Thu, May 8, 9:31 PM (3 days ago)
**Sensata Technologies Holding PLC (ST) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $911.3 million, down 9.5% year-over-year (YoY) due to foreign exchange rates, disposals, and organic declines. - **Operating Income:** $122.2 million, a 15.6% decrease YoY, impacted by organic revenue declines and manufacturing efficiencies. - **Net Income:** $69.9 million, down 8.3% YoY, with a net margin of 7.7%. - **Cash Flow:** $119.2 million in operating cash flow, ending the quarter with $588.1 million in cash and cash equivalents. **Profit Margins:** - **Operating Margin:** 13.4% of net revenue, down from 14.4% in Q1 2024. - **Net Margin:** 7.7%, slightly down from 7.6% in Q1 2024. **Earnings Changes:** - **EPS:** Basic $0.47, diluted $0.47, down from $0.51 and $0.50 respectively in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Decline:** Performance Sensing revenue decreased 8.8% YoY due to lower automotive and HVOR production. Sensing Solutions revenue increased 1.2% YoY driven by industrial market growth. - **Cost Management:** Operating costs and expenses decreased to 86.6% of net revenue from 85.6% in Q1 2024, benefiting from cost savings initiatives. - **Cash Flow:** Positive operating cash flow of $119.2 million, with $32.6 million used for capital expenditures, $17.9 million for dividends, and $100.5 million for share repurchases. **Trends and Uncertainties:** - **Market Conditions:** Continued economic uncertainty and weaker market demand in key end markets. - **Restructuring:** Ongoing restructuring plans (2H 2024 Plan and Q3 2023 Plan) to align cost structure with market conditions. - **Cybersecurity Incident:** A ransomware incident in April 2025 temporarily impacted operations but is not expected to materially affect Q2 or full-year 2025 financial results. **Future Operations Impact:** - **Capital Expenditures:** Anticipated to be approximately $150.0 million for fiscal year 2025. - **Share Repurchases:** $302.5 million remaining under the September 2023 Program as of March 31, 2025. - **Dividends:** Quarterly dividend of $0.12 per share approved, payable on May 28, 2025. **Liquidity and Capital Resources:** - **Revolving Credit Facility:** $745.8 million available, with no amounts drawn against outstanding letters of credit. - **Debt:** $3.2 billion in gross indebtedness, with a gross leverage ratio of 3.7x and a net leverage ratio of 3.1x. **Segment Performance:** - **Performance Sensing:** Revenue down 8.8% YoY, impacted by lower automotive and HVOR production. - **Sensing Solutions:** Revenue up 1.2% YoY, driven by industrial market growth. **Geographic Performance:** - **Americas:** Revenue down 13.2% YoY. - **Europe:** Revenue down 11.3% YoY. - **Asia and Rest of World:** Revenue down 2.2% YoY. **Conclusion:** Sensata Technologies faced revenue declines and margin compression in Q1 2025 due to market conditions and disposals. However, the company maintained positive cash flow and is executing cost-saving initiatives to align with market demand. The outlook includes continued investment in capital expenditures and share repurchases, with a focus on improving operational efficiency and financial performance.