Group 1 - The Shanghai International Automobile Industry Exhibition showcases nearly 1,000 domestic and foreign enterprises from 26 countries, featuring over 100 new vehicles and cutting-edge technologies [2] - Multinational automotive companies like BMW, Audi, and Continental are demonstrating their commitment to the Chinese market through localized products and significant investment plans [2][3] - The exhibition serves as a platform for global automakers to present advancements in smart and electric vehicles, with companies like Continental and Aptiv unveiling localized solutions tailored for China's complex driving conditions [2][3] Group 2 - China has maintained its position as the world's largest automobile production and sales country for 16 consecutive years, with new energy vehicles accounting for over 40% of total new car sales [3] - The rapid development of new energy and smart connected vehicles, along with a complete industrial chain and a wealth of technological talent, attracts foreign enterprises to engage in collaborative innovation [3] - The active participation of foreign companies in the Shanghai Auto Show reflects China's strong appeal to the global automotive industry and will further promote the integration of China's automotive sector with the global market [3][4] Group 3 - Foreign companies are restructuring their relationship with the Chinese market through deep localization, moving beyond mere technology transfer to collaborative innovation with local partners [4] - This "mutual engagement" is expected to elevate China's automotive industry to the high end of the global value chain while opening new growth avenues for multinational enterprises [4] - The scale and innovative dynamism of the Chinese market will determine the competitiveness of global automakers over the next decade [4]

Core Insights - Aptiv reported record adjusted earnings per share of $2.12, exceeding the consensus estimate of $1.83, and revenue of $5.20 billion, surpassing expectations of $5.07 billion [1][2] - Despite strong earnings and revenue growth, operating cash flow declined by 20.7% year-over-year to $510 million, primarily due to increased working capital [1][7] - The company is focusing on five core areas for growth, including expansion in Asian markets, managing supply chain risks, and pursuing sustainability [4] Financial Performance - Adjusted operating income rose to $628 million, a 3.6% increase from the prior year, with margins expanding to 12.1% [2][6] - Revenue from the Electrical Distribution Systems segment increased by 7% year-over-year to $2.21 billion, while the Engineered Components Group saw a 6% growth to $1.72 billion [5][6] - Adjusted EBITDA reached $821 million, reflecting a margin of 15.8% [6] Regional Sales Trends - Asia recorded a 4% sales growth, but China experienced a 1% decline, indicating a shift in demand dynamics [8] - North and South America both achieved 3% year-over-year revenue increases, while Europe saw a 1% decline [8] Strategic Initiatives - The company is planning a spin-off of its Electrical Distribution Systems business, expected to close by March 2026, with associated separation costs of $28 million [9] - Aptiv emphasizes innovation in automotive technology, particularly in integrating AI into advanced driver assistance systems [10] Future Guidance - For Q3 2025, Aptiv anticipates net sales between $4.95 and $5.10 billion and adjusted EPS in the range of $1.60 to $1.80 [11] - Full-year 2025 guidance projects sales of $20.0 to $20.3 billion and adjusted EPS of $7.30 to $7.60 [11]

[Part I - Financial Information](index=4&type=section&id=Part%20I%20-%20Financial%20Information) This section provides a comprehensive overview of Aptiv PLC's financial performance and position for the periods ended June 30, 2025 [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Aptiv PLC's unaudited consolidated financial statements, including statements of operations, balance sheets, cash flows, and detailed notes [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Aptiv reported a 3% year-over-year increase in Q2 2025 net sales to $5,208 million, with net income significantly decreasing due to lower equity method gains Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $5,208M | $5,051M | $10,033M | $9,952M | | **Operating income** | $486M | $441M | $934M | $860M | | **Net income attributable to Aptiv** | $393M | $938M | $382M | $1,156M | | **Diluted net income per share** | $1.80 | $3.47 | $1.70 | $4.24 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Aptiv's total assets slightly increased to $23,942 million, while total liabilities decreased, leading to an increase in shareholders' equity Consolidated Balance Sheet Summary (Unaudited) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $8,373M | $7,826M | | **Total assets** | $23,942M | $23,458M | | **Total current liabilities** | $4,751M | $5,131M | | **Total liabilities** | $13,967M | $14,373M | | **Total Aptiv shareholders' equity** | $9,690M | $8,796M | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to $783 million for H1 2025, while investing activities used less cash and financing activities used more due to debt repayments Consolidated Cash Flow Summary (Unaudited) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $783M | $887M | | **Net cash used in investing activities** | ($212M) | ($829M) | | **Net cash used in financing activities** | ($732M) | ($264M) | | **Decrease in cash, cash equivalents and restricted cash** | ($125M) | ($231M) | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail Aptiv's accounting policies, including a corporate reorganization, planned spin-off of Electrical Distribution Systems, and Motional JV restructuring - In December 2024, the company completed a reorganization, establishing a new Swiss tax-resident parent company, **Aptiv PLC**[24](index=24&type=chunk) - The company announced its intention to separate its Electrical Distribution Systems business into a new, independent public company via a tax-free spin-off, expected to be completed by **March 31, 2026**[30](index=30&type=chunk)[230](index=230&type=chunk) - In Q1 2025, Aptiv realigned its business into three new reportable segments: **Electrical Distribution Systems, Engineered Components Group, and Advanced Safety and User Experience**[31](index=31&type=chunk)[182](index=182&type=chunk) - Restructuring charges of **$52 million** and **$89 million** were recorded for the three and six months ended June 30, 2025, respectively, mainly for global workforce optimization and downsizing European manufacturing[75](index=75&type=chunk) - The company fully repaid the remaining **$250 million** balance of its Term Loan A in Q1 2025[92](index=92&type=chunk) - Final settlement of the **$3.0 billion** Accelerated Share Repurchase (ASR) program occurred in H1 2025, with a total of **48.5 million shares** repurchased at an average price of **$61.84**[134](index=134&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Aptiv's financial performance, strategic initiatives, and segment results, highlighting revenue growth, the planned spin-off, and liquidity [Executive Overview](index=52&type=section&id=Executive%20Overview) Aptiv reported a 3% increase in Q2 2025 net sales, driven by strategic focus on electrification and software-defined vehicles, and a planned spin-off - Announced intention to pursue a tax-free spin-off of the Electrical Distribution Systems business, expected to complete by **March 31, 2026**, incurring **$28 million** and **$47 million** in related separation costs in Q2 and H1 2025, respectively[241](index=241&type=chunk) - Restructured its Motional JV with Hyundai, reducing its common equity interest from **50% to approximately 13%** and eliminating future funding obligations from Aptiv[259](index=259&type=chunk) - Q2 2025 net sales grew **3% to $5.2 billion**, with volumes up **2%**, reflecting growth in Asia Pacific and North America, partially offset by declines in Europe[243](index=243&type=chunk) - The company is focused on maintaining a low fixed cost structure, with approximately **97% of its hourly workforce in best-cost countries** and **30% being contingent workers**, providing operational flexibility[276](index=276&type=chunk) [Consolidated Results of Operations](index=58&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2025 net sales increased 3% to $5.2 billion, but net income dropped significantly due to lower equity method gains and higher H1 2025 tax expense Net Sales Variance Analysis - Q2 2025 vs Q2 2024 | Variance Driver | Amount (in millions) | | :--- | :--- | | Volume, net of contractual price reductions | $96 | | FX | $38 | | Commodity pass-through | $23 | | **Total Favorable Variance** | **$157** | Net Sales Variance Analysis - H1 2025 vs H1 2024 | Variance Driver | Amount (in millions) | | :--- | :--- | | Volume, net of contractual price reductions | $54 | | FX | ($26) | | Commodity pass-through | $53 | | **Total Favorable Variance** | **$81** | - Restructuring costs decreased to **$52 million** in Q2 2025 from **$70 million** in Q2 2024[297](index=297&type=chunk) - Net gain on equity method transactions was **$46 million** in Q2 2025, compared to **$641 million** in Q2 2024, which included large gains from the Motional JV restructuring[306](index=306&type=chunk)[307](index=307&type=chunk) - H1 2025 income tax expense surged to **$401 million** from **$127 million**, primarily due to a **$294 million** increase in valuation allowance against a Swiss tax incentive, following new OECD Pillar Two guidance[309](index=309&type=chunk)[312](index=312&type=chunk) [Results of Operations by Segment](index=65&type=section&id=Results%20of%20Operations%20by%20Segment) Electrical Distribution Systems and Engineered Components Group saw sales growth in Q2 2025, while Advanced Safety and User Experience sales declined Net Sales by Segment - Q2 2025 vs Q2 2024 | Segment | Q2 2025 Net Sales | Q2 2024 Net Sales | % Change | | :--- | :--- | :--- | :--- | | Electrical Distribution Systems | $2,206M | $2,065M | +7% | | Engineered Components Group | $1,723M | $1,626M | +6% | | Advanced Safety and User Experience | $1,507M | $1,554M | -3% | Adjusted Operating Income by Segment - Q2 2025 vs Q2 2024 | Segment | Q2 2025 Adj. Op. Income | Q2 2024 Adj. Op. Income | Change | | :--- | :--- | :--- | :--- | | Electrical Distribution Systems | $163M | $138M | +$25M | | Engineered Components Group | $287M | $298M | -$11M | | Advanced Safety and User Experience | $178M | $170M | +$8M | [Liquidity and Capital Resources](index=68&type=section&id=Liquidity%20and%20Capital%20Resources) Aptiv maintains approximately $4.0 billion in liquidity, having completed its ASR program and repaid Term Loan A in H1 2025 Available Liquidity as of June 30, 2025 | Source | Amount (in millions) | | :--- | :--- | | Cash and cash equivalents | $1,448 | | Revolving Credit Facility, unutilized portion | $1,999 | | Committed European accounts receivable factoring facility, unutilized portion | $527 | | **Total available liquidity** | **$3,974** | - Completed the final settlement of the **$3.0 billion** Accelerated Share Repurchase (ASR) program during H1 2025[332](index=332&type=chunk) - Fully repaid the remaining **$250 million** outstanding principal balance on the Term Loan A in Q1 2025[356](index=356&type=chunk) - Net cash provided by operating activities was **$783 million** for the six months ended June 30, 2025, down from **$887 million** in the prior year period[372](index=372&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk exposures were reported, with the company continuing to hedge foreign currency risks using derivative and non-derivative instruments - There have been no material changes to market risk exposures from the 2024 year-end report[379](index=379&type=chunk) - The company continues to use derivative and non-derivative instruments to hedge foreign currency risks related to its net investments in non-U.S. subsidiaries[379](index=379&type=chunk) [Controls and Procedures](index=75&type=section&id=Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal controls - Management concluded that as of **June 30, 2025**, the company's disclosure controls and procedures were effective[382](index=382&type=chunk) - No material changes in internal controls over financial reporting were identified during the quarter[383](index=383&type=chunk) [Part II - Other Information](index=76&type=section&id=Part%20II%20-%20Other%20Information) This section covers legal proceedings, risk factors, equity security sales, and other disclosures for Aptiv PLC [Legal Proceedings](index=76&type=section&id=Legal%20Proceedings) Aptiv is subject to various legal actions and claims incidental to its business, with details available in its 2024 Form 10-K and Note 10 - Aptiv is subject to various legal actions and claims incidental to its business, including those related to defects, contracts, warranties, and intellectual property[385](index=385&type=chunk) [Risk Factors](index=76&type=section&id=Risk%20Factors) No material changes to the company's risk factors were reported for this quarter, beyond those previously disclosed in the Q1 2025 Form 10-Q - No material changes to risk factors are reported for this quarter, beyond what was disclosed in the Q1 2025 10-Q[386](index=386&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company received a final settlement of shares under its ASR