Sensata Technologies (ST) Q4 2025 earnings summary

Executive summary

• Achieved or exceeded guidance midpoints for all quarters in 2025, with sequential margin expansion and a return to organic revenue growth in Q4 and the second half of the year, demonstrating operational excellence and resilience amid market challenges.

• Completed a major transformation, reorganizing into three segments: Automotive, Industrials, and Aerospace, Defense & Commercial Equipment, each with distinct growth mandates.

• Built a new leadership team and embedded a structured, KPI-driven, metrics-driven approach to value creation.

• Improved free cash flow and strengthened the balance sheet, supporting a more resilient organization.

Financial highlights

• Q4 2025 revenue was $918 million, up 1.1% year-over-year; organic revenue grew 4%.

• Q4 adjusted operating income was $180 million (19.6% margin), up 2.7% year-over-year.

• Q4 adjusted EPS was $0.88, up $0.14 year-over-year; adjusted net income was $130 million, up 16%.

• Full-year 2025 revenue was $3.70 billion, down 5.8% due to divestitures; organic revenue was flat.

• Record free cash flow of $490 million in 2025, with a 97% conversion rate, up 21 points year-over-year.

Outlook and guidance

• Q1 2026 revenue guidance: $917–$937 million; adjusted operating income: $168–$175 million; adjusted EPS: $0.81–$0.85.

• Adjusted operating margin for Q1 2026 expected at 18.4–18.6%, or 18.6–18.8% excluding tariff pass-through.

• Expect low single-digit revenue growth for full year 2026, with margin expansion of at least 20 basis points.

• Free cash flow conversion targeted in the high 80s percent for 2026.