Amphenol's Quarterly Interest Bill Hits $212.3 Million As Cash Falls To $5.3 Billion
Amphenol has lined up three acquisitions worth about $1,200.0 million, even as it keeps buying back stock and paying a higher dividend.
Amphenol's third-quarter interest expense hit $212.3 million, against $80.7 million a year earlier, and the connector maker's cash has fallen to $5.3 billion from $11.4 billion at year-end. The company, which designs and sells connectors, sensors, antennas and cable, now plans three more acquisitions, to be paid for partly with new debt, its 10-Q filed Friday says.
Interest costs have nearly tripled
For the first nine months, interest expense was $633.9 million, versus $238.1 million a year earlier. The company attributes the rise to higher average borrowing, from new senior notes issued in 2025 and 2026 and from term loans drawn to fund acquisitions, including CommScope.
Total debt stood at $17,870.8 million at September 30, against $15,502.0 million at December 31. The Three-Year Delayed Draw Term Loan stood at $1,534.1 million after the 364-day loan was repaid in full from cash during the quarter. The company also repaid its commercial paper from cash before quarter-end.
The next big maturity is $700.0 million of 5.050% senior notes due April 2027.
Where the cash went
Cash, cash equivalents and short-term investments fell to $5,301.4 million from $11,434.2 million at December 31. Acquisitions took $11,055.8 million over nine months, mostly CommScope, according to the filing.
The business is generating plenty to service the load. Nine-month operating cash flow was $4,757.2 million, up from $3,652.5 million, and operating income for the third quarter was $3,020.8 million on net sales of $10,229.7 million, up 65% from a year earlier. The Communications Solutions segment, which sells connectors, cable and antennas, grew 99% in dollars in the quarter, with the company citing particular strength in AI-related applications.
Three more deals, plus bigger payouts
Amphenol has signed agreements to buy three companies for a combined price of about $1,200.0 million, to be financed with cash on hand and debt. Regulatory approvals are pending; the first two deals should close by year-end 2026, the third by the end of March 2027. The prior quarter's filing carried no such agreements.
Shareholder returns are rising too. The board on October 27 authorized a new $4.0 billion repurchase program running from January 1, 2027 through December 31, 2029, and raised the quarterly dividend to $0.15 per share from $0.125. The company expects to finish the remaining $2.0 billion 2024 program by December 31, 2026; $165.9 million of authorization was left as of October 28.
The two nearer deals are due to close by the end of 2026, and the $4.0 billion buyback begins January 1, 2027.
Sources
- 10-Q Filing — Amphenol Corp. (APH) — SEC EDGAR
- 10-Q Filing — Amphenol Corp. (APH), Q2 FY2026 filed 2026-07-31 (comparison basis) — SEC EDGAR
- 8-K Filing — Amphenol Corp., filed 2026-10-28 (Items 2.02, 8.01, 9.01) — SEC EDGAR
- Earnings release (8-K Item 2.02, aph-ex99d1.htm) — Amphenol Corp., filed 2026-10-28 — SEC EDGAR
- Amphenol jumps on Q3 revenue surge; guidance tops consensus — seekingalpha.com
- What Is Amphenol (APH) Signaling With Its Dividend Lift, $4 Billion Buyback And Deals? — Yahoo Finance
- Amphenol Q3 Earnings Call Highlights AI Demand and Growth Outlook — Yahoo Finance
- Amphenol Corp (APH) (Q3 2026) Earnings Call Highlights: Record $10. ... — Yahoo Finance
- Amphenol (APH) Q3 Results Recast Its Margin Driven Bull Case — Yahoo Finance
