Financial Data and Key Metrics Changes - The company reported record fourth-quarter revenue of $5.2 billion, an increase of 3% year-over-year on an adjusted basis [6][17] - Adjusted Operating Income totaled $607 million, with earnings per share at $1.86, reflecting a 6% increase from the prior year [7][18] - Operating cash flow was $818 million, with over half allocated to share repurchases and debt reduction [7][21] Business Line Data and Key Metrics Changes - Intelligent Systems segment revenue was $1.4 billion, a 2% increase year-over-year, but operating income declined by 17% due to investments and unfavorable FX [19][20] - Engineered Components segment revenue increased by 1% to $1.6 billion, with operating income up 8% and margin expanding by 60 basis points [20] - Electrical Distribution Systems (EDS) segment revenue grew by 5% to $2.3 billion, although operating income declined by 2% due to FX and commodities headwinds [20] Market Data and Key Metrics Changes - North America saw an 8% revenue growth, with double-digit growth in both Intelligent Systems and EDS [18] - European revenue decreased by 1%, while China revenue fell by 5%, reflecting unfavorable mix impacts [19] - Approximately 80% of new business awards in China were from local OEMs, indicating a shift in customer dynamics [19] Company Strategy and Development Direction - The company is focusing on penetrating non-automotive markets, leveraging trends in automation, electrification, and digitalization [4][5] - A significant emphasis is placed on enhancing the product portfolio and operational capabilities, including the launch of new innovations and partnerships in robotics [8][12] - The upcoming spin-off of the EDS business into VersaGen is expected to unlock value and enhance focus on core operations [5][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment and highlighted the importance of operational efficiencies [4][30] - The outlook for 2026 includes expectations of revenue growth for both new Aptiv and VersaGen, with a focus on capturing higher-margin opportunities [23][26] - The company anticipates challenges from FX and commodity prices but remains optimistic about margin expansion in the long term [25][49] Other Important Information - The company finalized a leadership team for the EDS business, which is set to spin out as VersaGen on April 1 [5] - Full-year new business awards reached $27 billion, with expectations for 2026 bookings to exceed $30 billion [10][26] Q&A Session Summary Question: Insights on memory exposure and contract resets - The purchase value for memory is approximately $175 million, with expected low double-digit price increases in 2026 [35] Question: Guidance for new Aptiv into 2026 - The adjusted growth forecast for new Aptiv is 4%, with expectations for non-auto revenues to grow strongly [38][41] Question: EBITDA outlook for 2026 - EBITDA margins are expected to remain stable, with various factors impacting the outlook including commodity prices and investments [45][46] Question: Regional revenue performance expectations - North America is expected to lead revenue growth, while Europe may remain flat and China is anticipated to improve in the second half of the year [56] Question: Impact of EV volumes on VersaGen growth - The company expects EV growth of approximately 15% year-over-year, primarily driven by China [79]

Aptiv (NYSE:APTV) Q4 2025 Earnings call February 02, 2026 08:00 AM ET Company ParticipantsBetsy Frank - VP of Investor RelationsEmmanuel Rosner - Managing DirectorJames Picariello - DirectorJoe Liotine - CEO of VersigentJoseph Spark - Managing DirectorKevin Clark - CEOMark Delaney - Managing DirectorVarun Laroyia - CFOConference Call ParticipantsColin Langan - Senior Equity AnalystDan Levy - Senior Equity Research AnalystItay Michaeli - Equity Research AnalystOperatorGood day and Welcome to the Aptiv Q4 202 ...

