Finance
Te Projects Forecasts Higher Profit but Warns of Price Hikes Due to Iran War
Published by Global Banking & Finance Review®
Posted on April 22, 2026
2 min readLast updated: April 22, 2026
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TE Connectivity forecasts Q3 adjusted EPS of $2.83—slightly above the $2.80 Street consensus—while warning that ongoing Iran war–linked supply disruptions could force raw‑material–related price hikes to protect margins.
TE forecasts higher profit but warns of price hikes due to Iran war
By Anshuman Tripathy
TE Connectivity’s Financial Outlook and Impact of Middle East Conflict
April 22 (Reuters) - TE Connectivity projected third-quarter profit above Wall Street expectations on Wednesday, but warned it may have to pass higher raw-material costs on to customers if conflict in the Middle East continued to disrupt supply chains.
Shares of the Galway, Ireland-based company fell more than 5.4% in premarket trade.
Cost Pressures and Supply Chain Disruptions
The warning came as higher costs for transportation, including freight rates, and oil-based products such as resins added pressure after the Iran war, Chief Executive Terrence Curtin told Reuters in an interview.
Potential Price Increases
"We will have to see how long these impacts last, hopefully not long, and in that regard, (we will) have to pass on pricing to protect our margin," Curtin said.
Industry-Wide Impact
Rising prices for plastics and polymers, driven by disruptions to oil and petrochemical flows linked to the war in the Middle East, have prompted some companies to adopt mitigation strategies around pricing and other operations.
Segment Performance
Industrial Solutions Segment
Second-quarter sales in the company's industrial solutions segment, which makes electrical connector systems and components for factory automation and equipment used in data centers, surged 27% year-over-year.
Drivers of Growth
Curtin said growth in the industrial segment was driven by demand for AI tools and energy infrastructure such as grids, especially for power-hungry data centers.
Transportation Solutions Segment
The firm posted a 4.7% year-over-year rise in net sales for the second quarter at its transportation solutions segment, which makes terminals, connector systems, and sensors used in vehicles.
Financial Results and Forecasts
Profit and Revenue Estimates
The company forecast an adjusted profit of $2.83 per share for the current quarter, compared with analysts' expectations of $2.80 per share, according to data compiled by LSEG.
Revenue for the quarter ended March 27 came in at $4.74 billion, compared with estimates of $4.76 billion.
Second Quarter Performance
TE Connectivity reported adjusted profit of $2.73 per share for the second quarter, beating estimates of $2.70.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Tasim Zahid)
Key Takeaways
- •TE expects Q3 adjusted EPS of $2.83 vs. analysts’ $2.80 per share (LSEG)
- •CEO Terrence Curtin cautioned that rising resin, plastic and transportation costs from the Iran war may require passing them to customers to preserve margins
- •Industrial solutions sales surged thanks to strong demand for AI infrastructure and energy‑grid connectivity; transportation segment sales rose modestly
- •Global resin prices have jumped—e.g. polyethylene +30–37%, polypropylene +35–38%—driven by disruptions in Middle East feedstocks and freight costs
Frequently Asked Questions about TE projects forecasts higher profit but warns of price hikes due to Iran war
1Why is TE Connectivity warning about future price hikes?
TE Connectivity may raise prices due to higher raw-material costs caused by supply chain disruptions from the Iran war.
2How did TE Connectivity perform in the second quarter?
TE Connectivity reported adjusted profit of $2.73 per share, beating the $2.70 estimate, with net sales up year-over-year.
3What business segments drove TE Connectivity's growth?
Growth was driven by industrial solutions—especially from AI tools and energy infrastructure—and transportation solutions.
4What factors are impacting TE Connectivity's supply chain?
Rising costs for transportation, plastics, and polymers due to oil and petrochemical disruptions linked to the Iran war are impacting the supply chain.
