Group 1 - The article discusses the expertise of a senior analyst and private portfolio manager with over 10 years of experience in generating value ideas in European and North American markets [1] - The analyst contributes to iREIT®+HOYA Capital and Wide Moat Research LLC, covering various European markets including Scandinavia, Germany, France, UK, Italy, Spain, Portugal, and Eastern Europe [1] - The focus is on identifying reasonably valued stock ideas within these markets [1] Group 2 - The analyst holds beneficial long positions in shares of companies such as LEA, MGA, and ALV through stock ownership, options, or other derivatives [1] - The article emphasizes the importance of conducting due diligence and research prior to any investment decisions [2] - It highlights the potential risks associated with short-term trading, options trading, and futures trading, which may not be suitable for investors with limited capital or experience [2]

Core Insights - The article discusses the investment strategies and market coverage of a senior analyst with over 10 years of experience in European and North American markets [1] Group 1: Analyst Profile - The analyst is a senior analyst and private portfolio manager with expertise in generating value ideas in European and North American markets [1] - The analyst contributes to iREIT®+HOYA Capital and Wide Moat Research LLC, covering various European markets including Scandinavia, Germany, France, UK, Italy, Spain, Portugal, and Eastern Europe [1] Group 2: Investment Focus - The analyst focuses on identifying reasonably valued stock ideas within the mentioned markets [1] - The analyst holds beneficial long positions in shares of companies such as LEA, MGA, and ALV through stock ownership, options, or other derivatives [1]

Core Viewpoint - Harris Associates L.P. emphasizes a consistent investment philosophy focused on value investing, believing that stock prices will eventually reflect the underlying value of companies [1] Company Philosophy - The company was founded in 1976 by investment professionals committed to superior investment research and customer service [1] - Harris Associates identifies companies trading at significant discounts to their intrinsic value, aiming for substantial profit potential [1] - The investment approach is framed as owning a piece of a business for the long term, highlighting the importance of intensive, fundamental research [1] Research Process - The research process involves a disciplined quantitative and qualitative screening method [1] - Analysts at Harris Associates are independent thinkers who do not rely on Wall Street for insights, evaluating companies based on fundamental characteristics [1]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The platform revenue for Roku was $1.06 billion, up 17% year-over-year, while device revenue decreased by 5% to $146 million [2] - Roku shares fell by 5% to $94.99 in pre-market trading following the earnings report [2] Other Companies in Focus - SPS Commerce Inc saw a 32.1% drop in shares to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares fell 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC shares fell 7.6% to $75.88 [4] - Ventas Inc shares declined 7.5% to $68.77 [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Core Insights - U.S. stock futures showed a mostly positive trend, with Nasdaq futures increasing by over 1% on Friday [1] - Roku Inc experienced a significant decline in pre-market trading following its third-quarter earnings report [1] Company Performance - Roku reported third-quarter net revenue of $1.211 billion, reflecting a 14% year-over-year increase, surpassing the Street consensus estimate of $1.206 billion [2] - The company's platform revenue reached $1.06 billion, up 17% year-over-year, while devices revenue fell to $146 million, down 5% year-over-year [2] - Roku shares dropped 5% to $94.99 in pre-market trading following the earnings announcement [2] Other Company Movements - SPS Commerce Inc saw a 32.1% decline in pre-market trading to $70.57 after mixed third-quarter results and lower fourth-quarter guidance [4] - Corbus Pharmaceuticals Holdings Inc's shares fell 16.4% to $13.74 due to a public offering announcement [4] - Onespan Inc's shares decreased by 16.1% to $13.02 after reporting disappointing third-quarter sales and lowering FY25 guidance [4] - Savers Value Village Inc's shares dipped 15% to $11.25 following worse-than-expected third-quarter sales and lowered FY25 GAAP EPS guidance [4] - GSI Technology, Inc. shares fell 14.1% to $9.50 after second-quarter results [4] - Newell Brands Inc's shares declined 13.1% to $4.10 due to downbeat third-quarter results and lowered FY25 guidance [4] - DexCom Inc's shares dropped 12.1% to $59.97 after announcing third-quarter results [4] - Site Centers Corp's shares declined 11.2% to $7.44 ahead of its third-quarter earnings release [4] - Aptiv PLC and Ventas Inc saw declines of 7.6% to $75.88 and 7.5% to $68.77, respectively [4] - Cooper-Standard Holdings Inc's shares fell 6.3% to $33.52 after reporting disappointing third-quarter results and lowering FY25 sales guidance [4]

