Open the filing on EDGARAptiv Reports Second Quarter 2026 Financial Results
Strong Operating Performance and Significant Progress Diversifying Towards Non-Auto Markets
SCHAFFHAUSEN - Aptiv PLC (NYSE: APTV), a global industrial technology company, today reported financial results for the second quarter of 2026.
Second Quarter Financial Highlights Include:
- U.S. GAAP revenue of $3.3 billion, an increase of 2%
- Adjusted revenue growth of 2%
- U.S. GAAP net income from continuing operations of $298 million
- Adjusted EBITDA of $613 million
- U.S. GAAP diluted earnings per share from continuing operations of $1.40
- Adjusted net income per share of $1.63
- Completed the spin-off of Electrical Distribution Systems segment
- Electrical Distribution Systems segment classified as discontinued operations for all periods presented
- Received cash dividend of $1.9 billion in connection with the spin-off
Year-to-Date Financial Highlights Include:
- U.S. GAAP revenue of $6.3 billion, an increase of 2%
- Adjusted revenue growth of 1%
- U.S. GAAP net income from continuing operations of $427 million
- Adjusted EBITDA of $1,106 million
- U.S. GAAP diluted earnings per share from continuing operations of $2.01
- Adjusted net income per share of $2.56
"We delivered solid results in the second quarter, our first as New Aptiv, with a reacceleration in revenue growth and margin expansion year-over-year,” said Kevin Clark, chair and chief executive officer. “In addition, we continued to demonstrate progress on many of our strategic initiatives, including double digit revenue growth in Non-Automotive revenues, advancing our presence in the Robotics market from partnerships to commercial stage, and securing a major Drone market commercial win in early July. While the macroeconomic landscape for Automotive remains dynamic and customer mix has presented as an incremental headwind, we remain committed to delivering continued revenue growth and strong operating performance this year. Moreover, our strong belief in the long-term value of our business and opportunity for growth across markets has reinforced our commitment in returning capital to shareholders, with half of our expected cash flow for the year already having been allocated towards share repurchases, a level we see continuing for the next few years."
Second Quarter 2026 Results
For the three months ended June 30, 2026, the Company reported U.S. GAAP revenue of $3.3 billion, an increase of 2% from the prior year period. Adjusted for currency exchange and commodity movements, revenue increased by 2% in the second quarter. This reflects growth of 10% in North America, 6% in Asia Pacific, which includes growth of 5% in China, partially offset by declines of 8% in EMEA and 4% in South America, our smallest region.
The Company reported second quarter 2026 U.S. GAAP net income from continuing operations of $298 million, net income margin from continuing operations of 9.1% and earnings from continuing operations of $1.40 per diluted share, compared to U.S. GAAP net income from continuing operations of $265 million, net income margin from continuing operations of 8.3% and earnings from continuing operations of $1.21 per diluted share in the prior year period. Second quarter Adjusted Net Income totaled $345 million, or earnings of $1.63 per diluted share, compared to $285 million, or $1.31 per diluted share, in the prior year period.
The Company reported second quarter Adjusted EBITDA of $613 million, compared to $547 million in the prior year period. Adjusted EBITDA margin was 18.7%, compared to 17.1% in the prior year period, primarily reflecting increased volumes and favorable impacts of foreign currency exchange, partially offset by increased commodity costs.
The Company reported second quarter Adjusted Operating Income of $473 million, compared to $410 million in the prior year period. Adjusted Operating Income margin was 14.4%, compared to 12.8% in the prior year period.
Depreciation and amortization expense totaled $195 million, compared to $190 million in the prior year period. Interest expense for the second quarter totaled $62 million, compared to $92 million in the prior year period.
Tax expense in the second quarter of 2026 was $52 million, compared to $16 million in the prior year period.
Net cash flow provided by operating activities from continuing operations totaled $137 million in the second quarter, compared to $326 million in the prior year period. The Company generated Free Cash Flow of $12 million in the second quarter, compared to $219 million generated in the prior year period.
