Sensata Technologies (NYSE: ST) grows Q1 2026 EPS and guides higher margins
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Sensata Technologies Holding plc reported higher results for the first quarter of 2026. Net revenue reached $934.8 million, up 2.6% from $911.3 million a year earlier, with organic revenue growing 4.2%. Operating income rose to $141.6 million, or 15.2% of revenue, compared with 13.4% previously.
Profitability improved meaningfully. Net income increased to $87.1 million from $69.9 million, and diluted earnings per share climbed to $0.59 from $0.47. Adjusted EPS was $0.86, up 10.3%. Free cash flow was $104.6 million, and cash on hand was $635.1 million as of March 31, 2026.
Management is guiding to further growth in the second quarter of 2026. The company expects revenue between $950 million and $980 million and adjusted EPS between $0.89 and $0.95, implying low single-digit revenue growth and higher margins versus the prior-year quarter.
Positive
- Strong earnings and cash generation: Q1 2026 diluted EPS rose to $0.59 from $0.47, adjusted EPS increased 10.3% to $0.86, and free cash flow reached $104.6 million with 83% conversion, while net leverage improved to 2.6 from 2.7.
Negative
- None.
Insights
Sensata delivered EPS growth, stronger margins and guides to continued improvement into Q2 2026.
Sensata Technologies posted Q1 2026 revenue of $934.8 million, up 2.6% year over year, with 4.2% organic growth. Operating margin improved to 15.2% GAAP and 18.6% on an adjusted basis, reflecting better cost control and mix.
Diluted EPS increased to $0.59, while adjusted EPS rose 10.3% to $0.86. Free cash flow of $104.6 million represented 83% conversion, and net debt fell to $2.23 billion, bringing net leverage down to 2.6%.
For Q2 2026, management guides revenue to $950–$980 million and adjusted EPS to $0.89–$0.95, with adjusted operating margin expanding to 19.2–19.4%. Actual outcomes will depend on demand across automotive, industrial, and aerospace markets and on recovering $8 million of tariff costs, as outlined in the guidance.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $934.8 million
Q1 2026 Diluted EPS: $0.59
Q1 2026 Adjusted EPS: $0.86
+5 more
8 metrics
Q1 2026 Revenue
$934.8 million
Net revenue for the three months ended March 31, 2026
Q1 2026 Diluted EPS
$0.59
Diluted earnings per share for Q1 2026 vs $0.47 in Q1 2025
Q1 2026 Adjusted EPS
$0.86
Adjusted earnings per share for Q1 2026 vs $0.78 in Q1 2025
Free Cash Flow
$104.6 million
Free cash flow in Q1 2026 with 83% free cash flow conversion
Cash and Cash Equivalents
$635.1 million
Cash balance as of March 31, 2026
Net Debt
$2,231.8 million
Total net debt as of March 31, 2026
Net Leverage Ratio
2.6x
Net debt divided by last twelve months adjusted EBITDA at March 31, 2026
Q2 2026 Revenue Guidance
$950–$980 million
Expected revenue range for the quarter ending June 30, 2026
Key Terms
organic revenue growth, free cash flow, adjusted EBITDA, net leverage ratio, +2 more
6 terms
organic revenue growth financial
"On an organic basis, revenue increased $38.0 million, or 4.2%, compared to the first quarter of 2025."
Organic revenue growth is the increase in a company's sales that comes from its existing products and services, without including any gains from acquisitions or selling off parts of the business. It reflects the company’s ability to attract more customers or encourage existing customers to buy more over time. For investors, it indicates the company's underlying strength and efficiency in expanding its core operations.
free cash flow financial
"Free cash flow was $104.6 million in the first quarter of 2026, representing Free cash flow conversion of 83%."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
adjusted EBITDA financial
"Adjusted EBITDA is defined as net income (or loss), determined in accordance with U.S. GAAP, excluding interest expense..."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
net leverage ratio financial
"Net leverage ratio is defined as net debt divided by LTM adjusted EBITDA."
The net leverage ratio measures how much debt a company has compared to its available assets or earnings, after accounting for its cash and liquid assets. It helps investors understand how heavily a company relies on borrowed money to finance its operations and growth. A higher ratio indicates greater financial risk, while a lower ratio suggests a more cautious approach to borrowing.
tariff pass-through revenue financial
"Tariff pass-through revenue of $11.9 million was approximately 30 basis points dilutive to adjusted operating income margin..."
