Sensata Technologies Announces Q4 and Full-Year 2024 Financial Results
Sensata Technologies, a global leader in industrial technology and a key provider of sensors, sensor-rich solutions, and electrical protection devices for mission-critical systems, has announced its financial results for the fourth quarter and full year ended December 31, 2024. Sensata plays a pivotal role in helping its customers tackle increasingly complex engineering and operational performance challenges, delivering innovative solutions that drive efficiency and enhance safety across multiple industries.
Executive Summary
“Sensata had a strong finish to the year, with fourth-quarter revenue exceeding expectations, full-year free cash flow increasing by over 40% year-over-year, and adjusted operating margin improving for the fourth consecutive quarter,” said Stephan von Schuckmann, Chief Executive Officer of Sensata Technologies. “I firmly believe there is significant potential to generate shareholder value by steering Sensata toward renewed growth, enhancing operational excellence, and making strategic and efficient capital deployments. Our high-value and differentiated margin businesses, combined with our strong global engineering footprint and deep, long-standing customer relationships, provide an excellent foundation for future success.”
Fourth Quarter 2024 Operating Results
Sensata’s financial performance in Q4 2024, compared to the same period in 2023, is summarized below. These results include both GAAP and non-GAAP financial measures, with reconciliations provided in the full earnings report.
Revenue
- The company reported revenue of $907.7 million, representing a decrease of $84.8 million, or 8.5%, compared to $992.5 million in Q4 2023.
Operating Income
- GAAP Operating Income was $73.8 million, equivalent to 8.1% of revenue, marking a significant improvement of $275.2 million compared to an operating loss of $201.4 million (or -20.3% of revenue) in Q4 2023.
- Adjusted Operating Income was $174.9 million, or 19.3% of revenue, reflecting a decrease of $8.8 million (or 4.8%) from $183.7 million (18.5% of revenue) in Q4 2023.
Earnings Per Share (EPS)
- GAAP EPS stood at $0.04, marking an increase of $1.38 compared to a loss per share of $1.34 in Q4 2023.
- Adjusted EPS was $0.76, a decrease of $0.05, or 6.2%, compared to $0.81 in Q4 2023.
Cash Flow and Capital Allocation
- Sensata generated $170.7 million in operating cash flow and $138.9 million in free cash flow in Q4 2024.
- The company ended the quarter with a strong cash position of $593.7 million.
- During the quarter, Sensata utilized its cash resources to repurchase approximately $21.6 million in shares and distribute $17.9 million in dividends to shareholders.
Full-Year 2024 Operating Results
The company’s financial results for the full year ended December 31, 2024, compared to the prior year, are summarized below.
Revenue
- Full-year revenue totaled $3,932.8 million, representing a decline of $121.3 million (or 3.0%) from $4,054.1 million in 2023.
Operating Income
- GAAP Operating Income was $149.3 million, or 3.8% of revenue, reflecting a decrease of $32.4 million (or 17.8%) compared to $181.7 million (4.5% of revenue) in 2023.
- Adjusted Operating Income reached $748.5 million, or 19.0% of revenue, a decline of $25.5 million (or 3.3%) compared to $774.0 million (19.1% of revenue) in 2023.
Earnings Per Share (EPS)
- GAAP EPS was $0.85, an increase of $0.88, compared to a loss per share of $0.03 in 2023.
- Adjusted EPS stood at $3.44, marking a decrease of $0.17, or 4.7%, compared to $3.61 in 2023.
Cash Flow and Capital Deployment
- Sensata generated $551.5 million in operating cash flow and $393.0 million in free cash flow for the full year 2024.
- In July 2024, the company redeemed $700 million in bonds originally set to mature in October 2025. The redemption was funded through a combination of $500 million in senior notes issued in June 2024 and approximately $200 million in cash on hand.
- Throughout 2024, Sensata repurchased $68.9 million in shares and paid $72.2 million in dividends to shareholders.
2025 Financial Guidance
Brian Roberts, Executive Vice President and Chief Financial Officer, outlined Sensata’s financial expectations for 2025:
“Considering the approximately $300 million in revenue exited in 2024, we anticipate that full-year 2025 revenue will remain organically flat at around $3.6 billion. For Q1 2025, our guidance reflects a return to normalized margin seasonality. As revenue increases into the second quarter, traditionally our strongest quarter, we expect adjusted operating margins to recover to 19.0% or higher, with further improvements expected in the latter half of the year.”
Q1 2025 Guidance
| Metric | Q1 2025 Guidance | Q4 2024 | Change |
|---|---|---|---|
| Revenue | $870 – $890 million | $907.7 million | (4%) – (2%) |
| Adjusted Operating Income | $158 – $164 million | $174.9 million | (10%) – (6%) |
| Adjusted Operating Margin | 18.2% – 18.4% | 19.3% | (110 – 90 bps) |
| Adjusted Net Income | $105 – $110 million | $114.5 million | (8%) – (4%) |
| Adjusted EPS | $0.70 – $0.73 | $0.76 | (8%) – (4%) |
Sensata’s financial outlook does not account for potential impacts of newly announced tariffs or retaliatory trade measures that could be implemented by the United States, Canada, China, Mexico, or other countries.
Conference Call and Webcast Details
Sensata Technologies will host a conference call on February 12, 2025, at 4:30 p.m. Eastern Time to discuss its Q4 and full-year 2024 financial results, as well as its Q1 2025 outlook.
- Dial-In Numbers:
- U.S. & Canada: 1-844-784-1726
- International: 1-412-380-7411
- Reference: “Sensata Q4 2024 Financial Results Conference Call”
- Live Webcast: Available on Sensata’s Investor Relations page: http://investors.sensata.com
- Replay Access: Available until February 18, 2025. To listen, dial:
- U.S.: 1-877-344-7529
- International: 1-412-317-0088
- Replay Code: 9019340
Sensata remains committed to driving long-term growth, enhancing shareholder value, and strengthening its market position in 2025 and beyond.
