Core Insights - Aptiv PLC reported strong fourth-quarter 2025 results with adjusted earnings of $1.86 per share, exceeding the Zacks Consensus Estimate by 2.2% and increasing 6.3% year over year. Revenues reached $5.15 billion, surpassing estimates by 1.5% and rising 5% year over year [2][9]. Financial Performance - The Electrical Distribution Systems and Engineered Components Group generated revenues of $2.30 billion and $1.64 billion, reflecting year-over-year increases of 8% and 4% respectively. The Advanced Safety and User Experience segment's revenues grew 3% year over year to $1.42 billion [3]. - Adjusted operating income was $607 million, a decrease of 2.6% from the previous year, while the adjusted operating income margin improved by 92 basis points to 11.78% [3]. Cash Flow and Debt - At the end of the quarter, Aptiv had a cash and cash equivalent balance of $1.85 billion, up from $1.57 billion at the end of December 2024. Long-term debt decreased to $7.47 billion from $7.84 billion [4]. - The company generated $2.19 billion in cash from operating activities in 2025, compared to $2.45 billion in 2024 [4]. Future Guidance - For Q1 2026, Aptiv expects revenues between $4.95 billion and $5.15 billion, with an adjusted EPS forecast of $1.55 to $1.75. The adjusted operating income margin is anticipated to be between $715 million and $765 million [5]. - For the full year 2026, Aptiv projects revenues of $21.12 billion to $21.82 billion and adjusted EPS between $8.15 and $8.75, both above current consensus estimates [6].

Core Insights - Aptiv PLC reported revenue of $5.15 billion for the quarter ended December 2025, reflecting a 5% increase year-over-year and surpassing the Zacks Consensus Estimate of $5.08 billion by 1.46% [1] - The company's earnings per share (EPS) was $1.86, an increase from $1.75 in the same quarter last year, and exceeded the consensus EPS estimate of $1.82 by 2.23% [1] Financial Performance Metrics - Net Sales- Eliminations and Other reported at $-212 million, significantly higher than the average estimate of $-144.22 million, marking a year-over-year change of +1313.3% [4] - Net Sales- Advanced Safety and User Experience reached $1.42 billion, slightly below the average estimate of $1.44 billion, with a year-over-year increase of +2.8% [4] - Adjusted Operating Income for Advanced Safety and User Experience was $161 million, compared to the average estimate of $174.86 million [4] Stock Performance - Shares of Aptiv have returned -3.4% over the past month, while the Zacks S&P 500 composite increased by +0.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported record fourth-quarter revenue of $5.2 billion, an increase of 3% year-over-year on an adjusted basis [6][17] - Adjusted Operating Income totaled $607 million, with earnings per share at $1.86, reflecting a 6% increase from the prior year [7][18] - Operating cash flow was $818 million, with over half allocated to share repurchases and debt reduction [7][21] Business Line Data and Key Metrics Changes - Intelligent Systems segment revenue was $1.4 billion, a 2% increase year-over-year, but operating income declined by 17% due to investments and unfavorable FX [19][20] - Engineered Components segment revenue increased by 1% to $1.6 billion, with operating income up 8% and margin expanding by 60 basis points [20] - Electrical Distribution Systems (EDS) segment revenue grew by 5% to $2.3 billion, although operating income declined by 2% due to FX and commodities headwinds [20] Market Data and Key Metrics Changes - North America saw an 8% revenue growth, with double-digit growth in both Intelligent Systems and EDS [18] - European revenue decreased by 1%, while China revenue fell by 5%, reflecting unfavorable mix impacts [19] - Approximately 80% of new business awards in China were from local OEMs, indicating a shift in customer dynamics [19] Company Strategy and Development Direction - The company is focusing on penetrating non-automotive markets, leveraging trends in automation, electrification, and digitalization [4][5] - A significant emphasis is placed on enhancing the product portfolio and operational capabilities, including the launch of new innovations and partnerships in robotics [8][12] - The upcoming spin-off of the EDS business into VersaGen is expected to unlock value and enhance focus on core operations [5][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment and highlighted the importance of operational efficiencies [4][30] - The outlook for 2026 includes expectations of revenue growth for both new Aptiv and VersaGen, with a focus on capturing higher-margin opportunities [23][26] - The company anticipates challenges from FX and commodity prices but remains optimistic about margin expansion in the long term [25][49] Other Important Information - The company finalized a leadership team for the EDS business, which is set to spin out as VersaGen on April 1 [5] - Full-year new business awards reached $27 billion, with expectations for 2026 bookings to exceed $30 billion [10][26] Q&A Session Summary Question: Insights on memory exposure and contract resets - The purchase value for memory is approximately $175 million, with expected low double-digit price increases in 2026 [35] Question: Guidance for new Aptiv into 2026 - The adjusted growth forecast for new Aptiv is 4%, with expectations for non-auto revenues to grow strongly [38][41] Question: EBITDA outlook for 2026 - EBITDA margins are expected to remain stable, with various factors impacting the outlook including commodity prices and investments [45][46] Question: Regional revenue performance expectations - North America is expected to lead revenue growth, while Europe may remain flat and China is anticipated to improve in the second half of the year [56] Question: Impact of EV volumes on VersaGen growth - The company expects EV growth of approximately 15% year-over-year, primarily driven by China [79]

