ST - Earnings call transcript Q1 2024 | Sensata Technologies Holding plc

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Operator

Good day, and welcome to the Sensata Technologies First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ms. Alexia Taxiarchos, Vice President, Corporate Communications. Please go ahead.

Alexia Taxiarchos

Thank you, Betsy, and good afternoon, everyone. I'm Alexia Taxiarchos, Vice President of Corporate Communications, and I would like to welcome you to Sensata's first quarter 2024 earnings conference call.

call Roberts, Cote, Sensata's today's President; CEO on Brian and Chief me are Sensata's Jeff and Joining Financial Officer.

shortly the Investor will is and a slide Sensata's Investor to today's earlier being this presentation call. recorded, addition financial website. Relations of downloaded release of on after press call. replay In from be we The today, the PDF we post during This be we presentation a Relations website will can referencing conclusion our today's conference results issued conference call

As we like to safe Sensata's Slide reference on X. begin, I would harbor statement

encourage During differ this as discuss performance GAAP financial but regarding as not of with presentation. Most will from call the limited and to in described materially company's will addition information risks XX-Q Factors making to, financial of future We that company forward-looking to relate will XX-K today's to The involve certain measures. Forms the might include, today's projections conference those statements differences call, the in that filings statements. other cause we such the and statements our in are such you we the may events that results or uncertainties. review during be well discussed SEC. non-GAAP financial our actual

return non-GAAP the remarks. cover then Jeff will first financial guidance materials. Jeff begin Brian our today will financials of and included second for in on the presentation our some overall of quarter XXXX. our detailed reconciliations business. quarter GAAP financials, Our are including for in with including of earnings for closing release will XXXX, appendices and our our the comments

questions. will take We then your

President, to to call over Sensata's like CEO Jeff and I'd the turn Now Cote.

Jeffrey Cote

years main the challenges customers engineering everyone. Upon partner to CEO XX welcome, our priority and with to the set and first ensure to a as being of in complex and solve named Alexia, of operational Sensata beyond. that prepared XXXX, you, was I quarter next Sensata of Thank the

Our solve Sensata is our these our than customers underscores core demanding achieved why help for has to more very and years. ability to success problems DNA XXX

expected required has the With relevant in over remain And the it last equip with capabilities change serve. more the next seen markets decade trusted, was to did been critical XX Sensata player we a just we in the to years, that that.

early Sensata core We to our is and a capitalize at these are the that an world, the provide. capabilities opportunities stages electrified sensing well to positioned of capabilities on new transformation and broad

systems that the markets, the markets electrified We heavy across high and voltage management equipment. allows Performance all power conversion infrastructure industrial broad have vehicle to battery to needed markets contactors, including in systems, participate us isolation light serve from invested enable the and including to in we this end monitoring, Sensing, vehicles opportunity unprecedented

the area less impressive been growth, X% XX% revenue Sensata date have Further, of that with revenue new of business future increased The over in continued results billion new business from X more than in billion during total $X.X revenue to last than we of electrification in in poised of years. $X.X as for are the XXXX recording electrification XXXX. to

among Sensata decades that have hedged control The lasting know, customers, safe are we question, endured ebbs trends to demand, not these do core well which transformational short-term Sensata without and the good be includes with vital will, as against create linear sensing we that consumer preferences, news nature, we continue not while our can relevant our products we efficient that and example, to business, in is and fluctuations for providing durability. are for highly regulations industry global automotive However, in is change and like in are flows variables very demand. seeing, economic many the

ICE produce internal us very automotive combustion be Sensata positions of continue not vehicles for This and content vehicles. through with While is well come, may next-generation manage transformation. majority a the developing on these they to great customers years to our to the engine, this the associated will volatility

quarter, North levels [ of certain For America noted markets fourth the example, offset ICE such lower-than-forecasted as Europe, we ] and EVs higher-than-forecasted in by in the production. was

broad our across slowdown vehicles, our ICE this impact negatively Given EV position our outgrow end our ability markets. did revenue nor share not to

can have from from new resulting X% year-over-year revenue than pleased ramping in from as generated to X%.as ICE we as addition, we where well taken and production EV In wins we of market business our quarter XXX automotive significant of market the first deliver platforms net vehicles, in outgrowth mix growth to year. new launch down due know, schedules, the growth this of content vary but more as IHS business basis approximately was while that to both quarter-to-quarter market certainly we in outgrowth on stated on share were compared points

