2025 — the majority was pre-funded for the CommScope deal that closed in January 2026.

The large debt raise is explained by Note 15: Amphenol agreed in August 2025 to acquire CommScope for ~$10.5 billion, closing in January 2026. The November 2025 senior note issuance was pre-financing for that deal, leaving cash balances temporarily elevated at year end.

How strong is Amphenol's balance sheet?

Debt roughly doubled in 2025, but most of it was raised intentionally to fund the January 2026 CommScope acquisition.

Looking at net debt (total debt minus cash, a non-GAAP measure) rather than gross debt, the increase is far more modest, because the new bonds are still sitting on the balance sheet as cash waiting to pay for CommScope. Once that acquisition closes and is funded, net debt will rise materially — investors should factor in the additional $~3B drawn under term loans in January 2026.

Goodwill and intangible assets now make up a substantial share of Amphenol's total assets, reflecting its acquisition-driven growth strategy.

Combined goodwill and intangibles represent roughly 35% of total assets. This is common for a serial acquirer like Amphenol, and management completed annual impairment tests in 2025 with no impairments recorded — but it is a figure worth monitoring as the company integrates CommScope.