13 unchanged sentences
These advancements lead to sensor growth rates that we expect to exceed underlying production growth in many of our key end markets, which we expect will continue to offer us significant growth opportunities.
−Removed: In fiscal year 2024, according to third party data, global production of light vehicles decreased approximately 1% and global production in the heavy vehicle and off-road ("HVOR") markets we serve decreased approximately 7%, each from the prior year.
Fiscal year 2025 highlights
−Removed: In fiscal year 2024, we used $701.9 million of cash to pay debt, including the early redemption of the full $700.0 million aggregate principal amount outstanding on our 5.0% Senior Notes in accordance with the terms of the indenture under which the 5.0% Senior Notes were issued.
+Added: In fiscal year 2025, we reduced our total gross debt by $354.0 million.
These repayments brought our gross outstanding indebtedness at December 31, 2025 to $2.9 billion, representing a net leverage ratio of 2.7x, compared to gross indebtedness of $3.2 billion as of December 31, 2024 (representing a net leverage ratio of 3.0x).
5 unchanged sentences
Our consolidated revenue decreased 5.8% in fiscal year 2025 from the prior year.
−Removed: Excluding a decrease of 0.7% attributed to changes in foreign currency exchange rates and a decrease of 0.8% due to the effect of divestitures, net revenue decreased 1.5% on an organic basis.
+Added: Excluding an increase of 0.6% attributed to changes in foreign currency exchange rates and a decrease of 6.5% due to the effect of divestitures, net revenue increased 0.1% on an organic basis.
Organic revenue growth (or decline), discussed throughout this MD&A, is a financial measure not presented in accordance with U.S.
Refer to Non-GAAP Financial Measures included elsewhere in this MD&A for additional information related to our use of organic revenue growth (or decline).
−Removed: Organic revenue decline was primarily driven by revenue mix, market declines, and inventory destocking in our Industrial business, partially offset by content growth in the Automotive, HVOR, and Aerospace businesses and the impact of pricing recoveries,
−Removed: Operating income for fiscal year 2024 decreased $32.4 million, or 17.8%, to $149.3 million (3.8% of net revenue) compared to $181.7 million (4.5% of net revenue) in the prior year.
−Removed: This decrease was primarily driven by a decrease in revenue, an increase of $94.7 million in restructuring and other charges, net, driven by the loss on the sale of the Insights business, and a $41.5 million increase in selling, general and administrative ("SG&A") costs.
−Removed: These decreases were partially offset by a $171.6 million reduction in the goodwill impairment charge taken in 2024 and lower intangible asset charges in the current year.
−Removed: Refer to Results of Operations included elsewhere in this MD&A for additional discussion of our operating earnings results for the year ended December 31, 2024.
+Added: Organic revenue growth was primarily driven by content growth in our Industrials business segment.
+Added: Operating income for fiscal year 2025 increased $88.2 million, or 59.1%, to $237.5 million (6.4% of net revenue) compared to $149.3 million (3.8% of net revenue) in the prior year.
+Added: This increase was primarily driven by $98.5 million of lower net restructuring and other charges, and a $65.5 million decrease in intangible asset amortization charges, partially offset by lower revenue and a $75.6 million increase in goodwill impairment charges in the current period.
+Added: Refer to Results of Operations included elsewhere in this MD&A for additional discussion of our operating results for the year ended December 31, 2025.
We generated $621.5 million of operating cash flows in fiscal year 2025, ending the year with $573.0 million in cash.
−Removed: In addition to the aforementioned $701.9 million of cash used to pay debt, in fiscal year 2024, we used cash of approximately $68.9 million for share repurchases and $72.2 million for payment of dividends.
−Removed: In fiscal year 2025, we will continue to execute our capital allocation strategy that is currently designed to reduce our leverage and return capital to shareholders through our
−Removed: dividend and opportunistic share repurchases.
+Added: In addition to $352.2 million of cash used to pay debt, in fiscal year 2025, we used cash of approximately $120.6 million for share repurchases and $70.4 million for payment of dividends.
+Added: In fiscal year 2026, we will continue to execute our capital allocation strategy that is currently designed to reduce our leverage and return capital to shareholders through our dividend and opportunistic share repurchases.
This strategy reduces risk in our capital structure, lowers interest expense, and improves net income and earnings per share.
−Removed: We expect improving free cash flow (net cash provided by operating activities less capital expenditures) to further reduce our net leverage ratio, and over time, we believe higher profitability will naturally allow net leverage to decline and returns on invested capital to improve.
+Added: We expect improving free cash flow (net cash provided by operating activities less capital
+Added: expenditures) to further reduce our net leverage ratio, and over time, we believe higher profitability will naturally allow net leverage to decline and returns on invested capital to improve.
Refer to Non-GAAP Financial Measures included elsewhere in this MD&A for additional information related to our use of free cash flow.
−Removed: In the third quarter of 2024, impairment indicators were identified that suggested the carrying value of the Dynapower reporting unit could exceed its fair value.
−Removed: The primary indicators of impairment were revised projections of future cash flows and actual performance that was lower than previous projections for this reporting unit.
−Removed: We evaluated the goodwill of the Dynapower reporting unit for impairment using a combination of a market-based valuation method and an income-based approach which discounts forecasted cash flows.
−Removed: As these assumptions were largely unobservable, the estimated fair values fall within Level 3 of the fair value hierarchy.
−Removed: A change in our cash flow forecast or the discount rate used would result in an increase or decrease in our calculated fair value.
−Removed: We determined that our Dynapower reporting unit was impaired, and in the third quarter of 2024, we recorded a $150.1 million non-cash goodwill impairment charge.
−Removed: If Dynapower does not achieve the forecasted future cash flows, there is a possibility that additional impairments of the remaining $229.8 million of goodwill may be recognized in the future.
−Removed: In August 2024, we executed a purchase agreement whereby we agreed to sell the Insights Business to a third party.
−Removed: The total stated purchase price of the Insights Business was $165.0 million, subject to normal post-closing adjustments.
−Removed: In the year ended December 31, 2024, we recognized a loss on sale of approximately $98.8 million, presented in restructuring and other charges, net in our consolidated statements of operations, and approximately $11.2 million of transaction-related expenses, which were presented in SG&A costs in our consolidated statements of operations.
−Removed: Disposals of the Financial Statements included elsewhere in this Report for additional information.
−Removed: On June 6, 2023, we announced that we had made the decision to exit the marine energy storage business (the "Marine Business") of Spear Power Systems (“Spear”).
−Removed: In September 2024, we made the decision to exit the Spear aerospace and defense business and entered into an asset purchase agreement that closed in October 2024, wherein a third party assumed control of a majority of the remaining Spear assets.
−Removed: The exit of Spear was the result of a change in strategy with respect to the business and involved ceasing sales, marketing, and business operations.
−Removed: It resulted in the elimination of certain positions, primarily in the U.S., and the closure of operations in Belgium.
−Removed: Spear had been included in the Sensing Solutions reportable segment.
−Removed: Exiting Spear resulted in charges in the year ended December 31, 2024 of approximately $22.2 million, consisting of accelerated amortization of intangible assets, disposal of inventory and property, plant and equipment ("PP&E"), severance charges, and other charges, including contract termination costs.
−Removed: Refer to Note 5:
−Removed: Restructuring and Other Charges, Net , of our Financial Statements included elsewhere in this Report for additional information on our exit from Spear.
−Removed: Selected Segment Information
−Removed: We present financial information for two reportable segments, Performance Sensing and Sensing Solutions.
−Removed: Set forth below is selected information for each of these segments for the periods presented.
−Removed: In the three months ended March 31, 2024, we realigned our business as a result of organizational changes that better allocate our resources to support changes to our business strategy.
−Removed: The most significant changes include combining our Automotive and HVOR businesses (with the combined business remaining in Performance Sensing) and moving the various assets and liabilities comprising our Insights Business out of Performance Sensing to a new operating segment, which is not aggregated within either of our reportable segments.
−Removed: We combined the Automotive and HVOR businesses to better leverage our core capabilities and prioritize product focus.
−Removed: We also moved certain shorter-cycle businesses from Performance Sensing to Sensing Solutions, which will benefit from organizing these businesses together, by allowing us to scale core capabilities and better serve our customers.
−Removed: The amounts previously reported in the tables below for the years ended December 31, 2023 and 2022 have been retrospectively recast to reflect this change.
−Removed: Amounts and percentages in the tables below have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding.
−Removed: The following table presents net revenue by segment and non-segment for the identified periods:
−Removed: For the year ended December 31,
−Removed: 2024 2023 2022
−Removed: ($ in millions) Amount Percent of Total Amount Percent of Total Amount Percent of Total
−Removed: Performance Sensing $ 2,743.6 69.8 % $ 2,749.9 67.8 % $ 2,645.2 65.7 %
−Removed: Sensing Solutions 1,061.3 27.0 1,156.7 28.5 1,210.7 30.0
−Removed: 127.9 3.3 147.5 3.6 173.3 4.3
−Removed: Total net revenue $ 3,932.8 100.0 % $ 4,054.1 100.0 % $ 4,029.3 100.0 %
−Removed: The following table presents segment operating income in U.S.
−Removed: dollars ("USD") and as a percentage of segment and non-segment net revenue for the identified periods:
−Removed: For the year ended December 31,
−Removed: 2024 2023 2022
−Removed: ($ in millions) Amount Percent of
−Removed: Net Revenue Amount Percent of
−Removed: Net Revenue Amount Percent of
−Removed: Segment operating income:
−Removed: Performance Sensing $ 676.1 24.6 % $ 697.6 25.4 % $ 683.8 25.9 %
−Removed: Sensing Solutions 312.6 29.5 % 338.2 29.2 % 356.7 29.5 %
−Removed: 28.1 21.9 % 7.5 5.1 % 11.1 6.4 %
−Removed: Total segment and other operating income
−Removed: $ 1,016.8 $ 1,043.3 $ 1,051.7
−Removed: For a reconciliation of total segment and non-segment operating income to consolidated operating income, refer to Note 20:
−Removed: Segment Reporting of our Financial Statements included elsewhere in this Report.
−Removed: Selected Geographic Information
−Removed: We are a global business with significant operations around the world and a diverse revenue mix by geography, customer, and end market.
−Removed: The following table presents (as a percentage of total) PP&E and net revenue by geographic region for the identified periods:
−Removed: PP&E, net as of December 31,
−Removed: Net revenue for the year ended December 31,
−Removed: 2024 2023 2024 2023 2022
−Removed: Americas 36.7 % 35.9 % 43.3 % 45.0 % 42.3 %
−Removed: Europe 17.2 % 17.9 % 27.0 % 26.3 % 25.9 %
−Removed: Asia and rest of world 46.0 % 46.2 % 29.7 % 28.7 % 31.8 %
−Removed: Refer to Note 20:
−Removed: Segment Reporting of our Financial Statements included elsewhere in this Report for additional information related to our PP&E, net balances by selected geographic area as of December 31, 2024 and 2023 and net revenue by selected geographic area for the years ended December 31, 2024, 2023, and 2022.