Financial Data and Key Metrics Changes - Aptiv reported record fourth-quarter revenue of $5.2 billion, an increase of 3% year-over-year on an adjusted basis [5][18] - Adjusted Operating Income totaled $607 million, with earnings per share at $1.86, reflecting a 6% increase from the prior year [6][19] - Operating cash flow was $818 million, with over half allocated to share repurchases and debt reduction [6][19] Business Line Data and Key Metrics Changes - Intelligent Systems segment revenue was $1.4 billion, up 2% year-over-year, but operating income declined 17% due to investments and unfavorable FX [20][21] - Engineered Components segment revenue increased by 1% to $1.6 billion, with operating income rising 8% and margin expanding by 60 basis points [21] - Electrical Distribution Systems (EDS) revenue grew 5% to $2.3 billion, but operating income declined 2% due to FX and commodity headwinds [21] Market Data and Key Metrics Changes - North America saw an 8% revenue growth, while Europe experienced a 1% decline, and China revenue decreased by 5% [19][20] - New business bookings in China totaled $5 billion, with almost $4 billion from local OEMs, and new business awards in non-automotive markets reached over $4 billion [10][20] Company Strategy and Development Direction - The company is focusing on penetrating non-automotive markets, leveraging trends in automation, electrification, and digitalization [4][5] - Aptiv plans to spin out its Electrical Distribution Systems business as VersaGen on April 1, 2026, aiming to enhance shareholder value [5][10] - The company is committed to optimizing its cost structure and eliminating stranded costs associated with the spin-off [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment and capturing higher growth opportunities across multiple end markets [34] - The outlook for 2026 includes revenue guidance for new Aptiv in the range of $12.8-$13.2 billion, reflecting a 4% growth at the midpoint [25] - Management acknowledged challenges from FX and commodity prices but remains optimistic about margin expansion in the long term [56] Other Important Information - The company generated over $2 billion in operating cash flow for the full year, leading to a year-end cash balance of $1.9 billion [23] - Capital allocation efforts included retiring $1 billion in debt and deploying $400 million towards share repurchases [23][24] Q&A Session Summary Question: Insights on memory exposure and contract resets - Management indicated that memory costs are approximately $175 million, with low double-digit price increases expected in 2026, and confidence in negotiating cost recoveries with OEM customers [37][38] Question: Guidance for new Aptiv into 2026 - Management clarified that the 4% growth guidance is influenced by global vehicle production expectations, with strong growth anticipated in non-auto revenues [41][42] Question: EBITDA outlook for 2026 - Management provided a framework indicating stable margins with various factors impacting EBITDA, including commodity prices and investments in non-auto business growth [48][50] Question: Regional revenue performance expectations - Management expects North America to lead revenue growth, with Europe flat to slightly down and improved performance anticipated in China [58][59] Question: Impact of EV volumes on VersaGen growth - Management projected a 15% year-over-year growth in EVs, primarily driven by China, despite lower growth expectations in North America [83]

分组1 - APTIV PLC reported quarterly earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.82 per share, and showing an increase from $1.75 per share a year ago, resulting in an earnings surprise of +2.23% [1] - The company achieved revenues of $5.15 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.46%, and up from $4.91 billion year-over-year [2] - APTIV has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market with a loss of about 0.5% since the beginning of the year, compared to the S&P 500's gain of 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $1.94 on revenues of $4.99 billion, and for the current fiscal year, it is $8.18 on revenues of $21.05 billion [7] - The Zacks Industry Rank for Automotive - Original Equipment is in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for the sector [8]

Founded in 2011, Schaffhausen, Switzerland-based Aptiv PLC (APTV) engages in the design, manufacture, and sale of vehicle components for the automotive and commercial vehicle markets in North America and internationally. The company has a market cap of $16.4 billion and operates through Signal and Power Solutions, and Advanced Safety and User Experience segments. Shares of the company have rallied in the broader market over the past year but have lagged behind in 2026. APTV stock has surged 20.4% over th ...

February 2, 2026 APTIV Fourth Quarter 2025 Earnings Call Forward-Looking Statements This presentation, as well as other statements made by Aptiv PLC (the "Company"), contain forward-looking statements that reflect, when made, the Company's current views with respect to current events, certain investments and acquisitions and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may caus ...

Financial Guidance - For Q1 2026, the company expects earnings between $0.60 and $0.80 per share, adjusted earnings between $1.55 and $1.75 per share, and net sales between $4.95 billion and $5.15 billion [1] - For fiscal 2026, the company projects earnings between $5.75 and $6.36 per share, adjusted earnings between $8.15 and $8.75 per share, and net sales between $21.12 billion and $21.82 billion [2] Analyst Expectations - Analysts expect the company to report earnings of $1.91 per share on revenues of $5.05 billion for the quarter, excluding special items [2] - For the full year 2026, the Street anticipates earnings of $8.49 per share on revenues of $21.19 billion [2] Corporate Strategy - The company is working towards the spin-off of its EDS as Versigent, aiming to create two independent companies with increased flexibility for market opportunities and capital allocation strategies [3] Stock Performance - In pre-market trading, the company's stock is priced at $73.49, reflecting a decrease of $2.30 or 3.03 percent [3]