Financial Data and Key Metrics Changes - The company reported record fourth-quarter revenue of $5.2 billion, an increase of 3% year-over-year on an adjusted basis [6][19] - Adjusted Operating Income totaled $607 million, with earnings per share at $1.86, reflecting a 6% increase from the prior year [7][20] - Operating cash flow was $818 million, with over half allocated to share repurchases and debt reduction [7][24] Business Line Data and Key Metrics Changes - Intelligent Systems segment revenue was $1.4 billion, a 2% increase year-over-year, but operating income declined by 17% due to investments and unfavorable FX [22][23] - Engineered Components segment revenue increased by 1% to $1.6 billion, with operating income up 8% and margin expanding by 60 basis points [23] - Electrical Distribution Systems (EDS) segment revenue grew by 5% to $2.3 billion, although operating income declined by 2% due to FX and commodities headwinds [23] Market Data and Key Metrics Changes - North America saw an 8% revenue growth, with double-digit growth in both Intelligent Systems and EDS [21] - European revenue decreased by 1%, while China revenue fell by 5%, reflecting unfavorable mix impacts [22] - New business awards in China totaled $5 billion, with significant contributions from local OEMs [10] Company Strategy and Development Direction - The company is focusing on penetrating non-automotive markets, leveraging trends in automation, electrification, and digitalization [4][5] - A spin-off of the Electrical Distribution Systems business into VersaGen is planned for April 1, 2026, aimed at enhancing shareholder value [5][10] - Continued investment in product innovation and operational efficiencies is emphasized to capture higher growth and margin opportunities [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment and highlighted strong bookings across segments [4][35] - The outlook for 2026 includes expected revenue growth for both new Aptiv and VersaGen, with a focus on operational improvements and cost optimization [26][30] - Management acknowledged challenges from FX and commodity prices but remains optimistic about margin expansion in the long term [57][58] Other Important Information - The company generated $27 billion in new business awards for the full year, with a strong pipeline of commercial opportunities expected to increase in 2026 [10][18] - The company is committed to returning excess cash to shareholders, having repurchased approximately $3.5 billion in shares since Q3 2024 [25] Q&A Session Summary Question: Insights on memory exposure and contract resets - Management indicated that memory costs are approximately $175 million, with low double-digit price increases expected in 2026, and confidence in passing costs to OEM customers [38][39] Question: Guidance for new Aptiv into 2026 - Management reaffirmed the 4-7% growth target remains intact, with expectations for non-auto revenues to grow strongly [42][45] Question: EBITDA outlook for 2026 - Management provided a detailed breakdown of expected margin impacts, including commodity costs and investments in non-auto business growth [49][51] Question: Regional revenue performance expectations - Management expects North America to lead revenue growth, with flat to slightly down performance in Europe and improved performance in China [58][60] Question: Impact of EV volumes on VersaGen growth - Management anticipates 15% year-over-year growth in EVs, primarily driven by China, despite lower growth expectations in North America [84]

