Aptiv(APTV) - 2024 Q4 - Annual Results

Business Separation and Strategic Focus - Aptiv plans to separate its Electrical Distribution Systems (EDS) business through a tax-free spin-off, creating two independent companies[1][2] - The separation aims to enhance strategic focus, capitalize on market opportunities, and create value for shareholders of both Aptiv and EDS[3][4] - The separation transaction is targeted for completion by March 31, 2026, subject to final board approval and other customary conditions[10] Financial Projections for Aptiv - The new Aptiv is expected to achieve mid-to-high single-digit revenue growth, low-to-mid teens GAAP operating income margins, and high-teens-to-low-twenties Adjusted EBITDA margins in the medium term[6] - Aptiv estimates 2024 revenues of $12.1 billion,$1.4 billion in GAAP operating income, and $2.3 billion in Adjusted EBITDA, excluding the EDS business[7] - Aptiv affirmed its full-year 2024 outlook, with fourth-quarter 2024 financial results to be released on February 6, 2025[11] Financial Projections for EDS - EDS is expected to generate mid-single-digit revenue growth, mid-to-high single-digit GAAP operating income margins, and high-single to low-double-digit Adjusted EBITDA margins in the medium term[9] - EDS estimates 2024 revenues of$8.3 billion, $0.4 billion in GAAP operating income, and$0.8 billion in Adjusted EBITDA, excluding the Aptiv business[9] Strategic Focus of the New Aptiv - The new Aptiv will focus on advanced software, hardware, compute, and interconnect solutions aligned with global mega trends like advanced safety, electrification, and digitalization[5] Strategic Focus of EDS - EDS will leverage its global scale and localized capabilities to optimize vehicle architecture systems, particularly for the growing electric vehicle market[8]