Sensata(US:ST) ZACKSยท2025-07-30 14:55Core Insights - Sensata Technologies Holding plc (ST) reported Q2 2025 adjusted EPS of 87 cents, down from 92 cents year-over-year, but exceeded the Zacks Consensus Estimate by 3.6% [1][9] - Revenues for the quarter were $943.4 million, an 8.9% decline from the previous year, attributed to divestitures and product lifecycle optimization, yet surpassed management's expectations and consensus estimates [2][9] Financial Performance - Performance Sensing revenues, accounting for 69.1% of total revenues, decreased 9.9% year-over-year to $652.2 million, impacted by divested products and reduced truck production [5] - Sensing Solutions revenues, making up 30.9% of total revenues, increased 8.6% year-over-year to $291.2 million, marking the second consecutive quarter of growth [6] - Adjusted operating income for the quarter was $179.1 million, down from $196.7 million year-over-year, with an adjusted operating margin expanding by 20 basis points to 19% [7] Cash Flow and Shareholder Returns - The company generated $140.9 million in net cash from operating activities, slightly down from $143.5 million in the prior year, with free cash flow increasing to $115.5 million from $98.4 million [10] - Sensata returned approximately $37.7 million to shareholders, including $20.1 million in share repurchases and $17.6 million in dividends, and declared a third-quarter dividend of 12 cents per share [11] Future Outlook - For Q3 2025, Sensata projects revenues between $900-$930 million, indicating a sequential decline of 5% to 1%, and adjusted operating income expected to be $171-$179 million [12] - Adjusted EPS is estimated to be between 81-87 cents, suggesting a potential decrease of up to 7% sequentially [13]