Slide 1: Sensata Second Quarter 2025 Earnings Presentation
Sensata Second Quarter 2025 Earnings Presentation July 2025
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 2025 Highlights
Q2 2025 Highlights Exceeded key financial expectations, with Revenue, Adjusted Operating Income, and Adjusted EPS all above high end of guidance Generated $116 million of Free Cash Flow at a conversion rate of 91%, up 20 points Y/Y and 17 points sequentially Sensing Solutions delivered strong Y/Y gr
Slide 4: End markets have proven resilient through the first half of 2025 and into Q3
End markets have proven resilient through the first half of 2025 and into Q3 Performance Sensing Sensing Solutions Auto markets holding up, HVOR softening Industrial stabilizing, Aero growing steadily Automotive • S&P estimates global auto production Industrial • Early signs of stabilization ~flat Y
Slide 5: Q2-2025 Financials and Q3-2025 Financial Guide
Q2-2025 FINANCIALS AND Q3-2025 FINANCIAL GUIDE
Slide 6: Delivered sequential index expansion and significant step-up in free cash flow conversion
Delivered sequential index expansion and significant step-up in free cash flow conversion $943M $179M $0.87 $116M Revenue Adj. Op. Inc. Adj. EPS FCF +$32M sequentially 19.0% margin Above guide 91% Conversion • $3M above high end of • ~20 bps above high end • 1 cent above high end of • FCF conversion
Slide 7: Deployed robust free cash flows to optimize shareholder value and reduce net leverage
Deployed robust free cash flows to optimize shareholder value and reduce net leverage $20M $0.12 3.0 X 10.1% Q2 share Dividend Net leverage ratio* ROIC repurchases per share $121M YTD Sustaining Down from 3.1x Up ~30 bps Y/Y Dividend As of March 31, 2025 Vs. Q2 2024 • Repurchased • $18M of cash retu
Slide 8: Q2-2025 Segment Performance
Q2-2025 Segment Performance Revenue Growth Performance Sensing Segment $ in millions Q2-2025 Q2-2024 Y/Y B/(W) Reported Organic Net Revenue decreased Y/Y Net Revenue $652.2 $723.9 $(71.7) (9.9) % (6.1) % primarily due to divested products Performance and lower on-road truck Adj. Operating Income $14
Slide 9: Sensata has a global footprint with a flexible in-region, for-region production model
Sensata has a global footprint with a flexible in-region, for-region production model 2024 Regional 2024 US Revenue Global Tariff Revenue Mix* Production* Implications Of Sensata's Global Of Sensata’s US Revenue: ~$15M of expected pass- Revenue: through revenue fully • approx. 70% is sourced mitigat
Slide 10: Q3-2025 Financial Guidance
Q3-2025 Financial Guidance $ in millions, except EPS Q3-25 GUIDANCE Q2-25 B/(W) Revenue decrease slightly from Q2 to Q3 on typical seasonality Revenue $900 – $930 $943 (5) % - (1) % Adjusted Operating Income in line with seasonally lower revenue Adj. Op Income $171 – $179 $179 (5) % - 0 % Adj. Opera
Slide 11: Appendix A: Other Financial Information
APPENDIX A: OTHER FINANCIAL INFORMATION
Slide 12: Q2-2025 GAAP Results
Q2-2025 GAAP Results $ and shares outstanding in millions, except EPS Q2-2025 Q2-2024 B/(W) Revenue $943.4 $1,035.5 (8.9) % Gross Profit $286.3 $311.1 (8.0) % (% of revenue) 30.3 % 30.0 % R&D $32.6 $45.3 28.1 % (% of revenue) 3.5 % 4.4 % SG&A $87.8 $93.3 5.8 % (% of revenue) 9.3 % 9.0 % Amortization
Slide 13: Q2-2025 Adj. Operating Results
Q2-2025 Adj. Operating Results $ and shares outstanding in millions, except EPS Q2-2025 Q2-2024 B/(W) Revenue decreased primarily due to Revenue $943.4 $1,035.5 (8.9) % divested products; down approximately 2% organically Adj. Gross Profit $292.2 $325.9 (10.3) % % Revenue 31.0 % 31.5 % Adjusted Oper
