Sensata Technologies Holding N.V. (NYSE: ST) stock soared 5.37% in pre-market trading on Wednesday, February 12, 2025, following the company's impressive fourth-quarter 2024 results and optimistic outlook for the year ahead.

The company reported fourth-quarter revenue of $908 million, exceeding its guidance range and driven by higher-than-expected auto production in North America and China. Adjusted operating income increased by 80 basis points to 19.3%, reflecting the company's efforts to optimize its portfolio and streamline operations.

For the full year 2024, Sensata reported revenue of $3.93 billion, a 3% decrease from 2023, but improved its free cash flow conversion to 76% of adjusted net income, up from 49% in the previous year. The company also reduced net leverage to under 3x, demonstrating strong financial management.

According to Stephan von Schuckmann, Sensata's newly appointed CEO, the company is well-positioned across its business segments with a diverse set of high-value products and differentiated margins. He highlighted three key priorities: returning to growth, improving operational performance, and optimizing capital allocation.

While Sensata expects organic revenue to be flat in 2025 due to weak end markets, the company is focused on winning new business with leading customers and expanding its electrification offerings. Recent customer wins in North America and Europe, as well as the successful launch of the A2L leak protection sensor for HVAC systems, are expected to drive future growth.