IHS hybrid XX% regions to to of penetration We X continue penetration only penetration in in may electric market number XXXX, with North and debate plug-in XX% in In the almost over will rate as the of increase. rates China. XX%, and and XX% the XX% double vehicles time, of respectively. change America, Europe fluctuates rates EV were battery but in for all forecast and North the America, China, XXXX, In XX% rate Europe these of

battery the and the underscores coming for both results hybrid of for that of Sensata shareholders. our as vehicles production customers business to automotive continued vehicles quarter and ICE well plug-in well deliver prepared first for our electric Our wave is as

challenging solid moment to a business portfolio, results rest and take me our against Let which of of half discuss the conditions. nearly continues represents revenue market to drive our

tire business partially in in outgrow monitoring. to increase, confidence that around benefit Our from by providing regulations to is off-road North a we due vehicle improving Demand starting to pressure American China. is European that digits will to the weakness, expected continues offset new mid-single production and market heavy decline

markets, impacting and overall appliance construction General Our sales which slow see Industrials business, and includes to inventory expectations. continues HVAC Industrial destocking

expectations. of likely late throughout delivering sensor, detection launched While pressure we marketplace leak AXL above cycle XXXX, the this will industrial received well been down year, continue has our and much last which results to is in

with business deliver aerospace single-digit growth. solid results to our continues Finally, year-over-year

overall In year, summary, confident to outgrowth likely are this our XXX basis we X% market to against down of be in approximately will points. for backdrop XXX deliver which XXXX, ability to an X%

Brian provided the delivered an end take the operating the you call as fourth quarter of While as a our margins moment, to let will through proof the in quarter at and quarter that first is the add point business in adjusted guidance range of February. durability results Sensata we revenue early our me performance high in first important

call to results will who through you and the over Brian, greater provide detail let for the quarter take quarter. first that, the second With turn in me guidance

Brian Roberts

you, Thank Jeff. afternoon, Good everyone.

on me Let Slide start X.

with in compared first solid towards points was high Jeff to operating we end As a million year-over-year. approximately exchange XXXX. partially revenue the and about $X.XXX of our revenue This guidance billion XXX unfavorable of rates. noted, quarter of margins offset revenue had X% adjusted reported a as ranges. quarter by $XXX of first increase growth of basis represents the of foreign X.X% Organic revenue We

basis $XXX.X of of quarter the XX.X%. X.X% operating This a point XX.X% by quarter XX of improvement was XXXX. fourth income from Adjusted increased the or margin from for million XXXX. fourth a revenue represents Sequentially,

XXXX. basis Foreign a first significant in adjusted quarter point proved of be to the a exchange headwind our impact to operating rates XX margins with

XX.X% to been last guidance constant in in was quarter first by $X.XX margin exceeded On year. first adjusted per income currency the our the of a share quarter Adjusted $X.XX earnings XXXX. Adjusted from $X.XX. basis, compared XX.X% This per the for was first quarter of a quarter constant share a per decrease operating XXXX. earnings of of $X.XX would earnings first currency have XXXX. basis, share On the represents

X. demonstrate or a headwind key the is mix slide tailwind margin driver helps Moving This of point. in our given this of to A to period business units. revenue Slide

representation graphical large On to the Aerospace, business, lowest highest-margin business, down -- left our of our is auto. margin a

While businesses. headwind in we in to from we know space, the auto a do enjoy point results compared experienced of to higher-margin a from Year-over-year, to many we margins X-point auto that shift our about differentiated automobile a share Sensata. industrial that to shifts XX-basis point continue as to

QX a across organization. mix the this increased basis, On operating despite currency adjusted in constant demonstrating improvements our productivity margins shift, year-over-year XXXX