Financial Performance - Net sales for Q3 2025 reached $5,212 million, a 7.4% increase from $4,854 million in Q3 2024[14] - Operating loss for Q3 2025 was $(175) million, compared to an operating income of $503 million in Q3 2024[14] - Net loss attributable to Aptiv for Q3 2025 was $(355) million, a decrease from net income of $363 million in Q3 2024[14] - Comprehensive loss income for Q3 2025 was $(347) million, compared to comprehensive income of $466 million in Q3 2024[15] - The net income for the nine months ended September 30, 2025, was $27 million, compared to $1,519 million for the same period in 2024, indicating a significant decline in profitability[25] - For the three months ended September 30, 2025, the company reported a net loss attributable to the company of $355 million, resulting in a basic and diluted loss per share of $1.63[142] - For the nine months ended September 30, 2025, the total net sales reached $15,245 million, an increase from $14,806 million in the same period of 2024, representing a growth of approximately 3%[209]. Assets and Liabilities - Total current assets increased to $8,760 million as of September 30, 2025, up from $7,826 million at the end of 2024[18] - Total liabilities decreased to $13,933 million as of September 30, 2025, down from $14,373 million at the end of 2024[18] - Total assets as of September 30, 2025, were $23,497 million, a slight increase from $23,458 million at the end of 2024[18] - The total shareholders' equity at September 30, 2025, was $9,462 million, a decrease from $9,675 million at June 30, 2024[23] - The balance of redeemable noncontrolling interest at September 30, 2025, was $102 million, down from $95 million at June 30, 2024[23] - The balance of additional paid-in capital at September 30, 2025, was $3,632 million, compared to $3,947 million at June 30, 2024[23] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended September 30, 2025, was $1,367 million, slightly down from $1,386 million in the same period of 2024[20] - Capital expenditures for the nine months ended September 30, 2025, were $(489) million, compared to $(664) million in the same period of 2024[20] - Capital expenditures for the third quarter of 2025 were $172 million, slightly up from $170 million in the same period of 2024[22] - Cash and cash equivalents at the end of Q3 2025 were $1,640 million, compared to $1,573 million at the end of 2024[18] Shareholder Activities - The company repurchased ordinary shares worth $96 million in the third quarter of 2025[23] - Aptiv's share repurchase program authorized up to $5.0 billion in July 2024, with $3.0 billion executed through ASR agreements in August 2024[143][144] - As of September 30, 2025, approximately $2,419 million remained available for share repurchases under the July 2024 program[148] - During the nine months ended September 30, 2025, Aptiv repurchased approximately 1.2 million shares for $96 million in the open market, in addition to 48.5 million shares through ASR agreements[146] Segment Performance - Electrical Distribution Systems generated external sales of $2.285 billion, while Engineered Components Group and Advanced Safety and User Experience reported $1.493 billion and $1.434 billion, respectively[197] - The Electrical Distribution Systems segment generated $6,516 million in net sales for the nine months ended September 30, 2025, compared to $6,181 million in 2024, marking an increase of approximately 5%[210] - The Engineered Components Group reported net sales of $5,018 million for the nine months ended September 30, 2025, up from $4,804 million in the same period of 2024, reflecting a growth of about 4%[210] - Advanced Safety and User Experience segment net sales were $4,373 million for the nine months ended September 30, 2025, compared to $4,410 million in 2024, showing a slight decline[210] Goodwill and Impairments - The Company recorded a non-cash, pre-tax goodwill impairment charge of approximately $648 million related to the Wind River reporting unit during the three months ended September 30, 2025[63] - The company reported a goodwill impairment of $648 million in the Advanced Safety and User Experience segment for Q3 2025[197] - The Company recognized a goodwill impairment of $648 million for the nine months ended September 30, 2025[202] Debt and Financing - Total debt as of September 30, 2025, was $7.63 billion, a decrease from $8.35 billion as of December 31, 2024[91] - The company had no amounts outstanding under the $2 billion Revolving Credit Facility as of September 30, 2025[96] - Aptiv issued €500 million in 1.60% Euro-denominated senior unsecured notes due 2028, priced at 99.881% of par, resulting in a yield to maturity of 1.611%[106] - Aptiv issued $1.5 billion in 3.10% senior unsecured notes due 2051, priced at 97.814% of par, resulting in a yield to maturity of 3.214%[109] Tax and Regulatory Matters - The income tax expense for the three months ended September 30, 2025, was $103 million, with an effective tax rate of 8%[134] - The effective tax rate for the nine months ended September 30, 2025, was impacted by a net discrete tax expense of approximately $253 million[135] - The Company recognized an increase to valuation allowances of $294 million to reduce the related deferred tax asset during the nine months ended September 30, 2025[138] Restructuring and Operational Changes - The company is actively evaluating restructuring options to align with customer needs and reduce operating costs, which may involve facility closures and employee termination benefits[67] - The company recorded restructuring charges of approximately $60 million and $149 million for the three and nine months ended September 30, 2025, respectively[86] - The company expects to incur additional restructuring costs of approximately $40 million over the next twelve months, with $25 million related to the Advanced Safety and User Experience segment[87] Market Risks and Derivatives - The company is actively managing market risks through cash flow hedges to mitigate fluctuations in foreign currency exchange rates and commodity prices[153] - As of September 30, 2025, the company had outstanding notional amounts related to commodity and foreign currency forward and option contracts totaling approximately $2.3 billion, including $365 million for copper and $1,160 million for Mexican Peso[154] - The company recognized $162 million of losses within the cumulative translation adjustment component of OCI for Euro-denominated debt during the nine months ended September 30, 2025[159]

