Sensata Technologies Holding Plc · NYSE:ST
Sensata Technologies — Q3 2026 Earnings Presentation
37 slides from Sensata Technologies's earnings presentation, Oct 27, 2026
Slide 1: Sensata Third Quarter 2026 Earnings Presentation
Sensata Third Quarter 2026 Earnings Presentation October 27, 2026 1 | SENSATA Q3 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: Business Update
BUSINESS UPDATE
Slide 4: Our Q3 2026 results exceeded expectations
Our Q3 2026 results exceeded expectations Revenue grew 8% Y/Y • 7% organic; 4% organic without termination revenue(1) • fifth consecutive quarter of Y/Y organic growth “Our core business is stronger, and we have growing conviction Adjusted Operating Margin of 21.5% in our ability to accelerate long-
Slide 5: Unlocking value by improving cash conversion and strengthening balance sheet
We are unlocking value by improving cash conversion, reducing capital intensity, and strengthening our balance sheet Accelerating cash Protecting our Strengthening our generation investments balance sheet Structurally improving FCF Driving higher-quality returns Accelerating value creation Pre-trans
Slide 6: Multiple pathways to accelerate growth and create value
We see multiple pathways to accelerate growth and create value High-Quality Multiple Organic Sensing & Pathways for Growth Electrical Growth Protection Expand core products Technical differentiation into new markets Value creation Customer relationships Innovate and customize to solve through Automo
Slide 7: Expansion Growth Pathway: expanding core products into secular markets
Expansion Growth Pathway | we are expanding core products into attractive secular markets Cross-market Technology Expansion Proven Technology Original Application Expanded Application Capital-light Organic Growth Air-cooled HVAC Datacenter CDUs, Pressure & systems & ICE EV thermal mgmt. Temperature
Slide 8: UAVs: expanding motors and actuators to next-gen aerospace platforms
UAVs | we are expanding our motors and actuators products to next-gen. aerospace platforms Our motors and actuators address the demanding performance needs of next-gen. aerospace platforms Deliveries Mission-optimized designs deliver superior expected Differentiated torque density and efficiency vs.
Slide 9: Innovation Growth Pathway: innovating to solve complex problems
Innovation Growth Pathway | we are innovating to solve complex problems Aerospace, Defense, and Automotive Industrials Commercial Equipment Innovation Stricter emissions, Data centers, thermal Next-gen. aircraft flight Drivers autonomy and electrification management, energy controls, commercial vehi
Slide 10: Flow Sensing: innovative solution for data center customers
Flow Sensing | we leveraged our systems expertise Electrical Sensors & Protection Controls to develop an innovative solution for our customers Ground Fault Circuit Pressure Sensor Protection New FL Series Flow Sensors are a drop-in solution Circuit Breakers Temperature Sensors that applies to all da
Slide 11: Our data center opportunity continues to gain traction
Our data center opportunity continues to gain traction Commercial Presence Design-Win Traction Market & SAM Growth Momentum is accelerating. We are building the next growth wave. The market opportunity is expanding. $27M $48M 7 wins 6 hyperscalers ~15% CAGR 2025 2026 estimate Expected pace of data c
Slide 12: Q3 2026 Financials and Q4 2026 Financial Guide
Q3 2026 FINANCIALS AND Q4 2026 FINANCIAL GUIDE
Slide 13: Q3 2026 Results