Year-to-Date 2026 Results
For the six months ended June 30, 2026, the Company reported U.S. GAAP revenue of $6.3 billion, an increase of 2% from the prior year period. Adjusted for currency exchange and commodity movements, revenue increased by 1% during the period. This reflects growth of 9% in North America and 1% in Asia Pacific, which includes a decline of 4% in China, partially offset by declines of 7% in EMEA and 3% in South America, our smallest region.
The Company reported 2026 year-to-date U.S. GAAP net income from continuing operations of $427 million, net income margin from continuing operation of 6.8% and earnings from continuing operations of $2.01 per diluted share, compared to U.S. GAAP net income from continuing operations of $125 million, net income margin from continuing operation of 2.0% and earnings from continuing operations of $0.55 per diluted share in the prior year period. Year-to-date Adjusted Net Income totaled $545 million, or earnings of $2.56 per diluted share, compared to $517 million, or $2.30 per diluted share, in the prior year period.
For the 2026 year-to-date period, The Company reported Adjusted EBITDA of $1,106 million, compared to $1,059 million in the prior year period. Adjusted EBITDA margin was 17.5%, compared to 17.1% in the prior year period, primarily reflecting increased volumes and favorable impacts of foreign currency exchange, partially offset by increased commodity costs.
The Company reported Adjusted Operating Income of $829 million for the year-to-date 2026 period, compared to $789 million in the prior year period. Adjusted Operating Income margin was 13.1%, compared to 12.8% in the prior year period.
Depreciation and amortization expense totaled $384 million, compared to $379 million in the prior year period. Interest expense for the year-to-date period totaled $146 million, compared to $185 million in the prior year period.
Tax expense in the six months ended June 30, 2026 was $94 million. Tax expense in the six months ended June 30, 2025 was $342 million, which primarily reflects an increase to valuation allowances of approximately $300 million on deferred tax assets impacted by the OECD Administrative Guidance issued in the first quarter of 2025.
Net cash flow provided by operating activities from continuing operations totaled $82 million in the six months ended June 30, 2026, compared to $531 million in the prior year period. The Company reported negative Free Cash Flow of $196 million in the six months ended June 30, 2026, compared to $264 million generated in the prior year period.
Reconciliations of Adjusted Revenue Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share and Free Cash Flow, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) are provided in the attached supplemental schedules.
Debt Redemptions and Share Repurchases
In April 2026, the Company redeemed $1,847 million of aggregate principal amount of certain senior notes principally utilizing proceeds from the cash distribution received from Versigent in connection with the spin-off.
The Company repurchased and retired 4.1 million shares for $250 million in the second quarter of 2026, bringing the year-to-date total to $325 million. As of June 30, 2026, $1.8 billion remained available for future share repurchases under the Company’s existing authorization.
EDS Spin-Off
As previously disclosed, the spin-off of the Company’s former Electrical Distribution Systems segment into a new independent publicly traded company, Versigent PLC, was completed on April 1, 2026. The results of the Electrical Distribution Systems business through April 1, 2026 are presented as discontinued operations separate from the Company’s continuing operations for all periods presented. In connection with the spin-off, Aptiv received a dividend of approximately $1.9 billion from Versigent, which the Company used to opportunistically redeem outstanding debt prior to maturity.
Q3 and Full Year 2026 Outlook
The Company’s third quarter and full year 2026 financial guidance is as follows. This reflects Aptiv without the EDS business, which is presented as discontinued operations.
| (in millions, except per share amounts) | Q3 2026 | New Aptiv (Pro Forma) Full Year 2026 |
| Net sales | $3,120 - $3,220 | $12,600 - $12,800 |
| U.S. GAAP net income from continuing operations | $180 - $200 | $860 - $900 |
| U.S. GAAP net income from continuing operations margin | 6.0% | 6.9% |
| Adjusted EBITDA | $545 - $575 | $2,310 - $2,370 |
| Adjusted EBITDA margin | 17.7% | 18.4% |
| U.S. GAAP diluted net income per share from continuing operations | $0.86 - $0.96 | $4.06 - $4.26 |
| Adjusted net income per share | $1.25 - $1.35 | $5.60 - $5.80 |
| Cash flow from continuing operations | | $1,270 - $1,370 |
| Free cash flow | | $625 - $725 |
| U.S. GAAP effective tax rate | | ~18% |
| Adjusted effective tax rate | | ~18% |
Conference Call and Webcast
The Company will host a conference call to discuss these results at 8:00 a.m. (ET) today, which is accessible by dialing +1.800.330.6710 (U.S.) or +1.213.279.1505 (international) or through a webcast at ir.aptiv.com. The conference ID number is 8103952. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company’s website. A replay will be available two hours following the conference call.
