ST - Earnings call transcript Q3 2024 | Sensata Technologies Holding plc

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Operator

Good day, and welcome to the Sensata Technologies Third Quarter 2024 Earnings Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. James [indiscernible], Senior Director of Investor Relations. Please go ahead.

Unknown Executive

good and Betsy, you, afternoon, everyone. Thank [indiscernible], and I James Third XXXX Senior you Director Sensata, for Quarter Call. Conference Relations Investor Earnings would Sensata's of to I'm like welcome to

and Martha on me an and Chief today's Officer. are Brian Joining Sullivan, Sensata's Roberts, call Interim Sensata's President Financial CEO;

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

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

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

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

questions. your take then will We

to Sullivan. CEO, the call Now President like I to Sensata's Martha Interim would over turn and

Martha Sullivan

and James, Thank good you, everyone. afternoon,

spending September Relations joined years the last Relations. years welcome Investor James Senior Director Investor including of the in new me us Manager. at Let [indiscernible], our after James X last their [indiscernible] as as XX

X. Slide to turning Now

Our demonstrate from operating execution efforts efficiency, were margins. third line in returns operational to early drive expectations improve and quarter our results and core with expand positive

X For example, key the there quarter, were developments. during

the sale of to we business a completed subsidiary the [indiscernible] of Insights First, Funds.

low products approximately quarterly eliminated low-margin we of million revenue. of Second, growth, $XX

As expected, we XX on product September be initiatives of and nearly were our finished expect about to cycle year-end. XX% life completed by as management

million efforts. As with in $XXX of a connection identified reminder, we revenue total, these had in approximately annualized

our last confident days automation, navigate overhead end several price a more OEM these Performance reality. a Third, will provide of our initiatives expenditures reducing customers. I'm especially we initiatives to in progress return benefit capital improvement operating productivity will commenced additional in our with environment a ongoing I and normalized aligning expense, as on encouraged difficult lower downs and operational market XX prove to Sensing over the increasing process, by we market am XXXX team's segment. as streamlining that focused steps we critical continue offsetting to These environment,

-- by for quarter. both heavy markets a year-over-year off-road the vehicle approximately Slide automotive we As decreased fourth third erosion X, further turn to the in with quarter, likely X% and

volatility. a Sensata, we tenure of auto and we market of weathered track many periods cycles, have end with through During long challenging have performing my record

North due demand the trucks. American on-road to share in in environment in Sensing point our European taking as notably segment automotive, of OEM primarily decline shipped actions flat third and needed. approximate our HVOR, Performance was Outgrowth was business offset most to percentage outgrowth quarter China in an as by are We within align the to in

multinational continues minute of in regions. each players the market experiencing of to our in losing trends to a China large share through OEMs. the The Let key evolve are some me take walk we local with to

of In for market OEMs. a was of that by share By will local around be number year, is us. the held X/X is end Today, it this headwind comparison, nearly that XX% expected the last year.

content half As of is per OEM per vehicle multinational. on on a content approximately vehicle our local our

new we we While of market China those with business key the this XX months. XX to outside continue be will outgrow local for to to impede China, win our ability aspirations with especially OEMs, headwind to likely next in what the expect

recorded America points our markets by such outperform. was to mix favorable business Strong and outgrowth in QX fared Korea as market Mix of markets forecasted. in per robust ICE vehicle approximately driven automotive than contributed China, continue outgrowth positive we solid in platform content as vehicle basis to Excluding weakening despite better remains and more as North Europe Asian XXX originally other production perform

will and production in markets. be both guide. updated QX, downward quarter to report. dealer with on on-road that ahead expectation to we is we our our have risk fill truck for fourth also based levels America year-over-year business, at heavy rates, and this KGP and Europe on lots, downside outlook taken as and customers both their make growth Looking and in vehicle have their downward in-quarter forecast lower This it OEM down further the XX% forecast. Within forecasters off-road we inventory account on July in for rate quarter fourth our discussions approximately updated North revisions incremental hand to to be approximately likely revisions current third-party seen XX% And significant highly into believe

which Europe, offset some will in tire help sensing of pressure softness. regulations New market the require

to has near construction segment in However, and the lower demand caused with this continued the term. production levels, for sluggish us temper expectations coupled agricultural