Turning of in another our review to To how reflect business are we the operating strategic better acknowledge business, segment operating and Slide reported managing ongoing reclassified as performance. on Sensing, well Insights which Insights we creating is Other. the X Performance have as to from segment,

this $XXX purposes Prior X% quarter also approximately adjusted both revenue. strength by basis, due million strong Korea. performance revenue Europe adjusted the been higher-than-forecast of Sensing approximately Performance periods Sensing with by XX% primarily in was income On coupled approximately in Performance ICE our increased first Growth $XXX million. operating XXXX year-over-year was driven production, Japan and comparability. of of to in or sensing results have for to

basis year-over-year, million, business. due by points driven approximately increased and the X% industrial revenue to Operating destocking in $XXX margins by decreased productivity. revenue to the Sensing Solutions primarily continued year-over-year challenges by XX outgrowth

the continue of business these second some XXXX. leak our in of the launch to market detection of new expect we half drop the pressures While of much throughout the AXL will year, offset partially

$XX.X revenue. primarily approximately of was basis million margins to industrial XXX income operating Solutions that operating is Sensing decrease lower XX.X%. with This points due of

capital Slide on to Turning X. allocation

to year. end under to remains the leverage priority Our this net down drive our Xx of by

$X.XX last per as we in $XX payable addition, of week XXXX. In QX shares share, Sensata Xth, to of first of million shareholders we quarter quarterly of May record dividend and announced repurchased approximately of our the

our conversion We expenditures XX% cash on that of are year. to about net with income. capital to our of focused free flow effort, reduce our and XX% XXXX approximately improving by revenue days keep on XXXX approximately and to X% to expect we in XXXX this hand Part adjusted flat XX% inventory of

Slide XX, follows. financial quarter providing as we XXXX for second shown As of on the guidance are

billion billion. expect $X.XXX to of We revenue $X.XXX

second of As line top decrease XXXX. a slight expected, this from the quarter represents

in approximately QX of adjusted You'll XX.X% and onetime of recall million the low-margin expect At benefited share of adjusted we range, margin XXXX midpoint guidance approximately earnings the revenue. $XX operating revenue that from $X.XX. per

our to by prior currency results quarter compared year. second foreign expect XX points We to basis negatively impact

pressure for year ahead continue growth destocking of we the to will note expect industrial we X% and back said, revenue to rates exchange that year, continue XXXX. Looking That approximately revenue. continued to full likely the of foreign half unfavorable the

that our quartile as quarter group, remainder to productivity top pressure basis drive XX to delivering improvements. team the XX to peer operating a margin operating year. of of we points per We improvement more deliver normalized know continues our to we Finally, adjusted pricing return the Sensata through margins. committed operational within for Despite to remain continues adjusted environment,

to the like Now Jeff. call turn I'd back to

Jeffrey Cote

an on issued release the Brian. Sullivan, search role Martha release of we Alongside a earnings her interim to XX-year my who process. company while on announcing a today, are many basis with including know into you our will undertakes Thank given step Sensata. from familiar separate retirement you, XXXX her time Martha, as Directors. tenure from the of Board and I her Sensata, with history the XXXX CEO

made, enabling last end our be also the been of a issues capabilities a transformed And to the a operational has broad our is of helping since markets, and to transform customers X great have am by It management engineering over that Sensata. solve the years set Sensata of challenging team not we only their XXXX. developing but and CEO has progress I proud most honor to the of member

in vehicles XXXX, XXXX. market that predicted electric comprise as recently approximately IHS the X% would As of

such largest that Sensata has Basically, as Now in by globally. electrification. Companies of that the growth over XXXX, to XX% in been the Since Tesla just revenue forecast XXXX. all XX%. is billion manufacturers grown and have has BYD EV $X And become

Sensata's work Brian are poised improve to and will has through waters supply choppy top to on did bottom navigate grow the line significant the unprecedented opportunity to to this navigate by best continue chain through micro continue disruptions now I line our an know commencing future. followed promising deliver our inflationary we our While tirelessly massive that environment, and financial to predictability. and emerged, with an and pandemic, and Martha, cycle. We team these whole

end As the second are margin high indicates, right on the margin on expansion path. guidance we deliver quarter. and first quarter achieved of track guidance are our and adjusted for the We range, in results our first results the second to revenue quarter quarter we operating and at

be We the reduce of to end XXXX. we under expect leverage, and Xx continue to by net

and as good Board had I I've your and and customers, thank the want to teammates past honor want for for the the to Sensata challenging me our for the our each deliver thank XX,XXX solutions these a XX to X I to importantly, giving through our investors CEO more innovative privilege customers thank every And for great day. support I years. to times. most than our for last of want that alongside working years serve

call the to Alexia. I'll now turn back

Alexia Taxiarchos

[Operator We'll Jeff. now you, Thank move Instructions] to Q&A.

