Aptiv(APTV) - 2025 Q2 - Quarterly Results

Financial Performance Summary Second Quarter 2025 Highlights 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 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 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] - Continued customer demand for solutions in electrification, automation, and digitalization is expected to fuel long-term growth[6] Detailed Financial Results Second Quarter 2025 Results 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] - Interest expense rose to $91 million from $64 million YoY, mainly due to debt transactions to finance the share repurchase program[9] 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 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] - 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] 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 Share Repurchase Program 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] ASR Program Summary | Metric | Value | | :--- | :--- | | Total Shares Received | 48.5 million | | Average Price Per Share | $61.84 | | Remaining Authorization | $2.52 billion | Business Outlook Q3 and Full Year 2025 Outlook 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] - 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] 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 Consolidated Statements of Operations 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 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 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 Segment Summary 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 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][42] 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 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] - Identified risk factors include: global economic conditions, supply chain disruptions, and changes in trade laws[27][28]