Sensing Solutions. me turn to let Now

to speak our business. will industrial I First,

housing which this industrial new We in given and detection space. in on XXXX. remain share a growth we destocking sensor third This and for ramp overall, opportunity and continued inventory our into as approximately and year-over-year AXL quarter expectations product muted win market, our X% encouraged a While the to our slow showed will new are continue stabilize about incremental by sequentially. business remain in the we deliver basis excited QX leak results,

new gained family in Additionally, generation announced both our production Power of for as dual-purpose fifth Compact its cells. offering power September, Dynapower Systems technology, for fuel performance hydrogen and conversion approval business

this drive expect renewables, continue as Rectifier well products across to and e-mobility. several of important industrials growth and to conversion, and Dynapower's system such storage hydrogen family power as energy We verticals as

While our and XX for business this not last immune has energy in expectations the clean the overall remain months. initiatives high slowdown over Dynapower, from electrification been

its change in its initiatives engine as the Dynapower and energy the noncash growth such, projects years. We remain role these important in of the in quarter. clean an and Sensata impairment over the to charge for a As for recorded goodwill $XXX committed million timing coming resulted business

within Next, speaking aerospace continues to business our Solutions. to perform This well. business Sensing

exposures to the issues our any and key monitoring closely are impacting we ongoing customers. quality related labor However,

you Before to search. turning over let the our call to update on take a CEO Brian, moment me

time Board months spent significant over last have find leader I the next to Our the right and Sensata. X of

have time to qualified highly are of the to continue and been Sensata the our in to We who of the we frame meet stages the expect our final search. we I to shareholders in to guided. candidates to fortunate And report to customers, value am we team. that had recognize that land pleased our

quarter for the will XXXX. Brian, over call provide more the quarter to third turn now fourth of will our discuss guidance who in results detail I we as

Brian Roberts

everyone. afternoon, Thank you, Good Martha.

are in reminder dollars. all Just that noted, for a clarity denominated U.S. amounts unless

Let me Slide X. on start

As operating of from basis for quarter across year-over-year an operating quarter margin of our Martha results line third approximately efforts, billion XXXX $X the stated, points income of revenue Adjusting core consecutive of is management third with in up we each in $XXX to approximately for XXXX would revenue expectations million cycle revenue to this related operating of margin exited delivered quarter line which was expansion been representing We deliver our our compared of Adjusted XXXX. QX decrease another the solid XXXX the quarter XX.X%, as a revenue quarter sequentially quarter delivering life with third and improvement million adjusted is in expansion reported in key of and metrics. our expectations was to second and margin year. $XX of a with about X%. This $XXX have product million, of X%. XX of

in share was earnings the expectations. $X.XX third third the was per in quarter lower earnings fluctuation. $X.XX foreign primarily driven quarter by Adjusted in share of and of revenue change year-over-year line with currency were Adjusted per The XXXX.

have Our which QX XXXX discrete GAAP our results include impacts been excluded from results. adjusted several events from

a walk Let through moment me take these you items. to

to noncash of charge Martha $XXX the million down to noted, approximately from XXXX. recorded Dynapower goodwill as acquisition related write a we First,

necessitated business excited cash impairment delayed remain lines related electrification shift. the we flow time delays experienced of as resulting business Dynapower, future and clean and goodwill. growth of energy for to expectations project the The the While for the

[indiscernible] to Second, of of million. for Funds our $XXX we a Insights completed sale the business subsidiary

the As the a of approximately result transaction, of million. sale on recorded loss we $XXX a