Slide 14: Q2-2025 Cash Flow Statement
Q2-2025 Cash Flow Statement $ in millions Q2-2025 Q2-2024 B/(W) Net Income $60.7 $71.7 (15.4) % Depreciation & Amortization $54.5 $72.6 24.9 % Changes in Working Capital ($14.5) ($5.1) n.m. Other $40.3 $4.3 n.m. Operating Cash Flow $140.9 $143.5 (1.8) % Capital Expenditures ($25.4) ($45.1) 43.7 % Fr
Slide 15: Balance Sheet
Balance Sheet $ in millions JUN 30, 2025 DEC 31, 2024 Total Assets $7,270.1 $7,143.3 Working Capital $1,412.9 $1,315.9 Intangibles, Net & Other Long-Term Assets $5,030.1 $5,116.0 $ in millions JUN 30, 2025 DEC 31, 2024 Cash & Equivalents $661.8 $593.7 Current Debt $2.2 $2.4 Net Cash $659.6 $591.3 15
Slide 16: Appendix B: GAAP to Non-GAAP Reconciliations
APPENDIX B: GAAP TO NON-GAAP RECONCILIATIONS
Slide 17: 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 18: 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. We believe free cash flow is useful to management and investors as a measure of cash generated by business operations that
Slide 19: Adjusted EBITDA
Adjusted EBITDA In thousands Period Total Sensata LTM Q2-2025 Q1-2025 Q4-2024 Q3-2024 Q2-2024 Net income/(loss) $ 111,340 $ 60,668 $ 69,919 $ 5,787 $ (25,034) $ 71,703 Interest expense, net 136,790 33,212 33,683 36,810 33,085 35,061 (Benefit from)/provision for income taxes (124,330) 45,112 20,722 2
Slide 20: Organic Revenue Growth
Organic Revenue Growth Q2-2025 Constant Less: Acquisition Reported % Less: FX Impact Currency % & Divestitures, Organic Growth Change Change net Performance Sensing (9.9) % 1.1 % (11.0) % (4.9) % (6.1) % Sensing Solutions 8.6 % 0.5 % 8.1 % (2.6) % 10.7 % Other (100.0) % — % (100.0) % (100.0) % — % S
Slide 21: Free Cash Flow
Free Cash Flow $ in thousands Q2 Q2 YTD Total Sensata 2025 2024 Change 2025 2024 Change Net cash provided by operating activities $ 140,904 $ 143,456 (1.8) % $ 260,103 $ 249,943 4.1 % Additions to property, plant and equipment and (25,385) (45,058) 43.7 % (57,960) (87,188) 33.5 % capitalized softwar
Slide 22: Debt and Leverage Ratio (Gross and Net)
Debt and Leverage Ratio (Gross and Net) $ in thousands As of Total Sensata 6/30/2025 3/31/2025 12/31/2024 9/30/2024 6/30/2024 Current portion of long-term debt and finance lease obligations $ 2,156 $ 2,130 $ 2,414 $ 2,076 $ 702,701 Finance lease obligations, less current portion 19,968 20,627 20,984
Slide 23: Adjusted Taxes and Adjusted Tax Rate
Adjusted Taxes and Adjusted Tax Rate $ in thousands Q2 Q2 YTD Total Sensata 2025 2024 2025 2024 Provision for income taxes $ 45,112 $ 27,280 $ 65,834 $ 49,850 Non-GAAP adjustments: Deferred income tax and other tax expense 26,025 4,160 28,259 5,446 Current tax effect of non-GAAP adjustments (633) (8
Slide 24: Adjusted Corporate and Other Expenses
Adjusted Corporate and Other Expenses In thousands Q2 Q2 YTD Total Sensata 2025 2024 2025 2024 Corporate and other expenses $ (69,054) $ (77,764) $ (138,243) $ (141,718) Non-GAAP adjustments: Restructuring related and other 12,869 24,166 28,636 26,358 Financing and other transaction costs 346 1,760
Slide 25: Other GAAP to Non-GAAP Reconciliations
Other GAAP to non-GAAP Reconciliations $ in thousands (except EPS amounts) Q2-2025 Q2-2024 Operating Operating Operating Operating Total Sensata Net Income EPS Net Income EPS Income Margin Income Margin Reported (GAAP) $ 138,062 14.6 % $ 60,668 $ 0.41 $ 129,947 12.5 % $ 71,703 $ 0.47 Non-GAAP adjust