Operator

[Operator Instructions] Your Mohan Wamsi with Bank today of question America. from first comes

Wamsi Mohan

Jeff, some If here, and bit I over miss areas. now of working about the outgrowth automotive? with step the you mix, can you you it's talk years, in the been thinking you. overall And a expectation all great like feels EV about the we'll little year are mix production it so this in how kind back slowed the EV for

Just about progression should that? of the the through year, you about we think curious, think course as the how

Jeffrey Cote

historically to from the where a the mix forecasted strong about From were points. an at was we obviously, saw year, That's overall the pleasure it's where we you. improvement outgrowth thank the standpoint, outgrowth quarters, rate. XXX outgrowth. but of company significant quarter, XXX quite were were basis where It's point basis basis not XXX slower within IHS automotive first Wamsi, really Yes, been a than XXX was with for as have where last points targeted, Total we you working growing we well. there range impact

to So and that suggest really see continued the take for those about that. XXX as to market, year. The that that. continue NBOs terms would won mix we'll automotive And in over we've the hopefully, mix goes good the XXX to our with we'll forecast of continue see we if and we see way that time, in the feel again, of of that range in NBOs customers the hold

rate. off in Wamsi pleased start here, good growth the it's terms So with a to and we're the outcome of overall

Operator

with comes from Sheerin next Stifel. The question Matt

Matthew Sheerin

also Jeff, important investment terms So new an in question of I investors there's some one board noticed from management guess here fund. change. the that change is from the here representation I why

of maybe So we we should could expect you go as talk terms about and the what here? reasons for forward in of some the change, management new

Jeffrey Cote

glad be I'd Yes, to that. address

honor. that team So stated for years has being that comments leading thank years this what last I a the part let XX a start me of for with opening everyone XX, the my I the CEO honor. company last X and in for as been huge And the management

was that as of guys, we've have into board, I've with a see significant that long we've gone transformation search. business the actually perform a as to an upon we're be you, and basis we've we that very through we honest Based capabilities been achieved, that on we fortunate also feel the good developed, that real very Personally, we're we the never new the step to fan she Martha though wins a Sullivan huge role fortunate willing interim here. on

of same. executing speak continued the to the glide look I board, sure that execute been sure success itself. we've on. made I'm make can when a to we the here do new at way, though of a involved feel given and will and progress And need terms we on You Appreciate Martha progress focus continue that on in the and certainly some a hire that that tweaks has we we and for should as in individual the But the CEO, along very understand strategy. nice I'm of the strategy, real part terms we're we've she's sure there'll in strategy that path we're we well, the executing be the question. what that been achieved how but still think that

Operator

Mark The Delaney Goldman Sachs. from next with question comes

Mark Delaney

the was you Day, financial to in million wanting million years million is the the you and on $X wish thinks $XXX get update for Jeff, the model, million how target to Sensata which your I help let called many thank from all future. of an $X.X last your to tracking best XXXX over Investor think, to and earnings. of I me for $XXX revenue also

EVs. to see especially the OEMs the with you there it some alluded EV. Are some relates to about somewhat shaping offset shifts higher businesses part how extent talk that other perhaps developing that in maybe the the of to some their business slower. you is Maybe margins? And EV how are And automotive of as that up,

Jeffrey Cote

Yes, absolutely.