Core Insights - Aptiv PLC reported strong third-quarter 2025 results with adjusted earnings of $2.17 per share, exceeding the Zacks Consensus Estimate by 20% and increasing 18.6% year over year. Revenues reached $5.21 billion, surpassing estimates by 3% and rising 7.4% year over year [1][8]. Financial Performance - Adjusted revenues improved by 6% year over year, with regional performance showing a 14% increase in North America, a 3% rise in South America, and a 4% increase in Asia, while Europe saw a decline of 3%. Revenues in China remained flat [1]. - The Electrical Distribution Systems and Engineered Components Group reported revenues of $2.29 billion and $1.71 billion, reflecting year-over-year increases of 12% and 8%, respectively. The Advanced Safety and User Experience segment's revenues grew by 1% to $1.44 billion [2]. - Adjusted operating income was $654 million, marking a 10.3% increase from the previous year, with an adjusted operating income margin of 12.55%, up 33 basis points year over year [2]. Cash Flow and Debt - At the end of the quarter, Aptiv had cash and cash equivalents of $1.6 billion, slightly up from $1.57 billion at the end of December 2024. Long-term debt decreased to $7.61 billion from $7.84 billion [3]. - The company generated $584 million in cash from operating activities during the quarter, totaling $1.37 billion for the nine months ended September 30, 2025, compared to $1.39 billion in the prior-year period [3]. Future Outlook - For Q4 2025, Aptiv anticipates revenues between $4.91 billion and $5.21 billion, with adjusted EPS expected between $1.6 and $1.9. The adjusted operating income margin is projected to be between 7.1% and 8.6% [4]. - For the full year 2025, revenues are expected to range from $20.15 billion to $20.45 billion, with adjusted EPS between $7.55 and $7.85. The adjusted operating income margin is forecasted to be between 11.9% and 12.2% [5].

Financial Data and Key Metrics Changes - Revenues increased by 6% year-over-year to $5.2 billion, driven by strong vehicle production in North America and China [7][17] - Operating income rose by 10% to $654 million, reflecting volume growth and strong operating performance [7][17] - Earnings per share reached a record $2.17, up 19% year-over-year, supported by lower share count and increased operating income [7][18] - Operating cash flow was strong at $584 million, with capital expenditures totaling $143 million [18][23] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience segment revenue was flat year-over-year at approximately $1.4 billion, with strong growth in Wind River exceeding 20% [9][20] - Engineered Components Group revenue increased by 6% to $1.7 billion, driven by nearly 30% growth with local OEMs in China [21] - Electrical Distribution Systems revenue grew by 11% to $2.3 billion, benefiting from strong EV production and an easier year-over-year comparison [22] Market Data and Key Metrics Changes - North America revenue grew by 14%, driven by double-digit growth in Electrical Distribution Systems and User Experience [19] - Europe experienced a 3% decline in revenue, primarily due to challenges in the Advanced Safety and User Experience segment [19] - Revenue in China was flat, impacted by unfavorable customer mix in the Advanced Safety and User Experience segment [19] Company Strategy and Development Direction - The company is progressing with the separation of its Electrical Distribution Systems business, expected to be completed by the end of Q1 2026, to enhance shareholder value [6][16] - Focus on maximizing shareholder value through a robust operating model and proactive portfolio management [6][31] - Continued investment in advanced technologies and expansion into non-automotive markets, with expectations of strong growth in adjacent sectors [6][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth accelerating in 2026, driven by new automotive program launches and strong demand in non-automotive markets [15][31] - The macro environment remains dynamic, with geopolitical trends and trade policies posing challenges [16][31] - Management highlighted the importance of navigating supply chain disruptions and maintaining strong customer relationships [16][31] Other Important Information - The company recorded a non-cash goodwill impairment charge of $648 million for Wind River, reflecting slower growth expectations [18][19] - New business bookings for the quarter totaled $8.4 billion, bringing year-to-date bookings to approximately $19 billion [8][7] Q&A Session Summary Question: Can you break down the $80 million known impact for Q4? - The $80 million includes volume impacts from the facility fire in Oswego and other customer-specific situations affecting European production [34][36] Question: What is the status of Nexperia and its political implications? - The situation is political, primarily between the Dutch government and China, but the company has alternative sources and does not expect production in China to be impacted [39][40] Question: What are the drivers behind the margin guidance for Q4? - Key drivers include flow-through on weaker volumes, timing of customer recovery, and elevated copper prices impacting margins [44][49] Question: How is the company approaching M&A opportunities? - The company is open to M&A as a means to diversify revenue, focusing on meaningful synergies and growth potential [62][64] Question: What is the outlook for Active Safety and User Experience growth? - Active Safety is expected to see low single-digit growth in the back half of the year, while User Experience is projected to return to growth in 2026 [68][71] Question: How does the company view the opportunity in energy storage? - The energy storage market presents significant growth potential, with ongoing investments in adjacent markets [52][83]