Q3 2026 Results $1,004M 21.5% $1.13 $198M Revenue Adj. Op. Adj. EPS Free Cash Margin Flow $980M w/o 19.5% w/o $0.97 w/o 119% Conversion termination revenue termination revenue termination revenue +8% growth and +7% +20 bps margin expansion Increased 24 cents, or Q3 ’26 FCF grew 46% Y/Y, organic grow
Slide 14: Growing revenue and margins by executing against key pillars
We continue to grow revenue and margins by executing against our key pillars Q3 ‘26 Pillar Metric Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Reported w/o term. Highlights revenue • Adj. Operating Margin Y/Y Adj. Operating Margin Trend (bps) (40) FLAT +10 +30 +30 +50 +220 +20 expanding consistently Operatio
Slide 15: Q3 2026 Capital Allocation
Q3 2026 Capital Allocation $0.12 $33M 2.1x 12.1% Dividend Debt Net leverage ROIC per share repurchases ratio Sustained Dividend Reduced Gross Debt Reduced Debt Expanded ROIC Returned $17.5M to Completed $33M of open 3.0x 12.1% shareholders in Q3 ‘26 and market debt repurchases in 2.7x 2.6x 11.3% $52
Slide 16: Deleveraging is driving earnings growth and securing our future
Deleveraging is driving earnings growth and securing our future Deleveraging is lowering adj. net interest Strengthening our debt maturity profile expense and accelerating adj. EPS growth Dec 31 ’24 vs. Sep 30 ‘26 $3,223 $134 $125 $2,427 ~$111 $1,000 $207 2024 2025 FY 2026 estimate 2029 Debt Maturit
Slide 17: Q3 2026 Segment Performance
Q3 2026 Segment Performance Industrials and AD&CE Lead with Double-Digit Revenue Growth Growth Rate Segment $ in millions Q3-2026 Q3-2025 Y/Y B/(W) Reported Organic Net Revenue $555.8 $535.8 $20.1 3.7 % 2.6 % Automotive grew organically by Automotive Operating Income $157.9 $127.0 $31.0 approximatel
Slide 18: Segment and End Market Overview
Segment and End Market Overview Growth is strengthening in Industrials and AD&CE, offsetting Automotive end market softness Automotive Aerospace, Defense, and Industrials Commercial Equipment +3% organic growth in Q3 2026 +13% organic growth in Q3 2026 +12% organic growth in Q3 2026 +4% market outgr
Slide 19: Q4 2026 Financial Guidance
Q4 2026 Financial Guidance Financial Guide Overview $ in millions, except EPS Q4-26 GUIDANCE Q4-25 B/(W) • Revenue expected to grow 3-6% Revenue $942 – $972 $918 3% – 6% • Adjusted Operating Income expected to grow Adj. Op Income $185 – $192 $180 3% – 7% on higher revenue Adj. Operating Margin 19.6%
Slide 20: Closing Remarks
CLOSING REMARKS
Slide 21: Our path forward to further value creation
Our path forward to further value creation Stronger core, higher-quality organic growth, greater shareholder value creation Unlocking Value in Core Building Higher-quality Organic Growth Disciplined execution Multiple pathways to growth • Capital efficiency • Expand into adjacent markets • Margin re
Slide 22: Appendix A: Other Financial Information
APPENDIX A: OTHER FINANCIAL INFORMATION
Slide 23: Q3 2026 GAAP Results
Q3 2026 GAAP Results $ and shares outstanding in millions, except EPS Q3-2026 Q3-2025 B/(W) Revenue $1,003.6 $932.0 7.7 % Gross Profit $331.9 $259.4 28.0 % (% of revenue) 33.1 % 27.8 % R&D $33.4 $33.0 (1.0) % (% of revenue) 3.3 % 3.5 % SG&A $95.9 $85.8 (11.8) % (% of revenue) 9.6 % 9.2 % Amortizatio
Slide 24: Q3 2026 Adj. Operating Results
Q3 2026 Adj. Operating Results $ and shares outstanding in millions, except EPS Q3-2026 Q3-2025 B/(W) Revenue $1,003.6 $932.0 7.7 % Adj. Gross Profit $341.8 $293.8 16.4 % % Revenue 34.1 % 31.5 % R&D $33.4 $33.0 (1.0) % % Revenue 3.3 % 3.5 % Adj. SG&A $93.1 $81.1 (14.8) % % Revenue 9.3 % 8.7 % Adj. O
Slide 25: Q3 2026 Select Cash Flow Information