Third, to with remainder with the remainder Sensing series be of we $XXX last third margins. be quarter, growing XX% Approximately in to these comprised in with in year-end. is which of cycle, in quarter we products commenced actions the expected our Performance at of to may completed XX% revenue Sensing a Consistent expectations, the eliminated segment annualized maturing XX% and Solutions. revenue substantially substandard products, of by million slow this exit approximately

restructuring $XX approximately recorded As million, $XX and management product million, which recorded effort, cost result of in we this million which within a of life of recorded of cycle a sales. is charge is $XX

of benefit mitigation part and released rate tax in the valuation benefit amortize property tax to over tax a years. assets our allowance will approximately us stable a as over few strategy, keep related broader Finally, next our million. XX help $XXX This resulting years of intellectual should we tax discrete certain

third Solutions point the The management XX.X% Performance our as for due decrease mix automotive flat year-over-year was slowing and Slide X% the within approximately unchanged product quarter the of life third percentage is market. to XXXX of in approximately actions of X million, well Sensing decrease in as a XXXX was segment year. quarter of cycle revenue share Sensing operating on sequentially to regional the $XXX X primarily prior Adjusted year-over-year. auto. the Turning of approximately attributable $XXX margin performance. segment with was revenue million down to

million stabilized yet included year-over-year. Other by While expenses second flat Corporate our of not appears been launch as continued quarter operating segment to the destocking to Adjusted $XX.X center. and offset our from X% business have was AXL our and detection sequentially within leak has returning the growth, of approximately down industrial

in We insights corporate our expect expenses annualized continue upcoming revenue a management and both related to manage life reductions we normalize the of excludes which and actions. operating as million $XXX base, cycle product quarters revenue to on our further actively costs

X.Xx from Moving to as of Xx drop months of leverage ratio dropped and goal net ahead year-end. net with XX, June as note our to that leverage drop our Slide pleased consistent XX, by XX below X. EBITDA XXXX, September to I'm to trailing a Xx

from consistent totaling we slightly repurchased matured offering cash. We show is a combination our expenditures. consecutive X remain of percentage $XXX with both of our use of million The cash in in the and will July expectations. third funded working in on shares level the million see X.X% management focus range in improved with June, the that would second $XXX steps conversion cash $XXX third we a return These finish levels on as approximately renewed which was invested redeemed we spend achieved in a to translating XX% compared and of over This are to quarter proceeds an continues rate bond to in quarter, of on quarter. hand. we confident increased XX%, bonds the approximately conversion many have to repayment inventory XXXX. to million the of Additionally, quarter XXXX adjusted including that capital, million the of year. million October in In improvement XX% $XX by completed prior as capital capital, for our XXXX, as in flow a along prior Free X.X% income of result on net

November XX. week share, to quarterly of last record of dividend as our announced we of shareholders per $X.XX QX Finally, payable

expectations Let XX. the on of shown for update on you Slide XXXX, as now fourth me our quarter

to the a million range the to continue in Europe, that primarily the Performance fourth revenue is rising primarily expect sequentially represents we our million the quarter to will basis We one, a of approximately approximately decrease lower million our which be of decrease the decrease $XX level deliver each due XX; $XXX in The to September expand the exit from North America a goal a as change for by lower expectations quarter. due with of three, decrease ongoing Insights address in business, and Despite At this lower our quarter million drive production points the driven products; attributable XX.X% revenue, we to quarter operating million $XXX efficiency market by $XXX on items: two, to operational to this revenue. closed $XX related efforts towards OEMs Sensing third margins million sale to X midpoint, to $XX and segment the improvement inventories. and margin consistent year. believe in XX fourth improved to quarterly vehicle underperforming