Use of Non-GAAP Financial Information
This press release contains information about Aptiv’s financial results which are not presented in accordance with GAAP. Specifically, Adjusted Revenue Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share and Free Cash Flow are non-GAAP financial measures. Adjusted Revenue Growth represents the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements, acquisitions, divestitures and other transactions. Adjusted EBITDA represents net income (loss) before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, income (loss) from discontinued operations, restructuring and other special items. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of net sales. Adjusted Operating Income represents net income (loss) before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, income (loss) from discontinued operations, amortization, restructuring, separation costs related to the spin-off of the Electrical Distribution Systems business, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), goodwill and other asset impairments, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions. Adjusted Operating Income margin is defined as Adjusted Operating Income as a percentage of net sales.
Adjusted Net Income represents net income (loss) attributable to Aptiv before income (loss) from discontinued operations, amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net
Income Per Share represents Adjusted Net Income divided by the Weighted Average Number of Diluted Shares Outstanding for the period.
Free cash flow represents cash provided by (used in) operating activities from continuing operations less capital expenditures.
Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position, results of operations and liquidity. In particular, management believes Adjusted Revenue Growth, Adjusted EBITDA, Adjusted Operating Income, Adjusted Net Income, Adjusted Net Income Per Share and Free Cash Flow are useful measures in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and that may obscure underlying business results and trends. Management also uses these non-GAAP financial measures for internal planning and forecasting purposes.
Such non-GAAP financial measures are reconciled to the most directly comparable GAAP financial measures in the attached supplemental schedules at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.
About Aptiv
Aptiv is a global industrial technology leader delivering advanced solutions people trust when it matters most across automotive, commercial vehicle, aerospace and defense, telecom and datacom, and other diversified industrial end markets. Our differentiated portfolio enables devices and systems to sense, think, act, and continuously optimize performance. Building on decades of innovation, Aptiv brings global scale and a resilient, localized value chain to customers across the globe. Learn more at aptiv.com.
Forward-Looking Statements
Forward-looking statements notice
This press release, 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 cause the actual results of the Company to be materially different from any future results. All statements that address future operating, financial or business performance or the Company’s strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s filings with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.
APTIV PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (in millions, except per share amounts) |
|---|
| Net sales | $3,274 | | $3,199 | | $6,306 | | $6,186 | |
| Operating expenses: | | | | |
| Cost of sales | 2,499 | | 2,468 | | 4,861 | | 4,784 | |
| Selling, general and administrative | 332 | | 327 | | 660 | | 636 | |
| Amortization | 52 | | 52 | | 104 | | 103 | |
| Restructuring | 24 | | 27 | | 40 | | 49 | |
