Q3 2025 Highlights - Sensata exceeded expectations across all key financial metrics, delivering adjusted operating margins of 193%[7] - Sensata reduced net leverage to 29x, driven by robust Free Cash Flow of $1362 million at a 105% conversion rate[7] - Both reporting segments delivered Year-over-Year organic growth, as early results from new business wins drove end market outgrowth[7] Financial Performance - Q3 2025 revenue was $932 million[21] - Adjusted EPS was $089, $002 above the high end of guidance[21] - Free Cash Flow conversion was 105%, up approximately 37 percentage points Year-over-Year[21,22] - The company repurchased approximately 42 million shares in the first half of 2025[24] - Net leverage ratio improved to 29x[24] Segment Performance - Performance Sensing net revenue decreased by 04% year-over-year to $6569 million, but grew organically by 36%[26] - Sensing Solutions net revenue grew by 02% year-over-year to $2750 million, with organic growth of 25%[26] Q4 2025 Financial Guidance - Revenue is expected to be in the range of $890 million to $920 million[35] - Adjusted operating margin is guided at 193% - 195%[35] - Adjusted EPS is expected to be $083 - $087[35]

Financial Performance - Revenue for Q3 2025 was $932.0 million, a decrease of $50.9 million, or 5.2%, compared to $982.8 million in Q3 2024, primarily due to divestitures and product lifecycle management actions[5] - Operating loss was $122.9 million, or 13.2% of revenue, compared to an operating loss of $199.2 million, or 20.3% of revenue, in Q3 2024[5] - Adjusted operating income was $179.6 million, or 19.3% of revenue, compared to adjusted operating income of $188.4 million, or 19.2% of revenue, in Q3 2024[5] - Loss per share was $1.12, including $1.78 attributable to non-cash charges, compared to a loss per share of $0.17 in Q3 2024[9] - For Q4 2025, Sensata expects revenue of $890 to $920 million and adjusted EPS of $0.83 to $0.87[12] - Adjusted operating income for the nine months ended September 30, 2025, was $525.2 million, or 18.8% of revenue, a decrease of $48.4 million, or 8.4%, compared to the same period in 2024[10] - The company reported a net loss of $(162,523,000) for the three months ended September 30, 2025, compared to a net loss of $(25,034,000) in the same period of 2024[35] - For the three months ended September 30, 2025, the reported operating loss was $122,888 thousand, with an operating margin of -13.2%[43] - Adjusted (non-GAAP) operating income for the same period was $179,636 thousand, reflecting an operating margin of 19.3%[43] - For the nine months ended September 30, 2025, the adjusted (non-GAAP) operating income was $525,240 thousand, with an operating margin of 18.8%[44] Cash Flow and Assets - Free cash flow for Q3 2025 was $136.2 million, representing a conversion rate of 105%[6] - Net cash provided by operating activities was $159.9 million in Q3 2025, with cash on hand of $791.3 million as of September 30, 2025[6] - Cash and cash equivalents increased to $791,347,000 as of September 30, 2025, compared to $593,670,000 at the end of 2024, reflecting a growth of 33.3%[37] - Total current assets rose to $2,308,301,000 as of September 30, 2025, up from $2,027,239,000 at the end of 2024, indicating a growth of 13.8%[37] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $419,971,000, compared to $380,834,000 in 2024, reflecting an increase of 10.3%[39] Shareholder Returns - During the first nine months of 2025, Sensata returned approximately $173.5 million to shareholders, including $52.9 million through dividends and $120.6 million in share repurchases[11] Revenue Segmentation - Performance Sensing revenue for the nine months ended September 30, 2025, was $1,959,577,000, a decrease of 6.5% from $2,096,889,000 in 2024[40] - Sensing Solutions revenue for the nine months ended September 30, 2025, increased to $827,040,000, up 3.4% from $800,296,000 in 2024[40] Expenses and Liabilities - Research and development expenses decreased to $33,034,000 for the three months ended September 30, 2025, down from $42,685,000 in 2024, representing a reduction of 22.5%[35] - Total liabilities as of September 30, 2025, were $4,351,452,000, compared to $4,252,821,000 at the end of 2024, showing an increase of 2.3%[37] - The company incurred restructuring-related costs of $302,470 thousand for the nine months ended September 30, 2025[44] Future Outlook - The company is focusing on market expansion and new product development as part of its growth strategy[51] - Future guidance indicates a positive outlook for revenue growth driven by new technologies and market opportunities[51]

Core Viewpoint - Sensata Technologies' Board has approved a quarterly dividend of $0.12 per share for Q4 2025 [1] Group 1 - The approved dividend reflects the company's commitment to returning value to shareholders [1] - The dividend amount is consistent with previous distributions, indicating stable financial performance [1]

