Q124 ST earnings

Revenue for Q1 2024: $1.007 billion compared to $998 million in Q1 2023, marking a 1% increase.
Organic Revenue Growth for Q1 2024: 2.3%, partially offset by 140 basis points of unfavorable foreign exchange rates.
Sequential Revenue Increase: 1.4% from Q4 2023.
Adjusted Operating Income for Q1 2024: $188.5 million or an 18.7% margin, showing a 20 basis point improvement from 18.5% in Q4 2023.
Adjusted Earnings Per Share (EPS) for Q1 2024: $0.89, a decrease of $0.03 from Q1 2023.
Performance Sensing Segment Revenue in Q1 2024: Approximately $713 million, up by 7% year-over-year.
Sensing Solutions Segment Revenue in Q1 2024: $258 million, a decrease of 9% year-over-year.

Q2 2024 Revenue Expectations: $1.025 billion to $1.055 billion.
Q2 2024 Adjusted Operating Margin: Expected at approximately 18.9%.
Q2 2024 Adjusted EPS: Projected to be $0.92.
Full Year 2024 Revenue Growth: Expected to be around 2%.
Capital Expenditure for 2024: Expected to remain flat with 2023 at about 4% of revenue.
Inventory Days on Hand 2024 Goal: Reduction by approximately 10% from the previous year.

Electrification Revenue: Increased from less than 3% of total revenue in 2019 to more than 17% in 2023, with a forecast for significant future growth.
Automotive Production Shifts: Noted shifts from EV back to ICE in certain markets like North America and Europe, which did not negatively impact revenue due to Sensata’s broad share across ICE vehicles.
Market Outgrowth: Sensata is confident in its ability to deliver outgrowth of approximately 300 to 400 basis points, despite overall market challenges.
Industrial Down Cycle: Continues to pressure results, yet new products like the A2L leak detection sensor are outperforming expectations.
Capital Allocation Priority: Focus on reducing net leverage to under 3x by the end of the year, alongside ongoing share repurchases and dividend payments.

Jeffrey Cote (CEO): “We are at the early stages of a transformation to an electrified world, and Sensata is well positioned to capitalize on the opportunities.”
Jeffrey Cote (CEO): “The good news for Sensata is that while we do not control demand, we are well hedged against these fluctuations.”
Brian Roberts (CFO): “We are focused on improving our free cash flow conversion in 2024 to approximately 65% to 70% of adjusted net income.”
Jeffrey Cote (CEO) on Retirement: “It has been a great honor to be the CEO of Sensata over the last 4 years…I am proud of the progress we have made.”
Jeffrey Cote (CEO): “Our first quarter automotive business results underscore that Sensata is well prepared for both the coming wave of plug-in hybrid and battery electric vehicles as well as the continued production of ICE vehicles.”