agreements in Q2 2025, with approximately $2.515 billion remaining for future repurchases - In Q2 2025, the company received **6,075,290 shares** as part of the final settlement of its Accelerated Share Repurchase (ASR) agreements[387](index=387&type=chunk) - As of **June 30, 2025**, approximately **$2.515 billion** remained available under the company's share repurchase program[387](index=387&type=chunk)[388](index=388&type=chunk) [Other Information](index=76&type=section&id=Other%20Information) Two executive officers adopted Rule 10b5-1 trading plans for potential share sales during Q2 2025, with no other trading arrangement changes - Executive Vice President **Obed D. Louissaint** adopted a Rule 10b5-1 trading plan on **May 9, 2025**, for the sale of up to **12,000 ordinary shares**[391](index=391&type=chunk) - Vice Chairman **Joseph R. Massaro** adopted a Rule 10b5-1 trading plan on **May 22, 2025**, for the sale of up to **35,000 ordinary shares**[391](index=391&type=chunk)

Core Insights - Aptiv PLC (APTV) reported better-than-expected second-quarter 2025 results with adjusted earnings of $2.12 per share, beating the Zacks Consensus Estimate by 18.4% and increasing 34.2% year over year. Revenues reached $5.21 billion, surpassing the Zacks Consensus Estimate by 3.5% and rising 3.1% year over year [1][9]. Revenue Performance - Adjusted revenues improved 2% year over year, with a 1% decline in Europe, while North America and South America both grew by 3%. Asia saw a 4% increase, despite a 1% decline in China [2]. - The Electrical Distribution Systems and Engineered Components Group reported revenues of $2.21 billion and $1.72 billion, rising 7% and 6% year over year, respectively. However, the Advanced Safety and User Experience segment's revenues declined by 3% to $1.5 billion [3]. Operating Income and Cash Flow - Adjusted operating income was $628 million, up 3.6% from the previous year, with an adjusted operating income margin of 9.3%, an increase of 60 basis points year over year [3]. - The company generated $510 million in cash from operating activities in the quarter, totaling $783 million for the first half of 2025, compared to $887 million in the prior-year period [4]. Future Outlook - For Q3 2025, Aptiv expects revenues between $4.95 billion and $5.10 billion, exceeding the current Zacks Consensus Estimate of $4.91 billion. Adjusted EPS is anticipated to be between $1.6 and $1.8, slightly lower than the current estimate of $1.81 [5]. - For the full year 2025, Aptiv projects revenues between $20 billion and $20.3 billion, above the current Zacks Consensus Estimate of $19.70 billion. Adjusted EPS is expected to range from $7.3 to $7.6 per share, compared to the current estimate of $7.23 [6].

Core Insights - Aptiv PLC reported revenue of $5.21 billion for the quarter ended June 2025, reflecting a year-over-year increase of 3.1% and a surprise of +3.51% over the Zacks Consensus Estimate of $5.03 billion [1] - The earnings per share (EPS) for the quarter was $2.12, compared to $1.58 in the same quarter last year, resulting in an EPS surprise of +18.44% against the consensus estimate of $1.79 [1] Financial Performance Metrics - Net Sales- Eliminations and Other reported at $-228 million, significantly worse than the estimated $-145.91 million, marking a year-over-year change of +1420% [4] - Net Sales- Advanced Safety and User Experience was $1.51 billion, slightly below the average estimate of $1.59 billion, representing a -3% change year over year [4] - Adjusted Operating Income for Advanced Safety and User Experience was $178 million, exceeding the average estimate of $169.47 million [4] Stock Performance - Shares of Aptiv have returned -7.6% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $5.2 billion, reflecting a 2% year-over-year growth on an adjusted basis [18] - Operating income totaled $628 million, with a 34% increase in earnings per share to $2.12, driven by higher operating income and share repurchases [9][19] - Operating cash flow was $510 million, contributing to a strong balance sheet with over $1.4 billion in cash [24] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience (ASUX) segment revenues declined by 3% to approximately $1.5 billion, impacted by legacy program roll-offs and production slowdowns in China [20][22] - Engineered Components Group (ECG) revenues increased by 5% to $1.7 billion, driven by growth in Europe and local Chinese OEMs [22] - Electrical Distribution Systems (EDS) segment revenues also grew by 5% to $2.2 billion, with strong volume growth in North America and Asia Pacific [24] Market Data and Key Metrics Changes - In North America, revenue grew by 3% despite a year-over-year decline in vehicle production, driven by active safety and electrified programs [20] - European revenue decreased by 1%, slightly better than vehicle production trends, while revenue in China also declined by 1% due to unfavorable customer mix [20] Company Strategy and Development Direction - The company is focused on maximizing shareholder value through the spin-off of Electrical Distribution Systems, which is on track for completion [8] - The strategic emphasis is on electrification, automation, and digitalization trends across multiple industries, with a resilient business model that allows for efficient operations [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential consumer demand weakening in the second half of the year due to evolving trade and regulatory policies [16][29] - The company remains confident in its ability to navigate the dynamic environment and deliver strong financial results [30] Other Important Information - The company received the Volkswagen Group Award for Resilient Supply Chains, highlighting its effective supply chain management [7] - New business bookings totaled $5.4 billion, positioning the company for strong future growth [10] Q&A Session Summary Question: Visibility for Q4 production - Management indicated that they have a fairly firm visibility on schedules through the end of the year, with no significant changes observed recently [36] Question: Content opportunities from shifting vehicle mix - Management noted that they have already seen a shift towards larger vehicles, which has helped offset the slowdown in EV adoption [40] Question: Bookings target visibility - Management expressed high confidence in achieving the $31 billion bookings target, despite some delays in finalizing awards due to the current environment [44] Question: Growth in non-automotive sectors - Management reported strong growth in industrial sectors, expecting solid double-digit growth in the back half of the year [48] Question: Implied growth assumptions for the second half - Management highlighted that growth in the second half is expected to be driven by the ASUX and EDS segments, with multiple program launches contributing to this growth [55] Question: Clarification on pull forward of demand - Management clarified that the pull forward of demand relates to both customer schedules and actual vehicle production [64] Question: Margin expectations for ECG - Management indicated that ECG margins are expected to recover in the second half of the year, despite facing headwinds from FX and commodity prices [82] Question: Impact of copper tariffs - Management stated that the impact of copper tariffs is manageable and that they have been in discussions with customers regarding potential cost pass-throughs [104]

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $5.2 billion, reflecting a 2% year-over-year growth [18] - Operating income totaled $628 million, with a record earnings per share of $2.12, marking a 34% increase [7][19] - Operating cash flow was $510 million, contributing to a strong balance sheet and capital allocation flexibility [7][24] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience (ASUX) segment revenues declined by 3%, impacted by the roll-off of legacy programs and production slowdowns in China [9][20] - Engineered Components Group (ECG) revenues increased by 5%, driven by growth in Europe and local Chinese OEMs [22] - Electrical Distribution Systems (EDS) segment revenues also grew by 5%, supported by strong volume growth in North America and Asia Pacific [27] Market Data and Key Metrics Changes - In North America, revenue grew by 3% despite a year-on-year decline in vehicle production, driven by active safety and electrified programs [20] - European revenues decreased by 1%, slightly better than vehicle production trends, while revenues in China also declined by 1% due to unfavorable customer mix [20] Company Strategy and Development Direction - The company is focused on maximizing shareholder value, with plans for the spin-off of Electrical Distribution Systems on track [6] - The strategic emphasis is on electrification, automation, and digitalization trends across multiple industries, enhancing competitive positioning [5] - The company aims to optimize