Financial Data and Key Metrics Changes - Aptiv reported record fourth-quarter revenue of $5.2 billion, an increase of 3% year-over-year on an adjusted basis [5][18] - Adjusted Operating Income totaled $607 million, with earnings per share at $1.86, reflecting a 6% increase from the prior year [6][19] - Operating cash flow was $818 million, with over half allocated to share repurchases and debt reduction [6][19] Business Line Data and Key Metrics Changes - Intelligent Systems segment revenue was $1.4 billion, up 2% year-over-year, but operating income declined 17% due to investments and unfavorable FX [20][21] - Engineered Components segment revenue increased by 1% to $1.6 billion, with operating income rising 8% and margin expanding by 60 basis points [21] - Electrical Distribution Systems (EDS) revenue grew 5% to $2.3 billion, but operating income declined 2% due to FX and commodity headwinds [21] Market Data and Key Metrics Changes - North America saw an 8% revenue growth, while Europe experienced a 1% decline, and China revenue decreased by 5% [19][20] - New business bookings in China totaled $5 billion, with almost $4 billion from local OEMs, and new business awards in non-automotive markets reached over $4 billion [10][20] Company Strategy and Development Direction - The company is focusing on penetrating non-automotive markets, leveraging trends in automation, electrification, and digitalization [4][5] - Aptiv plans to spin out its Electrical Distribution Systems business as VersaGen on April 1, 2026, aiming to enhance shareholder value [5][10] - The company is committed to optimizing its cost structure and eliminating stranded costs associated with the spin-off [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment and capturing higher growth opportunities across multiple end markets [34] - The outlook for 2026 includes revenue guidance for new Aptiv in the range of $12.8-$13.2 billion, reflecting a 4% growth at the midpoint [25] - Management acknowledged challenges from FX and commodity prices but remains optimistic about margin expansion in the long term [56] Other Important Information - The company generated over $2 billion in operating cash flow for the full year, leading to a year-end cash balance of $1.9 billion [23] - Capital allocation efforts included retiring $1 billion in debt and deploying $400 million towards share repurchases [23][24] Q&A Session Summary Question: Insights on memory exposure and contract resets - Management indicated that memory costs are approximately $175 million, with low double-digit price increases expected in 2026, and confidence in negotiating cost recoveries with OEM customers [37][38] Question: Guidance for new Aptiv into 2026 - Management clarified that the 4% growth guidance is influenced by global vehicle production expectations, with strong growth anticipated in non-auto revenues [41][42] Question: EBITDA outlook for 2026 - Management provided a framework indicating stable margins with various factors impacting EBITDA, including commodity prices and investments in non-auto business growth [48][50] Question: Regional revenue performance expectations - Management expects North America to lead revenue growth, with Europe flat to slightly down and improved performance anticipated in China [58][59] Question: Impact of EV volumes on VersaGen growth - Management projected a 15% year-over-year growth in EVs, primarily driven by China, despite lower growth expectations in North America [83]

分组1 - APTIV PLC reported quarterly earnings of $1.86 per share, exceeding the Zacks Consensus Estimate of $1.82 per share, and showing an increase from $1.75 per share a year ago, resulting in an earnings surprise of +2.23% [1] - The company achieved revenues of $5.15 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.46%, and up from $4.91 billion year-over-year [2] - APTIV has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market with a loss of about 0.5% since the beginning of the year, compared to the S&P 500's gain of 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $1.94 on revenues of $4.99 billion, and for the current fiscal year, it is $8.18 on revenues of $21.05 billion [7] - The Zacks Industry Rank for Automotive - Original Equipment is in the bottom 38% of over 250 Zacks industries, suggesting potential challenges for the sector [8]

February 2, 2026 APTIV Fourth Quarter 2025 Earnings Call Forward-Looking Statements This presentation, as well as other statements made by Aptiv PLC (the "Company"), contain forward-looking statements that reflect, when made, the Company's current views with respect to current events, certain investments and acquisitions and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may caus ...

Financial Guidance - For Q1 2026, the company expects earnings between $0.60 and $0.80 per share, adjusted earnings between $1.55 and $1.75 per share, and net sales between $4.95 billion and $5.15 billion [1] - For fiscal 2026, the company projects earnings between $5.75 and $6.36 per share, adjusted earnings between $8.15 and $8.75 per share, and net sales between $21.12 billion and $21.82 billion [2] Analyst Expectations - Analysts expect the company to report earnings of $1.91 per share on revenues of $5.05 billion for the quarter, excluding special items [2] - For the full year 2026, the Street anticipates earnings of $8.49 per share on revenues of $21.19 billion [2] Corporate Strategy - The company is working towards the spin-off of its EDS as Versigent, aiming to create two independent companies with increased flexibility for market opportunities and capital allocation strategies [3] Stock Performance - In pre-market trading, the company's stock is priced at $73.49, reflecting a decrease of $2.30 or 3.03 percent [3]

