Operational Improvement Initiatives
Sensata commenced several operational improvement initiatives focused on streamlining processes, increasing automation, reducing overhead expenses, and aligning capital expenditures. These are expected to be critical as they return to a more normalized environment in 2025.
Sensing Solutions Business Stability
The industrial business within Sensing Solutions showed stabilization, with approximately 2% growth sequentially. The launch of the new A2L leak detection sensor is expected to drive further growth into 2025.
Reduction in Net Leverage
Sensata's net leverage ratio dropped to 3x trailing 12 months EBITDA as of September 30, 2024, from 3.2x as of June 30, consistent with the goal to drop below 3x by year-end.
Quarterly Margin Expansion
Achieved third consecutive quarter of adjusted operating margin expansion, with a sequential improvement of 20 basis points.