Sensata Q4 Earnings & Revenues Surpass Estimates, Increase Y/Y

Sensata Technologies Holding plc ST reported fourth-quarter 2025 adjusted earnings per share (EPS) of 88 cents, up from 74 cents a year ago. The bottom line beat the Zacks Consensus Estimate by 2.3%.

Revenues for the quarter reached $917.9 million, up 1.1% from a year ago. The top-line expansion was attributable to strong growth above the broader market, which offset the effects of portfolio divestitures. The figure came near to the upper end of management’s expectations ($$890-$920 million) and beat the consensus estimate by 1.2%. Strength Industrials and Aerospace, Defense and Commercial Equipment segments drove the top-line performance.

Following the announcement, shares of ST lost around 3% in the after-market trading session yesterday. In the past year, shares have gained 24.5% compared with the Instruments-Control industry’s growth of 6%.

Management highlighted that Sensata has emerged as a stronger and more resilient organization with a solid foundation for long-term growth. With a strengthened leadership team and a sharper strategic focus, the company believes it is well-positioned to build on its current momentum and drive sustainable growth across all its segments over time.

Segmental Results of Sensata

Sensata has realigned its structure into three operating segments — Automotive, Industrials, and Aerospace, Defense and Commercial Equipment, which are now reflected as its new reporting segments.

Automotive revenues (57.4% of total revenues) decreased 1.4% (up 0.9% on an organic basis) year over year to $527 million. The top line was affected by the impact of portfolio divestitures.

Segmental adjusted operating income was $128.6 million compared with $124.9 million in the prior-year quarter.

Industrials revenues (20.9% of total revenues) were $191.5 million, up 5.8% (up 7.9% on an organic basis) year over year. The growth was primarily driven by strength in gas leak detection.

Segmental adjusted operating income was $59.2 million compared with $44.6 million in the prior-year quarter.

Aerospace, Defense and Commercial Equipment revenues (21.7% of total revenues) were $199.4 million, up 3.8% (up 6.5% on an organic basis) year over year. The growth was primarily supported by strength in the Construction, Agriculture and Aerospace segments.

Segmental adjusted operating income was $56.1 million compared with $48.1 million in the prior-year quarter.

Other Details of Sensata's Q4

Adjusted operating income was $179.7 million, up 2.7% year over year from $174.9 million. Adjusted operating margin expanded 60 basis points year over year to 19.6%.

Adjusted EBITDA totaled $211.5 million in the quarter, up from $204.9 million in the previous-year quarter.

Total operating expenses were $817.8 million, down 1.9% year over year.

ST’s Cash Flow & Liquidity

In the quarter under discussion, Sensata generated $201.5 million of net cash from operating activities compared with $170.7 million in the prior-year quarter.

Free cash flow was $151.8 million compared with $138.9 million a year ago.

Sensata Technologies Holding N.V. Price and EPS Surprise

Sensata Technologies Holding N.V. price-eps-surprise | Sensata Technologies Holding N.V. Quote

As of Dec. 31, 2025, the company had $573 million in cash and cash equivalents and $2,828.6 million of net long-term debt compared with $791.3 million and $3,181.4 million, respectively, as of Sept. 30, 2025.

In the fourth quarter of 2025, Sensata returned approximately $17.5 million to shareholders through quarterly dividends of 12 cents per share paid on Nov. 26, 2025.

Sensata’s Q1 Outlook

For the first quarter of 2026, the company projects revenues in the band of $917-$937 million, indicating an increase of 1% to 3% from $911 million reported in the first quarter of 2025. This includes approximately $12 million related to anticipated tariff recoveries from customers.

Adjusted operating income is projected to be between $168 million and $175 million, up 1% to 5% from $167 million in the prior-year quarter. Adjusted operating margin is expected to improve to 18.4–18.6% from 18.3% a year ago, implying an expansion of 10-30 basis points.

Adjusted net income is forecast in the range of $118 million to $125 million, marking an increase of 1% to 7% year over year.

Adjusted earnings per share are anticipated to be between 81 cents and 85 cents, representing growth of 4% to 9% from 78 cents in the first quarter of 2025.

ST’s Zacks Rank

Sensata currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performances of Other Firms

Badger Meter, Inc. BMI reported EPS of $1.14 for fourth-quarter 2025, which missed the Zacks Consensus Estimate by 0.9%. However, the bottom line compared favorably with the year-ago quarter’s EPS of $1.04.

Quarterly net sales were $220.7 million, up 7.6% from $205.2 million in the year-ago quarter, driven by higher utility water sales. The Zacks Consensus Estimate was pegged at $230.8 million.

Blackbaud, Inc. BLKB reported fourth-quarter 2025 non-GAAP EPS of $1.19, which surpassed the Zacks Consensus Estimate by 3.5%. The bottom line increased around 11.2% year over year.

Total revenues decreased 2.3% year over year to $295.3 million. This was due to the divestiture of EVERFI. The top line surpassed the Zacks Consensus Estimate by 0.5%.

Flex Ltd. FLEX reported third-quarter fiscal 2026 adjusted EPS of 87 cents, which surpassed the Zacks Consensus Estimate by 10.1%. The bottom line compared favorably with 77 cents posted in the prior-year quarter.

Revenues increased 7.7% year over year to $7.1 billion. Also, it beat the consensus mark by 3.6%. The uptick was driven by robust AI demand.

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