Revenue generated when a company increases the prices of its products or services to cover new import taxes (tariffs) imposed on its inputs or finished goods. Think of a shop that pays a higher wholesale bill and raises sticker prices so customers effectively pay the tax; this shows whether a business can shift added costs to buyers without losing sales and directly affects profit margins, competitive position and investor expectations about future earnings.
non-GAAP financial measures financial
"These results include non-GAAP financial measures, each of which is defined and reconciled to the most directly comparable GAAP measure..."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Revenue: $934.8 million · Guidance included
Q1 2026
Revenue
$934.8 million
+2.6% YoY
Diluted EPS
$0.59
+25.5% YoY
Adjusted EPS
$0.86
+10.3% YoY
Operating Margin (GAAP)
15.2%
up from 13.4% YoY
Adjusted Operating Margin
18.6%
up from 18.3% YoY
Guidance
For Q2 2026, Sensata expects revenue of $950–$980 million and adjusted EPS of $0.89–$0.95.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
__________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 28, 2026
__________________________________________
(Exact name of Registrant as specified in its charter)
__________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of Principal executive offices, including Zip Code)
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
__________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
| Item 2.02 | Results of Operations and Financial Condition. | ||||
On April 28, 2026, Sensata Technologies Holding plc (the "Company") issued a press release announcing its financial results for the first quarter ended March 31, 2026. The press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
The Company will conduct a conference call on April 28, 2026 at 5:00 PM eastern time to discuss its first quarter 2026 financial results and its outlook for the second quarter of 2026. The dial in numbers for the call are 1-844-784-1726 or 1-412-380-7411. Callers should reference the "Sensata Technologies Q1 2026 Financial Results Conference Call." A live webcast of the conference call will also be available on the investor relations page of the Company’s website at http://investors.sensata.com. Additional information relating to the Company's financial results will be contained in a presentation that will be referenced during the webcast, and that is being made available on the investor relations page of the Company’s website. Additionally, a replay of the call will be available until May 5, 2026. To access the replay, dial 1-855-669-9658 or 1-412-317-0088 and enter confirmation code: 8682138.
The information contained in, or incorporated into, this Current Report on Form 8-K is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section, nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in any such filing.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | April 28, 2026 press release entitled "Sensata Technologies Reports First Quarter 2026 Financial Results" (furnished pursuant to Item 2.02) | |||||||
| 104 | Cover Page Interactive Data File (embedded within inline XBRL document) | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SENSATA TECHNOLOGIES HOLDING PLC | |||||||||||||||||
| /s/ Richard Siedel | |||||||||||||||||
| Date: | April 28, 2026 | Name: Richard Siedel | |||||||||||||||
| Title: Senior Vice President and Chief Accounting Officer | |||||||||||||||||
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SENSATA TECHNOLOGIES REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS
Swindon, United Kingdom – April 28, 2026 - Sensata Technologies (NYSE: ST) today announced financial results for its first quarter ended March 31, 2026.
“Our first quarter results, which met or exceeded our expectations across all of our key metrics, provide more proof points for the momentum we are gaining," said Stephan von Schuckmann, Sensata's Chief Executive Officer. "We have achieved organization-wide operational discipline, our productivity engine is delivering, our strategic initiatives are accelerating, and our growth opportunities are robust."
Operating Results - First Quarter
Operating results for the first quarter of 2026 compared to the first quarter of 2025 are summarized below. These results include non-GAAP financial measures, each of which is defined and reconciled to the most directly comparable GAAP measure later in this press release.
As previously disclosed, the Company reorganized into three operating segments effective in the fourth quarter of 2025. Prior period results have been recast to be comparative to the current period.
Revenue:
•Revenue was $934.8 million, an increase of $23.6 million, or 2.6%, compared to $911.3 million in the first quarter of 2025.
◦On an organic basis, revenue increased $38.0 million, or 4.2%, compared to the first quarter of 2025.
Operating income:
•Operating income was $141.6 million, or 15.2% of revenue compared to operating income of $122.2 million, or 13.4% of revenue, in the first quarter of 2025.
•Adjusted operating income was $174.0 million, or 18.6% of revenue, an increase of $7.5 million, or 4.5%, compared to adjusted operating income of $166.5 million, or 18.3% of revenue, in the first quarter of 2025.
◦Tariff pass-through revenue of $11.9 million was approximately 30 basis points dilutive to adjusted operating income margin in the first quarter of 2026.
Earnings per share:
•Earnings per share was $0.59, an increase of $0.12, or 25.5%, compared to earnings per share of $0.47 in the first quarter of 2025.