certainly of We XX%-plus the was million. quarter of there's $X.X fourth year, the of in EV So lot still quarter from on growth XXXX, from to that's you rate, the a this quarter last of was fourth quarter about quarter still $X.X the production going year up that and EV about markets. million in first but considerably change saw some of a first spoke in where dropped rates production first

there quite we of Sensata a the that have. was natural have, and hedge mix So the because hedge was shift benefits that there we favorable that

business, by having But business. million billion Obviously, And get over business. XX% in electrification we the about consistently Speaking at wins with that $XXX specifically a really in a is XXXX we $X about company. to it that's business to what left electrification grow 'XX the grew We billion need $X we've talked XX%. 'XX. the feel business, we 'XX, long-cycle the to by XX% to our don't have good that of

very portion a remember, is our business long cycle. big So of

We automotive XX% lot new said we a for visibility have that sold the wins we've [ quote that. we plus And with have to the customers. of as indicator business our X.X ] So that. of

outcome. So of that's terms visibility high a in to very fill that rate

is from first outcome. quarter well. where Obviously, the of pivot was ICE, as will there year, more that this impact a toward benefit when But that as go EVs demonstrated in we

EV lost doesn't at So rate. same not if revenue grow the it's penetration

make continue to we'll where to have our the going, feel of will business. we that that monitor in their businesses customers it it terms and go, regarding obviously about commitment our things which direction direction good So investments will pivoting long-term drive the obviously and we're our where sure of are engineering Mark,

Brian Roberts

said, And Mark, quick just comments a specifically of within add additional what Jeff auto. I'd couple to

couple years, certainly, in move Europe helps next to us. example, the of over back For for example, ICE,

we've vehicle. about vehicle while I'd also bit compared may As a content ICE about, talked as business, be lower. point that approximately in we of Europe revenue number the if safe-and-efficient Xx an EV on the little kind our to an think out have you

around is Due to profile the there. our profit EV, quite timing good

what And it's do. we so

manufacturing. We have lean

a have and to. We of lot there, continue volume we'll

profitability down side. certainly us lingering to, again, auto, going in this it any like, have a be start the to just seems to should cycle 'XX, 'XX can some or to from industrial longer of outside benefit than it's So help And point, then I although point or certainly us planned that would would turn And of turn. at company.

Operator

question next Christopher Oppenheimer comes from The Glynn with

Christopher Glynn

for little more us at also, a comment about from if change for about I ask focused detail. Jeff, dynamic, that technology? the best. wanted And sales for could the in to Thanks that taking the the working price in partnership that given share standard away transition ICE down dynamic does alongside bit all all years, does vehicle the the ICE historical your thanks market, describe you many

Jeffrey Cote

Yes.

been a with working pleasure So it's Chris. you as well,

enormous going On that's partner been an they make of that us supplier customers for to the as them in be whole they're side. that working there working combustion because to we're as they're with there. sure our that be internal a tell is benefit producing a that's to And them internal wants that share want with they to long need the sure to And alongside right such level every high make one that, the critical I confidence question, engines. to combustion you can be time there partner a of

creates capability to to able EV serve Now us it advantage to the serve that that on the an for have them be on them side. we platforms,

as as their base, Brian engines advantage will business, and to key more where profitable other supplier then successful mentioned, so suppliers our narrow And get customers that well their share. it had that supply the drop as they're we'll us a provide for and on That's naturally to look ICE new of platform. very be as legacy off,

just win both we work to as and transition forward. able this serve equation, to we're sure of this to them on there be our we're going that they sides make occurs, move as and So to that for we'll balance customers

Brian Roberts

price moving your a able our in changes price downs get we've normalized just year here, Yes. this about certainly being And last type as se change. we're reduction price that but we a mostly year-over-year question, down seen of pricing we XXXX productivity repeat on talked last additional back that This to to not quarter, offset kind environment. necessarily -- that in needs would price year year, that per not expect to

as we're for expect to -- certainly that into that. and that steps move necessary certainly we we'll to sure back But be we environment, we the normalized 'XX 'XX get taking prepared we'll make can

Operator

Research. The next Shreyas with from question comes Patil Wolf

Shreyas Patil

bit I wanted into transition. little to BEV dig to a ICE the in more

on about I product think that Xx X being similar the of And you've about EV believe odd have BEVs engineering pretty the past lot gross side. the between a on opportunity the categories. talked in But content you spending do are margins I ICE vehicles. on

So should is spending more going cost? to And flex can talk adoption about what down about engineering Dynapower, of in there you is for be is thinking sticky growth maybe EV EV that slowing? we little well. more a broadly, about you perspective an where and opportunity a you're we bit then a Or that how that period if a the also opportunity to as are just there from think seeing

Brian Roberts

Yes.