| Total operating expenses | 2,907 | | 2,874 | | 5,665 | | 5,572 | |
| Operating income | 367 | | 325 | | 641 | | 614 | |
| Interest expense | (62) | | (92) | | (146) | | (185) | |
| Other income, net | 58 | | 15 | | 55 | | 19 | |
| Net gain on equity method transactions | 3 | | 46 | | 3 | | 46 | |
| Income from continuing operations before income taxes and equity loss | 366 | | 294 | | 553 | | 494 | |
| Income tax expense | (52) | | (16) | | (94) | | (342) | |
| Income from continuing operations before equity loss | 314 | | 278 | | 459 | | 152 | |
| Equity loss, net of tax | (17) | | (14) | | (34) | | (29) | |
| Income from continuing operations | 297 | | 264 | | 425 | | 123 | |
| (Loss) income from discontinued operations, net of tax | (50) | | 133 | | 13 | | 263 | |
| Net income | 247 | | 397 | | 438 | | 386 | |
| Net income attributable to noncontrolling interest | - | | 5 | | 3 | | 6 | |
| Net loss attributable to redeemable noncontrolling interest | (1) | | (1) | | (2) | | (2) | |
| Net income attributable to Aptiv | $248 | | $393 | | $437 | | $382 | |
| Amounts attributable to Aptiv: | | | | |
| Income from continuing operations | $298 | | $265 | | $427 | | $125 | |
| (Loss) income from discontinued operations | (50) | | 128 | | 10 | | 257 | |
| Net income | $248 | | $393 | | $437 | | $382 | |
| Diluted net income (loss) per share: | | | | |
| Continuing operations | $1.40 | | $1.21 | | $2.01 | | $0.55 | |
| Discontinued operations | (0.23) | | 0.59 | | 0.05 | | 1.15 | |
| Diluted net income (loss) per share attributable to Aptiv | $1.17 | | $1.80 | | $2.06 | | $1.70 | |
| Weighted average number of diluted shares outstanding | 212.10 | | 218.11 | | 212.53 | | | 0.00 |
APTIV PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
| June 30, 2026 | December 31, 2025 |
|---|
| (Unaudited) | |
|---|
| (in millions) |
|---|
| ASSETS | | |
| Current assets: | | |
| Cash and cash equivalents | $761 | $1,575 |
| Restricted cash | 4 | 3 |
| Accounts receivable, net | 2,434 | 1,910 |
| Inventories | 2,038 | 1,789 |
| Other current assets | 766 | 627 |
| Current assets of discontinued operations | - | 2,841 |
| Total current assets | 6,003 | 8,745 |
| Long-term assets: | | |
| Property, net | 2,756 | 2,872 |
| Operating lease right-of-use assets | 305 | 331 |
| Investments in affiliates | 1,255 | 1,288 |
| Intangible assets, net | 1,875 | 1,997 |
| Goodwill | 3,937 | 4,008 |
| Other long-term assets | 1,865 | 1,816 |
| Long-term assets of discontinued operations | - | 2,356 |
| Total long-term assets | 11,993 | 14,668 |
| Total assets | $17,996 | $23,413 |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | | |
| Current liabilities: | | |
| Short-term debt | $23 | $23 |
| Accounts payable | 1,910 | 1,623 |
| Accrued liabilities | 1,042 | 1,191 |
| Current liabilities of discontinued operations | - | 2,200 |
| Total current liabilities | 2,975 | 5,037 |
| Long-term liabilities: | | |
| Long-term debt | 5,331 | 7,467 |
| Pension benefit obligations | 212 | 212 |
| Long-term operating lease liabilities | 241 | 270 |
| Other long-term liabilities | 484 | 479 |
| Long-term liabilities of discontinued operations | - | 449 |
| Total long-term liabilities | 6,268 | 8,877 |
| Total liabilities | 9,243 | 13,914 |
| Commitments and contingencies | | |
| Redeemable noncontrolling interest | - | 102 |
| Total Aptiv shareholders’ equity | 8,753 | 9,207 |
| Noncontrolling interest | - | 190 |
| Total shareholders’ equity | 8,753 | 9,397 |
| Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $17,996 | $23,413 |
APTIV PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended June 30, |
|---|
| 2026 | 2025 |
|---|
| (in millions) |
|---|
| Cash flows from operating activities: | | |
| Net income | $438 | | $386 | |
| Income from discontinued operations, net of tax | 13 | | 263 | |