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•Adjusted earnings per share was $0.86, an increase of $0.08, or 10.3%, compared to adjusted earnings per share of $0.78 in the first quarter of 2025.
Cash Flow and Shareholder Returns:
•Net cash provided by operating activities was $122.5 million in the first quarter of 2026, and cash on hand was $635.1 million at March 31, 2026.
•Free cash flow was $104.6 million in the first quarter of 2026, representing Free cash flow conversion of 83%.
•During the first quarter of 2026, Sensata returned approximately $42.6 million to shareholders, including $17.5 million through its quarterly dividend, and $25.1 million of repurchased shares.
Guidance
For the second quarter of 2026, Sensata expects revenue of $950 to $980 million, inclusive of recovery of tariff costs, and adjusted EPS of $0.89 to $0.95.
Q2-2026 Guidance | |||||||||||
| $ in millions, except EPS | Q2-26 Guidance | Q2-25 | Y/Y Change | ||||||||
| Revenue | $950 - $980 | $943 | 1% - 4% | ||||||||
| Adjusted Operating Income | $182 - $190 | $179 | 2% - 6% | ||||||||
| Adj. Operating Margin | 19.2% - 19.4% | 19.0% | 20 bps - 40 bps | ||||||||
| Adjusted Net Income | $131 - $139 | $127 | 3% - 9% | ||||||||
| Adjusted EPS | $0.89 - $0.95 | $0.87 | 2% - 9% | ||||||||
•At the mid-point of our guide, Revenue includes approximately $8 million related to expected tariff recovery from customers.
•Adjusted Operating Income, Adjusted Net Income, and Adjusted EPS are not expected to be impacted by tariffs, as $8 million of expected tariff costs would be offset by $8 million in expected pass-through revenue.
•Tariff expectations included in guidance reflect trade policies in effect as of April 27, 2026.
Conference Call and Webcast
Sensata will conduct a conference call today at 5:00 p.m. Eastern Time to discuss its first quarter 2026 financial results and its outlook for the second quarter of 2026. The dial-in numbers for the call are 1-844-784-1726 or 1-412-380-7411. Callers should reference the "Sensata Technologies Q1 2026 Financial Results Conference Call." A live webcast of the conference call will also be available on the investor relations page of Sensata’s website at http://investors.sensata.com. Additionally, a replay of the call will be available until May 5, 2026. To access the replay, dial 1-855-669-9658 or 1-412-317-0088 and enter confirmation code: 8682138.
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About Sensata Technologies
Sensata Technologies is a global industrial technology company striving to create a safer, cleaner, more efficient and electrified world. Through its broad portfolio of mission-critical sensors, electrical protection components and sensor-rich solutions, Sensata helps its customers address increasingly complex engineering and operating performance requirements. With more than 16,000 employees and global operations in 13 countries, Sensata serves customers in the automotive, heavy vehicle & off-road, industrial, and aerospace markets. Learn more at www.sensata.com and follow Sensata on LinkedIn, Facebook, X and Instagram.
Non-GAAP Financial Measures
We supplement the reporting of our financial information determined in accordance with U.S. generally accepted accounting principles (“GAAP”) with certain non-GAAP financial measures. We use these non-GAAP financial measures internally to make operating and strategic decisions, including the preparation of our annual operating plan, evaluation of our overall business performance, and as a factor in determining compensation for certain employees. We believe presenting non-GAAP financial measures is useful for period-over-period comparisons of underlying business trends and our ongoing business performance. We also believe presenting these non-GAAP measures provides additional transparency into how management evaluates the business.
Non-GAAP financial measures should be considered as supplemental in nature and are not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, our non-GAAP financial measures may not be the same as, or comparable to, similar non-GAAP measures presented by other companies.
The non-GAAP financial measures referenced by Sensata in this release include: adjusted net income, adjusted earnings per share (“EPS”), adjusted operating income, adjusted operating margin, free cash flow, organic revenue growth, market outgrowth, adjusted corporate and other expenses, adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA"), net debt, and gross and net leverage ratio. We also refer to changes in certain non-GAAP measures, usually reported either as a percentage or number of basis points, between two periods. Such changes are also considered non-GAAP measures.