We continue to current adjust the our to environment. proactively demand business

that, call With let back turn me the Martha. to

Martha Sullivan

with to Brian. as Thank third quarter the fourth we look a the summary, XXXX. In quarter messages you few reflect you, key me ahead let leave and and on

and especially months, in XXXX by lots. challenging it adjust the levels likely modify First, over for production it's market we and we or into on to Volatility dealer past amplified, to has persist serve. is the are to held conditions with across several been QX auto inventory OEMs early as sectors clear them today faced

on through execution have the efficiency. over current a been environment of the taking to these focus and with improved demand We years many operational to better are the cycles respond necessary steps and actively

a allowing safer, future. the for protection long-term Second, us cleaner has am to world. sensing, more I solutions, electrical and continue we Sensata and XXXX built are to that confident high-value than solid electrified a and building win strategy foundation a more in on ever winning

in we this plus look as transformational regulations are to change. As choice partner customers new help of the and of our solve increase period positioned well for challenges, comp

turn Third, we that and value on team driving executing privilege have for is to shareholder our been a It mission. delivering in an globally opportunity place committed and customers exceptional our has tremendous share in and developing to James. enabling of colleagues, now respective with to back connect lead the I our will markets. their call new who to our content old, goal best-in-class customers

Unknown Executive

Martha. you, Thank

to will opportunity to question. do To first allow participant move now who we the ask to all please those Q&A. will Betsy, We so, wish of introduce each to question. X question, the a limit

Operator

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

Wamsi Mohan

in those to come Martha, you and some think expecting well, transpire Or helpful. are magnitude? you is down. talk downside Can you guidance? baked XQ from exit standpoint? would in seasonality mentioned about be third-party about given rate And going your you're should to this to baking just that assumption What estimates a more production as weak what's into thinking how that we XXXX, ultimately

Martha Sullivan

the -- about Yes, thinking particularly the and Europe. way this is Sure. America we're North

to at And so we quarter. are point. look somewhere between XXX,XXX to XXX,XXX help vehicle move And units a as below this ahead we third-party the as that expecting we're into fourth of beyond quarter. first forecasts the not we lot

a to first of would of inside sort us So expect normal market seasonality, of in give not Sensata, normal cost expect we we terms seasonality is going of the in whole the help lot quarter.

Operator

Cowen. The with question TD Giordano Joe from next comes

Joseph Giordano

do just and the to share sits change content On if one on the have shifts level I with that the more you to then where you? point question your changing how significant like your Martha, keep region? evolve, like China, in and and want could. given what how locals, for the you the high China dynamics balance structural what's I strategy one the of like does Or for -- investing

Martha Sullivan

question. Yes. important It's an

local on OEM aspirations opportunity, will at our continue the innovations significant. ICE and to market level. our the consolidation, add at valued. even And as it's particularly that certainly on So looking outside at focused global the quite is content And look there China, recognizing have engines. be way are position locals that we're that we and we're We're of we

make we're and technologies Sensata, the are China. investments leveraging market So the the across unique we technology position opportunity given inside making that really and is not still market sense, strong. and investments of

brings. feel good the we it and that about investment So returns that

Joseph Giordano

I here. things time if that does ability for different give has having the company, into of distance since you like very and were see like CEO we're Did of that things away I you're of kind the that now but Martha, back, it you time? give how of out just you know ago? it were seeing perspective a like kind you bit differently follow the it that could coming to still and changed a from like role, with you involved your away years And seat that now that some up,

Martha Sullivan

say can I of give did was It recognize would that that, and performing retired. of new not I for got And is lot who's cadence that great. Brian, world me as also with a let's there we're as I of a different shareholders. knowing a it's well including the say that a ago years perspective. our strength said sense team, is sure when clarity of shareholders. talent been strong really we the for it We've the urgency that Sensata make comes improvement really good brought, think, to would X almost what I Having on

Operator

The next comes from Delaney Goldman with Sachs. question Mark

Mark Delaney

soft? could be self-help And level hoping to the revenue size product margin divestiture, if full guidance much to think ratio there the and of you topic, to markets be but various know the year the if OpEx next to bring specific you more more sales to what hoping on don't those said understand there's quarter. may think to it's XXXX. understand even you'll I magnitude. you of appropriate? that think XX.X% to Brian, better are if you efforts appropriately Maybe exits at you in around EBIT And already, XX.X% the improvement, what in rate I expect cyclically if magnitude all is end the and also more the margin I'm I'm be come, how full may run With Insights margin the fourth off EBIT