Core Points - Sensata Technologies' philanthropic arm, the Sensata Foundation, has announced the recipients of its annual grants for 2025, totaling 42 nonprofit organizations [1] Group 1 - The Sensata Foundation is focused on community impact through its grant program [1] - The announcement highlights the foundation's commitment to supporting various nonprofit initiatives [1]

Group 1 - Sensata Technologies (ST) stock's Relative Strength (RS) Rating improved from 64 to 71, indicating enhanced market leadership [1] - Knowles Corp. achieved an RS Rating of 81, meeting the benchmark of 80-plus [4] - Corning's Composite Rating rose to 98, reflecting strong performance in the market [4] Group 2 - InterDigital received an upgrade in its Relative Strength Rating, signaling improved market position [4] - The stock market saw small caps leading a jump following the Trump administration's trade deal with Japan [4] - Sensata Technologies is showing renewed technical strength, indicating potential for further gains [4]

Core Viewpoint - Sensata Technologies is scheduled to release its third quarter 2025 financial results on October 28, 2025 [1] Company Summary - The announcement indicates a forthcoming financial report, which is crucial for stakeholders to assess the company's performance [1]

Core Insights - Sensata Technologies Holdings Inc. has demonstrated steady business performance despite market challenges [1] Company Performance - The company released its Q2 2025 results two months ago, highlighting resilience in its operations [1] Analyst Background - The analysis is conducted by a financial analyst with a background in petroleum and gas engineering, focusing on tech, infrastructure, and internet services [1]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks in the market [2] Company Summary: Sensata Technologies Holding (ST) - Sensata Technologies Holding (ST) holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock is currently trading at a P/E ratio of 9.44, significantly lower than the industry average of 18.98 [4] - ST's Forward P/E has fluctuated between 5.38 and 10.18 over the past year, with a median of 8.77 [4] - The company has a PEG ratio of 1.23, compared to the industry average of 2.26, indicating better value relative to expected earnings growth [5] - ST's PEG ratio has ranged from 0.72 to 1.37 in the past year, with a median of 1.13 [5] - The P/B ratio for ST is 1.67, which is attractive compared to the industry average of 3.85 [6] - Over the last 12 months, ST's P/B ratio has varied from 0.91 to 1.93, with a median of 1.50 [6] - The P/S ratio for ST is 1.3, significantly lower than the industry average of 2.7, suggesting strong sales performance relative to its price [7] - ST's P/CF ratio stands at 8.80, well below the industry average of 20.04, indicating potential undervaluation based on cash flow strength [8] - The P/CF ratio has ranged from 4.54 to 9.26 over the past year, with a median of 7.12 [8] - Overall, these metrics suggest that ST is likely undervalued, making it an impressive value stock at the moment [9]

Core Viewpoint - Sensata Technologies Holding (ST) is currently identified as a strong value stock, supported by its favorable valuation metrics and earnings outlook [4][9]. Valuation Metrics - ST holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4][3]. - The stock has a P/E ratio of 8.41, significantly lower than the industry average of 17.92 [4]. - ST's PEG ratio is 1.10, compared to the industry average of 2.18, suggesting it is undervalued relative to its expected earnings growth [5]. - The P/B ratio for ST is 1.49, which is attractive compared to the industry average of 3.69 [6]. - ST's P/S ratio stands at 1.15, while the industry average is 2.56, further indicating potential undervaluation [7]. - The P/CF ratio for ST is 7.81, significantly lower than the industry average of 18.46, highlighting its strong cash flow outlook [8]. Investment Outlook - The combination of these valuation metrics suggests that Sensata Technologies Holding is likely being undervalued in the current market [9].

Core Viewpoint - Sensata Technologies (ST) has experienced a bearish trend recently, losing 8.4% in the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom in a downtrend, characterized by a small candle body and a long lower wick, suggesting that bears may be losing control [4][5]. - This pattern signals that after reaching a new low, buying interest emerges, pushing the stock price up towards its opening price, indicating a possible trend reversal [5]. Fundamental Analysis - There is rising optimism among Wall Street analysts regarding ST's future earnings, with a 3% increase in the consensus EPS estimate over the last 30 days, indicating improved earnings potential [2][8]. - The upward trend in earnings estimate revisions is a bullish indicator, as empirical research shows a strong correlation between these revisions and near-term stock price movements [7]. Zacks Rank - ST currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10]. - The Zacks Rank serves as a timing indicator, suggesting that the company's prospects are beginning to improve, further supporting the likelihood of a trend reversal [10].