operational efficiency and cost structure to remain agile in a dynamic market environment [5] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential consumer demand weakening in the second half of the year due to evolving trade and regulatory policies [17] - The company remains confident in its ability to navigate the dynamic environment and deliver strong financial results [32] - Future guidance reflects a conservative outlook, anticipating a 3% decline in global vehicle production for the full year 2025 [25] Other Important Information - The company received the Volkswagen Group Award for Resilient Supply Chains, highlighting its effective supply chain management [6] - New business bookings totaled $5.4 billion, positioning the company for strong future growth [8] Q&A Session Summary Question: Visibility for Q4 production - Management indicated that they have reasonable visibility into production schedules, with a conservative outlook for the second half of the year due to market dynamics [35][36] Question: Content opportunities from shifting vehicle mix - Management noted that they have already seen a shift towards larger vehicles, which has provided content opportunities despite a slowdown in EV adoption [38] Question: Bookings target visibility - Management expressed confidence in achieving the $31 billion bookings target, despite a challenging macro backdrop [41][42] Question: Growth in non-automotive sectors - Management reported strong growth in industrial, aerospace, and defense sectors, with expectations for solid double-digit growth in the back half of the year [45][46] Question: Assumptions for second half growth - Management highlighted that growth in the second half will be driven by ongoing ADAS program launches and strong performance in the EDS business [52][53] Question: Capital allocation post-EDS spin - Management clarified that they will focus on M&A opportunities in engineered components and ASUX sectors while maintaining manageable leverage [56][57]

Group 1 - APTIV PLC reported quarterly earnings of $2.12 per share, exceeding the Zacks Consensus Estimate of $1.79 per share, and up from $1.58 per share a year ago, representing an earnings surprise of +18.44% [1] - The company achieved revenues of $5.21 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.51%, compared to revenues of $5.05 billion in the same quarter last year [2] - APTIV HLDS LTD has outperformed the S&P 500, with shares increasing about 10.3% since the beginning of the year, compared to the S&P 500's gain of 8.2% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $1.81 on revenues of $4.91 billion, and for the current fiscal year, it is $7.23 on revenues of $19.7 billion [7] - The Zacks Industry Rank for Automotive - Original Equipment is in the top 33% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Revenue reached $5.2 billion, with an adjusted growth of 2% year-over-year, driven by strong volumes in North America and Asia-Pacific[4] - Operating income increased by 4% year-over-year to $628 million, attributed to volume flow and operating performance offsetting foreign exchange and commodities headwinds[4] - Adjusted EPS rose by 34% year-over-year to $2.12, due to higher operating income and proactive capital allocation actions[4] - Operating cash flow amounted to $510 million, bolstering the balance sheet and providing flexibility for capital allocation[4] New Business and Market Trends - The company secured $5.4 billion in new business awards, leveraging trends in electrification, automation, and digitalization[3] - Bookings showed quarter-over-quarter growth despite heightened macro uncertainty, with awards across a diversified mix of customers and end markets[12] - 85% of year-to-date China bookings are with local Original Equipment Manufacturers (OEMs)[12] Segment Performance - Electrical Distribution Systems (EDS) revenue grew by 5% adjusted, with strong volume growth in North America and Asia-Pacific[30, 31] - Engineered Components Group (ECG) revenue increased by 5% adjusted, driven by growth in Asia-Pacific and Europe[30] - Advanced Safety & User Experience (AS&UX) revenue decreased by 3% adjusted, due to the roll-off of legacy UX platforms and lower volumes with local China OEMs[30] Full Year 2025 Outlook - The company anticipates full year 2025 adjusted revenue growth of 2%[37] - Full year 2025 operating cash flow is expected to be approximately $2 billion[37]