Adjusted net income (or loss) is defined as net income (or loss), determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments which are detailed in the accompanying reconciliation tables. Adjusted EPS is calculated by dividing adjusted net income (or loss) by the number of diluted weighted-average ordinary shares outstanding in the period. We believe that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Adjusted operating income (or loss) is defined as operating income (or loss), determined in accordance with U.S. GAAP, excluding certain non-GAAP adjustments which are detailed in the accompanying reconciliation tables. Adjusted operating margin is calculated by dividing adjusted operating income (or loss) by net revenue. We believe that these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Free cash flow is defined as net cash provided by operating activities less additions to property, plant and equipment and capitalized software. Free cash flow conversion is defined as Free cash flow divided by Adjusted net income. We believe free cash flow is useful to management and investors as a measure of cash generated by business operations that will be used to repay
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scheduled debt maturities and can be used to, among other things, fund acquisitions, repurchase ordinary shares, or accelerate the repayment of debt obligations.
Organic revenue growth (or decline) is defined as the reported percentage change in net revenue calculated in accordance with U.S. GAAP, excluding the period-over-period impact of foreign exchange rate differences as well as the net impact of material acquisitions, divestitures, and product life-cycle management actions for the 12-month period following the respective transaction date(s). We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Adjusted EBITDA is defined as net income (or loss), determined in accordance with U.S. GAAP, excluding interest expense, interest income, and provision for (or benefit from) income taxes, depreciation expense, amortization of intangible assets, and the following non-GAAP adjustments, if applicable: (1) restructuring related and other, (2) financing and other transaction costs, and (3) other, net. We believe that this measure is useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
Gross leverage ratio is defined as gross debt (total debt and finance lease obligations less unamortized issue costs) divided by last twelve months ("LTM") adjusted EBITDA. We believe that gross leverage ratio is a useful measure to management and investors in understanding trends in our overall financial condition.
Net debt is defined as total debt, finance lease, and other financing obligations less cash and cash equivalents. We believe net debt is a useful measure to management and investors in understanding trends in our overall financial condition.
Net leverage ratio is defined as net debt divided by LTM adjusted EBITDA. We believe that the net leverage ratio is a useful measure to management and investors in understanding trends in our overall financial condition.
In discussing trends in our performance, we may refer to certain non-GAAP financial measures or the percentage change of certain non-GAAP financial measures in one period versus another, calculated on a constant currency basis. Constant currency is determined by stating revenues and expenses at prior period foreign currency exchange rates and excludes the impact of foreign currency exchange rates on all hedges and, as applicable, net monetary assets. We believe these measures are useful to investors and management in understanding our ongoing operations and in analysis of ongoing operating trends.
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Safe Harbor Statement
This earnings release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as "may," "will," "could," "should," "expect," "anticipate," "believe," "estimate," "predict," "project," "forecast," "continue," "intend," "plan," "potential," "opportunity," "guidance," and similar terms or phrases. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives, business and market outlook, trends, priorities, growth, shareholder value, capital expenditures, cash flows, demand for products and services, share repurchases, and Sensata’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. These statements are subject to risks, uncertainties, and other important factors relating to our operations and business environment, and we can give no assurances that these forward-looking statements will prove to be correct.
A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements, including, but not limited to, risks related to instability and changes in the global markets, supplier interruption or non-performance, changes in trade-related tariffs and risks with uncertain trade environments, the acquisition or disposition of businesses, variability in metals pricing, cybersecurity, adverse conditions or competition in the industries upon which we are dependent, intellectual property, product liability, warranty, and recall claims, public health crisis, market acceptance of new product introductions and product innovations, labor disruptions or increased labor costs and changes in existing environmental or safety laws, regulations, and programs.
Investors and others should carefully consider the foregoing factors and other uncertainties, risks, and potential events including, but not limited to, those described in Item 1A: Risk Factors in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A: Risk Factors in our Quarterly Reports on Form 10-Q or other subsequent filings with the United States Securities and Exchange Commission. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.