−Removed: Net Revenue by End Market
−Removed: Our net revenue for the years ended December 31, 2024, 2023, and 2022 was derived from the following end markets:
−Removed: For the year ended December 31,
−Removed: (Percentage of total) 2024 2023 2022
−Removed: Automotive 56.2 % 53.7 % 52.3 %
−Removed: HVOR 17.6 % 17.7 % 16.8 %
−Removed: Industrial 14.2 % 16.3 % 18.1 %
−Removed: 4.0 % 4.1 % 4.7 %
−Removed: Aerospace 4.8 % 4.6 % 3.8 %
−Removed: Other 3.3 % 3.6 % 4.3 %
−Removed: __________________________
−Removed: (1) Heating, ventilation, and air conditioning
−Removed: We are a significant supplier to multiple OEMs within many of these end markets, thereby reducing customer concentration risk.
Factors Affecting Our Operating Results
8 unchanged sentences
Organic factors include fluctuations in overall economic activity within the industries, end markets, and geographic regions in which we operate, which we term market growth.
−Removed: Other organic factors combine to reflect what we refer to as market outgrowth.
−Removed: Such factors include (but are not limited to):
−Removed: (a) the number of our products used within existing applications, or the development of new applications requiring these products, due to regulations or other factors;
−Removed: (b) the "mix" of products sold, including the proportion of new or upgraded products and their pricing relative to existing products;
−Removed: (c) changes in product sales prices (including quantity discounts, rebates, and cash discounts for prompt payment);
−Removed: (d) changes in the level of competition faced by our products, including the launch of new products by competitors;
−Removed: (e) our ability to successfully develop, launch, and sell new products and applications;
−Removed: and (f) the evolution of the markets we serve to safer, cleaner, and more efficient, electrified, and connected technologies.
−Removed: While the factors described above may impact net revenue in each of our reportable segments, the magnitude of that impact can differ.
For more information about revenue risks relating to our business, refer to Item 1A:
2 unchanged sentences
We manufacture most of our products, subcontracting only a limited number to third parties.
−Removed: As such, our cost of revenue consists principally of the following:
−Removed: • Production Materials Costs.
−Removed: We source production materials globally to ensure a highly effective and efficient supply chain.
−Removed: However, we are still impacted by local market conditions, including fluctuations in foreign currency exchange rates.
−Removed: A portion of our production materials contains certain commodities, resins, and metals, the cost of which may vary with underlying pricing and foreign currency exchange rates.
−Removed: We use forward contracts to economically hedge a portion of our exposure to the potential change in prices associated with certain of these commodities, and we use forward contracts to economically hedge our exposure to foreign exchange rate fluctuations.
−Removed: The terms of these forward contracts fix the price of these commodities at a future date for various notional amounts.
−Removed: Gains and losses recognized on these derivatives are recorded in other, net and are not included in cost of revenue.
−Removed: Refer to Note 6:
−Removed: Other, Net of our Financial Statements included elsewhere in this Report for additional information.
−Removed: • Employee Costs.
−Removed: Wages and benefits, including variable incentive compensation, for employees involved in our manufacturing operations and certain customer service and engineering activities is reflected in cost of revenue.
−Removed: A substantial portion of these costs can fluctuate on an aggregate basis in direct correlation with changes in production volumes.
−Removed: These costs may decline as a percentage of net revenue due to economies of scale associated with higher production volumes, and conversely, may increase with lower production volumes.
−Removed: These costs also fluctuate based on local labor market conditions.
−Removed: We rely on contract workers for direct labor in certain geographies.
−Removed: As of December 31, 2024, we had approximately 2,300 direct labor contract workers worldwide.
−Removed: • Sustaining Engineering Activity Costs.
−Removed: Modifications of existing products for use by new and existing customers in familiar applications are included in cost of revenue, as are costs related to improvements in our manufacturing processes.
+Added: As such, our cost of revenue consists principally of production materials costs and employee costs.
Our remaining cost of revenue primarily consists of:
gains and losses on certain foreign currency forward contracts that are designated as cash flow hedges;
−Removed: material yields;
costs to import raw materials, such as tariffs;
depreciation of fixed assets used in the manufacturing process;
−Removed: freight costs;
−Removed: warehousing expenses;
−Removed: maintenance and repair expenses;
−Removed: costs of quality assurance;
−Removed: operating supplies;
−Removed: and other general manufacturing expenses, such as expenses for energy consumption and operating lease expense.
−Removed: Changes in cost of revenue as a percentage of net revenue have historically been impacted by several factors, including:
−Removed: • changes in the price of raw materials, including the impact of changes in costs to import such raw materials, such as tariffs;
−Removed: • changes in customer prices and surcharges;
−Removed: • implementation of cost improvement measures aimed at increasing productivity, including reduction of fixed production costs, refinements in inventory management, design and process driven changes, and the coordination of procurement within each subsidiary and at the business level;
−Removed: • product lifecycles, as we typically incur higher costs associated with new product development (related to excess manufacturing capacity and higher production costs during the initial stages of product launches) and during the phase-out of discontinued products;
−Removed: • changes in production volumes, as a portion of production costs are fixed;
−Removed: • transfer of production to our lower-cost manufacturing facilities;
−Removed: • changes in depreciation expense;
−Removed: • fluctuations in foreign currency exchange rates;
−Removed: • changes in product mix;
−Removed: • changes in logistics costs;
−Removed: • acquisitions and divestitures – acquired and divested businesses may generate higher or lower cost of revenue as a percentage of net revenue than our core business.
+Added: and other general manufacturing expenses.
Research and development expense
−Removed: We develop products that address increasingly complex engineering and operating performance requirements to help our customers solve their most difficult challenges in the automotive, HVOR, industrial, clean energy, and aerospace end markets.
−Removed: We believe that continued focused investment in research and development ("R&D") is critical to our future growth and maintaining our leadership positions in the markets we serve.
−Removed: Our R&D efforts are directly related to timely development of new and enhanced products that are central to our business strategy.
−Removed: We continually develop our technologies to meet an evolving set of customer requirements and new product introductions.
−Removed: We conduct such activities in areas that we believe will increase our long-term revenue growth.
+Added: Research and development ("R&D") expense consists of costs related to product design and development.
Our development expense is typically associated with engineering core technology platforms to specific applications and engineering major upgrades that improve the functionality or reduce the cost of existing products.
−Removed: In addition, we continually consider new technologies where we may have expertise for potential investment or acquisition.
−Removed: A large portion of our R&D activities is directed towards technologies and market trends that we believe have the potential for significant future growth, but that relate to products that are not currently within our core business or include new features and capabilities relative to existing products.
−Removed: Expenses related to these activities are less likely to result in increased near-term revenue than our more mainstream development activities.
−Removed: R&D expense consists of costs related to product design, development, and process engineering.
Costs related to modifications of existing products for use by new and existing customers in familiar applications are presented in cost of revenue and are not included in R&D expense.
−Removed: The level of R&D expense in any period is related to the number of products in development, the stage of the development process, the complexity of the underlying technology, the potential scale of the product upon successful commercialization, and the level of our exploratory research.
Selling, general and administrative expense
−Removed: SG&A expense consists of all expenditures incurred in connection with the sale and marketing of our products, as well as administrative overhead costs, including:
+Added: Selling, general and administrative ("SG&A") expense consists of all expenditures incurred in connection with the sale and marketing of our products, as well as administrative overhead costs, including:
salary and benefit costs for sales and marketing personnel and administrative staff;
1 unchanged sentence
charges related to the use and maintenance of administrative offices, including depreciation expense;
−Removed: other administrative costs, including expenses relating to information systems, human resources, and legal, finance,
−Removed: and accounting services;
+Added: other administrative costs, including expenses relating to information systems, human resources, and legal, finance, and accounting services;
other selling and marketing related costs, such as expenses incurred in connection with travel and communications;
and transaction costs associated with acquisitions.
−Removed: Changes in SG&A expense as a percentage of net revenue have historically been impacted by a number of factors, including:
−Removed: • changes in sales volume, as higher volumes enable us to spread the fixed portion of our selling, marketing, and administrative expense over higher revenue (e.g., expenses relating to our sales and marketing personnel can fluctuate due to prolonged trends in sales volume, while expenses relating to administrative personnel generally do not increase or decrease directly with changes in sales volume);
−Removed: • changes in customer prices and surcharges;
−Removed: • changes in the mix of products we sell, as some products may require more customer support and sales effort than others;
−Removed: • new product launches in existing and new markets, as these launches typically involve a more intense sales and marketing activity before they are integrated into customer applications and systems;
−Removed: • changes in our customer base, as new customers may require different levels of sales and marketing attention;
−Removed: • fluctuations in foreign currency exchange rates;
−Removed: • acquisitions and divestitures - acquired and divested businesses may require different levels of SG&A expense as a percentage of net revenue than our core business.
Depreciation expense
−Removed: Depreciation expense includes depreciation of PP&E, which includes assets held under finance lease and amortization of leasehold improvements.
+Added: Depreciation expense includes depreciation of property, plant and equipment, which includes assets held under finance lease and amortization of leasehold improvements.
Depreciation expense is included in either cost of revenue or SG&A expense depending on the use of the asset as a manufacturing or administrative asset.
−Removed: Depreciation expense will vary according to the age of existing PP&E and the level of capital expenditures.
Amortization expense
−Removed: We have recognized a significant amount of definite-lived intangible assets.
Acquisition-related definite-lived intangible assets are amortized on an economic-benefit basis, according to the useful lives of the assets, or on a straight-line basis if a pattern of economic benefits cannot be reliably determined.
−Removed: The amount of amortization expense related to definite-lived intangible assets depends on the amount and timing of definite-lived intangible assets acquired and where previously acquired definite-lived intangible assets are in their estimated life cycle.
−Removed: In general, the economic benefit of a definite-lived intangible asset is concentrated towards the beginning of its useful life.
Restructuring and other charges, net
1 unchanged sentence
These charges may be incurred as part of an announced restructuring plan or may be individual charges recognized related to acquired businesses or the termination of a limited number of employees that do not represent the initiation of a larger restructuring plan.
−Removed: Restructuring and other charges, net also includes the gain, net of transaction costs, from the sale of businesses, expense incurred from acquisition-related compensation arrangements, and other operating income or expense that is not presented elsewhere in operating income.
−Removed: Amounts recognized in restructuring and other charges, net will vary according to the extent of our restructuring programs and other income or expense items not presented elsewhere in operating income.
+Added: Restructuring and other charges, net also includes the gain or loss, net of transaction costs, from the sale of businesses, expense incurred from acquisition-related compensation arrangements, and other operating income or expense that is not presented elsewhere in operating income.
Interest expense
−Removed: As of December 31, 2024 and 2023, we had gross outstanding indebtedness of $3,223.4 million and $3,425.2 million, respectively.
−Removed: This indebtedness consists of a secured credit facility and various tranches of senior unsecured notes (together, the "Senior Notes").
−Removed: Refer to Note 14:
−Removed: Debt of our Financial Statements included elsewhere in this Report for additional information on our indebtedness.
−Removed: The credit agreement governing our secured credit facility (as amended, supplemented, waived, or otherwise modified, the "Credit Agreement") provides for senior secured credit facilities (the "Senior Secured Credit Facilities"), consisting of the Term Loan, the $750.0 million revolving credit facility (the "Revolving Credit Facility"), and incremental availability (the "Accordion") under which additional secured credit facilities could be issued under certain circumstances.
−Removed: The Senior Notes accrue interest at fixed rates.
−Removed: However, the Term Loan and the Revolving Credit Facility accrue interest at variable interest rates, which could drive some of the variability in interest expense.
−Removed: As of December 31, 2024, we had no amounts outstanding on the Term Loan or Revolving Credit Facility.
−Removed: Refer to Item 7A:
−Removed: Quantitative and Qualitative Disclosures About Market Risk included elsewhere in this Report for more information regarding our exposure to potential changes in variable interest rates.