Brian. it's So

that's advance is to actual the up that mind, of with then Jeff going business wins of about kind we lot we again, the over part, to start of first start is. So the that X platform And be typically product Let when speak whatever a wind X in happen. it receiving these long to turn typically product the to build of and doing to I'll we're helping cycles, in we're them -- the going launch unique are right? years me to Dynapower. Keep new

have that costs is business going support 'XX, and beyond. today new So we in those 'XX that happen much launches of engineering the to

opportunities at So times today, business quote as for planned launch new point. we for are XXXX many those this in example,

company don't a real we Certainly, are spread out we engineering bigger the to able grows gain place think a expect needed win grow, to will that cost we does therefore, the business the spend. of and electrification I So kind as continue change to our base in and, be over that the that as have certainly opportunities that in to well resources help serve we But the here more future. to ones coming efficiency us won the there. as hope we

Jeffrey Cote

require And to Patil, but important the of piece. And bit for little wind grid-related there's to power industrial-grade let or DC, on Dynapower speak that equipment between alternative step DC to down a a or a business inversion doing. Dynapower step I me so to installations AC developing up that energy-related of PV apologize in it's or DC what it's or important, is this, They're understand up that. whenever

globally process. not production to generation the of And if grid look order you be at at for need the global Dynapower energy, gas need that storage you peak in that to other of distributed renewable having a on to making you basis trend capabilities distributed sweet and the for spot generation think balancing happen. of able you're have And is if manage more or capacity, towards so so that turbines

terms that of green in doing products so there the also making very process, some hydrogen have inverter in areas important very and are area, which well, are electrolysis around also military hydrogen. for They

that opportunity a there. project-based going energy very sense of complex there's ecosystem the of investment what's lots it's in It's because business in a infrastructure. on so in And we're major part terms a of

very long-term so And this little with a you'll business, bit we're this in lumpiness see potential. but of confident associated

Operator

comes question William Securities. Stein Truist next from with The

William Stein

elaborate you had. comment that can trends could I'd in you hoping I'm the on onetime low-margin the you Great. if quarter? revenue And ask also on booking

Brian Roberts

wound So revenue which supply within behalf doing. of were we on the associated chain is effectively buy a that customer, some business, our onetime we Industrials was effectively to an product onetime installation with up leveraging the low-margin

pass-through almost think that of -- nature. almost kind really revenue it's as it in was like So onetime of

So the million that in was $XX 'XX, back and was it QX again, in revenue total. of around

Operator

question with next JPMorgan from The Samik comes Chatterjee

Manmohanpreet Singh

Can the MP key highlight you is upon recent which Samik the XX-K touched you This please on Chattterjee. matters, audit filing.

Brian Roberts

Samik, the repeat Sorry, that could filing? you XX-K on

Manmohanpreet Singh

Certain filing. by that key the the highlighted in were auditors audit matters XXK

Brian Roberts

with the to that looking different fair as analysis you're So have described of by versus for test and ultimately, yes, the and purchase so assets acquisitions basically acquisitions, value through price the go through of completed, at each those effectively were firm. that then And goodwill the impairment us is we different audited year, the we at and to that that was Insights done effectively on units, another last speaking if a change sure you're that with I'm if to they routine specifically look reporting the each made different that's led that of the to. piece business. referring or not there basis,

The other one may be on. around our internal controls, head and I'll just

needed environment the was team some Americas our and as felt specifically XXXX, shared be we internal to of kind testing upgraded. found different some here in reconciliation that it around in our by done make our Mexico control sites. regions, our account and of that we of our lot within services through and we inventory Certainly, went A issues, work

well through us for third-party of we to make can are calendar that to those year. remediate testing, to all we're actual to ourselves, so by leveraging the certainly attempt able side this the that process as working be that end we along the standards we're Pricewaterhouse as and environment, set controls as of through such sure hard the internal working that the Deloitte control the for and up And make to documentation advisers go actions sure and