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| SENSATA TECHNOLOGIES HOLDING PLC | ||
| Condensed Consolidated Statements of Operations | ||
| (In millions, except per share amounts) | ||
| (Unaudited) | ||
| For the three months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net revenue | $ | 934.8 | $ | 911.3 | ||||||||||
| Operating costs and expenses: | ||||||||||||||
| Cost of revenue | 648.5 | 638.7 | ||||||||||||
| Research and development | 31.9 | 36.8 | ||||||||||||
| Selling, general and administrative | 93.4 | 86.0 | ||||||||||||
| Amortization of intangible assets | 15.7 | 20.6 | ||||||||||||
| Restructuring and other charges, net | 3.7 | 7.0 | ||||||||||||
| Total operating costs and expenses | 793.2 | 789.1 | ||||||||||||
| Operating income | 141.6 | 122.2 | ||||||||||||
| Interest expense | (34.1) | (38.0) | ||||||||||||
| Interest income | 3.9 | 4.3 | ||||||||||||
| Other, net | 4.1 | 2.1 | ||||||||||||
| Income before taxes | 115.5 | 90.6 | ||||||||||||
| Provision for income taxes | 28.4 | 20.7 | ||||||||||||
| Net income | $ | 87.1 | $ | 69.9 | ||||||||||
| Net income per share: | ||||||||||||||
| Basic | $ | 0.60 | $ | 0.47 | ||||||||||
| Diluted | $ | 0.59 | $ | 0.47 | ||||||||||
| Weighted-average ordinary shares outstanding: | ||||||||||||||
| Basic | 145.6 | 148.5 | ||||||||||||
| Diluted | 146.6 | 148.8 | ||||||||||||
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| SENSATA TECHNOLOGIES HOLDING PLC | ||
| Condensed Consolidated Balance Sheets | ||
| (In millions) | ||
| (Unaudited) | ||
| March 31, 2026 | December 31, 2025 | |||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 635.1 | $ | 573.0 | ||||||||||
| Accounts receivable, net of allowances | 693.2 | 657.4 | ||||||||||||
| Inventories | 605.8 | 617.8 | ||||||||||||
| Prepaid expenses and other current assets | 152.4 | 146.1 | ||||||||||||
| Total current assets | 2,086.6 | 1,994.3 | ||||||||||||
| Property, plant and equipment, net | 763.1 | 776.5 | ||||||||||||
| Goodwill | 3,158.2 | 3,158.2 | ||||||||||||
| Other intangible assets, net | 396.6 | 411.6 | ||||||||||||
| Deferred income tax assets | 271.8 | 277.2 | ||||||||||||
| Other assets | 138.6 | 133.9 | ||||||||||||
| Total assets | $ | 6,815.0 | $ | 6,751.7 | ||||||||||
| Liabilities and shareholders' equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Current portion of long-term debt and finance lease obligations | $ | 2.4 | $ | 2.3 | ||||||||||
| Accounts payable | 446.4 | 413.0 | ||||||||||||
| Income taxes payable | 16.3 | 16.8 | ||||||||||||
| Accrued expenses and other current liabilities | 293.5 | 343.1 | ||||||||||||
| Total current liabilities | 758.6 | 775.1 | ||||||||||||
| Deferred income tax liabilities | 235.3 | 226.9 | ||||||||||||
| Pension and other post-retirement benefit obligations | 39.5 | 39.1 | ||||||||||||
| Finance lease obligations, less current portion | 18.5 | 18.9 | ||||||||||||
| Long-term debt, net | 2,829.4 | 2,828.6 | ||||||||||||
| Other long-term liabilities | 78.2 | 77.8 | ||||||||||||
| Total liabilities | 3,959.5 | 3,966.3 | ||||||||||||
| Total shareholders' equity | 2,855.5 | 2,785.4 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 6,815.0 | $ | 6,751.7 | ||||||||||
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| SENSATA TECHNOLOGIES HOLDING PLC | ||
| Condensed Consolidated Statements of Cash Flows | ||
| (In millions) | ||
| (Unaudited) | ||
| For the three months ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net income | $ | 87.1 | $ | 69.9 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation | 34.0 | 41.0 | ||||||||||||
| Amortization of debt issuance costs | 1.1 | 1.2 | ||||||||||||
Loss on sale of business | — | 3.9 | ||||||||||||
| Share-based compensation | 6.8 | 6.9 | ||||||||||||
| Amortization of intangible assets | 15.7 | 20.6 | ||||||||||||
| Deferred income taxes | 10.0 | (6.6) | ||||||||||||
| Loss on equity investments, net | 0.1 | — | ||||||||||||
