Slide 1: Sensata Second Quarter 2026 Earnings Presentation
Sensata Second Quarter 2026 Earnings Presentation July 29, 2026 1 | SENSATA Q2 2026 EARNINGS PRESENTATION
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures Safe Harbor Statement This presentation 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,"
Slide 3: Q2 2026 results exceeded expectations across all key metrics
Q2 2026 results exceeded expectations across all key metrics Revenue grew 5.0% (4.4% organic), marking a fourth consecutive quarter of organic growth, and organic growth across all three segments “Our second quarter results demonstrate that the successful execution of Delivered 19.5% Adjusted Operat
Slide 4: We have reached a growth inflection point
We have reached a growth inflection point while continuing to execute against our key pillars Pillar Metric Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Highlights Y/Y Adj. Operating Margin • Adj. Operating Margin (40) FLAT +10 +30 +30 +50 Trend (bps) expanding consistently Operational Excellence • FCF conve
Slide 5: Driving market outgrowth through diverse content opportunities
Automotive Driving market outgrowth through diverse content 2% opportunities Q2’26 Organic Growth (+2% Diversified Portfolio: outgrowth potential regardless outgrowth) of regional variances in powertrain production mix Innovation: delivering new solutions to address the challenges associated with EV
Slide 6: Intersection of end market growth cycles with high-growth content opportunities
Aerospace, Defense, and Commercial Equipment Intersection of end market growth cycles with high-growth content opportunities on next- 11% gen aerospace platforms Q2’26 Organic Growth Market growth cycles in aerospace, defense and North America on-road trucks support a multi-year growth outlook Next-
Slide 7: High growth potential to be unlocked through secular trends
Industrials High growth potential to be unlocked through secular trends Expanding HVAC portfolio with leadership in gas 4% Q2’26 Organic leak detection Growth Warming climate provides secular trend towards increased HVAC adoption and regulation of refrigerants, in regions with historically low utili
Slide 8: Rapid innovation for new datacenter architectures accelerating growth
Rapid innovation for new datacenter architectures accelerating growth Sensata Datacenter Portfolio Next Gen. High Voltage Liquid Cooling Current State Expansion Future State 2027+ (Existing Content) Drivers (Incremental Content) Thermal Management New liquid Pressure HVAC Gas Sensor HVAC Pressure Se
Slide 9: Datacenter opportunity expands through technological shifts
Datacenter opportunity expands through technological shifts, driving SAM growth 2026-2029 SAM Growth Drivers Projected SAM per MW Growth Thermal Management Content Category 2026 through 2029 • Broad adoption of liquid cooling Thermal Management +2-3x • Coolant Distribution Units Electrical Protectio
Slide 10: Q2 2026 Financials and Q3 2026 Financial Guide
Q2 2026 FINANCIALS AND Q3 2026 FINANCIAL GUIDE
Slide 11: Q2 2026 Results
Q2 2026 Results $991M 19.5% $0.98 $186M Revenue Adj. Op. Adj. EPS Free Cash Margin Flow +$11M above high +10 bps above high +$0.03 above high 130% Conversion end of guidance end of guidance end of guidance +5% growth and +4% +50 bps margin expansion Increased 11 cents, or FCF grew 61% Y/Y from organ
Slide 12: Operational discipline is driving structurally stronger Free Cash Flow
Operational discipline is driving structurally stronger Free Cash Flow Q2 2026 Free Cash Flow of $186M represents FCF conversion of 130%, up 39 ppts. Y/Y Dec 31 ‘23 Dec 31 ‘24 Dec 31 ‘25 Mar 31 ‘26 Jun 30 ‘26 Days of Inventory >90 ~85 ~85 ~80 ~80 on Hand We are optimizing Cash Conversion our invento
Slide 13: Q2 2026 Capital Allocation
Q2 2026 Capital Allocation 2.4 X 11.3% $0.12 $406M Net leverage ROIC Dividend Debt ratio* per share retirement Improved ~0.6x from Up ~120 bps Y/Y Sustaining Dividend Successful Debt 3.0x as of June 30, 2025 Vs. Q2 2025 Tender Decreased from 2.7x as of ROIC continues on a multi- Returned $17.5M to D
Slide 14: Q2 2026 Segment Performance
Q2 2026 Segment Performance Organic revenue growth in Revenue Growth all segments Y/Y Segment $ in millions Q2-2026 Q2-2025 Y/Y B/(W) Reported Organic Automotive outgrew market production by approximately 2% Net Revenue $544.8 $527.5 $17.4 3.3 % 1.8 % Automotive Operating Income $131.7 $121.1 $10.6
Slide 15: Segment and End Market Overview
Segment and End Market Overview Our growth initiatives are delivering results with organic growth in all three segments in Q2 2026 Automotive Aerospace, Defense, and Industrials Commercial Equipment +2% organic growth in Q2 2026 +11% organic growth in Q2 2026 +4% organic growth in Q2 2026 Delivered
Slide 16: Q3 2026 Financial Guidance
