Aptiv(US:APTV)2025-10-30 20:15Financial 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]