Brian Roberts

question. the for Thanks Mark. Sure,

the through our margin you quarter towards of the contribute So be said this see and overall ] in the XX avac the now. about efforts if that into to could fell the can just $XXX upon the rationalized that that the immediately [ And In would the is that we run fall pieces, of do be that challenge what doesn't revenue to of lower expenses process million completely talked we've improvement. just couple with basis see bottom point has products, bottom. then through we have it about that's in roughly to exit doing a annualized in you a to we're line fourth to expenses the benefit. base, able of previously drive operating to quarter, basis points fourth that the The

so of And improvement of the is quarterly XX that's to with XX about talking factored all about that we've into improvement, we consistent year. roughly basis range which which points is been points basis of provided, the XX

So seen, do to seasonal down do Sensata mentioned, environment. expect towards as that forward We those cost move offset continue I'm in And we of challenging environment comes working productivity to adjust as over a in as what Martha trying not that time. we is be sure quarter price think moving historical that through we're some for -- typically productivity, QX and do now. we to incremental there's the back but be. may seasonality market we're initiatives to with

efforts update on to you work sure we'll more do quarter's able in our be So clarity next for the on both that QX and to I'm get call. XXXX, and still to planning

Mark Delaney

the Insight of effect the on piece on please? us to that the just EBIT exit, help with margin, understand And just

Brian Roberts

cleanup it and just I little this or of -- in a the little year, not, it believe Yes. with for is some bit business accretive that mean preparing that actually given happened it sale. a was

look them. investment move just the benefit expenses for be this G&A high. overall, of of the that no of you the operating So required Ultimately, year that one too incremental to But on us again, was drivers at level would it from to for there's for. decide that and with to came continue business, really if level main us was

Operator

Christopher question from next comes with The Glynn Oppenheimer.

Christopher Glynn

around the driving behind of And obviously, some curious you internal reporting headlines to efficiencies if production how accounts, the But you're you talked exits. product line mean -- I What's have wondering expanding that I Thanks. you manage execution, any on could and margins. channels, operating was going specifics line internal was highlighting? about examples changes, discuss that.

Martha Sullivan

And and that on Sensata Yes. through that a the inflation, tackling then disruptions Honestly, lot around get to recognizing those important blocking around we around have a just track of it's back did processes. back getting COVID, supply track that it's as for on part many been of chain, with quite went companies while. we really

given happen return investment. they've years X of been So things in where from our some year. don't rates of we've can and And sites makes that on things labor automation, that more lots we're done even makes inside their everybody process more that need steps nice seen a examples ago, things of and process smart that like like we that reimplementation it those X efficient them get increase at really and or looking a to production We've to jobs lean we effective eliminating makes mapping ensure cost easier. quickly do and

lot a renewed comes that goodness there's this So with focus. of

would reduction. is design-driven area Another talk I about cost

around invest changes if and we look that in competitive sensing margins. products. at they and some way very core for reduce delivering cost, that still of stay So those also been our we design because that business, now enhance ensure technologies and you them decades, they're make have our high-margin

So those of some are examples. the just

Christopher Glynn

way the found and you've then the was are out And price products those I cases exits, Okay. are tested curious, stay? -- where on interesting on that will there any

Martha Sullivan

with Well, we you comment. until last the you were made

to really get the market. piece are some out that years. our been is their or life go-to-market many change of a the sort investment That's are cycle, over things of So just do exits products would of exercised the pricing strategies of because to -- smaller going But these this those have point the include when the beyond reality overall. way in they're of

Operator

with Patil comes question Research. next Shreyas Wolfe from The

Shreyas Patil

unpack impact really decremental like reduce as can I of to of you that's you if have reducing curious how from more I'm And further helping revenue you the on you're good potentially downs do measures cost up following mentioned doing job runway a much normalizing even cost, under taking? the Maybe margin pressure. going questions, the earlier that of it some forward. believe here? is you're And and price looks some reduce

about you of So to maybe can improve remain slowing which that markets pace continue the margin, the think how should assuming end we weak.