Other non-cash loss, net | 1.8 | 5.2 | ||||||||||||
Changes in operating assets and liabilities, net of effects of divestitures | (34.1) | (22.7) | ||||||||||||
| Net cash provided by operating activities | 122.5 | 119.2 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Additions to property, plant and equipment and capitalized software | (17.9) | (32.6) | ||||||||||||
| Proceeds from the sale of business, net of cash sold | — | 25.6 | ||||||||||||
| Other | 1.4 | 0.1 | ||||||||||||
Net cash used in investing activities | (16.5) | (6.9) | ||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Payment of employee restricted stock tax withholdings | (1.6) | (0.1) | ||||||||||||
| Payments on debt | (0.4) | (0.7) | ||||||||||||
| Dividends paid | (17.5) | (17.9) | ||||||||||||
| Payments to repurchase ordinary shares | (25.1) | (100.5) | ||||||||||||
| Payments of debt financing costs | (0.1) | — | ||||||||||||
Net cash used in financing activities | (44.7) | (119.1) | ||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 0.8 | 1.3 | ||||||||||||
| Net change in cash and cash equivalents | 62.1 | (5.5) | ||||||||||||
| Cash and cash equivalents, beginning of year | 573.0 | 593.7 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 635.1 | $ | 588.1 | ||||||||||
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Segment Performance (Unaudited)
| For the three months ended March 31, | ||||||||||||||
| $ in millions | 2026 | 2025 | ||||||||||||
| Automotive | ||||||||||||||
| Revenue | $ | 524.8 | $ | 528.9 | ||||||||||
| Operating income | $ | 123.2 | $ | 120.3 | ||||||||||
| % of segment revenue | 23.5 | % | 22.8 | % | ||||||||||
| Industrials | ||||||||||||||
| Revenue | $ | 184.2 | $ | 185.7 | ||||||||||
| Operating income | $ | 50.0 | $ | 48.5 | ||||||||||
| % of segment revenue | 27.1 | % | 26.1 | % | ||||||||||
| Aerospace, Defense, and Commercial Equipment | ||||||||||||||
| Revenue | $ | 225.8 | $ | 196.7 | ||||||||||
| Operating income | $ | 63.5 | $ | 50.1 | ||||||||||
| % of segment revenue | 28.1 | % | 25.5 | % | ||||||||||
Revenue by Business and Geography (Unaudited)
| (percent of total revenue) | For the three months ended March 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Automotive | 56.1 | % | 58.0 | % | ||||||||||
| Industrials | 19.7 | % | 20.4 | % | ||||||||||
Aerospace, Defense, and Commercial Equipment | 24.2 | % | 21.6 | % | ||||||||||
| Total | 100.0 | % | 100.0 | % | ||||||||||
| (percent of total revenue) | For the three months ended March 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| Americas | 40.2 | % | 40.9 | % | ||||||||||
| Europe | 28.7 | % | 27.7 | % | ||||||||||
| Asia/Rest of World | 31.1 | % | 31.4 | % | ||||||||||
| Total | 100.0 | % | 100.0 | % | ||||||||||
9
GAAP to Non-GAAP Reconciliations
The following unaudited tables provide a reconciliation of the difference between each of the non-GAAP financial measures referenced herein and the most directly comparable U.S. GAAP financial measure. Amounts presented in these tables may not appear to recalculate due to the effect of rounding.
Operating income and margin, income tax, net income, and earnings per share
| ($ in millions, except per share amounts) | For the three months ended March 31, 2026 | ||||||||||||||||||||||||||||
| Operating Income | Operating Margin | Income Taxes | Net Income | EPS | |||||||||||||||||||||||||
| Reported (GAAP) | $ | 141.6 | 15.2 | % | $ | 28.4 | $ | 87.1 | $ | 0.59 | |||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||
Restructuring related and other | 16.6 | 1.8 | % | (1.7) | 14.9 | 0.10 | |||||||||||||||||||||||
Financing and other transaction costs | 0.1 | — | % | — | 0.1 | — | |||||||||||||||||||||||
| Amortization of intangible assets | 15.7 | 1.7 | % | — | 15.7 | 0.11 | |||||||||||||||||||||||
| Amortization of debt issuance costs | — | — | % | — | 1.1 | 0.01 | |||||||||||||||||||||||
