Strong Financial Performance
Sensata delivered a strong Q2 2025 with revenue, adjusted operating income, and adjusted earnings per share all exceeding the high end of their guidance. Revenue was approximately $943 million, and adjusted operating income was $179 million with a margin of 19.0%.
Cash Flow and Capital Allocation
The cash conversion rate improved to 91% in Q2 2025 from 74% in Q1 2025. Sensata repurchased $20 million of shares and funded a dividend while accumulating an additional $74 million of cash. Net leverage was reduced from 3.1x to 3.0x.
Growth in Sensing Solutions
Sensing Solutions segment reported revenue growth of approximately 9% year-over-year, driven by new content in industrials and market outgrowth in aerospace.
China Market Expansion
Sensata increased its pace of new business wins in China, primarily in the new energy vehicle market, with over 90% of these wins being with top local OEMs and leading NEV players.