Brian Roberts

Thanks Absolutely.

So about we've this the openly hard quarter. business, in grow again, talked -- is and margins first to notoriously

So I for sequentially, QX is in And this business it candidly, this business. expect challenge a quite to QX in always will challenge be a XXXX.

As pointed in we have many or or will as just costs normalized they time. get a efforts, come more environment. if that back which of Productivity offset that some our will, of been business, to market, but those into our that the examples and cost take you to lot will -- Martha help underway, of

And some of bit those. a little have those in of so layer over we adjust time, to and to

what more efficient to always to before get we're able looked to different think for we're hard mentioned before, I ways costs. additionally so be And Martha very adding looking we

think us I year. back that's in of market has softened a over half that company year served has we of discipline the a here brought certainly well, to especially over environment the that the that this level

for lot again, in got work perspective, plan. think, we've of a I to planning XX do a our

goal XXXX in where for able about clearer into are expand say to we're will we be margins is from is a become little XXXX. our we how thinking as I next have probably get year. margins bit it'll and said we to So what

Operator

Chatterjee Samik JPMorgan. with from comes question next The

Unknown Analyst

is [ on This Samik ] MP for Chatterjee.

a electrification have around question So programs. I the

XXXX. the a follow-up. of please have mentioned to some you related this expand And impact your delays So by to electrician that ability $X Can hit electrification also, on the you programs. of I how target that? billion And does

Martha Sullivan

Yes.

So in the in greatest the marketplace and we've delays are Europe. seen also the areas where America North in

are great of vehicles those business we have that things all delays about you look on ICE at that against One we is and our when hybrids. position the plug-in well hedged model the

happen will platforms in as electrification continue So come and in actually we automotive that back expect market do the to and will well. the HVOR

We have applications we're that some on. commercial focused truck

to where driver frankly, in be commercial be similar Dynapower well, meeting engaged heat we So our charging are or or business. similar we technologies quite of that truck a they as whether units provide end for and industrial we expect growth stations, this pumps important parts our needs an power in also markets and via infrastructure efficiencies, around conditioning automotive with

but So aligned we're the sure to opportunity, is bullish burn quite rate making market that we're our on the still timing.

Unknown Analyst

Got it. have like expected here are thoughts and early markets, like assumptions I something how Okay. be And business? your And XXXX, about the what follow-up around into are like to positive, which thinking to that? negative the end the any are about you're is be which expected

Martha Sullivan

not point, the the half Yes. we're I help first any certainly would XXXX, say at this of expecting through from market.

critically XXXX. third-party So looking at we're fourth as into roll we those forecasters. against have very we judgment forecasts in as the quarter some here, taken And we've

market, particular expecting any the of through we're half So the at not help from first end least year.

Operator

comes next Baird. Junk Luke from The with question

Luke Junk

conclusion, the company just it the bridging just to had. I from does would about any direction question towards kind be is wanted here? maybe push and in company some search its of Sensing strategic on the wanted just the of a search now reemphasizing electrification, market wondering the Does CEO Solutions? to ask within it reveal electrification auto and we helpful. insights opportunities of you diversifying picture process inform to the used big pushing question process on from the Just more And

Martha Sullivan

Yes.

we map, talked that technology are given road about experience, reiterate the ability think, we enhance our business. I Sensata. are believe to the important we've that the next CEO automotive characteristics the some would of of what think to of ability Also, drive innovation. And in the I is those profile important certainly are

lay I changes to important will that, and CEO, out. person to the the think strategy it's come from that that time new any has the

Operator

Truist The next William question Securities. Stein comes with from

William Stein

of I past that you that Martha, in year this expecting you're role Can you outlined said frame? what end you about the by fill that First, same said you've us to was think the time that the a different remind in frame earlier. or that time