+Added: Interest expense relates to interest owed on our gross outstanding indebtedness, and varies according to the balances of, and the interest rates assigned to, this indebtedness.
Interest income
−Removed: Interest income relates to interest earned on our cash and cash equivalent balances, and varies according to the balances in, and the interest rates provided by, these investments.
−Removed: Other, net primarily includes gains and losses associated with the remeasurement of monetary assets and liabilities denominated in a currency that is not the functional currency, changes in the fair value of derivative financial instruments not designated as cash flow hedges, mark-to-market gains and losses on investments, losses on debt financing transactions, and net periodic benefit cost, excluding service cost.
−Removed: Amounts recognized in other, net vary according to changes in foreign currency exchange rates, changes in the forward prices for the foreign currencies and commodities that we hedge, the value of equity investments recorded on our consolidated balance sheets at fair value, the number and magnitude of debt financing transactions we undertake, and the change in funded status of our pension and other post-retirement benefit plans.
+Added: Interest income relates to interest earned on our cash and cash equivalent accounts, and varies according to the balances in, and the interest rates provided by, these accounts.
+Added: Other, net primarily includes gains and losses associated with the remeasurement of monetary assets and liabilities denominated in a currency that is not the functional currency, changes in the fair value of derivative financial instruments not designated as cash flow hedges, mark-to-market gains and losses on investments, net (gains) or losses on debt financing transactions, and net periodic benefit cost, excluding service cost.
Refer to Note 6:
5 unchanged sentences
Provision for (or benefit from) income taxes
−Removed: We are subject to income tax in the various jurisdictions in which we operate.
−Removed: The provision for (or benefit from) income taxes consists of:
−Removed: current tax expense, which relates primarily to our profitable operations in jurisdictions outside the U.S.
−Removed: and withholding taxes related to interest, royalties, and repatriation of foreign earnings;
−Removed: and deferred tax expense (or benefit), which represents adjustments in book-to-tax basis differences primarily related to the intangible assets, including goodwill, acquired in connection with business combination transactions, the utilization of net operating losses, changes in tax rates, and changes in our assessment of the realizability of our deferred tax assets.
−Removed: Our current tax expense is favorably impacted by the amortization of definite-lived intangible assets and other tax benefits derived from our operating and capital structure, including tax incentives in both the U.K.
−Removed: In addition, our tax structure takes advantage of participation exemption regimes that permit the receipt of intercompany dividends without incurring taxable income in those jurisdictions.
−Removed: While the extent of our future tax liability is uncertain, the impact of purchase accounting for past and future acquisitions, changes to debt and equity capitalization of our subsidiaries, and the realignment of the functions performed and risks assumed by our various subsidiaries are among the factors that will determine the future book and taxable income of each of our subsidiaries and of Sensata as a whole.
−Removed: Our effective tax rate will generally not equal either the U.K.
−Removed: statutory tax rate due to various factors, the most significant of which are described below.
−Removed: As these factors fluctuate from year to year, our effective tax rate will change.
−Removed: The factors include, but are not limited to, the following:
−Removed: • establishing or releasing a portion of the valuation allowance related to our gross deferred tax assets;
−Removed: • foreign tax rate differential - we operate in multiple jurisdictions including but not limited to Bulgaria, China, Malaysia, Malta, Mexico, the Netherlands, Switzerland, the U.S., and the U.K.
−Removed: This can result in a foreign tax rate differential that may reflect a tax benefit or detriment.
−Removed: This foreign tax rate differential can change from year to year based upon the jurisdictional mix of earnings and changes in current and future enacted tax rates, tax holidays, and favorable tax regimes available to certain of our foreign subsidiaries;
−Removed: • changes in tax laws and rates, including the potential or actual impact of activities by the Organization for Economic Co-operation and Development ("OECD") initiatives such as Pillar Two, the European Commission ("EC") challenges to
−Removed: sovereign EU member states, and uncertainty surrounding potential changes to United States tax laws and regulations under the new administration;
−Removed: • losses incurred in certain jurisdictions, which cannot be currently benefited, if it is not more likely than not that the associated deferred tax asset will be realized in the foreseeable future;
−Removed: • foreign currency exchange gains and losses;
−Removed: • income tax audit settlements, final assessments, or lapse of applicable statutes of limitation, which may result in recognizing an income tax expense or benefit including adjustment of previously accrued interest and penalties;
−Removed: • in certain jurisdictions, we recognize withholding and other taxes on intercompany payments, including dividends, and such taxes are deducted if they cannot be credited against the recipient's tax liability in its country of residence.
+Added: The provision for (or benefit from) income taxes reflects taxes on our earnings in the various jurisdictions in which we operate and can vary significantly from period to period.
+Added: Our income tax provision (or benefit) consists of current tax expense (or benefit), which represents taxes payable based on taxable income for the period, and deferred tax expense (or benefit), which results from changes in deferred tax assets and liabilities arising from temporary differences between the financial reporting and tax bases of our assets and liabilities.
+Added: Our effective tax rate is influenced by a number of factors, including the geographic mix of our earnings and losses, changes in tax laws and statutory tax rates, the availability and utilization of tax attributes such as net operating losses and tax credits, valuation allowance assessments, and the tax effects of acquisitions, dispositions, restructurings, and other strategic transactions.
+Added: As these factors fluctuate from period to period, our effective tax rate may differ materially from the statutory tax rate applicable in any single jurisdiction and from our expectations.
+Added: The determination of our income tax provision requires significant judgment, including estimates related to future taxable income in different jurisdictions, the realizability of deferred tax assets, and the measurement of uncertain tax positions.
+Added: Changes in these estimates, including as a result of new information, audit outcomes, or changes in facts and circumstances, may result in adjustments to our tax provision in future periods.
+Added: In addition, our effective tax rate may be impacted by discrete items, including non‑deductible expenses, changes in valuation allowances, audit settlements, the expiration of statutes of limitation, and the tax effects of unusual or infrequently occurring transactions.
+Added: These items may cause significant variability in our effective tax rate from year to year and may not be indicative of our ongoing tax profile.
+Added: We continue to monitor global tax developments, including changes in domestic and international tax rules.
+Added: While certain recent tax law changes, including global minimum tax regimes, were not significant to our overall income tax provision for the year ended December 31, 2025, future changes in tax laws, interpretations, enforcement practices, or our business and
+Added: geographic mix of earnings could increase our effective tax rate, cash tax obligations, and compliance costs in future periods.
Refer to Item 1:
13 unchanged sentences
We have derived these results of operations from our Financial Statements.
−Removed: In the three months ended March 31, 2024, we realigned our business as a result of organizational changes that better allocate our resources to support changes to our business strategy.
−Removed: The most significant changes include combining our Automotive and HVOR businesses (with the combined business remaining in Performance Sensing) and moving the Insights Business out of Performance Sensing to a new operating segment, which is not aggregated within either of our reportable segments.
−Removed: We combined the Automotive and HVOR businesses to better leverage our core capabilities and prioritize product focus.
−Removed: We also moved certain shorter-cycle businesses from Performance Sensing to Sensing Solutions, which will benefit from organizing our predominantly shorter-cycle businesses together, by allowing us to scale core capabilities and better serve our customers.
−Removed: Prior year amounts in this Report have been recast to reflect this
−Removed: Amounts and percentages in the table below have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding.
+Added: Our business strategy involves leveraging new and emerging technologies, which complement our existing product offerings, and we refer to these trends collectively as "megatrends".
+Added: Our operating segments' performance is primarily evaluated based on segment operating income.
+Added: In the three months ended March 31, 2025, we realigned the definition of segment operating income to include megatrend costs, which were previously excluded from segment operating income and included in corporate and other costs.
+Added: In the three months ended December 31, 2025, we realigned our business as a result of organizational changes that better allocate our resources to support changes to our business strategy.
+Added: These changes resulted in the dissolution of our prior segments, Performance Sensing and Sensing Solutions, and the creation of three new segments.
+Added: Our Automotive segment includes our Automotive and Aftermarket businesses.
+Added: The Industrials segment includes our Industrial and Dynapower businesses.
+Added: The Aerospace, Defense, and Commercial Equipment segment includes our Aerospace and Commercial Equipment businesses.
+Added: Results of the Insights Business, which was sold during the third quarter of 2024, are presented in the Other non-operating segment, which is not aggregated within any of our reportable segments.
+Added: Our new operating structure allows us to more effectively allocate capital and investment dollars based on different end market and growth dynamics in each of these segments.
+Added: Prior year amounts in this Report have been recast to reflect this realignment.
+Added: Refer to Note 20:
+Added: Segment Reporting for additional information.
For the year ended December 31,
3 unchanged sentences
Net Revenue Amount Percent of
−Removed: Performance Sensing $ 2,743.6 69.8 % $ 2,749.9 67.8 % $ 2,645.2 65.7 %
−Removed: Sensing Solutions 1,061.3 27.0 1,156.7 28.5 1,210.7 30.0
$ 2,111.7 57.0 % $ 2,195.5 55.8 % $ 2,167.4 53.5 %
+Added: 787.8 21.3 749.2 19.0 863.2 21.3
+Added: Aerospace, Defense, and Commercial Equipment
+Added: 805.0 21.7 860.2 21.9 876.1 21.6
+Added: Other — — 127.9 3.3 147.5 3.6
Total net revenue 3,704.5 100.0 % 3,932.8 100.0 % 4,054.1 100.0 %
6 unchanged sentences
Other, net 15.8 0.4 (21.5) (0.5) (13.0) (0.3)
−Removed: (Loss)/income before taxes
+Added: Income/(loss) before taxes
123.3 3.3 (11.8) (0.3) 17.8 0.4
−Removed: (Benefit from)/provision for income taxes
+Added: Provision for/(benefit from) income taxes
92.0 2.5 (140.3) (3.6) 21.8 0.5
9 unchanged sentences
Net revenue for the year ended December 31, 2025 decreased 5.8% compared to the prior year.
−Removed: Net revenue decreased 1.5% on an organic basis, which excludes a decrease of 0.7% attributed to changes in foreign currency exchange rates and a decrease of 0.8% due to the effect of a divestiture.
−Removed: Performance Sensing
−Removed: Performance Sensing net revenue for the year ended December 31, 2024 decreased 0.2% compared to the prior year.
−Removed: Excluding a decrease of 0.9% attributed to changes in foreign currency exchange rate, Performance Sensing net revenue increased 0.7% on an organic basis.
−Removed: Automotive end market net revenue for the year ended December 31, 2024 increased 0.6% compared to the prior year.
−Removed: Excluding a decrease of 0.9% attributed to changes in foreign currency exchange rates, automotive end market net revenue increased 1.5% on an organic basis.
−Removed: This organic revenue growth was primarily due to content growth, partially offset by unfavorable market conditions.
−Removed: HVOR end market net revenue for the year ended December 31, 2024 decreased 2.7% compared to the prior year.
−Removed: Excluding a decrease of 0.6% attributed to changes in foreign currency exchange rates, HVOR end market net revenue decreased 2.1% on an organic basis.
−Removed: This organic revenue decline was primarily due to market decline, partially offset by content growth.
−Removed: Sensing Solutions
−Removed: Sensing Solutions net revenue for the year ended December 31, 2024 decreased 8.2% compared to the prior year.