| Income from continuing operations | 425 | | 123 | |
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | | |
| Depreciation and amortization | 384 | | 379 | |
| Restructuring expense, net of cash paid | (14) | | (9) | |
| Deferred income taxes | (32) | | 309 | |
| Loss from equity method investments, net of dividends received | 34 | | 29 | |
| Loss on extinguishment of debt | (39) | | 3 | |
| Net gain on equity method transactions | (3) | | (46) | |
| Other, net | 65 | | 74 | |
| Changes in operating assets and liabilities: | | |
| Accounts receivable, net | (314) | | (204) | |
| Inventories | (230) | | (108) | |
| Accounts payable | 144 | | 163 | |
| Other, net | (331) | | (180) | |
| Pension contributions | (7) | | (2) | |
| Net cash provided by operating activities from continuing operations | 82 | | 531 | |
| Net cash (used in) provided by operating activities from discontinued operations | (133) | | 252 | |
| Net cash (used in) provided by operating activities | (51) | | 783 | |
| Cash flows from investing activities: | | |
| Capital expenditures | (278) | | (267) | |
| Proceeds from sale of property | 2 | | 2 | |
| Proceeds from asset sale | - | | 4 | |
| Proceeds from sale of technology investments | - | | 1 | |
| Cost of technology investments | - | | (42) | |
| Proceeds from the sale of equity method investments | - | | 164 | |
| Acquisition of redeemable noncontrolling interest | (67) | | - | |
| Settlement of derivatives | (3) | | 5 | |
| Net cash used in investing activities from continuing operations | (346) | | (133) | |
| Net cash used in investing activities from discontinued operations | (66) | | (79) | |
| Net cash used in investing activities | (412) | | (212) | |
| Cash flows from financing activities: | | |
| Decrease in other short and long-term debt, net | (5) | | (574) | |
| Repayment of senior notes | (2,054) | | - | |
| Fees related to modification of debt agreements | - | | (5) | |
| Dividend received from spin-off of Versigent | 1,920 | | - | |
| Cash transferred to Versigent related to spin-off | (282) | | - | |
| Repurchase of ordinary shares | (322) | | - | |
| Taxes withheld and paid on employees’ restricted share awards | (32) | | (17) | |
| Net cash used in financing activities from continuing operations | (775) | | (596) | |
| Net cash provided by (used in) financing activities from discontinued operations | 150 | | (136) | |
| Net cash used in financing activities | (625) | | (732) | |
| Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (1) | | 36 | |
| Decrease in cash, cash equivalents and restricted cash | (1,089) | | (125) | |
| Cash, cash equivalents and restricted cash at beginning of the period | 1,854 | | 1,574 | |
| Cash, cash equivalents and restricted cash at end of the period | $765 | | $1,449 | |
| Cash, cash equivalents and restricted cash of discontinued operations | $ - | | $328 | |
| Cash, cash equivalents and restricted cash of continuing operations | $765 | | $1,121 | |
APTIV PLC
FOOTNOTES
(Unaudited)
1. Segment Summary
| Three Months Ended June 30, | Six Months Ended June 30, |
|---|
| 2026 | 2025% | | 2026 | 2025% | |
|---|
| (in millions) | | (in millions) | |
|---|
| Net Sales | | | | | | |
| Engineered Components | $1,800 | | $1,718 | | 5% | $3,422 | | $3,298 | | 4% |
| Intelligent Systems | 1,501 | | 1,507 | | - % | 2,934 | | 2,931 | | - % |
| Eliminations and Other (a) | (27) | | (26) | | | (50) | | (43) | | |
| Net Sales | $3,274 | | $3,199 | | | $6,306 | | $6,186 | | |
| Adjusted EBITDA | | | | | | |
| Engineered Components | $403 | | $343 | | 17% | $729 | | $670 | | 9% |
| Intelligent Systems | 210 | | 204 | | 3% | 377 | | 389 | | (3)% |
| Adjusted EBITDA | $613 | | $547 | | | $1,106 | | $1,059 | | |
- Eliminations and Other includes the elimination of inter-segment transactions.
