Aptiv(US:APTV)2025-05-01 20:11Financial Performance - Net sales for Q1 2025 were $4,825 million, a decrease of 1.5% compared to $4,901 million in Q1 2024[13] - Operating income increased to $448 million in Q1 2025, up 6.9% from $419 million in Q1 2024[13] - Net loss attributable to Aptiv was $11 million in Q1 2025, compared to a net income of $218 million in Q1 2024[13] - Comprehensive income attributable to Aptiv decreased to $152 million in Q1 2025 from $165 million in Q1 2024[15] - Segment adjusted operating income for Q1 2025 was $572 million, compared to $544 million in Q1 2024, indicating a 5.1% increase[180] - The company reported a net income of $224 million for the three months ended March 31, 2025, compared to $218 million in the same period of 2024, representing a slight increase of 2.8%[187] Cash and Assets - Cash and cash equivalents decreased to $1,100 million as of March 31, 2025, down from $1,573 million at the end of 2024[17] - Total assets decreased to $23,102 million as of March 31, 2025, compared to $23,458 million at the end of 2024[17] - Total current assets decreased to $659 million as of March 31, 2025, compared to $671 million as of December 31, 2024[64] - Total long-term assets decreased to $2,558 million as of March 31, 2025, down from $2,842 million as of December 31, 2024[65] - As of March 31, 2025, accounts receivable net of allowances was $3,549 million, including an allowance for doubtful accounts of $49 million[47] Liabilities and Equity - Total liabilities decreased to $13,848 million as of March 31, 2025, down from $14,373 million at the end of 2024[17] - As of March 31, 2025, Aptiv reported total shareholders' equity of $9,159 million, a decrease from $11,322 million as of March 31, 2024, reflecting a net loss of $11 million during the first quarter of 2025[21] - Total accrued liabilities decreased to $1,663 million as of March 31, 2025, from $1,752 million as of December 31, 2024[66] - As of March 31, 2025, total debt amounted to $7,887 million, a decrease from $8,352 million as of December 31, 2024, representing a reduction of approximately 5.6%[77] Capital Expenditures and Investments - Capital expenditures for Q1 2025 were $197 million, a decrease from $265 million in Q1 2024[20] - The Company acquired 85% of Intercable Automotive Solutions S.r.l. and has a right to purchase the remaining 15% starting in 2026, with redeemable noncontrolling interest recorded at $95 million as of March 31, 2025[35] - The Company invested approximately $11 million in StradVision in February 2025, bringing the total investment in StradVision to $117 million as of March 31, 2025[204] - The Company made an investment of approximately $57 million in Maxieye in September 2024, with an additional contingent investment of approximately $24 million pending technical milestones[205] Restructuring and Separation Plans - The company announced plans to separate its Electrical Distribution Systems business into a new publicly traded company, expected to be completed by March 31, 2026[30] - The company incurred costs of $19 million related to the planned separation of its Electrical Distribution Systems business during the three months ended March 31, 2025[208] - The company recorded restructuring charges totaling approximately $37 million for the three months ended March 31, 2025[72] - The company expects to incur additional restructuring costs of approximately $65 million within the next twelve months[73] Tax and Shareholder Information - For the three months ended March 31, 2025, the income tax expense was $356 million, with an effective tax rate of 100%, compared to an income tax expense of $76 million and an effective tax rate of 21% for the same period in 2024[119] - Basic net loss per share for the three months ended March 31, 2025, was $(0.05), compared to a net income per share of $0.79 for the same period in 2024[127] - During the three months ended March 31, 2025, Aptiv repurchased approximately 48.5 million ordinary shares at an average price of $61.84 per share under the accelerated share repurchase agreements[131] - As of March 31, 2025, approximately $2,515 million of share repurchases remained available under the July 2024 share repurchase program[133] Derivative Financial Instruments - As of March 31, 2025, Aptiv had outstanding notional amounts for cash flow hedges totaling approximately $2.1 billion, including $400 million for copper and $1.32 billion for Mexican Peso[138] - Net losses on cash flow hedges included in accumulated OCI as of March 31, 2025, were $46 million, with $33 million expected to be included in cost of sales within the next 12 months[140] - The fair value of Aptiv's derivative financial instruments was in a net liability position of $23 million as of March 31, 2025, compared to $96 million as of December 31, 2024[151] Segment Performance - The Electrical Distribution Systems segment generated $2,024 million in net sales for Q1 2025, down from $2,081 million in Q1 2024, a decrease of 2.7%[178] - The Engineered Components Group reported net sales of $1,581 million in Q1 2025, a decrease of 0.9% from $1,596 million in Q1 2024[178] - Advanced Safety and User Experience segment achieved net sales of $1,424 million in Q1 2025, slightly up from $1,429 million in Q1 2024, reflecting a marginal decline[178] Other Financial Metrics - The company recognized share-based compensation expense of $30 million for Q1 2025, compared to $25 million in Q1 2024, marking a 20% increase[177] - Unrecognized compensation expense on a pre-tax basis is approximately $285 million, expected to be recognized over a weighted average period of about two years[177] - The company recognized a total gain of approximately $641 million from the restructuring of its investment in Motional during the year ended December 31, 2024[197]