−Removed: Excluding a decrease of 0.3% attributed to changes in foreign currency exchange rates, Sensing Solutions net revenue decreased 7.9% on an organic basis, which primarily reflects weakness in our industrial content and inventory destocking, partially offset by market and content growth in the aerospace business.
+Added: Net revenue increased 0.1% on an organic basis, which excludes an increase of 0.6% attributed to changes in foreign currency exchange rates and a decrease of 6.5% primarily to the effects of divestitures.
+Added: Refer to Note 21:
+Added: Divestitures of our Financial Statements included elsewhere in this Report for additional information related to our divestitures.
+Added: Automotive net revenue for the year ended December 31, 2025 decreased 3.8% compared to the prior year.
+Added: Excluding an increase of 0.7% attributed to changes in foreign currency exchange rates and a decrease of 3.3% due to the effects of a divestiture, Automotive net revenue decreased 1.2% on an organic basis, which was primarily due to product mix in the markets we serve.
+Added: Industrials net revenue for the year ended December 31, 2025 increased 5.1% compared to the prior year.
+Added: Excluding an increase of 0.3% attributed to changes in foreign currency exchange rates and a decrease of 3.4% due to the effects of product lifecycle management actions, Industrials net revenue increased 8.2% on an organic basis, which primarily reflects content growth in our Industrials business segment.
+Added: Aerospace, Defense, and Commercial Equipment
+Added: Aerospace, Defense, and Commercial Equipment net revenue for the year ended December 31, 2025 decreased 6.4% compared to the prior year.
+Added: Excluding an increase of 0.6% attributed to changes in foreign currency exchange rates and a decrease of 3.2% due to the effects of a divestiture, Aerospace, Defense, and Commercial Equipment net revenue decreased 3.8% on an organic basis.
+Added: This organic revenue decline was primarily due to declines in the commercial equipment end market.
Operating costs and expenses
16 unchanged sentences
Cost of revenue
−Removed: In the year ended December 31, 2024, cost of revenue as a percentage of net revenue increased versus the prior year period, due to (1) higher depreciation expense, (2) lower net revenues, and (3) the net impacts of customer pricing and manufacturing efficiencies.
−Removed: Refer to Note 5:
−Removed: Restructuring and Other Charges, Net , of our Financial Statements included elsewhere in this Report for additional details regarding our exit of the Spear businesses.
+Added: In the year ended December 31, 2025, cost of revenue as a percentage of net revenue increased versus the prior year period, due to the net impacts of inflation on material and logistics costs and the unfavorable effects of changes in foreign currency rates, partially offset by the favorable effects of divestitures.
Research and development expense
−Removed: R&D expense in the year ended December 31, 2024 did not fluctuate materially from the prior year period.
+Added: R&D expense decreased in the year ended December 31, 2025 primarily as a result of the divestiture of the Insights Business in the third quarter of 2024 and cost reductions attributable to previously announced restructuring actions.
Selling, general and administrative expense
−Removed: SG&A expense increased in the year ended December 31, 2024 due primarily to (1) $20.3 million of accelerated amortization recorded on right-of-use lease assets that the Company intends to cease using in the near term, (2) higher share-based compensation expense, and (3) additional costs incurred to remediate the material weaknesses identified in our internal controls over financial reporting for the year ended December 31, 2023.
+Added: SG&A expense decreased in the year ended December 31, 2025 primarily due to the absence of charges related to the Insights Business in the current year.
Refer to Note 21:
−Removed: Divestitures of our Financial Statements included elsewhere in this Report for additional information related to our acquisitions and divestitures.
+Added: Divestitures of our Financial Statements included elsewhere in this Report for additional information related to our divestitures.
Amortization of intangible assets
−Removed: Amortization expense decreased in the year ended December 31, 2024, primarily due to the divestiture of the Insights Business resulting in approximately $12.0 million lower amortization expense during fiscal year 2024 and the effect of amortization of intangible assets in accordance with their expected economic benefit, which generally results in acceleration of amortization expense in the early years of the life of an intangible asset.
+Added: Amortization expense decreased in the year ended December 31, 2025, primarily due to (1) $9.6 million of accelerated amortization related to our decision to exit the Spear aerospace and defense business in the third quarter of 2024, (2) the divestiture of the Insights Business resulting in approximately $26.2 million of lower amortization expense during fiscal year 2025, and (3) the effect of amortization of intangible assets in accordance with their expected economic benefit, which generally results in acceleration of amortization expense in the early years of the life of an intangible asset.
We expect amortization expense to be approximately $62.5 million in fiscal year 2026.
1 unchanged sentence
Restructuring and Other Charges, Net and Note 11:
−Removed: Goodwill and Other Intangible Assets, Net of our Financial Statements included elsewhere in this Report for additional information regarding the charges related to the exit of the Spear businesses and amortization of our intangible assets, respectively.
+Added: Goodwill and Other Intangible Assets, Net, Net of our Financial Statements included elsewhere in this Report for additional information regarding the charges related to the exit of the Spear businesses and amortization of our intangible assets, respectively.
Goodwill impairment charge
2 unchanged sentences
In the third quarter of 2025, we recorded a $225.7 million non-cash impairment charge.
−Removed: This impairment was primarily driven by a lower long-range financial forecast resulting from specific discrete events that changed the timing of our
−Removed: forecasted performance.
+Added: This impairment was primarily driven by a lower outlook within certain markets that the reporting unit operates in following recent tax legislation being enacted and a strategic shift to focus on other markets.
+Added: This revised outlook led to downward revisions of forecasted future cash flows.
If Dynapower does not achieve the forecasted future cash flows, or if there were a change in the discount rate or other valuation inputs, there is a possibility that additional impairments of the remaining $4.1 million of goodwill may be recognized in the future.
Restructuring and other charges, net
−Removed: Restructuring and other charges, net increased in the year ended December 31, 2024 versus the prior year period, due to a $98.8 million loss recognized on the sale of the Insights Business partially offset by a decrease in net severance charges recognized.,..
+Added: Restructuring and other charges, net decreased in the year ended December 31, 2025 versus the prior year period, due to (1) the loss on the sale of the Insights Business in the third quarter of 2024, and (2) charges related to our decision to exit the Spear aerospace and defense business in the third quarter of 2024, partially offset by (1) the loss on the sale of the Magnetic Speed and Positioning Business ("MSP Business") in the first quarter of 2025, and (2) an increase in charges related to our restructuring plans.
Refer to Note 5:
1 unchanged sentence
Operating income
−Removed: In the year ended December 31, 2024, operating income decreased $32.4 million, or 17.8%, to $149.3 million (3.8% of net revenue) compared to $181.7 million (4.5% of net revenue) in the prior year, primarily due to (1) a $150.1 million goodwill impairment charge related to the Dynapower business, (2) a $98.8 million loss on the sale of the Insights Business, (3) higher SG&A expense, (4) the impact of organic revenue declines together with the net impact of customer pricing and manufacturing efficiencies, and (5) the unfavorable impact of foreign exchange rates, partially offset by (1) a $321.7 million goodwill impairment charge related to the Insights reporting unit in the prior year and (2) a $28.1 million decrease in amortization of intangibles.
+Added: In the year ended December 31, 2025, operating income increased $88.2 million, or 59.1%, to $237.5 million (6.4% of net revenue) compared to $149.3 million (3.8% of net revenue) in the prior year, primarily due to (1) a decrease in product line and product lifecycle management charges, (2) a decrease in amortization of intangibles, and (3) cost savings as a result of actions taken as part of our restructuring plans, partially offset by a larger goodwill impairment charge taken in the current year than the prior year.
Interest expense
−Removed: In the year ended December 31, 2024, interest expense decreased $26.4 million from the prior period, primarily due to lower interest expense on (1) the 5.0% Senior Notes, which were redeemed in July 2024, (2) the 5.625% Senior Notes, which were redeemed in the fourth quarter of 2023, and (3) the Term Loan, which was paid in full in the second quarter of 2023, partially offset by higher interest expense related to the 6.625% Senior Notes, which were issued in June 2024.
−Removed: Refer to Note 14:
−Removed: Debt of our Financial Statements included elsewhere in this Report for additional information regarding the early payment on the Term Loan.
+Added: In the year ended December 31, 2025, interest expense did not fluctuate materially from the prior period.
Interest income
−Removed: In the year ended December 31, 2024, interest income decreased $15.1 million compared to the prior period, primarily due to lower cash balances, as we used cash on hand to pay down debt.
−Removed: Other, net for the years ended December 31, 2024, 2023, and 2022 consisted of the following (amounts have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):
−Removed: For the year ended December 31,
−Removed: (In millions) 2024 2023 2022
−Removed: Currency remeasurement gain/(loss) on net monetary assets (1)
−Removed: $ 4.0 $ (20.2) $ (18.2)
−Removed: (Loss)/gain on foreign currency forward contracts (2)
−Removed: (2.6) 4.2 4.3
−Removed: Gain/(loss) on commodity forward contracts (2)
−Removed: 3.5 (2.8) (3.4)
−Removed: Loss on debt financing (3)
−Removed: (9.8) (5.4) (5.5)
−Removed: Loss on equity investments, net (4)
−Removed: (14.0) (0.7) (75.6)
−Removed: Net periodic benefit cost, excluding service cost (3.0) (3.9) (5.1)
−Removed: Other 0.4 15.8 8.7
−Removed: Other, net $ (21.5) $ (13.0) $ (94.6)
−Removed: __________________________
−Removed: (1) Relates to the remeasurement of foreign denominated monetary assets and liabilities into the functional currency.
−Removed: (2) Relates to changes in the fair value of derivative financial instruments that are not designated as hedges.
−Removed: Refer to Note 19:
−Removed: Derivative Instruments and Hedging Activities of our Financial Statements included elsewhere in this Report for additional information related to gains and losses on our commodity and foreign currency forward contracts.
−Removed: Refer to Item 7A:
−Removed: Quantitative and Qualitative Disclosures About Market Risk included elsewhere in this Report for an analysis of the sensitivity of other, net to changes in foreign currency exchange rates and commodity prices.
−Removed: (3) Refer to Note 14:
−Removed: Debt of our Financial Statements included elsewhere in this Report for additional information related to our debt financing transactions.
−Removed: (4) The year ended December 31, 2022 primarily relates to mark-to-market losses on our investment in Quanergy Systems, Inc.
−Removed: ("Quanergy").
−Removed: (Benefit from)/provision for income taxes
−Removed: The components of (benefit from)/provision for income taxes for the years ended December 31, 2024, 2023, and 2022 are described in more detail in the table below, reconciled to the U.S.
−Removed: statutory rate for each year (amounts have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):
−Removed: For the year ended December 31,
−Removed: (In millions) 2024 2023 2022
−Removed: Tax computed at U.S.
−Removed: statutory rate of 21% (1)
−Removed: $ (2.5) $ 3.7 $ 83.3
−Removed: Capital restructurings and dispositions (6)
−Removed: 40.6 (286.4) 4.5
−Removed: Valuation allowances (4)
−Removed: (180.0) 278.5 15.7
−Removed: Goodwill impairment (3)
−Removed: Foreign tax rate differential (2)
−Removed: (13.6) (17.3) (44.3)
−Removed: Withholding taxes not creditable 6.1 14.1 12.3
−Removed: Research and development incentives (5)
−Removed: (10.4) (9.0) (10.8)
−Removed: Unrealized foreign currency exchange losses
−Removed: Reserve for tax exposure (0.9) 1.1 1.3
−Removed: Changes in tax laws or rates (2)
−Removed: (2.6) (0.3) 2.6
−Removed: (10.9) (5.2) 12.1
−Removed: (Benefit from)/provision for income taxes
−Removed: $ (140.3) $ 21.8 $ 86.0
−Removed: __________________________
−Removed: (1) Represents the product of the applicable statutory tax rate and income before taxes, as reported in the consolidated statements of operations.
