Sensata Technologies Holding Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 saw strong revenue, margin, and EPS growth, with all segments delivering organic growth and robust free cash flow enabling significant debt reduction. Data center and India automotive markets are emerging as key growth drivers, while margin expansion and disciplined capital allocation continue to strengthen the balance sheet.
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Q1 2026 results exceeded guidance with revenue up 3% and strong margin expansion despite inflation and market headwinds. All segments delivered organic growth and margin gains, with robust free cash flow and continued deleveraging. Q2 guidance anticipates further margin improvement and stable growth, supported by new business wins and strategic execution.
Fiscal Year 2025
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Delivered strong Q4 and full-year 2025 results, returning to organic revenue growth and achieving record free cash flow. Reorganized into three segments with clear growth mandates, expanded margins, and reduced leverage. 2026 guidance calls for continued growth, margin expansion, and disciplined capital allocation.
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Q3 2025 results exceeded expectations with strong margin expansion, robust free cash flow, and market outgrowth in key segments. Strategic actions included debt reduction, leadership changes, and a non-cash Dynapower impairment, while guidance remains cautious amid market uncertainties.
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Q2 2025 results exceeded guidance with strong margin resilience, improved free cash flow, and robust growth in Sensing Solutions and China NEV wins. Guidance for Q3 anticipates stable margins, continued deleveraging, and a focus on operational excellence and selective growth investments.
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Q1 2025 results exceeded guidance, with strong operational performance and effective tariff mitigation. Sensing Solutions returned to growth, while Performance Sensing faced headwinds from auto production cuts and regulatory shifts. Free cash flow and margins improved, and guidance remains confident despite macro risks.
Fiscal Year 2024
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Q4 2024 revenue exceeded guidance but declined year-over-year, with full-year revenue down 3%. Operational improvements drove margin gains and strong free cash flow, while portfolio optimization and debt reduction strengthened the balance sheet. 2025 is expected to be flat organically, with margin improvement and continued focus on capital allocation.
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Q3 results met expectations with revenue of $983M, margin expansion, and significant operational improvements. Market headwinds persist, especially in auto and HVOR, with further declines expected in Q4 and no recovery anticipated through H1 2025.
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Q2 2024 saw revenue of $1.036B and adjusted operating margin of 19%, with strong outgrowth in automotive and HVOR segments despite market declines. The company is exiting $200M in low-margin products, maintaining margin improvement targets, and expects flat to slightly up full-year revenue.