Financial Data and Key Metrics Changes - Revenues increased by 6% year-over-year to $5.2 billion, driven by strong vehicle production in North America and China [5][17] - Operating income rose by 10% to $654 million, reflecting volume growth and strong operating performance [5][17] - Earnings per share reached a record $2.17, up 19% year-over-year, supported by lower share count and increased operating earnings [5][18] - Operating cash flow was strong at $584 million, with capital expenditures totaling $143 million [18][24] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience segment revenue was flat year-over-year at approximately $1.4 billion, with strong growth in Wind River exceeding 20% [7][20] - Engineered Components Group revenue increased by 6% to $1.7 billion, driven by nearly 30% growth with local OEMs in China [22] - Electrical Distribution Systems revenue grew by 11% to $2.3 billion, benefiting from strong EV production and an easier year-over-year comparison [23] Market Data and Key Metrics Changes - North America revenue grew by 14%, driven by double-digit growth in Electrical Distribution Systems and User Experience [19] - Europe experienced a revenue decline of 3%, primarily due to challenges in the Advanced Safety and User Experience segment [19] - Revenue in China was flat, impacted by unfavorable customer mix in the Advanced Safety and User Experience segment [19][20] Company Strategy and Development Direction - The company is progressing with the separation of its Electrical Distribution Systems business, expected to be completed by the end of Q1 2026, to enhance shareholder value [4][16] - The focus remains on maximizing shareholder value through proactive portfolio management and cost structure optimization [31] - The company anticipates revenue growth acceleration in 2026, driven by new automotive program launches and continued growth in non-automotive markets [15][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic macro environment, including geopolitical trends and trade policies, which pose challenges to forecasting [15][16] - Despite uncertainties, the company remains focused on navigating challenges and delivering strong financial results [16][31] - The company raised its full-year 2025 guidance, reflecting strong Q3 results, while incorporating conservatism due to recent production disruptions [15][27] Other Important Information - The company recorded a non-cash goodwill impairment charge of $648 million for Wind River, which is excluded from adjusted results [18][19] - New business bookings for the third quarter totaled $8.4 billion, bringing year-to-date bookings to approximately $19 billion [6][5] Q&A Session Summary Question: Can you break down the $80 million known impact on Q4 guidance? - The $80 million includes volume impacts from the facility issue in Oswego and other customer-specific situations affecting European production [34][35] Question: What is the current status of Nexperia and its political implications? - The situation is political, primarily between the Dutch government and China, but the company does not expect production in China to be impacted [39][40] Question: What are the growth dynamics in the quarter, particularly in China? - The company has seen specific OEM volume issues impacting growth in Europe and China, with program cancellations affecting the latter [56][58] Question: How is the company approaching M&A opportunities? - The company is committed to growth in non-automotive markets and is evaluating M&A opportunities based on potential synergies and market positioning [61][63] Question: What is the outlook for Active Safety and User Experience segments? - Active Safety growth is expected to be low single digits in the second half of the year, while User Experience is anticipated to return to growth in 2026 [66][69]

Core Insights - APTIV PLC reported quarterly earnings of $2.17 per share, exceeding the Zacks Consensus Estimate of $1.81 per share, and showing an increase from $1.83 per share a year ago, resulting in an earnings surprise of +19.89% [1] - The company achieved revenues of $5.21 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.00% and increasing from $4.85 billion year-over-year [2] - APTIV shares have appreciated approximately 41.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.93 on revenues of $5.07 billion, while for the current fiscal year, the estimate is $7.55 on revenues of $20.16 billion [7] - The trend of estimate revisions for APTIV was favorable ahead of the earnings release, contributing to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which APTIV belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]