2. Weighted Average Number of Diluted Shares Outstanding
The following table illustrates the weighted average shares outstanding used in calculating basic and diluted net income (loss) per share attributable to Aptiv for the three and six months ended June 30, 2026 and 2025:
| Three Months Ended June 30, | Six Months Ended June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (in millions, except per share amounts) |
|---|
| Weighted average ordinary shares outstanding, basic | 211.56 | | 217.73 | | 211.84 | | 223.91 | |
| Dilutive shares related to RSUs | 0.54 | | 0.38 | | 0.69 | | 0.41 | |
| Weighted average ordinary shares outstanding, including dilutive shares | 212.10 | | 218.11 | | 212.53 | | 224.32 | |
| Basic net income (loss) per share: | | | | |
| Continuing operations | $1.41 | | $1.21 | | $2.02 | | $0.56 | |
| Discontinued operations | (0.24) | | 0.59 | | 0.04 | | 1.15 | |
| Basic net income per share attributable to Aptiv | $1.17 | | $1.80 | | $2.06 | | $1.71 | |
| Diluted net income (loss) per share: | | | | |
| Continuing operations | $1.40 | | $1.21 | | $2.01 | | $0.55 | |
| Discontinued operations | (0.23) | | 0.59 | | 0.05 | | 1.15 | |
| Diluted net income per share attributable to Aptiv | $1.17 | | $1.80 | | $2.06 | | $1.70 | |
APTIV PLC
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
In this press release the Company has provided information regarding certain non-GAAP financial measures, including “Adjusted Revenue Growth,” “Adjusted EBITDA,” “Adjusted Operating Income,” “Adjusted Net Income,” “Adjusted Net Income Per Share” and “Free Cash Flow.” Such non-GAAP financial measures are reconciled to their closest GAAP financial measure in the following schedules.
Adjusted Revenue Growth: Adjusted Revenue Growth is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Revenue Growth in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Revenue Growth is defined as the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements, acquisitions, divestitures and other transactions. Not all companies use identical calculations of Adjusted Revenue Growth, therefore this presentation may not be comparable to other similarly titled measures of other companies.
| Three Months Ended June 30, 2026 |
|---|
| Reported net sales % change | 2% |
| Less: foreign currency exchange and commodities | - % |
| Adjusted revenue growth | 2% |
| Six Months Ended June 30, 2026 |
| Reported net sales % change | 2% |
| Less: foreign currency exchange and commodities | 1% |
| Adjusted revenue growth | 1% |
Adjusted EBITDA: Adjusted EBITDA is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted EBITDA in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted EBITDA is defined as net income (loss) before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, income (loss) from discontinued operations, restructuring and other special items. Not all companies use identical calculations of Adjusted EBITDA, therefore this presentation may not be comparable to other similarly titled measures of other companies. EBITDA margin represents EBITDA as a percentage of net sales, and Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales.
| Three Months Ended June 30, | Six Months Ended June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (in millions) | |
|---|
| $ | Margin | $ | Margin | $ | Margin | $ | Margin |
|---|
| Consolidated Adjusted EBITDA | | | | | | | | |
| Net income attributable to Aptiv | $248 | 7.6% | $393 | 12.3% | $437 | 6.9% | $382 | 6.2% |
| (Loss) income from discontinued operations, net of tax | (50) | | 128 | | 10 | | 257 | |
| Income from continuing operations | $298 | 9.1% | $265 | 8.3% | $427 | 6.8% | $125 | 2.0% |
| Interest expense | 62 | | 92 | | 146 | | 185 | |
| Income tax expense | 52 | | 16 | | 94 | | 342 | |
| Net loss attributable to redeemable noncontrolling interest | (1) | | (1) | | (2) | | (2) | |
| Depreciation and amortization (a) | 195 | | 190 | | 384 | | 379 | |
| EBITDA | $606 | 18.5% | $562 | 17.6% | $1,049 | 16.6% | $1,029 | 16.6% |
| Other income, net | (58) | | (15) | | (55) | | (19) | |
| Net gain on equity method transactions | (3) | | (46) | | (3) | | (46) | |
| Equity loss, net of tax | 17 | | 14 | | 34 | | 29 | |
| Restructuring | 24 | | 27 | | 40 | | 49 | |
| Separation costs | 18 | | 1 | | 23 | | 1 | |
| Other acquisition and portfolio project costs | 8 | | 5 | | 15 | | 12 | |
| Compensation expense related to acquisitions | 1 | | 4 | | 3 | | 9 | |
| Gain on asset sale | - | | (5) | | - | | (5) | |
| Adjusted EBITDA | $613 | 18.7% | $547 | 17.1% | $1,106 | 17.5% | $1,059 | 17.1% |
- Includes asset impairments.