Other, net | — | — | % | 0.8 | (3.3) | (0.02) | |||||||||||||||||||||||
Deferred taxes and other tax related | — | — | % | 9.9 | 9.9 | 0.07 | |||||||||||||||||||||||
| Total adjustments | 32.4 | 3.5 | % | 9.0 | 38.4 | 0.26 | |||||||||||||||||||||||
| Adjusted (non-GAAP) | $ | 174.0 | 18.6 | % | $ | 19.4 | $ | 125.5 | $ | 0.86 | |||||||||||||||||||
| ($ in millions, except per share amounts) | For the three months ended March 31, 2025 | ||||||||||||||||||||||||||||
| Operating Income | Operating Margin | Income Tax | Net Income | EPS | |||||||||||||||||||||||||
| Reported (GAAP) | $ | 122.2 | 13.4 | % | $ | 20.7 | $ | 69.9 | $ | 0.47 | |||||||||||||||||||
| Non-GAAP adjustments: | |||||||||||||||||||||||||||||
Restructuring related and other | 18.3 | 2.0 | % | 1.6 | 19.9 | 0.13 | |||||||||||||||||||||||
Financing and other transaction costs | 5.4 | 0.6 | % | — | 5.4 | 0.04 | |||||||||||||||||||||||
| Amortization of intangible assets | 20.6 | 2.3 | % | — | 20.6 | 0.14 | |||||||||||||||||||||||
| Amortization of debt issuance costs | — | — | % | — | 1.2 | 0.01 | |||||||||||||||||||||||
Other, net | — | — | % | (0.5) | (2.6) | (0.02) | |||||||||||||||||||||||
| Deferred taxes and other tax related | — | — | % | 2.2 | 2.2 | 0.02 | |||||||||||||||||||||||
| Total adjustments | 44.3 | 4.9 | % | 3.3 | 46.7 | 0.31 | |||||||||||||||||||||||
| Adjusted (non-GAAP) | $ | 166.5 | 18.3 | % | $ | 17.4 | $ | 116.6 | $ | 0.78 | |||||||||||||||||||
10
Non-GAAP adjustments by location in statements of operations
| (in millions) | For the three months ended March 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
Cost of revenue | $ | 6.5 | $ | 5.6 | ||||||||||
| Selling, general and administrative | 6.5 | 11.2 | ||||||||||||
Amortization of intangible assets | 15.7 | 20.6 | ||||||||||||
Restructuring and other charges, net | 3.7 | 7.0 | ||||||||||||
| Operating income adjustments | 32.4 | 44.3 | ||||||||||||
Interest expense | 1.1 | 1.2 | ||||||||||||
Other, net | (4.1) | (2.1) | ||||||||||||
Provision for income taxes | 9.0 | 3.3 | ||||||||||||
| Net income adjustments | $ | 38.4 | $ | 46.7 | ||||||||||
Free cash flow
| For the three months ended March 31, | ||||||||||||||||||||
| ($ in millions) | 2026 | 2025 | % △ | |||||||||||||||||
| Net cash provided by operating activities | $ | 122.5 | $ | 119.2 | 2.8 | % | ||||||||||||||
| Additions to property, plant and equipment and capitalized software | (17.9) | (32.6) | 45.0 | % | ||||||||||||||||
| Free cash flow | $ | 104.6 | $ | 86.6 | 20.7 | % | ||||||||||||||
Adjusted corporate and other expenses
| For the three months ended March 31, | ||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||
| Corporate and other expenses (GAAP) | $ | (75.7) | $ | (69.2) | ||||||||||
| Restructuring related and other | 12.9 | 15.8 | ||||||||||||
| Financing and other transaction costs | 0.1 | 1.0 | ||||||||||||
| Total adjustments | 13.0 | 16.8 | ||||||||||||
| Adjusted corporate and other expenses (non-GAAP) | $ | (62.7) | $ | (52.4) | ||||||||||
11
Adjusted EBITDA
| For the three months ended March 31, | ||||||||||||||||||||
| (in millions) | LTM | 2026 | 2025 | |||||||||||||||||
| Net income | $ | 48.5 | $ | 87.1 | $ | 69.9 | ||||||||||||||
| Interest expense, net | 126.5 | 30.2 | 33.7 | |||||||||||||||||
| Provision for income taxes | 99.7 | 28.4 | 20.7 | |||||||||||||||||
| Depreciation expense | 169.3 | 34.0 | 41.0 | |||||||||||||||||
| Amortization of intangible assets | 75.4 | 15.7 | 20.6 | |||||||||||||||||
| EBITDA | 519.4 | 195.5 | 185.9 | |||||||||||||||||
| Non-GAAP Adjustments | ||||||||||||||||||||
| Restructuring related and other | 311.0 | 15.0 | 11.0 | |||||||||||||||||
| Financing and other transaction costs | 29.6 | 0.1 | 5.4 | |||||||||||||||||
Other, net | (17.8) | (4.1) | (2.1) | |||||||||||||||||
| Adjusted EBITDA | $ | 842.2 | $ | 206.5 | $ | 200.2 | ||||||||||||||
Gross and net debt and leverage
| As of | ||||||||||||||