Martha Sullivan

into came you're role on some CEO X May how spent to roles months. on I months on it we searching the that long to When year, XX fill looking this average when from in X time -- Yes. actually take at of the outside and ranges does

line. So in squarely very frame. that confident time that's time of landing the We're

William Stein

to you job first wonder too cost maybe don't of of through XXXX us as might least give markets, the us early doing if on you you you're of top believe half remind And the Okay. sort for year. production clearly auto outgrowth optimistic algorithm even the great the can at you and views your about line. -- a I achieve if cutting that the production sound on growth

Brian Roberts

it's I what we to but probably mean in happen going auto. from us for early day So of by think a think change as some in continued really we've is I cases, it's to seen, be all month-to-month, perspective day. market talking not to even

And for of as looks so a we a help growth certainly picture I data worth on better like. more will 'XX months get our few us what solve think

whatever out, control we sure and on controlling that it's doing we're can is what to side our drives. We'll has really to efficiency. trying the that make execution on trying take continue action. and we're market We're to react again, think, Martha I sure what make as pointed we focusing to

Martha Sullivan

us. would important and down product across customers I XXXX the will I commercial value we the that ICE, in given in think launches bring changes add on are of What market, for volatility markets even plug-in hybrids, side. planned in there that that truck the for changes and the have are only thing seen mix our other is

year, are things can the in while past out. have they early We push seen the planned in that these

taking the time what be. the of end can what to market will reasons really our outgrowth one that's we're be that understand and So

Operator

from Fox question comes The next Steven with Fox Advisors.

Steven Fox

For hoping could was one into question, dig my bit I just we HVOR the a market. little more

where could You you mentioned know cycle was potential under of that market it's now. while this at in a a versus is of if pressure bottom, I from cut forecast. wondering sort cetera. how terms just for cycles, prior was et describe been differing we're there I another

Martha Sullivan

began forecasts, we second we're side accelerate on and to bit, see in that slowdown case what see particular. third-party this have a a truck in Yes. really of the market of business, commercial XXXX in line use We from began that the we and hearing in half to in seen with KGB the

are. look those when not production at you So forecasts where mystery a

Brian Roberts

that I year. was first mean China of our think little which was little to in the that, bit don't expecting. was normalize surprised and bit a Yes. that have a the be but the had Europe half that to in certainly stronger people on-road seen fruition, back that come I is America seems I going kind to we to half, the rebound think piece of wrote, the were North I And haven't expectation by, want say

according in XX%. year-over-year sources, as those both negative markets of that down the so And declines to third-party a KGP

in from drop a were So it's they significant what ago. volume where a year

so of that not turn, we're the And we're hopefully, to bottom start cycle will exactly nearing that but hopefully and sure when.

Operator

UBS. comes Instructions] Joseph next from The Spak [Operator with question

Unknown Analyst

Europe going ICE with next produced? puts how for less takes about be on positioned Joe potentially vehicles or Like, Like do you for development? is thoughts today. higher back going Kind either like that? there. or any on of year [indiscernible] regulations the Thinking any about think COX be and Sensata early Zack that

Martha Sullivan

I on think just content the engines frankly, we positioned ICE quite on given BEV. our that we're content growing and given well, have

content are Europe. a so full BEV, electric we vehicle slightly less still Today, on in So

that so a to And part of does that's actually, the some consumer where cases, next slowdown. and piece slowdown been is Difficult A been year. that has positive for the the in know what us. big of wants,

we but attention, projections XXXX. completely paying developed we're haven't for our So

Operator

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

Brian Roberts

look for and the call investor everyone, various Betsy, today. you, with joining to seeing you events forward We do you, thank quarter. Thank this

Global We following pretty events, RW November have the a Barrier in planning moment, full to Chicago. At at in the the next Conference XX, agenda. Industrial Tuesday participate we're XXXX

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Sensata Technologies Holding (ST) 4 Nov 242024 Q3 Earnings call transcript