Sensata Technologies Holding plc Q4 FY2025 earnings call

• Transformation journey with 3 key pillars: operational excellence, capital allocation, growth. Finished 2025 with strong Q4, met or exceeded key metrics for 4 consecutive quarters. - Reorganized into 3 operating segments: Automotive, Industrials, Aerospace, Defense and Commercial Equipment, each with distinct mandates. - Automotive segment has content accretive opportunities on PHEVs and EREFs, content per vehicle on EV ~double that of ICE. - Industrials segment has strategic mandate to deliver growth across power and peak management, thermal management and electrical protection, with data center as a key growth vector. - Aerospace, Defense and Commercial Equipment segment serves multiple market verticals, sees opportunities in commercial aviation, defense, etc., with UAVs offering high-volume platform-driven opportunities.

Automotive segment net revenue in Q4 2025 was $527 million, down ~1% y-o-y reported, up ~1% organically; segment adjusted operating income ~$129 million, 24.4% of segment revenue, +100bps margin expansion. Industrials segment net revenue $191 million, +6% y-o-y reported, +8% organically; segment adjusted operating income $59 million, 30.9% of segment revenue, +620bps margin expansion. Aerospace, Defense and Commercial Equipment segment net revenue $199 million, +4% y-o-y reported, +7% organically; segment adjusted operating income ~$56 million, 28.1% of segment revenue, +310bps margin expansion. 2025 revenue $3.70B, down 6% y-o-y; adjusted operating income $705M, down 6% y-o-y; adjusted operating margin 19.0%, flat to 2024; free cash flow $490M, record, 97% conversion rate; returned $191M to shareholders.

• Q1 2026 revenue expected $917M - $937M, adjusted operating income $168M - $175M, adjusted operating margin 18.4% - 18.6%, adjusted net income $118M - $125M, adjusted EPS $0.81 - $0.85. - 2026 expects low single digits y-o-y revenue growth, participate in market growth in Industrials and Aerospace segments, deliver market outgrowth in Automotive. - Targets margin expansion of at least 20bps full year, may see slightly lower free cash flow conversion in 2026, especially in Q1 due to seasonality.

• Q: Wamsi Mohan on longer-term revenue potential; A: Stephan says real growth opportunities in segments, right team in place for execution. - Q: Joe Giordano on balancing segmentation and fixed costs; A: Andrew says normalized overhead cost, expectation to be offset by growth; Stephan says resegmentation for value creation. - Q: Mark Delaney on Auto segment outgrowth and bookings; A: Stephan and Andrew talk about winning business in Asia, content per vehicle in different regions. - Q: Robert Jamieson on nimbleness from segmentation; A: Stephan says each segment has growth opportunity, strong leadership. - Q: Joseph Spak on data center and defense materiality, Dynapower; A: Stephan talks about existing products in data centers, organic growth; Andrew on Dynapower goodwill impairment. - Q: Luke Junk on materiality of data center and defense, Industrials segment; A: Andrew talks about segment sizes, Stephan on defense growth opportunities. - Q: Samik Chatterjee on Industrial growth and flow sensors; A: Andrew on A2L growth, Stephan on A2L and A3 opportunities. - Q: Konsta Tasoulis on data center work duration and value-add; A: Stephan says been working on it, broad opportunities. - Q: Steven Fox on segment margin expansion; A: Andrew says focused on operating margin expansion, higher growth in Industrials and Aerospace. - Q: Shreyas Patil on Auto organic growth underperformance and growth drivers; A: Andrew on regional mix, Stephan on Sensata's desirable position. - Q: Joe Giordano on avoiding past issues with new businesses; A: Stephan says using existing product portfolio, growth framework, rigorous standards.