−Removed: (2) We operate in multiple jurisdictions, including but not limited to Bulgaria, China, Malaysia, Malta, Mexico, the Netherlands, Switzerland, the U.S., and the U.K.
−Removed: This can result in a foreign tax rate differential that may reflect a tax benefit or detriment.
−Removed: This differential can vary annually based upon the jurisdictional mix of earnings and changes in current and future enacted tax rates.
−Removed: Additionally, one of our subsidiaries was eligible for a reduced tax rate in China through December 31, 2024.
−Removed: The impact on current tax expense of this reduced corporate income tax rate is included in the foreign tax rate differential, and the impact of the deferred tax remeasurement is included in the change in tax laws or rates.
−Removed: (3) During the years ended December 31, 2024 and 2023, we incurred a non-cash impairment charge for goodwill that is nondeductible for tax purposes.
−Removed: (4) During the year ended December 31, 2024, we implemented a strategy to secure the future tax deductibility of certain intellectual property, leading to a $257.7 million reduction in the valuation allowance against this deferred tax asset, initially established in the year ended December 31, 2023.
−Removed: This reduction was counterbalanced by an increase in the valuation allowance due to losses from the sale of the Insights Business.
−Removed: (5) In China, we benefit from the R&D super deduction regime.
−Removed: In the U.K., certain of our subsidiaries are eligible for lower tax rates under the "patent box" regime.
−Removed: In the U.S., we benefit from the federal R&D credit.
−Removed: (6) The increase in our effective tax rate for the year ended December 31, 2024, is primarily due to the strategy executed to secure the future deductibility of certain intellectual property rights.
−Removed: This unfavorable impact was partially offset by losses from the sale of the Insights business.
−Removed: For the year ended December 31, 2023, the transfer of these intellectual property rights led to the recording of a deferred tax asset with a full valuation allowance.
−Removed: Additionally, the increase in our effective tax rate for the year ended December 31, 2022, was due to the tax accounting impacts of the divestiture of the Qinex Business, partially offset by separate intangible prop erty transfers.
−Removed: (7) Refer to Note 7:
−Removed: Income Taxes of our Financial Statements included elsewhere in this Report for additional information related to other components of our rate reconciliation.
−Removed: We do not believe that there are any known trends related to the reconciling items noted above that are reasonably likely to result in our liquidity increasing or decreasing in any material way.
+Added: In the year ended December 31, 2025, interest income did not fluctuate materially from the prior period.
+Added: Provision for/(benefit from) income taxes
+Added: The provision for (or benefit from) income taxes and our effective tax rate can vary significantly from period to period due to changes in our pre-tax income, geographic mix of earnings, discrete tax items, and other factors discussed below.
+Added: For the year ended December 31, 2025, our effective tax rate was 74.6%, compared to 1,185.4% in 2024 and 121.9% in 2023.
+Added: The unusually high and volatile effective tax rates primarily reflect the impact of non-deductible goodwill impairment charges, the 2024 capital restructuring to secure future IP deductibility, and other non-recurring items including unbenefited losses on asset sales and restructuring costs.
+Added: Because many of these items are either non-deductible or only partially deductible, they had a disproportionate impact relative to the level of pre-tax income in each period.
+Added: tax-resident company, our statutory corporate tax rate is 25%.
+Added: Our effective tax rate differs from this.
+Added: statutory rate due to:
+Added: • earnings generated in jurisdictions with tax rates different from the U.K.
+Added: • non-deductible expenses,
+Added: • tax incentives and credits available in certain jurisdictions, and
+Added: • discrete tax items recognized in each period.
+Added: These factors may fluctuate from period to period and may not be indicative of our expected effective tax rate in future periods.
+Added: Discrete tax items, including non-deductible goodwill impairment charges, restructuring costs, acquisition and disposition related expenses, and changes in valuation allowances, also affected our income tax provision.
+Added: In periods where pre-tax income is low or losses are incurred, these discrete items may result in an effective tax rate that is not meaningful or is not comparable to other periods.
+Added: For additional details related to the reconciliation between the U.K.
+Added: statutory tax rate and the Company’s effective tax rate for these years, refer to Note 7:
+Added: Income Taxes of our Financial Statements included elsewhere in this Report.
+Added: Deferred taxes and valuation allowances
+Added: As of December 31, 2025, we maintained valuation allowances against certain foreign deferred tax assets, primarily related to interest carryforwards and net operating loss carryforwards in jurisdictions where we do not expect to generate sufficient taxable income to realize these benefits.
+Added: Changes in valuation allowances are evaluated periodically based on updated forecasts of future taxable income and other relevant factors.
+Added: Cash taxes paid during 2025 were $114.9 million as compared to $92.6 million of total income tax provision reported in our consolidated statements of operations.
+Added: Cash taxes paid during the year exceeded our total income tax provision primarily due to the settlement of income taxes related to prior years in certain jurisdictions, and the prepayment of income taxes in other jurisdictions in the current year.
+Added: These payments reflect the timing of tax settlements and advance payments and do not necessarily correspond to income tax expense recognized in the current period.
+Added: As a result, cash taxes paid may differ from the income tax provision reported in our consolidated statements of operations in a given period.
Non-GAAP Financial Measures
2 unchanged sentences
The use of our non-GAAP financial measures has limitations.
−Removed: They should be considered as supplemental in nature and are not intended to be considered in isolation from, or as an alternative to, reported net revenue growth (or decline), operating income, operating margin, net income, diluted EPS, net cash provided by operating activities, corporate and other expenses, or total debt and finance lease obligations, calculated in accordance with U.S.
+Added: They should be considered as supplemental in nature and are not intended to be considered in isolation from, or as an alternative to, reported net revenue growth (or decline), operating income, operating margin, net income, diluted EPS, net cash provided by operating activities, corporate and other expenses, or total debt and finance lease obligations, respectively, calculated in accordance with U.S.
In addition, our measures of organic revenue growth (or decline), adjusted operating income, adjusted operating margin, adjusted net income, adjusted EPS, free cash flow, adjusted corporate and other expenses, gross and net leverage ratio, and adjusted EBITDA may not be the same as, or comparable to, similar non-GAAP financial measures presented by other companies.
1 unchanged sentence
Organic revenue growth (or decline) is defined as the reported percentage change in net revenue calculated in accordance with U.S.
−Removed: GAAP, excluding the period-over-period impact of foreign currency exchange rate differences (or "constant currency") as well as the net impact of material acquisitions and divestitures for the 12-month period following the respective transaction date(s).
+Added: GAAP, excluding the period-over-period impact of foreign exchange rate differences as well as the net impact of material acquisitions and divestitures and product life-cycle management for the 12-month period following the respective transaction date(s).
We believe that organic revenue growth (or decline) provides investors with helpful information with respect to our operating performance, and we use organic revenue growth (or decline) to evaluate our ongoing operations as well as for internal planning and forecasting purposes.
−Removed: We believe that organic revenue growth (or decline) provides useful information in evaluating the results of our business because it excludes items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior year period.
+Added: We believe that organic revenue growth (or decline) provides useful information in evaluating the results of our business because it excludes items that we believe are not indicative of ongoing performance or that we believe impact comparability with the prior period.
Market outgrowth is calculated as organic revenue growth less our weighted market growth.
−Removed: Our weighted market growth is calculated using our regional and platform sales mix, as applicable, in the corresponding period.
+Added: Our weighted market growth is calculated using our regional and platform sales mix, as applicable, in the corresponding prior period.
Market outgrowth is used to describe the impact of an increasing quantity and value of our products used in customer systems and applications above market growth.
12 unchanged sentences
Free cash flow
−Removed: Free cash flow is defined as net cash provided by operating activities less additions to PP&E and capitalized software.
−Removed: We believe free cash flow is useful to management and investors as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to, among other things, fund acquisitions, repurchase ordinary shares, and (or) accelerate the repayment of debt obligations.
+Added: Free cash flow is defined as net cash provided by operating activities less additions to property, plant and equipment and capitalized software.
+Added: Free cash flow conversion is defined as Free cash flow divided by Adjusted net income.
+Added: We believe free cash flow is useful to management and investors as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to, among other things, fund acquisitions, repurchase ordinary shares, or accelerate the repayment of debt obligations.
Adjusted corporate and other expenses
5 unchanged sentences
GAAP, excluding interest expense, interest income, and provision for (or benefit from) income taxes, depreciation expense, amortization of intangible assets, and the following non-GAAP adjustments, if applicable:
−Removed: (1) restructuring related and other, (2) financing and other transaction costs, and (3) deferred loss or gain on derivative instruments.
+Added: (1) restructuring related and other, (2) financing and other transaction costs, and (3) other, net.
Refer to Non-GAAP Adjustments below for additional discussion of these adjustments.
11 unchanged sentences
• Restructuring related and other :
−Removed: includes net charges related to certain restructuring and other exit activities as well as other costs (or income) that we believe are either unique or unusual to the identified reporting period, and that we believe impact comparisons to prior period operating results.
+Added: includes net charges related to certain restructuring and other exit activities, other costs (or income) that we believe are either unique or unusual to the identified reporting period, and the impact of commodity forward contacts that we believe impact comparisons to prior period operating results.
Such costs include charges related to optimization of our manufacturing processes to increase productivity.
−Removed: This type of activity occurs periodically, however each action is unique, discrete, and driven by various facts and circumstances.
+Added: This type of activity occurs periodically;
+Added: however, each action is unique, discrete, and driven by various facts and circumstances.
Such amounts are excluded from internal financial statements and analyses that management uses in connection with financial planning and in its review and assessment of our operating and financial performance, including the performance of our segments.
• Financing and other transaction costs :
−Removed: includes losses or gains related to debt financing transactions, losses or gains related to the divestiture of a business, costs incurred, including for legal, accounting, and other professional services, that are directly related to an acquisition, divestiture, or equity financing transaction, mark-to-market losses or gains on our equity investments, expenses related to compensation arrangements entered into concurrent with the closing of an acquisition, and adjustments related to changes in the fair value of acquisition-related contingent consideration amounts.
−Removed: • Deferred loss or gain on derivative instruments :
−Removed: includes unrealized losses or gains on derivative instruments that do not qualify for hedge accounting as well as the impact of commodity prices on our raw material costs relative to the strike price on our commodity forward contracts.
+Added: includes costs incurred, such as legal, accounting, and other professional services, that are directly related to an acquisition, divestiture, or equity financing transaction, expenses related to compensation arrangements entered into concurrent with the closing of an acquisition, adjustments related to changes in the fair value of acquisition-related contingent consideration amounts, and historical adjustments to exclude step-up depreciation in our non-GAAP measures.
+Added: Beginning with the three months ended December 31, 2024, we discontinued the use of adjustments to exclude step-up depreciation in our non-GAAP measures.
+Added: Prior periods have not been recast.
• Amortization of intangible assets :
−Removed: Beginning with the three months ended December 31, 2024, we started adjusting operating income and net income to exclude the amortization of all our intangible assets, and we discontinued the use of adjustments to exclude step-up depreciation in our non-GAAP measures.
+Added: includes amortization of intangible assets.
+Added: Beginning with the three months ended December 31, 2024, we started adjusting operating income and net income to exclude the amortization of all our intangible assets.
