Sensata Forecasts $917m–$937m Q1 Revenue, Reports 19.6% Q4 Operating Margin
Management forecasts Q1 2026 revenue of $917m–$937m and adjusted EPS of $0.81–$0.85, underscoring a focus on modest growth and stable margins. In Q4, Sensata posted $917.9m revenue (+1.1% y/y, +3.5% organic), $179.7m adjusted operating income (19.6% margin) and $151.8m free cash flow (117% conversion).
1. Q4 Results and 2026 Outlook
In Q4 2025, Sensata generated $917.9 million in revenue, up 1.1% year over year (3.5% organic), with adjusted operating income of $179.7 million yielding a 19.6% margin. Free cash flow reached $151.8 million, a 117% conversion rate, and management forecast Q1 2026 revenue of $917 million–$937 million and adjusted EPS of $0.81–$0.85.
2. Diversified Segment Performance
Sensata’s reorganization into Automotive, Industrials, and Aerospace, Defense & Commercial Equipment aligns with its cyclic exposure. Automotive accounted for about 56% of revenue and faced soft global auto production, while Industrials (33%) saw stability from gas leak detection and electrification, and Aerospace & Defense delivered growth in key subsegments.
3. Full-Year 2025 Financials and Deleveraging
For the full year, Sensata reported $3.7045 billion in revenue (down 5.8% reported, flat organic) and $704.9 million in adjusted operating income (19.0% margin). The company generated $490.2 million in free cash flow, reduced net debt by $336 million to $2.294 billion, held $573 million in cash, and returned $191 million to shareholders through dividends and buybacks.