Revenue Performance - Full year 2025 revenue reached $20.4 billion, an increase of 3% compared to the previous year[6] - Fourth quarter 2025 revenue was $5.2 billion, reflecting a 5% increase year-over-year, with adjusted growth of 3% after accounting for currency and commodity impacts[7] - Net sales for Q4 2025 reached $5,153 million, a 5% increase from $4,907 million in Q4 2024, while total net sales for the year were $20,398 million, up from $19,713 million in 2024[40] Income and Earnings - Full year 2025 adjusted net income was $1,726 million, or $7.82 per diluted share, representing a 7.4% increase in net income and a 24.9% increase in earnings per share compared to the prior year[12] - The company reported a U.S. GAAP net income margin of 0.8% for the full year 2025, significantly lower than the prior year's margin of 9.1%[12] - Net income attributable to Aptiv for Q4 2025 was $138 million, a decrease from $268 million in Q4 2024, while total net income for the year was $165 million, down from $1,787 million in 2024[40] Operating Income - The company reported a fourth quarter adjusted operating income of $607 million, with an adjusted operating income margin of 11.8%, down from 12.7% in the prior year[9] - Operating income for Q4 2025 was $425 million, down from $479 million in Q4 2024, with total operating income for the year at $1,184 million compared to $1,842 million in 2024[40] - Total Adjusted Operating Income for the year ended December 31, 2025, was $2,461 million, with a margin of 12.1%, compared to $2,366 million and 12.0% in 2024[47] Cash Flow and Liquidity - The company generated cash from operations totaling $2,185 million for the full year 2025, compared to $2,446 million in the prior year[17] - Cash and cash equivalents increased to $1,851 million as of December 31, 2025, up from $1,573 million in 2024[36] - Cash flow before financing for Q4 2025 was $665 million, compared to $1,637 million in Q4 2024, indicating a significant decline[58] Future Projections - For Q1 2026, the company expects net sales between $4,950 million and $5,150 million, with U.S. GAAP net income guidance of $130 million to $170 million[21] - Full year 2026 net sales are projected to be between $21,120 million and $21,820 million, with adjusted EBITDA expected to range from $3,385 million to $3,585 million[21] - Estimated adjusted EBITDA for Q1 2026 is projected to be $740 million, with a margin of 14.7%[59] Shareholder Actions - The company repurchased $300 million of senior notes and retired 22.8 million shares valued at $1.5 billion during 2025[19] - The weighted average number of diluted shares outstanding for Q4 2025 was 216.14 million, down from 235.46 million in Q4 2024[54] Impairments and Costs - The company experienced a goodwill impairment of $648 million in 2025, compared to no impairment in 2024[38] - The company incurred separation costs of $78 million in Q4 2025, compared to none in Q4 2024[49] Tax and Valuation - The company recognized a $294 million increase in valuation allowances for deferred tax assets due to changes in tax incentives[54]

Core Insights - Aptiv PLC reported record full year financial results with revenues increasing 3% to $20.4 billion, demonstrating operational excellence and a strong product portfolio [1][3]. Financial Highlights - Fourth Quarter 2025 U.S. GAAP revenue was $5.2 billion, a 5% increase from the prior year, with adjusted revenue growth of 3% after accounting for currency and commodity fluctuations [4][8]. - Full Year 2025 U.S. GAAP revenue was $20.4 billion, reflecting a 3% increase, with adjusted revenue growth of 2% [10][11]. - Fourth quarter net income was $138 million, with a net income margin of 2.7% and diluted earnings per share of $0.64; adjusted net income was $402 million, or $1.86 per diluted share [5][8]. - Full year net income was $165 million, including a non-cash goodwill impairment charge of $648 million, resulting in a net income margin of 0.8% and diluted earnings per share of $0.75; adjusted net income totaled $1,726 million, or $7.82 per diluted share, a 7.4% increase [11][12]. Operating Performance - Fourth quarter U.S. GAAP operating income was $425 million, down from $479 million in the prior year; adjusted operating income was $607 million, compared to $623 million [6][8]. - Full year U.S. GAAP operating income was $1,184 million, a decrease from $1,842 million in the prior year; adjusted operating income was $2,461 million, up from $2,366 million [12][8]. Cash Flow and Capital Management - Cash from operations for the fourth quarter totaled $818 million, down from $1,060 million in the prior year [9][8]. - For the full year, cash from operations was $2,185 million, compared to $2,446 million in the prior year [15][8]. - The company repurchased $300 million of senior notes and 22.8 million shares valued at $1.5 billion during 2025, with $2.1 billion remaining for future share repurchases [17][8]. Strategic Outlook - The company is preparing for the spin-off of its Electrical Distribution Systems business, which will create two independent companies, enhancing their ability to pursue unique market opportunities [4][8]. - Financial guidance for Q1 2026 includes net sales of $4,950 - $5,150 million and U.S. GAAP net income of $130 - $170 million [20][8].