| ($ in millions) | March 31, 2026 | December 31, 2025 | ||||||||||||
| Current portion of long-term debt and finance lease obligations | $ | 2.4 | $ | 2.3 | ||||||||||
| Finance lease obligations, less current portion | 18.5 | 18.9 | ||||||||||||
| Long-term debt, net | 2,829.4 | 2,828.6 | ||||||||||||
| Total debt and finance lease obligations | 2,850.2 | 2,849.7 | ||||||||||||
Less: debt premium, net | 0.4 | 0.5 | ||||||||||||
| Less: deferred financing costs | (17.1) | (17.9) | ||||||||||||
Total gross debt | 2,866.9 | 2,867.2 | ||||||||||||
| Adjusted EBITDA (LTM) | $ | 842.2 | $ | 835.9 | ||||||||||
| Gross leverage ratio | 3.4 | 3.4 | ||||||||||||
Total gross debt | 2,866.9 | 2,867.2 | ||||||||||||
| Less: cash and cash equivalents | 635.1 | 573.0 | ||||||||||||
| Net debt | $ | 2,231.8 | $ | 2,294.2 | ||||||||||
| Adjusted EBITDA (LTM) | $ | 842.2 | $ | 835.9 | ||||||||||
| Net leverage ratio | 2.6 | 2.7 | ||||||||||||
12
Guidance
For the three months ending June 30, 2026 | |||||||||||||||||||||||||||||||||||
| ($ in millions, except per share amounts) | Operating Income | Net Income | EPS | ||||||||||||||||||||||||||||||||
| Low | High | Low | High | Low | High | ||||||||||||||||||||||||||||||
| GAAP | $ | 157.5 | $ | 164.0 | $ | 96.0 | $ | 101.8 | $ | 0.65 | $ | 0.69 | |||||||||||||||||||||||
| Restructuring related and other | 9.0 | 10.0 | 8.0 | 9.0 | 0.05 | 0.06 | |||||||||||||||||||||||||||||
| Financing and other transaction costs | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Amortization of intangible assets | 15.5 | 16.0 | 15.5 | 16.0 | 0.11 | 0.11 | |||||||||||||||||||||||||||||
| Amortization of debt issuance costs | — | — | 1.0 | 1.2 | 0.01 | 0.01 | |||||||||||||||||||||||||||||
Other, net | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Deferred taxes and other tax related | — | — | 10.5 | 11.0 | 0.07 | 0.08 | |||||||||||||||||||||||||||||
| Non-GAAP | $ | 182.0 | $ | 190.0 | $ | 131.0 | $ | 139.0 | $ | 0.89 | $ | 0.95 | |||||||||||||||||||||||
| Weighted-average diluted shares outstanding (in millions) | 146.6 | 146.6 | |||||||||||||||||||||||||||||||||
| ### | ||||||||
| Media & Investors: | ||||||||
| James Entwistle | ||||||||
| +1(508) 954-1561 | ||||||||
| jentwistle@sensata.com | ||||||||
| investors@sensata.com | ||||||||
13
FAQ
How did Sensata Technologies (ST) perform financially in Q1 2026?
Sensata reported Q1 2026 revenue of $934.8 million, up 2.6% year over year, with net income of $87.1 million. Diluted EPS rose to $0.59 from $0.47, and adjusted EPS increased to $0.86, reflecting better margins and cost discipline.
What were Sensata Technologies’ margins and profitability in Q1 2026?
Sensata’s Q1 2026 operating margin was 15.2% on a GAAP basis and 18.6% adjusted. Net income reached $87.1 million, with adjusted net income of $125.5 million. These figures compare favorably to the prior year’s 13.4% GAAP and 18.3% adjusted operating margins.
What cash flow and balance sheet metrics did Sensata (ST) report for Q1 2026?
Sensata generated $122.5 million in net cash from operating activities in Q1 2026 and $104.6 million in free cash flow. Cash and cash equivalents were $635.1 million at March 31, 2026, and the net leverage ratio improved to 2.6 times adjusted EBITDA.
What guidance did Sensata Technologies provide for Q2 2026?
For Q2 2026, Sensata expects revenue between $950 million and $980 million and adjusted EPS of $0.89 to $0.95. Guidance implies modest revenue growth and slightly higher adjusted operating margins versus Q2 2025, including about $8 million of tariff recovery revenue.
How did Sensata’s business segments perform in Q1 2026?
In Q1 2026, Automotive revenue was $524.8 million, Industrials revenue was $184.2 million, and Aerospace, Defense, and Commercial Equipment revenue was $225.8 million. Segment operating margins were 23.5%, 27.1%, and 28.1%, respectively, showing solid profitability across the portfolio.