Q3 2026 Select Cash Flow Information $ in millions Q3-2026 Q3-2025 B/(W) Net income $114.2 ($162.5) n.m Depreciation & Amortization $50.2 $73.0 (31.1) % Changes in Working Capital $42.9 $13.7 213.3 % Other $18.1 $235.8 (92.3) % Operating Cash Flow $225.3 $159.9 41.0 % Capital Expenditures ($27.0) ($
Slide 26: Select Balance Sheet Information
Select Balance Sheet Information $ in millions SEP 30, 2026 DEC 31, 2025 Total Assets $6,686.5 $6,751.7 Working Capital $1,165.0 $1,219.2 Intangibles, Net & Other Long-Term Assets $4,683.9 $4,757.4 $ in millions SEP 30, 2026 DEC 31, 2025 Gross Debt $2,427.1 $2,867.2 Less: Cash and cash equivalents $
Slide 27: End Market Revenue
End Market Revenue $ in millions Revenue by End Market Q3-2026 Q3-2025 Change Automotive $ 555.8 $ 535.8 3.7 % Industrials (1) 209.8 186.3 12.6 % Commercial Equipment (2) 179.2 153.2 16.9 % Aerospace and Defense 58.8 56.6 3.8 % Total $ 1,003.6 $ 932.0 7.7 % (1) Includes HVAC, appliance and other ind
Slide 28: Appendix B: GAAP to Non-GAAP Reconciliations
APPENDIX B: GAAP TO NON-GAAP RECONCILIATIONS
Slide 29: 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 30: 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 31: Adjusted EBITDA
Adjusted EBITDA $ in millions Period Total Sensata LTM Q3 26 Q2 26 Q1 26 Q4 25 Q3 25 Net income/(loss) $ 366.7 $ 114.2 $ 102.1 $ 87.1 $ 63.2 $ (162.5) Interest expense, net 117.6 27.5 29.2 30.2 30.7 32.4 Provision for income taxes 110.7 39.8 30.3 28.4 12.1 14.1 Depreciation expense 150.7 34.5 33.5 3
Slide 32: Organic Revenue Growth
Organic Revenue Growth Q3-2026 Reported % Organic % Less: FX Impact Change Change Automotive 3.7 % 1.1 % 2.6 % Industrials 12.6 % 0.8 % 11.8 % Aerospace, Defense, and Commercial Equipment 13.4 % 0.2 % 13.2 % Sensata Total 7.7 % 0.9 % 6.8 % 32 | SENSATA Q3 2026 EARNINGS PRESENTATION
Slide 33: Free Cash Flow
Free Cash Flow $ in millions Q3 Q3 YTD Total Sensata 2026 2025 Change 2026 2025 Change Net cash provided by operating activities $ 225.3 $ 159.9 41.0 % $ 557.8 $ 420.0 32.8 % Additions to property, plant and equipment and (27.0) (23.6) (14.3) % (68.5) (81.6) 16.1 % capitalized software Free cash flo
Slide 34: Debt and Leverage Ratio (Gross and Net)
Debt and Leverage Ratio (Gross and Net) $ in millions As of Total Sensata 9/30/2026 6/30/2026 3/31/2026 12/31/2025 9/30/2025 Current portion of long-term debt and finance lease obligations $ 2.5 $ 2.4 $ 2.4 $ 2.3 $ 2.2 Finance lease obligations, less current portion 17.3 17.7 18.5 18.9 19.6 Long-ter
Slide 35: Adjusted Taxes and Adjusted Tax Rate
Adjusted Taxes and Adjusted Tax Rate $ in millions Q3 Q3 YTD Total Sensata 2026 2025 2026 2025 Provision for income taxes $ 39.8 $ 14.1 $ 98.6 $ 79.9 Non-GAAP adjustments: Deferred income tax and other tax expense 18.0 (2.1) 39.5 26.2 Current tax effect of non-GAAP adjustments (0.6) (2.6) (4.2) (2.2
Slide 36: Adjusted Corporate and Other Expenses
Adjusted Corporate and Other Expenses $ in millions Q3 Q3 YTD Total Sensata 2026 2025 2026 2025 Corporate and other expenses $ (79.3) $ (94.5) $ (226.9) $ (224.1) Non-GAAP adjustments: Restructuring related and other 12.7 37.8 38.9 66.4 Financing and other transaction costs — 1.3 0.7 2.6 Total adjus
Slide 37: Other GAAP to Non-GAAP Reconciliations
Other GAAP to Non-GAAP Reconciliations $ in millions (except EPS amounts) Q3-2026 Q3-2025 Operating Operating Operating Diluted Operating Net (Loss)/ Diluted Total Sensata Net Income (Loss)/ Income Margin EPS Margin Income EPS Income Reported (GAAP) $ 175.3 17.5 % $ 114.2 $ 0.78 $ (122.9) (13.2) % $