Prior periods have not been recast.
+Added: • Other, net:
+Added: includes expenses (or income) recorded within Other, net on our consolidated statements of operations.
+Added: Beginning with the three months ended March 31, 2025, we started adjusting net income to exclude the impacts of these losses (or gains).
+Added: Prior periods have been recast.
+Added: Refer to Note 6:
+Added: Other, Net of the Financial Statements, included elsewhere in this Annual Report, for additional details of the components of Other, net.
• Deferred taxes and other tax related :
includes adjustments for deferred taxes and other timing differences including, but not limited to, book-to-tax basis differences on the fair value of intangible assets and goodwill, the utilization of net operating losses, and adjustments to our valuation allowance in connection with certain transactions and tax law changes.
−Removed: Other tax related items include certain adjustments to unrecognized tax benefits and withholding tax on
−Removed: repatriation of foreign earnings.
+Added: Other tax related items include certain adjustments to unrecognized tax benefits and withholding tax on repatriation of foreign earnings.
• Amortization of debt issuance costs:
−Removed: represents interest expense related to the amortization of deferred financing costs and debt discounts, net of premiums.
+Added: represents interest expense related to the amortization of deferred financing costs as well as debt discounts, net of premiums.
• Where applicable, the current income tax effect of non-GAAP adjustments.
16 unchanged sentences
80.2 2.2 — 80.2 0.55
−Removed: Deferred loss/(gain) on derivative instruments
−Removed: 2.6 0.1 0.5 (0.4) —
Amortization of debt issuance costs — — — 4.7 0.03
−Removed: Deferred taxes and other tax related (d)
— — 3.9 (12.0) (0.08)
+Added: Deferred taxes and other tax related
+Added: — — 17.2 17.2 0.12
Total adjustments 467.4 12.6 15.7 471.9 3.21
10 unchanged sentences
141.4 3.6 — 141.4 0.94
−Removed: Deferred gain on derivative instruments
−Removed: (4.1) (0.1) 0.3 (1.7) (0.01)
Amortization of debt issuance costs — — — 5.7 0.04
−Removed: Deferred taxes and other tax related (d)
— — 0.3 21.8 0.14
+Added: Deferred taxes and other tax related
+Added: — — (228.7) (228.7) (1.52)
Total adjustments 599.2 15.2 (235.6) 390.8 2.59
10 unchanged sentences
167.7 4.1 — 167.7 1.10
−Removed: Deferred (gain)/loss on derivative instruments
−Removed: (1.5) 0.0 (0.4) 1.5 0.01
Amortization of debt issuance costs — — — 6.8 0.04
−Removed: Deferred taxes and other tax related (d)
— — (1.6) 11.4 0.07
+Added: Deferred taxes and other tax related
+Added: — — (50.4) (50.4) (0.33)
Total adjustments 592.3 14.6 (52.1) 560.0 3.68
7 unchanged sentences
280.2 150.1 333.8
−Removed: Income tax effect (iii)
+Added: Income tax effect
(5.3) (5.5) (2.8)
−Removed: Total non-GAAP restructuring related and other (iv)
+Added: Total non-GAAP restructuring related and other
$ 347.0 $ 318.5 $ 404.6
1 unchanged sentence
Primarily includes charges related to repositioning our business and corporate functions to more effectively respond to the challenges that face the business.
−Removed: Fiscal year 2024 included (1) certain actions related to restructuring of our IT operations and product lifecycle management including product line discontinuations within the Sensing Solutions segment, resulting in total costs of $46.7 million, including severance, contract termination costs, and charges related to asset write-downs, (2) approximately $105.8 million, of other various restructuring-related charges, including those related to our 2H 2024 Plan, (3) approximately $12.6 million of costs associated with exiting Spear, primarily recorded in restructuring and other charges, net, and (4) a $6.2 million pension settlement charge, recorded in restructuring and other charges, net.
+Added: Fiscal 2025 included charges related to repositioning our business and corporate functions to more effectively respond to the challenges that face the business, including severance, contract termination costs, charges related to asset write-downs, and other various restructuring-related charges.
+Added: Fiscal year 2024 included (1) certain actions related to restructuring of our IT operations and product lifecycle management including product line discontinuations within the Industrials segment, resulting in total costs of $46.7 million, including severance, contract termination costs, and charges related to asset write-downs, (2) approximately $105.8 million, of other various restructuring-related charges, including those related to our 2H 2024 Plan, (3) approximately $12.6 million of costs associated with exiting Spear, primarily recorded in restructuring and other charges, net, and (4) a $6.2 million pension settlement charge, recorded in restructuring and other charges, net.
Fiscal year 2023 primarily included (1) $28.8 million of charges related to the exit the Spear Marine Business, $14.5 million of which was recorded in restructuring and other charges, net, with the remainder primarily in cost of revenue, (2) $23.5 million of charges incurred as part of the Q3 2023 Plan, recorded in restructuring and other charges, net, and (3) $18.8 million of charges arising as a result of actions taken in the Q3 2023 Plan, of which approximately $2.1 million was recorded in restructuring and other charges, net, with the remainder primarily in cost of revenue.
−Removed: Fiscal year 2024 primarily relates to a $150.1 million non-cash goodwill impairment charge related to the Dynapower reporting unit.
+Added: Fiscal year 2025 primarily relates to $225.7 million and other charges primarily as a result of changes in clean energy policy, emissions regulations and excess capacity related to electrification.
+Added: Fiscal year 2024 relates to $150.1 million in non-cash goodwill impairment charges related to the Dynapower reporting unit.
Fiscal year 2023 primarily relates to a $321.7 million non-cash goodwill impairment charge related to the Insights reporting unit.
−Removed: Also includes costs related to optimization of our manufacturing processes to increase productivity and rationalize our manufacturing footprint and supply chain workforce rationalization and charges incurred related to legal matters associated with acquired businesses, for which new information is brought to light after the measurement period for the business combination is closed, but for which the liability relates to events or activities that occurred prior to our acquisition of the business.
−Removed: We treat deferred taxes as a non-GAAP adjustment.
−Removed: Accordingly, the income tax effect of the restructuring related and other non-GAAP adjustment refers only to the current income tax effect.
−Removed: Total presented is the non-GAAP adjustment to net income.
−Removed: Certain portions of these adjustments are non-operating and are excluded from the non-GAAP adjustments to operating income.
+Added: Also includes costs related to optimization of our manufacturing processes to increase productivity and rationalize our manufacturing footprint and supply chain workforce rationalization in response to changing customer demand and recent U.S.
+Added: Government policy changes and charges incurred related to legal matters associated with acquired businesses, for which new information is brought to light after the measurement period for the business combination is closed, but for which the liability relates to events or activities that occurred prior to our acquisition of the business.
(b) The following table presents the components of our financing and other transaction costs non-GAAP adjustment to net income for fiscal years 2025, 2024, and 2023 (amounts have been calculated based on unrounded numbers, accordingly, certain amounts may not appear to recalculate due to the effect of rounding):
4 unchanged sentences
Merger and acquisition compensation arrangements (ii)
−Removed: 11.1 17.4 42.3
−Removed: Loss on debt financing (iii)
−Removed: Loss/(gain) on investments (iv)
−Removed: 14.0 (0.2) 75.6
−Removed: Income tax effect (v)
+Added: Income tax effect
(0.1) (1.7) 2.7
−Removed: Total financing and other transaction costs (vi)
+Added: Total financing and other transaction costs
$ 34.9 $ 132.1 $ 19.9
1 unchanged sentence
Primarily includes losses or gains related to the divestiture of a business, costs incurred, including for legal, accounting, and other professional services, that are directly related to an acquisition, divestiture, or other transaction.
−Removed: Fiscal year 2024 includes a loss of $98.8 million on the sale of the Insights Business.
−Removed: Fiscal year 2022 includes gains of $135.1 million on the sale of the various assets and liabilities comprising our semiconductor test and thermal business (collectively, the "Qinex Business").
−Removed: Primarily relates to earnout compensation arrangements entered into concurrent with the closing of an acquisition and compensation in connection with the closing of a transaction.
−Removed: Fiscal year 2024 amounts relate to the redemption of the 5.0% Senior Notes.
−Removed: Fiscal year 2023 amounts relate to the redemption of the 5.625% Senior Notes and the prepayment on the Term Loan.
−Removed: Fiscal year 2022 amounts relate to the redemption of the 4.875% Senior Notes.
Refer to Note 21:
−Removed: Deb t for additional information on financing transactions.
−Removed: Represents mark-to-market losses or gains on our investments.
−Removed: In fiscal year 2022, this represents losses on our investment in Quanergy, which are presented in other, net in our consolidated statements of operations.
−Removed: We treat deferred taxes as a non-GAAP adjustment.
−Removed: Accordingly, the income tax effect of financing and transaction related and other non-GAAP adjustment refers only to the current income tax effect.
−Removed: Total presented is the non-GAAP adjustment to net income.
−Removed: Certain portions of these adjustments are non-operating and are excluded from the non-GAAP adjustments to operating income.
+Added: Divestitures for further information on the below transactions.
+Added: Fiscal year 2025 includes costs and losses associated with the disposition of the MSP Business.
+Added: Fiscal year 2024 primarily relates to a loss on the sale of the Insights Business.
+Added: Primarily relates to earnout compensation arrangements entered into concurrent with the closing of an acquisition and compensation in connection with the closing of a transaction.
(c) In the three months ended December 31, 2024, we discontinued the use of adjustments to exclude step-up depreciation and amortization in our non-GAAP measures and we adjusted operating income and net income to exclude the amortization of all our intangible assets.
−Removed: The years ended December 31, 2023 and 2022 have not been recast.
−Removed: If we had recast these non-GAAP measures for the years ended December 31, 2024, 2023, and 2022, adjusted operating income and adjusted net income would have increased by an additional $3.6 million, $5.3 million and $5.5 million, respectively.
−Removed: (d) Deferred taxes and other tax related adjustments for the year ended December 31, 2022 includes current tax expense of $14.7 million related to the repatriation of earnings from certain Asian subsidiaries to their parent companies in the Netherlands.
−Removed: The decision to repatriate these earnings was the result of our goal to reduce our balance sheet exposure and corresponding earnings volatility related to changes in foreign currency exchange rates as well as to fund our deployment of capital.
+Added: These changes were applied prospectively and prior periods were not recast.
+Added: If we had recast these non-GAAP measures for the years ended December 31, 2024, and 2023, adjusted operating income and adjusted net income would have increased by an additional $3.6 million and $5.3 million, respectively.
The following table presents a reconciliation of net cash provided by operating activities calculated in accordance with U.S.
13 unchanged sentences
Financing and other transaction costs 3.1 21.6 7.7
−Removed: Amortization of intangible assets and other
−Removed: Deferred loss/(gain) on derivative instruments
−Removed: 2.6 (4.1) (1.5)
Total adjustments
8 unchanged sentences
Interest expense, net 130.0 139.6 150.9
−Removed: (Benefit from)/provision for income taxes
+Added: Provision for/(benefit from) income taxes
92.0 (140.3) 21.8
5 unchanged sentences
Financing and other transaction costs 34.9 133.1 16.3
−Removed: Deferred (gain)/loss on derivative instruments
(15.8) 21.5 13.0
73 unchanged sentences
Effects of exchange rate differences
+Added: 4.4 (4.0) 7.5
Net change in cash and cash equivalents $ (20.6) $ 85.6 $ (717.4)
1 unchanged sentence
Refer to Results of Operations included elsewhere in this MD&A for discussion of the drivers of changes in net income/(loss) in fiscal years 2025 and 2024.
