Summary of Aptiv (NYSE: APTV) FY Conference Call - February 18, 2026 Company Overview - **Company**: Aptiv (NYSE: APTV) - **Event**: FY Conference Call - **Date**: February 18, 2026 - **Speakers**: Kevin Clark (Chairman and CEO), Varun Laroyia (CFO) Key Points Industry and Company Transition - Aptiv is undergoing a significant portfolio transition, highlighted by the upcoming spin-off of its EDS business into a new entity called Versigent, which focuses on signal power distribution in vehicles [7][9] - The separation aims to maximize value creation by allowing both Aptiv and Versigent to focus on their core competencies [9][13] Growth Dynamics - For FY 2026, Aptiv projects total company growth of 3%, with 2% organic growth, which is 3-4 points ahead of underlying Light Vehicle Production (LVP) [14] - Key growth drivers include robust bookings of $25 billion to $30 billion over the past few years, recovery from previous program cancellations, and increased bookings from domestic OEMs in China [15][16][40] - Non-automotive bookings are approximately $4 billion annually, with an expected growth rate of 8%-10% [20] Market Expansion - Aptiv is expanding its presence in non-automotive markets, leveraging its existing technology and capabilities in sectors like aerospace, defense, and telecommunications [13][27] - The company has seen significant growth in the APAC region, particularly in China, Japan, Korea, and India, with a focus on local engineering and manufacturing [41][42] Software and Services Revenue - Software revenue is projected to grow at a mid-teen rate, driven by demand for ADAS platforms and Wind River's embedded solutions [35][38] - The software segment is expected to contribute significantly to overall revenue growth, with a higher margin profile compared to hardware solutions [38] Margin Performance - Aptiv's EBITDA margin is expected to benefit from incremental sales volume, with a projected increase of 26%-27% for New Aptiv and 20%-22% for Versigent [54] - The company has successfully managed to offset price pressures through operational efficiencies and material performance [56] M&A Strategy - Aptiv has a history of over 25 M&A transactions, focusing on bolt-on acquisitions in the interconnect portfolio and partnerships in the intelligent systems segment [61][62] - The company aims to enhance its financial profile through strategic acquisitions that drive revenue growth and margin improvement [62] Financial Outlook - Aptiv is confident in achieving EPS growth above peers, with a focus on balancing growth and margin expansion [57][64] - The company is well-positioned for future growth, particularly post-spin-off, with significant opportunities in both automotive and non-automotive sectors [65] Additional Insights - The company has invested in inventory and established long-term agreements with memory providers to mitigate risks associated with supply chain disruptions [70] - Aptiv's strategy includes adapting to market demands and ensuring competitive pricing while maintaining quality and performance [30][70] This summary encapsulates the key insights and strategic directions discussed during the Aptiv FY Conference Call, highlighting the company's focus on growth, market expansion, and operational efficiency.