Operator

The with Baird. comes Luke next Junk question from

Luke Junk

channel the bottom dynamics you're terms sitting late light on in of given in such here maybe seeing any current important an line the in seeing and industrial just that's tunnel could expand Jeff, hoping to HVAC now what of the outlook. whether you through April, end and just you're piece right at working the

Jeffrey Cote

Yes.

wrong That way, have when more negative in the an exchange the little mix positive outlook impact think was things are of a going way, that is February. those. both bit is that's to both with historically associated of offsetting changed So the going foreign than area you since in February, for Industrial

all the through You that follow a down now in because their as snaps to then that prior have complex have of chain are Brian the go supply not results terms that of so what is, when a know are the we monitor you with very others closely. closely back some others that start distributors do well. we'll cycle and and chain there. expected working business customers the industrial the shared only balance mentioned, business us It's deliver But XXXX, our supply replenish of the is you market to had that to to as for you

it back strong it pretty does. So snaps when

So on it. close a we'll keep eye

On knows also mentioned, everyone there HVAC industrial side business, and systems. think Brian the of new refrigerants with is the that regulation positive associated I as

We of engaged have, our X years, XXXX customers X leak associated that AXL closely we're as they're and revenue or launching the has and portion last sensor, a that. developed for very meaningful with with

for $XX $XXX be has -- opportunity million to to Just fully clear, panned that revenue out, Sensata. it a when it's has million

business. good Luke. that we really helps, that Hopefully, of industrial So piece feel about the

Operator

Cowen. The next question comes from Joe Giordano with TD

Joseph Giordano

the and I next Jeff. the decently modeling. this Thanks the question like with segments of echo the was I either kind had being that than this just and It for has corporate some kind I'll everything best on wish just like is is were into from now? of out is of comments, you the curious, just a spend just it true moved megatrend when sustainable associated for rationalized lower for way, and of we minimized expense. everyone's you. lower or organization revenue I'm run whatever rate along a X now

Brian Roberts

relatively is think consistent in go that April it's quarter do a as an the as have happens No, in probably second -- uptick run this X. merits rate. Yes. of we We

So focus. a units. headwind that's more us would tried electrification opportunity bit the business expenses to when now little and being Performance And ultimately a about opportunities became spend of of those typically to the new negative QX. for are the serving we've overall, you Sensing really rationalize, as within I But think megatrend for corporate resources say more

expense. going kind maybe just some rate uptick, forward, probably of a a think normal like given it's slight said, So of timing run consistent I I in relatively QX,

Operator

Daryanani Instructions] next [Operator comes ISI. Evercore question The Amit from with

Irvin Liu

nitpicky, Jeff, to XXXX revenue Irvin Amit. you is Not mentioned is correctly, to last quarter. be versus Liu be all on the Brian, if best. X% X% growth I you for This to X% expected wish but that we heard

give us the why prior you can Just at markets? of you seeing what expect any you're FX of growth color your this lower the range. a function on end mostly in industrial Is could XXXX or end be

Brian Roberts

about spot last you're obviously, I still the talking that range on. mean, think quarter. were we within I

foreign peak, this of consistent both. though, in say expected relatively we're expecting our in -- kind kind about of really is, of we're with call wouldn't of of net X modeled like things basis to looks right now. had to think the the of would driving kind them the it's half in so I back it have margin range. a back year. you half within it going a minor it, headwind I hit X are that QX be or So exchange the tweak year, Originally, the to we points what The XX XX I is still One

then we well were cycle we what year-end midyear end bit And second, seeing. by down think pretty were as as like hearing that's that industrial linger this a with that longer. going destocking was of kind consistent all I the looks little to it Certainly, or would were that we and so, hoping at commentary

looked as into consideration we've things guidance take tried year range so the to 'XX. And full of at those for both we

Operator

the like remarks. question-and-answer any This our back conference would concludes Roberts Brian for turn to over closing to session. I

Brian Roberts

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Operator

you has conference for The attending concluded. now Thank presentation. today's

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Sensata Technologies Holding (ST) 29 Apr 242024 Q1 Earnings call transcript