Q3 2026 Financial Guidance $ in millions, except EPS Q3-26 GUIDANCE Q3-25 B/(W) Financial Guide Overview • Revenue expected to grow Revenue $957 – $987 $932 3%–6% 3-6%; fourth consecutive quarter of Y/Y growth Adj. Op Income $186 – $193 $180 3%–7% • Adjusted Operating Adj. Operating Margin 19.4 % -
Slide 17: Appendix A: Other Financial Information
APPENDIX A: OTHER FINANCIAL INFORMATION
Slide 18: Q2 2026 GAAP Results
Q2 2026 GAAP Results $ and shares outstanding in millions, except EPS Q2-2026 Q2-2025 B/(W) Revenue $990.6 $943.4 5.0 % Gross Profit $301.8 $286.3 5.4 % (% of revenue) 30.5 % 30.3 % R&D $31.9 $32.6 2.0 % (% of revenue) 3.2 % 3.5 % SG&A $90.5 $87.8 (3.0) % (% of revenue) 9.1 % 9.3 % Amortization of I
Slide 19: Q2 2026 Adj. Operating Results
Q2 2026 Adj. Operating Results $ and shares outstanding in millions, except EPS Q2-2026 Q2-2025 B/(W) Revenue $990.6 $943.4 5.0 % Adj. Gross Profit $313.8 $292.2 7.4 % % Revenue 31.7 % 31.0 % R&D $31.9 $32.6 2.0 % % Revenue 3.2 % 3.5 % Adj. SG&A $88.5 $80.6 (9.9) % % Revenue 8.9 % 8.5 % Adj. Operati
Slide 20: Q2 2026 Cash Flow Statement
Q2 2026 Cash Flow Statement $ in millions Q2-2026 Q2-2025 B/(W) Net income $102.1 $60.7 68.3 % Depreciation & Amortization $49.3 $54.5 (9.7) % Changes in Working Capital $44.4 ($14.5) n.m. Other $14.2 $40.3 (64.8) % Operating Cash Flow $210.0 $140.9 49.0 % Capital Expenditures ($23.6) ($25.4) 7.1 %
Slide 21: Select Balance Sheet Information
Select Balance Sheet Information $ in millions JUN 30, 2026 DEC 31, 2025 Total Assets $6,585.4 $6,751.7 Working Capital $1,054.4 $1,219.2 Intangibles, Net & Other Long-Term Assets $4,714.4 $4,757.4 $ in millions JUN 30, 2026 DEC 31, 2025 Gross Debt $2,460.1 $2,867.2 Less: Cash and cash equivalents $
Slide 22: End Market Revenue
End Market Revenue $ in millions Revenue by End Market Q2-2026 Q2-2025 Change Automotive $544.8 $527.5 3.3 % Industrials (1) $212.1 $206.3 2.9 % Commercial Equipment (2) $177.8 $156.7 13.5 % Aerospace and Defense $55.8 $53.0 5.4 % Total $990.6 $943.4 5.0 % (1) Includes HVAC, appliance and other indu
Slide 23: Appendix B: GAAP to Non-GAAP Reconciliations
APPENDIX B: GAAP TO NON-GAAP RECONCILIATIONS
Slide 24: Non-GAAP Measures
Non-GAAP 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, inc
Slide 25: Non-GAAP Measures - continued
Non-GAAP Measures - continued 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
Slide 26: Adjusted EBITDA
Adjusted EBITDA $ in millions Period Total Sensata LTM Q2-2026 Q1-2026 Q4-2025 Q3-2025 Q2-2025 Net income/(loss) $ 89.9 $ 102.1 $ 87.1 $ 63.2 $ (162.5) $ 60.7 Interest expense, net 122.5 29.2 30.2 30.7 32.4 33.2 Provision for income taxes 85.0 30.3 28.4 12.1 14.1 45.1 Depreciation expense 169.5 33.5
Slide 27: Organic Revenue Growth
Organic Revenue Growth Q2-2026 Constant Less: Acquisition Reported % Less: FX Impact Currency % & Divestitures, Organic Growth Change Change net Automotive 3.3 % 1.5 % 1.8 % — % 1.8 % Industrials 2.9 % 0.9 % 2.0 % (2.2) % 4.2 % Aerospace, Defense, and Commercial Equipment 11.5 % 0.6 % 10.9 % — % 10.
Slide 28: Free Cash Flow
Free Cash Flow $ in millions Q2 Q2 YTD Total Sensata 2026 2025 Change 2026 2025 Change Net cash provided by operating activities $ 210.0 $ 140.9 49.0 % $ 332.5 $ 260.1 27.8 % Additions to property, plant and equipment and (23.6) (25.4) 7.1 % (41.5) (58.0) 28.4 % capitalized software Free cash flow $
Slide 29: Debt and Leverage Ratio (Gross and Net)
Debt and Leverage Ratio (Gross and Net) $ in millions As of Total Sensata 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Current portion of long-term debt and finance lease obligations $ 2.4 $ 2.4 $ 2.3 $ 2.2 $ 2.2 Finance lease obligations, less current portion 17.7 18.5 18.9 19.6 20.0 Long-ter
Slide 30: Adjusted Taxes and Adjusted Tax Rate
Adjusted Taxes and Adjusted Tax Rate $ in millions Q2 Q2 YTD Total Sensata 2026 2025 2026 2025 Provision for income taxes $ 30.3 $ 45.1 $ 58.8 $ 65.8 Non-GAAP adjustments: Deferred income tax and other tax expense 11.5 26.0 21.5 28.3 Current tax effect of non-GAAP adjustments (2.7) (0.6) (3.6) 0.5 A
Slide 31: Adjusted Corporate and Other Expenses
Adjusted Corporate and Other Expenses $ in millions Q2 Q2 YTD Total Sensata 2026 2025 2026 2025 Corporate and other expenses $ (74.8) $ (64.3) $ (147.6) $ (129.6) Non-GAAP adjustments: Restructuring related and other 13.3 12.9 26.2 28.6 Financing and other transaction costs 0.7 0.3 0.7 1.4 Total adj
Slide 32: Other GAAP to Non-GAAP Reconciliations
Other GAAP to non-GAAP Reconciliations $ in millions (except EPS amounts) Q2-2026 Q2-2025 Operating Operating Diluted Operating Operating Diluted Total Sensata Net Income Net Income Income Margin EPS Income Margin EPS Reported (GAAP) $ 165.4 16.7 % $ 102.1 $ 0.70 $ 138.1 14.6 % $ 60.7 $ 0.41 Non-GAA