−Removed: Net cash provided by operating activities for the year ended December 31, 2024 increased from the prior year primarily due to favorable changes in working capital, partially offset by decreased cash provided by earnings.
+Added: Net cash provided by operating activities for the year ended December 31, 2025 increased from the prior year primarily due to favorable changes in working capital, partially offset by lower cash provided by earnings.
Investing Activities
Investing activities primarily include cash exchanged for the acquisition or divestiture of a business or group of assets, cash paid for additions to PP&E and capitalized software, and the acquisition or sale of certain debt and equity securities.
−Removed: Net cash used in investing activities for the year ended December 31, 2024 decreased compared to the corresponding period of the prior year, primarily due to cash received for the divestiture of the Insights Business in the year ended December 31, 2024, and a decrease in cash paid for capital expenditures.
−Removed: In the year ended December 31, 2024, we received cash proceeds of $135.7 million from the sale of a business, compared to $19.0 million in the year ended December 31, 2023.
−Removed: In fiscal year 2025, we anticipate additions to PP&E and capitalized software of approximately $150.0 million, which we expect to be funded with cash flows from operations.
+Added: Net cash used in investing activities for the year ended December 31, 2025 increased compared to the corresponding period of the prior year, primarily due to lower proceeds received from the sale of the MSP Business in 2025 compared to the proceeds received from sale of the Insights Business in 2024 , and lower capital expenditures.
+Added: In the year ended December 31, 2025, we
+Added: received cash proceeds of $33.7 million from the sale of a business, compared to $135.7 million and $19.0 million in the years ended December 31, 2024 and 2023.
+Added: In fiscal year 2026, we anticipate additions to PP&E and capitalized software of up to approximately $150.0 million, which we expect to be funded with cash flows from operations.
Financing Activities
−Removed: Net cash used in financing activities for the year ended December 31, 2024 decreased primarily due to $500.0 million of cash received from the issuance of the 6.625% Senior Notes in the second quarter of 2024 and lower payments on debt of approximately $147.0 million, partially offset by the payment of $79.4 million to purchase the remaining equity interest in a former joint venture in the current year.
+Added: Net cash used in financing activities for the year ended December 31, 2025 increased primarily due to the increase in the amount of cash paid to repurchase ordinary shares in the current period, the settlement of our cash tender offer in the fourth quarter of 2025, and the issuance of the $500.0 million 6.625% Senior Notes in the second quarter of 2024.
+Added: These increases were partially offset by the early redemption of our $700.0 million 5.0% Senior Notes in the third quarter of 2024, and the payment of $79.4 million to repurchase the remaining equity interest in a joint venture in the prior year.
Refer to Note 14:
9 unchanged sentences
6.625% Senior Notes
−Removed: 6.625% Senior Notes
Finance lease obligations
5 unchanged sentences
__________________________
−Removed: (1) In July 2024, we redeemed in full the $700.0 million aggregate principal amount outstanding on our 5.0% Senior Notes.
+Added: (1) In November 2025, we completed the settlement of $350.0 million of the 4.0% Senior Notes due 2029 (the "4.0% Senior Notes"), with an aggregate principal amount of $354.0 million, that was validly tendered in connection with a cash tender offer that commenced in October 2025.
(2) Relates to interest costs capitalized as PP&E in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Subtopic 835-20, Capitalization of Interest.
1 unchanged sentence
Debt Instruments
−Removed: As of December 31, 2024, our debt instruments included $450.0 million aggregate principal amount of 4.375% senior notes due 2030 (the "4.375% Senior Notes"), $750 million aggregate principal amount of 3.75% senior notes due 2031 (the "3.75% Senior Notes"), $1.0 billion aggregate principal amount of 4.0% senior notes due 2029 (the "4.0% Senior Notes"), $500.0 million aggregate principal amount of 5.875% senior notes due 2030 (the "5.875% Senior Notes"), and $500 million aggregate principal amount of 6.625% senior notes due 2032 (the "6.625% Senior Notes").
+Added: As of December 31, 2025, our debt instruments included $646.0 million of 4.0% Senior Notes, $450.0 million aggregate principal amount of 4.375% senior notes due 2030 (the "4.375% Senior Notes"), $500.0 million aggregate principal amount of 5.875% senior notes due 2030 (the "5.875% Senior Notes"), $750.0 million aggregate principal amount of 3.75% senior notes due 2031 (the "3.75% Senior Notes"), and $500.0 million aggregate principal amount of 6.625% senior notes due 2032 (the "6.625% Senior Notes").
There are no outstanding borrowings on the Revolving Credit Facility as of December 31, 2025.
−Removed: In June 2024, we completed the issuance and sale of $500.0 million aggregate principal amount of the 6.625% Senior Notes.
−Removed: In July 2024, we used the proceeds from this issuance, together with cash on hand, for the redemption in full of the $700.0 million aggregate principal amount of the 5.0% Senior Notes.
+Added: In September 2025, certain of our indirect, wholly-owned subsidiaries, including Sensata Technologies, Inc., Sensata Technologies Intermediate Holding B.V., and Sensata Technologies B.V.
+Added: (“STBV”), entered into an amendment (the “Fourteenth Amendment”) to the credit agreement, dated as of May 12, 2011 (as amended, supplemented, waived, or otherwise modified, the “Credit Agreement”).
+Added: Among other changes to the Credit Agreement, the Fourteenth Amendment, (i) reduced the total amount of the Revolving Credit Facility commitments of the lenders from $750.0 million to $650.0 million, (ii) extended the maturity date of the
+Added: Revolving Credit Facility to September 24, 2030, and (iii) modified certain of the operational and restrictive covenants and other terms and conditions of the Credit Agreement to provide us increased flexibility and permissions thereunder.
Refer to Note 14:
3 unchanged sentences
All letters of credit issued thereunder will terminate at the final maturity of the Revolving Credit Facility unless cash collateralized prior to such time.
−Removed: The following table presents the remaining mandatory principal repayments of long-term debt, in millions, excluding finance lease payments and discretionary repurchases of debt, in each of the years ended December 31, 2025 through 2029 and
−Removed: For the year ended December 31, Aggregate Maturities
+Added: The following table presents the remaining mandatory principal repayments of long-term debt, in millions, excluding finance lease payments and discretionary repurchases of debt, in each of the years ended December 31, 2026 through 2030 and thereafter.
+Added: For the year ended December 31,
+Added: Aggregate Maturities
Thereafter 1,250.0
1 unchanged sentence
Capital Resources
+Added: Senior Secured Credit Facilities
+Added: In September 2025, we entered into the Fourteenth Amendment which (i) reduced the total amount of the Revolving Credit Facility commitments of the lenders from $750.0 million to $650.0 million, (ii) extended the maturity date of the Revolving Credit Facility to September 24, 2030, and (iii) modified certain of the operational and restrictive covenants and other terms and conditions of the Credit Agreement to provide us increased flexibility and permissions thereunder.
+Added: Refer to Note 14:
+Added: Debt of our Financial Statements included elsewhere in this Report for additional information related to the Fourteenth Amendment.
Sources of Liquidity
3 unchanged sentences
As of December 31, 2025, no amounts had been drawn against these outstanding letters of credit.
−Removed: This Revolving Credit Facility includes an accordion feature under which maximum borrowings may be increased to $2.8 billion under certain circumstances.
+Added: This Revolving Credit Facility includes an accordion feature under which maximum borrowings may be increased under certain circumstances.
We believe, based on our current level of operations for the year ended December 31, 2025, and taking into consideration the restrictions and covenants included in the Credit Agreement, Revolving Credit Facility, and Senior Notes Indentures discussed below and in Note 14:
3 unchanged sentences
Our ability to raise additional financing, and our borrowing costs, may be impacted by short- and long-term debt ratings assigned by independent rating agencies, which are based, in significant part, on our performance as measured by certain credit metrics such as interest coverage and leverage ratios.
−Removed: As of January 28, 2025, Moody’s Investors Service’s corporate credit rating for STBV was Ba2 with a positive outlook, and S&P's corporate credit rating for STBV was BB+ with a stable outlook.
+Added: As of January 28, 2026, Moody’s Investors Service’s corporate credit rating for STBV was Ba2 with a stable outlook, and S&P's corporate credit rating for STBV was BB+ with a stable outlook.
Any future downgrades to STBV's credit ratings may increase our future borrowing costs but will not reduce availability under the Credit Agreement.
11 unchanged sentences
Under these programs, we may repurchase ordinary shares at such times and in amounts to be determined by our management, based on market conditions, legal requirements, and other corporate considerations, on the open market or in privately negotiated transactions, provided that such transactions were completed pursuant to an agreement and with a third party approved by our shareholders at the annual general meeting.
−Removed: In July 2019 our Board of Directors authorized a $500.0 million ordinary share repurchase program (the "July 2019 Program").
−Removed: In January 2022, our Board of Directors authorized the January 2022 Program, which replaced the July 2019 Program.
−Removed: On September 26, 2023, our Board of Directors authorized the September 2023 Program, which replaced the January 2022 Program, effective October 1, 2023.
−Removed: During the year ended December 31, 2022, we purchased approximately 6.3 million ordinary shares under the January 2022 Program, at a weighted average price per share of $46.08.
−Removed: During the year ended December 31, 2023, we repurchased approximately 2.3 million ordinary shares at a weighted average price per share of $38.31.
+Added: In September 2023, our Board of Directors authorized the September 2023 Program, which replaced the previous program, effective October 1, 2023.
+Added: During the year ended December 31, 2023, we purchased approximately 2.3 million ordinary shares at a weighted average price per share of $38.31.
These purchases were made under the January 2022 Program and the September 2023 Program.
1 unchanged sentence
These purchases were made under the September 2023 Program.
+Added: During the year ended December 31, 2025, we repurchased approximately 4.2 million ordinary shares at a weighted average price per share of $28.47.
+Added: These purchases were made under the September 2023 Program.
As of December 31, 2025, approximately $282.4 million remained available under the September 2023 Program.
−Removed: In the second quarter of 2022, we began paying quarterly cash dividends of $0.11 per share to our shareholders.
−Removed: In the second quarter of 2023, we increased the quarterly dividends to $0.12 per share.
+Added: In the second quarter of 2023, we increased the quarterly dividend paid to our shareholders to $0.12 per share.
In the years ended December 31, 2025, 2024, and 2023 we paid aggregate cash dividends of $70.4 million, $72.2 million, and $71.5 million respectively.
−Removed: On January 24, 2025, we announced that our Board of Directors declared a quarterly dividend of $0.12 per share, payable on February 26, 2025 to shareholders of record as of February 12, 2025.
+Added: In January 2026, we announced that our Board of Directors declared a quarterly dividend of $0.12 per share, payable in February 2026 to shareholders of record as of February 11, 2026.
Critical Accounting Estimates
7 unchanged sentences
The discussion below details the most significant judgments and estimates we make regarding recognition of revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers .
−Removed: In accordance with FASB ASC Topic 606, we recognize revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods, using a five-step model.
+Added: In accordance with FASB ASC Topic 606, we recognize revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to
+Added: which we expect to be entitled in exchange for those goods, using a five-step model.
The most critical judgments and estimates we make in the implementation of this model relate to identifying the contract with the customer and determination of the transaction price associated with the performance obligation(s) in the contract, specifically related to variable consideration.
