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Jun 30, 2025
Sensata Q2 2025 Earnings Report
Sensata reported a year-over-year revenue decline but improved its operating margin and delivered solid free cash flow in Q2 2025.
Key Takeaways
Sensata Technologies delivered Q2 2025 revenue of $943.4 million, down from the prior year due to divestitures and product lifecycle actions. The company achieved higher GAAP operating income and margin despite the revenue drop. Net income declined, but free cash flow improved meaningfully. Adjusted EPS met the upper end of guidance.
Revenue declined 8.9% YoY to $943.4 million due to divestitures and product lifecycle actions.
GAAP operating income rose 6.2% YoY to $138.1 million, with margin improving to 14.6%.
GAAP EPS was $0.41 while adjusted EPS was $0.87, flat compared to last year.
Free cash flow grew to $115.5 million in the quarter, up 17.4% YoY.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For Q3 2025, Sensata expects revenue between $900M and $930M, with adjusted EPS ranging from $0.81 to $0.87. Adjusted operating margin is projected at 19.0%-19.2%.
Positive Outlook
- Maintains strong adjusted operating margin guidance at up to 19.2%
- Free cash flow strength continues to support shareholder returns
- Adjusted EPS forecast holds at high end of peer expectations
- Expected recovery of $15M in tariff costs supports top line
- Disciplined cost control improves profitability despite revenue headwinds
Challenges Ahead
- Revenue expected to decline 1%-5% QoQ in Q3 2025
- Tariff revenue is neutralized by offsetting expense impact
- Net income expected to decrease to $61.8M–$65.0M
- Divestitures continue to weigh on top-line performance
Historical Earnings Impact
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Avg. Return Before/After Earnings
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