Exceeded Guidance
Sensata delivered a strong quarter with revenue, adjusted operating income, and adjusted earnings per share all exceeding the high end of guidance for the second consecutive quarter.
Improved Cash Conversion Rate
The cash conversion rate improved to 91% in Q2 from 74% in Q1 2025, reflecting initiatives to optimize working capital and create margin resilience.
Share Repurchase and Deleveraging
Sensata repurchased $20 million of shares in Q2, funded dividends, and accumulated $74 million of incremental cash, reducing the net leverage ratio from 3.1x to 3.0x.
Growth in Sensing Solutions Segment
Sensing Solutions revenue increased by approximately 9% year-over-year, driven by new content in industrials and market outgrowth in aerospace.
Robust Free Cash Flow
Free cash flow was $116 million in Q2, an increase of 17% year-over-year, representing a conversion rate of 91% of adjusted net income.
China Market Opportunities
Significant increase in new business wins in China, particularly with local OEMs in the NEV market, positioning Sensata for revenue growth in this region.