5 unchanged sentences
In determining the transaction price related to a contract, we determine whether the amount promised in a contract includes a variable amount (variable consideration).
−Removed: Variable consideration may be specified in the customer purchase order, in another agreement that identifies terms and conditions of the transaction, or based on our
−Removed: customary practices.
+Added: Variable consideration may be specified in the customer purchase order, in another agreement that identifies terms and conditions of the transaction, or based on our customary practices.
We have identified certain types of variable consideration that may be included in the transaction price related to our contracts, including sales returns (which generally include a right of return for defective or non-conforming product) and trade discounts (including retrospective volume discounts and early payment incentives).
8 unchanged sentences
Identification of reporting units.
−Removed: As of September 30, 2024, we had seven reporting units, Automotive, HVOR, Industrial Solutions, Aerospace, Clean Energy Solutions, Aftermarket and Dynapower.
−Removed: During the second half of 2024, we reorganized our Sensing Solutions operating segment, which resulted in the realignment of our reporting units during Q4 2024.
−Removed: As a result of this reorganization, our Clean Energy Solutions reporting unit, which includes high-voltage contactors, was combined with our existing Industrial Solutions reporting unit creating one reporting unit, Industrial Solutions.
−Removed: There have been no subsequent changes to our reporting units as of December 31, 2024.
+Added: We have six reporting units:
+Added: Automotive, Commercial Equipment, Industrial Solutions, Aerospace, Aftermarket and Dynapower.
These reporting units have been identified based on the definitions and guidance provided in FASB ASC Topic 350.
14 unchanged sentences
The objective of a qualitative analysis is to assess whether it is more likely than not that the fair value of a reporting unit is less than its carrying value.
−Removed: We make this assessment based on macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and other relevant factors as applicable.
+Added: We make this assessment based on macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, and other relevant factors as
If we elect not to use this option, or if we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying value, then we prepare a discounted cash flow analysis to determine whether the carrying value of the reporting unit exceeds its estimated fair value.
If the carrying value of a reporting unit exceeds its estimated fair value, we recognize an impairment of goodwill for the amount of this excess, in accordance with the guidance in FASB ASC Topic 350.
−Removed: We evaluate the goodwill of each reporting unit for impairment as of October 1, or more often if impairment indicators are identified, using a quantitative method.
+Added: We evaluate the goodwill of each reporting unit for impairment as of October 1, or more often if impairment indicators are identified.
+Added: The annual goodwill impairment test was performed using a qualitative analysis as of October 1, 2025, and was performed using the quantitative method as of October 1, 2024.
+Added: A qualitative analysis is performed by evaluating events and circumstances that most affect the fair value of each reporting unit, including macroeconomic conditions, market conditions, industry trends, cost factors, financial performance, and other relevant qualitative factors.
+Added: Based on an evaluation of the factors that most affect the fair value of each reporting unit, we determine whether it is more likely than not that a reporting unit's fair value exceeds its carrying amount.
+Added: If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we perform a goodwill impairment test using the quantitative method.
+Added: If we conclude that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount, it is not necessary to perform the quantitative goodwill impairment test and no further testing is required.
+Added: The results of the qualitative analyses performed as of October 1, 2025, did not indicate a need to perform quantitative analysis, as we determined that it is more likely than not that the fair value of each of our reporting units exceeded their respective carrying values.
+Added: No events or circumstances occurred between October 1, 2025 and December 31, 2025 that would more likely than not reduce the fair values of the reporting units below their carrying amounts
In performing our evaluation under the quantitative method, we estimated the fair values of our reporting units using the discounted cash flow method, and, when applicable, a market multiples approach (the "Market Approach") using comparable companies appropriate to the reporting unit.
For the discounted cash flow method, we prepared detailed annual projections of future net cash flows for the reporting unit for the subsequent ten fiscal years (the "Discrete Projection Period").
−Removed: We estimated the value of the net cash flows beyond the tenth fiscal year (the "Terminal Year")
−Removed: by using either the Gordon Growth Model or the H-Model.
+Added: We estimated the value of the net cash flows beyond the tenth fiscal year (the "Terminal Year") by using either the Gordon Growth Model or the H-Model.
The net cash flows from the Discrete Projection Period and the Terminal Year were discounted at an estimated weighted-average cost of capital ("WACC") appropriate for each reporting unit.
The estimated WACC was derived, in part, from comparable companies appropriate to each reporting unit.
+Added: As these assumptions were largely unobservable, the estimated fair values fall within Level 3 of the fair value hierarchy.
+Added: A change in our cash flow forecast or the discount rate used would result in an increase or decrease in our calculated fair value.
We believe that our procedures for estimating discounted future net cash flows, including the Terminal Year valuation, were reasonable and consistent with accepted valuation practices.
In the third quarter of 2025, impairment indicators were identified that suggested the carrying value of the Dynapower reporting unit could exceed the fair value.
−Removed: The primary indicators of impairment were revised projections of future cash flows and actual performance that was lower than previous projections for the reporting unit.
+Added: The primary indicators of impairment were a lower outlook within certain markets that the reporting unit operates in following recent tax legislation being enacted, and the strategic shift to focus on other markets.
+Added: This revised outlook led to downward revisions of forecasted future cash flows.
We evaluated the goodwill of the Dynapower reporting unit for impairment using a combination of a market-based valuation method and an income approach that discounts forecasted cash flows.
−Removed: As these assumptions were largely unobservable, the estimated fair values fall within Level 3 of the fair value hierarchy.
−Removed: A change in our cash flow forecast or the discount rate used would result in an increase or decrease in our calculated fair value.
We determined that our Dynapower reporting unit was impaired, and in the third quarter of 2025, we recorded a $225.7 million non-cash impairment charge.
If Dynapower does not achieve the forecasted future cash flows, or if the discount rate or other assumptions were to change, it is reasonably possible that additional impairments of the remaining $4.1 million of goodwill may be recognized in the future.
+Added: In the third quarter of 2024, impairment indicators were identified that suggested the carrying value of the Dynapower reporting unit could exceed the fair value.
+Added: The primary indicators of impairment were revised projections of future cash flows and actual performance that was lower than previous projections for the reporting unit.
+Added: We evaluated the goodwill of the Dynapower reporting unit for impairment using a combination of a market-based valuation method and an income approach that discounts forecasted cash flows.
+Added: We determined that our Dynapower reporting unit was impaired, and in the third quarter of 2024, we recorded a $150.1 million non-cash impairment charge.
Based on our 2023 evaluation, we determined that goodwill in our Insights reporting unit was impaired, driven primarily by a lower long-range financial forecast resulting from the impact of restructuring actions taken in the third and fourth quarters of 2023 and consequent business decisions regarding our level of investment in Insights in future years considering Sensata’s focus on electrification.
1 unchanged sentence
Accordingly, we recorded a $321.7 million non-cash impairment charge in the fourth quarter of 2023, representing the entire goodwill balance allocated to Insights.
−Removed: Refer to Note 11:
−Removed: Goodwill and Other Intangible Assets, Net of our Financial Statements included elsewhere in this Report for additional information.
The preparation of forecasts of revenue growth and profitability for use in the long-range forecasts, the selection of the discount rates, and the estimation of the multiples used in the Market Approach involve significant judgments.
−Removed: Changes to these assumptions could affect the estimated fair value of one or more of our reporting units and could result in a goodwill impairment charge in a future period.
+Added: Changes to these
+Added: assumptions could affect the estimated fair value of one or more of our reporting units and could result in a goodwill impairment charge in a future period.
Types of events that could result in a goodwill impairment.
7 unchanged sentences
We also consider the impact of recent acquisitions in our expectations of the reporting units, such as the Dynapower reporting unit, and how these acquisitions perform against their original expected performance, as these might put pressure on the reporting units' fair value over carrying value in the short term.
−Removed: Based on the results of this analysis, we do not consider any of our reporting units outside of Dynapower, which was impaired during 2024, to be at risk of failing the goodwill impairment test.
+Added: Based on the results of this analysis, we do not consider any of our reporting units outside of Dynapower, which has $4.1 million of goodwill remaining after its 2025 impairment, to be at risk of failing future goodwill impairment tests.
As part of the process of preparing our financial statements, we are required to estimate our provision for (or benefit from) income taxes in each of the jurisdictions in which we operate.
16 unchanged sentences
In the event that actual results differ from these estimates, or we adjust our estimates in the future, we may need to adjust our valuation allowance assessment, which could materially impact our consolidated financial position and results of operations.
−Removed: Recently issued accounting standards adopted in the current period
−Removed: In November 2023, the FASB issued Accounting Standards Update ("ASU") No.
−Removed: 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures , to improve disclosures about a public entity's reportable segments.
−Removed: This guidance requires that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss and an amount for "other segment items" included in the determination of segment operating income.
−Removed: The guidance also requires that a public entity provide all annual disclosures about a reportable segment's profit or loss and assets currently required by FASB ASC Topic 280, Segment Reporting , in interim periods, and that a public entity provide the title and position of the chief operating decision maker.
−Removed: Other requirements of the guidance are not expected to be material.
−Removed: There is no change to the guidance for identification or aggregation of operating or reportable segments.
−Removed: 2023-07 will be effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.
−Removed: The guidance must be applied retrospectively to all prior periods presented.
−Removed: We adopted ASU No.
−Removed: 2023-07 on January 1, 2024 and have included the required new annual disclosures in our Annual Report on Form 10-K for the year ended December 31, 2024.
−Removed: Recently issued accounting standards to be adopted in a future period
−Removed: In December 2023, the FASB issued ASU No.
−Removed: 2023-09, Income taxes (Topic 740):
−Removed: Improvements to Income Tax Disclosures , which introduces new disclosure requirements for income taxes.
−Removed: This update is effective for annual periods beginning after December 31, 2024.
−Removed: While this ASU is not yet effective for the year ending December 31, 2024, we anticipate that it will significantly enhance the transparency and detail of our income tax disclosures in future periods.
−Removed: Key changes include:
−Removed: • Enhanced rate reconciliation disclosures, requiring a tabular reconciliation of the effective tax rate using both percentages and amounts, with detailed information on significant reconciling items.
−Removed: • Detailed disclosures of income taxes paid, broken out between federal (national), state/local, and foreign taxes, and by individual jurisdictions when they represent 5% or more of the total income taxes paid.
−Removed: • More detailed disclosures about deferred tax liabilities, particularly those related to unremitted earnings of foreign subsidiaries .
−Removed: We are currently assessing the impact of these new requirements on our financial reporting and will implement the necessary changes in our disclosures for the year ending December 31, 2025.
−Removed: In November 2024, the FASB issued ASU No.
−Removed: 2024-03 Income Statement (Topic 220):
−Removed: Reporting Comprehensive Income ,
−Removed: which requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement .
−Removed: 2024-03 does not change or remove current expense presentation requirements within the Consolidated Statements of Operations.
−Removed: However, the amendments require disclosure, on an annual and interim basis, of disaggregated information about certain income statement expense line items within the notes to the consolidated financial statements.
−Removed: The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.
−Removed: The Company is currently evaluating the impact that the adoption of ASU No.
−Removed: 2024-03 will have on its consolidated financial statements and disclosures.
+Added: Recently issued accounting standards
+Added: Refer to Note 2:
+Added: Significant Accounting Policies of our Financial Statements included elsewhere in this Report for additional information about recently issued accounting standards, including those adopted by the Company.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.