Kosta Tasoulis

Kosta Tasoulis inquired about the duration of Sensata's work on data center opportunities, where the biggest value-add or differentiation lies (electrical protection vs. sensors), and if this could become a revenue driver comparable to A2L leak detectors in the next year or two.

Answer

Stephan von Schuckmann, CEO, stated they've been working on data centers for 'quite some time,' intensifying efforts in 2025. He noted the opportunity is broad, spanning both electrical protection and sensors, and they are pursuing all opportunities inside and outside data centers. He expressed confidence it could be a significant growth driver but asked for more time to provide precise figures on its potential scale.

Kosta Tasoulis from Wells Fargo asked about the duration of Sensata's work on data center opportunities, where the greater value-add or differentiation lies (electrical protection vs. sensors), and if this opportunity could yield a similar dollar contribution to A2L in the next one to two years.

Answer

CEO Stephan von Schuckmann stated that Sensata has been working on data centers for quite some time, intensifying efforts in 2025. He emphasized that the opportunity is broad, spanning both electrical protection and sensors, and that Sensata aims to design in all product groups into future data center concepts. He expressed confidence in it becoming a significant growth driver but requested more time before providing precise figures or comparisons to A2L.

Kosta Tasoulis from Wells Fargo asked for an update on Sensata's 2-4% organic growth guidance for the next 12-18 months, specifically how the challenged HVR/housing market impacts this outlook, given previous expectations for non-light vehicle business support.

Answer

Andrew Lynch, Sensata Technologies' Chief Financial Officer, acknowledged a slowdown in non-auto businesses like HVOR, impacting organic growth this year. He noted that despite a cautious Q4 guide, turning a corner in China's outgrowth and continued strong outgrowth in other segments provide high confidence in achieving low single-digit organic growth moving forward if end markets hold up.

Kosta Tasoulis questioned the company's 2-4% organic growth guidance for the next 12-18 months, specifically how challenges in the non-light vehicle business (HVOR, housing) impact this outlook.

Answer

Andrew Lynch, Sensata Technologies' Chief Financial Officer, acknowledged a slowdown in non-auto businesses like HVOR and North American on-road trucks, which has impacted organic growth this year. He noted that the company is on track for approximately 1% organic growth in Q4 and expressed high confidence in achieving low single-digit organic growth moving forward, contingent on stable end markets and continued outgrowth in China.

Kosta Tasoulis asked newly appointed CFO Andrew Lynch about his key priorities and inquired how cost optimization efforts, such as component standardization, would impact inventory levels and working capital.

Answer

CFO Andrew Lynch stated his primary focus is enabling the CEO's transformation pillars, particularly through better analytics and rigor in capital allocation. He and CEO Stephan von Schuckmann explained that inventory reduction will be driven by both unit cost reduction and carrying less inventory through better demand planning and benchmarking.