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) The company achieved record Q2 2025 revenue, adjusted operating earnings, and adjusted earnings per share Q2 2025 Financial Highlights | Metric | Value | Notes | | :--- | :--- | :--- | | U.S. GAAP Revenue | $5.2 billion | 3% increase YoY | | Adjusted Revenue Growth | 2% | Adjusted for currency and commodities | | U.S. GAAP Net Income | $393 million | Margin of 7.5% | | U.S. GAAP Diluted EPS | $1.80 | - | | Adjusted Diluted EPS | $2.12 | - | | Adjusted Operating Income | $628 million | Margin of 12.1% | | Adjusted EBITDA | $821 million | Margin of 15.8% | | Cash from Operations | $510 million | - | [Year-to-Date 2025 Highlights](index=1&type=section&id=Year-to-Date%202025%20Highlights) Year-to-date revenue grew 1% to $10.0 billion, with adjusted EPS reaching $3.80 and strong cash from operations Year-to-Date 2025 Financial Highlights | Metric | Value | Notes | | :--- | :--- | :--- | | U.S. GAAP Revenue | $10.0 billion | 1% increase YoY | | Adjusted Revenue Growth | 1% | Adjusted for currency and commodities | | U.S. GAAP Net Income | $382 million | Margin of 3.8% | | U.S. GAAP Diluted EPS | $1.70 | - | | Adjusted Diluted EPS | $3.80 | - | | Adjusted Operating Income | $1,200 million | Margin of 12.0% | | Adjusted EBITDA | $1,579 million | Margin of 15.7% | | Cash from Operations | $783 million | - | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) The CEO attributed record Q2 results to a resilient business model and expressed confidence in long-term growth - The CEO highlighted the company's **resilient business model and operational execution** as key drivers for the record financial results[6](index=6&type=chunk) - Continued customer demand for solutions in **electrification, automation, and digitalization** is expected to fuel long-term growth[6](index=6&type=chunk) [Detailed Financial Results](index=2&type=section&id=Detailed%20Financial%20Results) [Second Quarter 2025 Results](index=2&type=section&id=Second%20Quarter%202025%20Results) Q2 2025 revenue grew 3% to $5.2 billion, driven by Asia and North America, with an improved adjusted operating income margin of 12.1% - Revenue growth was geographically diverse, with a **4% increase in Asia** and **3% in North America**, partially offset by a 1% decline in Europe[6](index=6&type=chunk) - **Interest expense rose to $91 million** from $64 million YoY, mainly due to debt transactions to finance the share repurchase program[9](index=9&type=chunk) Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | U.S. GAAP Revenue | $5.2B | $5.05B | | U.S. GAAP Net Income | $393M | $938M | | Adjusted Net Income | $463M | $428M | | Adjusted EPS | $2.12 | $1.58 | | Adjusted Operating Income | $628M | $606M | | Adjusted Op. Income Margin | 12.1% | 12.0% | [Year-to-Date 2025 Results](index=2&type=section&id=Year-to-Date%202025%20Results) For the first half of 2025, revenue increased 1% to $10.0 billion, with adjusted operating income margin improving to 12.0% - Tax expense for the first half of 2025 was $401 million, which includes a **valuation allowance increase of approximately $300 million** on deferred tax assets[15](index=15&type=chunk) - As of June 30, 2025, the company maintained a strong liquidity position with **$1.4 billion in cash** and **$4.0 billion in total available liquidity**[16](index=16&type=chunk) YTD 2025 vs YTD 2024 Performance | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | U.S. GAAP Revenue | $10.0B | $9.95B | | U.S. GAAP Net Income | $382M | $1,156M | | Adjusted Net Income | $853M | $746M | | Adjusted EPS | $3.80 | $2.73 | | Adjusted Operating Income | $1,200M | $1,150M | | Adjusted Op. Income Margin | 12.0% | 11.6% | [Capital Allocation](index=3&type=section&id=Capital%20Allocation) [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) The company completed its Accelerated Share Repurchase program in Q2, buying back 48.5 million shares in total - The **Accelerated Share Repurchase (ASR) program was completed** in Q2 2025[18](index=18&type=chunk) ASR Program Summary | Metric | Value | | :--- | :--- | | Total Shares Received | 48.5 million | | Average Price Per Share | $61.84 | | Remaining Authorization | $2.52 billion | [Business Outlook](index=3&type=section&id=Business%20Outlook) [Q3 and Full Year 2025 Outlook](index=3&type=section&id=Q3%20and%20Full%20Year%202025%20Outlook) Aptiv forecasts full-year 2025 net sales between $20.0 billion and $20.3 billion and adjusted EPS of $7.30 to $7.60 - The financial guidance includes **potential