Revenue Performance - Full year 2025 revenue reached $20.4 billion, an increase of 3% compared to the previous year[6] - Fourth quarter 2025 revenue was $5.2 billion, reflecting a 5% increase year-over-year, with adjusted growth of 3% after accounting for currency and commodity impacts[7] - Net sales for Q4 2025 reached $5,153 million, a 5% increase from $4,907 million in Q4 2024, while total net sales for the year were $20,398 million, up from $19,713 million in 2024[40] Income and Earnings - Full year 2025 adjusted net income was $1,726 million, or $7.82 per diluted share, representing a 7.4% increase in net income and a 24.9% increase in earnings per share compared to the prior year[12] - The company reported a U.S. GAAP net income margin of 0.8% for the full year 2025, significantly lower than the prior year's margin of 9.1%[12] - Net income attributable to Aptiv for Q4 2025 was $138 million, a decrease from $268 million in Q4 2024, while total net income for the year was $165 million, down from $1,787 million in 2024[40] Operating Income - The company reported a fourth quarter adjusted operating income of $607 million, with an adjusted operating income margin of 11.8%, down from 12.7% in the prior year[9] - Operating income for Q4 2025 was $425 million, down from $479 million in Q4 2024, with total operating income for the year at $1,184 million compared to $1,842 million in 2024[40] - Total Adjusted Operating Income for the year ended December 31, 2025, was $2,461 million, with a margin of 12.1%, compared to $2,366 million and 12.0% in 2024[47] Cash Flow and Liquidity - The company generated cash from operations totaling $2,185 million for the full year 2025, compared to $2,446 million in the prior year[17] - Cash and cash equivalents increased to $1,851 million as of December 31, 2025, up from $1,573 million in 2024[36] - Cash flow before financing for Q4 2025 was $665 million, compared to $1,637 million in Q4 2024, indicating a significant decline[58] Future Projections - For Q1 2026, the company expects net sales between $4,950 million and $5,150 million, with U.S. GAAP net income guidance of $130 million to $170 million[21] - Full year 2026 net sales are projected to be between $21,120 million and $21,820 million, with adjusted EBITDA expected to range from $3,385 million to $3,585 million[21] - Estimated adjusted EBITDA for Q1 2026 is projected to be $740 million, with a margin of 14.7%[59] Shareholder Actions - The company repurchased $300 million of senior notes and retired 22.8 million shares valued at $1.5 billion during 2025[19] - The weighted average number of diluted shares outstanding for Q4 2025 was 216.14 million, down from 235.46 million in Q4 2024[54] Impairments and Costs - The company experienced a goodwill impairment of $648 million in 2025, compared to no impairment in 2024[38] - The company incurred separation costs of $78 million in Q4 2025, compared to none in Q4 2024[49] Tax and Valuation - The company recognized a $294 million increase in valuation allowances for deferred tax assets due to changes in tax incentives[54]

Core Insights - Aptiv PLC reported record full year financial results with revenues increasing 3% to $20.4 billion, demonstrating operational excellence and a strong product portfolio [1][3]. Financial Highlights - Fourth Quarter 2025 U.S. GAAP revenue was $5.2 billion, a 5% increase from the prior year, with adjusted revenue growth of 3% after accounting for currency and commodity fluctuations [4][8]. - Full Year 2025 U.S. GAAP revenue was $20.4 billion, reflecting a 3% increase, with adjusted revenue growth of 2% [10][11]. - Fourth quarter net income was $138 million, with a net income margin of 2.7% and diluted earnings per share of $0.64; adjusted net income was $402 million, or $1.86 per diluted share [5][8]. - Full year net income was $165 million, including a non-cash goodwill impairment charge of $648 million, resulting in a net income margin of 0.8% and diluted earnings per share of $0.75; adjusted net income totaled $1,726 million, or $7.82 per diluted share, a 7.4% increase [11][12]. Operating Performance - Fourth quarter U.S. GAAP operating income was $425 million, down from $479 million in the prior year; adjusted operating income was $607 million, compared to $623 million [6][8]. - Full year U.S. GAAP operating income was $1,184 million, a decrease from $1,842 million in the prior year; adjusted operating income was $2,461 million, up from $2,366 million [12][8]. Cash Flow and Capital Management - Cash from operations for the fourth quarter totaled $818 million, down from $1,060 million in the prior year [9][8]. - For the full year, cash from operations was $2,185 million, compared to $2,446 million in the prior year [15][8]. - The company repurchased $300 million of senior notes and 22.8 million shares valued at $1.5 billion during 2025, with $2.1 billion remaining for future share repurchases [17][8]. Strategic Outlook - The company is preparing for the spin-off of its Electrical Distribution Systems business, which will create two independent companies, enhancing their ability to pursue unique market opportunities [4][8]. - Financial guidance for Q1 2026 includes net sales of $4,950 - $5,150 million and U.S. GAAP net income of $130 - $170 million [20][8].

Core Viewpoint - Aptiv PLC is expected to report an increase in fourth-quarter earnings and revenue compared to the previous year [1][2] Group 1: Earnings Expectations - Analysts anticipate Aptiv will report fourth-quarter earnings of $1.86 per share, up from $1.75 per share in the same period last year [1] - The consensus estimate for Aptiv's quarterly revenue is $5.11 billion, an increase from $4.91 billion reported last year [1] Group 2: Recent Performance - On October 30, Aptiv reported stronger-than-expected third-quarter earnings, exceeding Wall Street expectations [2] - Following the earnings report, shares of Aptiv fell by 3.9%, closing at $75.75 [2]