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Dec 31, 2025
Sensata Q4 2025 Earnings Report
Sensata Technologies reported an increase in revenue and operating income for the fourth quarter of 2025, driven by organic growth and improved margins.
Key Takeaways
Sensata Technologies announced strong financial results for the fourth quarter and full year ended December 31, 2025, with Q4 revenue increasing by 1.1% to $917.9 million and operating income rising by 35.8% to $100.1 million. The company achieved sequential margin expansion, improved free cash flow, and returned to year-over-year revenue growth, positioning it for continued growth in 2026.
Fourth quarter revenue increased by 1.1% to $917.9 million, with organic revenue growth of 3.5% compared to the fourth quarter of 2024.
Operating income for Q4 2025 was $100.1 million, a significant increase of $26.4 million from $73.8 million in Q4 2024, representing 10.9% of revenue.
Adjusted operating income rose by 2.7% to $179.7 million, or 19.6% of revenue, compared to $174.9 million, or 19.3% of revenue, in the prior year's fourth quarter.
Diluted EPS for the fourth quarter was $0.43, a substantial increase from $0.04 in Q4 2024, while adjusted diluted EPS increased by 18.9% to $0.88.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
For the first quarter of 2026, Sensata expects revenue between $917 million and $937 million, with adjusted EPS ranging from $0.81 to $0.85. The guidance includes an estimated $12 million related to tariff recovery, which is expected to be offset by related expenses, resulting in no impact on adjusted operating income or EPS.
Positive Outlook
- Expected revenue growth of 1% to 3% for Q1 2026 compared to Q1 2025.
- Anticipated increase in Adjusted Operating Income of 1% to 5% for Q1 2026.
- Projected Adjusted Operating Margin of 18.4% - 18.6%, with an improvement of 10 to 30 basis points.
- Expected Adjusted Net Income growth of 1% to 7% for Q1 2026.
- Adjusted EPS is forecasted to increase by 4% to 9% in Q1 2026.
Challenges Ahead
- Tariff pass-through revenue of approximately $14.8 million was approximately 30 basis points dilutive to adjusted operating income margin in the fourth quarter of 2025.
- Tariff expectations reflect current trade policies and could be subject to change.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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