impacts from recently imposed U.S. government tariffs** but not potential retaliatory actions[19](index=19&type=chunk) - The full-year 2025 guidance includes an anticipated **negative impact of approximately $0.20 per diluted share** from equity losses related to the Motional joint venture[20](index=20&type=chunk) Full Year 2025 Financial Guidance | Metric | Full Year 2025 Range | | :--- | :--- | | Net Sales | $20,000M - $20,300M | | Adjusted Operating Income | $2,370M - $2,470M | | Adjusted Operating Income Margin | 11.9% - 12.2% | | Adjusted EBITDA | $3,135M - $3,235M | | Adjusted Net Income Per Share | $7.30 - $7.60 | | Cash Flow from Operations | ~$2,000M | [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 net income decreased significantly year-over-year due to a large prior-year gain on equity method transactions Key Income Statement Data (in millions) | Line Item | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $5,208 | $5,051 | $10,033 | $9,952 | | Operating income | $486 | $441 | $934 | $860 | | Net gain on equity method transactions | $46 | $641 | $46 | $641 | | Net income attributable to Aptiv | $393 | $938 | $382 | $1,156 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $23.9 billion while total liabilities decreased, strengthening the company's equity position Key Balance Sheet Data (in millions) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,448 | $1,573 | | Total current assets | $8,373 | $7,826 | | Total assets | $23,942 | $23,458 | | Total current liabilities | $4,751 | $5,131 | | Long-term debt | $7,758 | $7,843 | | Total liabilities | $13,967 | $14,373 | | Total shareholders' equity | $9,872 | $8,993 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The company generated $783 million in cash from operations in the first half of 2025, down from the prior year Key Cash Flow Data - Six Months Ended June 30 (in millions) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $783 | $887 | | Capital expenditures | ($346) | ($491) | | Net cash used in investing activities | ($212) | ($829) | | Net cash used in financing activities | ($732) | ($264) | | Decrease in cash, cash equivalents and restricted cash | ($125) | ($231) | [Supplemental Information](index=10&type=section&id=Supplemental%20Information) [Segment Summary](index=10&type=section&id=Segment%20Summary) In Q2 2025, revenue growth was led by the Electrical Distribution Systems and Engineered Components Group segments Q2 2025 Segment Performance (in millions) | Segment | Net Sales | % Change | Adj. Operating Income | % Change | | :--- | :--- | :--- | :--- | :--- | | Electrical Distribution Systems | $2,206 | 7% | $163 | 18% | | Engineered Components Group | $1,723 | 6% | $287 | (4)% | | Advanced Safety and User Experience | $1,507 | (3)% | $178 | 5% | [Reconciliation of Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section details adjustments from GAAP to non-GAAP measures to enhance comparability of core operating performance - Management believes non-GAAP measures provide **improved comparability between periods** by excluding items not indicative of core operating performance[24](index=24&type=chunk)[42](index=42&type=chunk) Q2 2025 Reconciliation of Operating Income to Adjusted Operating Income (in millions) | Description | Amount | | :--- | :--- | | **Operating income (GAAP)** | **$486** | | Amortization | $53 | | Restructuring | $52 | | Separation costs | $28 | | Other acquisition and portfolio project costs | $6 | | Asset impairments | $4 | | Compensation expense related to acquisitions | $4 | | Gain on asset sale | ($5) | | **Adjusted operating income (Non-GAAP)** | **$628** | Q2 2025 Reconciliation of Net Income to Adjusted Net Income (in millions) | Description | Amount | | :--- | :--- | | **Net income attributable to Aptiv (GAAP)** | **$393** | | Amortization, Restructuring & other special items | $94 | | Net gain on equity method transactions | ($46) | | Tax impact of adjusting items | ($23) | | **Adjusted net income attributable to Aptiv (Non-GAAP)** | **$463** | [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The company's future projections are subject to significant risks including economic conditions and supply chain disruptions - The company **disclaims any obligation to update** forward-looking statements[28](index=28&type=chunk) - Identified risk factors include: **global economic conditions, supply chain disruptions, and changes in trade laws**[27](index=27&type=chunk)[28](index=28&type=chunk)