| Segment Adjusted EBITDA | | | |
| (in millions) | | | |
| Three Months Ended June 30, 2026 | Engineered Components | Intelligent Systems | Total |
| Operating income | $267 | $100 | $367 |
| Restructuring | 8 | 16 | 24 |
| Separation costs | 10 | 8 | 18 |
| Other acquisition and portfolio project costs | 3 | 5 | 8 |
| Compensation expense related to acquisitions | - | 1 | 1 |
| Depreciation and amortization (a) | 115 | 80 | 195 |
| Adjusted EBITDA | $403 | $210 | $613 |
| Three Months Ended June 30, 2025 | Engineered Components | Intelligent Systems | Total |
| Operating income | $209 | $116 | $325 |
| Restructuring | 17 | 10 | 27 |
| Separation costs | 1 | - | 1 |
| Other acquisition and portfolio project costs | 1 | 4 | 5 |
| Compensation expense related to acquisitions | - | 4 | 4 |
| Gain on business divestitures and other transactions | - | (5) | (5) |
| Depreciation and amortization (a) | 115 | 75 | 190 |
| Adjusted EBITDA | $343 | $204 | $547 |
| Six Months Ended June 30, 2026 | Engineered Components | Intelligent Systems | Total |
| Operating income | $468 | $173 | $641 |
| Restructuring | 12 | 28 | 40 |
| Separation costs | 13 | 10 | 23 |
| Other acquisition and portfolio project costs | 7 | 8 | 15 |
| Compensation expense related to acquisitions | - | 3 | 3 |
| Depreciation and amortization (a) | 229 | 155 | 384 |
| Adjusted EBITDA | $729 | $377 | $1,106 |
| Six Months Ended June 30, 2025 | Engineered Components | Intelligent Systems | Total |
| Operating income | $403 | $211 | $614 |
| Restructuring | 33 | 16 | 49 |
| Separation costs | 1 | - | 1 |
| Other acquisition and portfolio project costs | 4 | 8 | 12 |
| Compensation expense related to acquisitions | - | 9 | 9 |
| Gain on business divestitures and other transactions | - | (5) | (5) |
| Depreciation and amortization (a) | 229 | 150 | 379 |
| Adjusted EBITDA | $670 | $389 | $1,059 |
- Includes asset impairments.
Adjusted Operating Income: Adjusted Operating Income is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Operating Income in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Management also utilizes Adjusted Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes to allocate resources to our segments, as management also believes this measure is most reflective of the operational profitability or loss of our operating segments. Adjusted Operating Income is defined as net income (loss) before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, income (loss) from discontinued operations, amortization, restructuring and other special items. Not all companies use identical calculations of Adjusted Operating Income, therefore this presentation may not be comparable to other similarly titled measures of other companies. Operating income margin represents Operating income as a percentage of net sales, and Adjusted Operating Income margin represents Adjusted Operating Income as a percentage of net sales.
| Three Months Ended June 30, | Six Months Ended June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| ($ in millions) |
|---|
| $ | Margin | $ | Margin | $ | Margin | $ | Margin |
|---|
| Consolidated Adjusted Operating Income | | | | | | | | |
| Net income attributable to Aptiv | $248 | 7.6% | | $393 | 12.3% | | $437 | 6.9% | | $382 | 6.2% | |
| (Loss) income from discontinued operations, net of tax | (50) | | 128 | | 10 | | 257 | |
| Income from continuing operations | $298 | 9.1% | | $265 | 8.3% | | $427 | 6.8% | | $125 | 2.0% | |
| Interest expense | 62 | | 92 | | 146 | | 185 | |
| Other income, net | (58) | | (15) | | (55) | | (19) | |
| Net gain on equity method transactions | (3) | | (46) | | (3) | | (46) | |
| Income tax expense | 52 | | 16 | | 94 | | 342 | |
| Equity loss, net of tax | 17 | | 14 | | 34 | | 29 | |
| Net loss attributable to redeemable noncontrolling interest | (1) | | (1) | | (2) | | (2) | |
| Operating income | $367 | 11.2% | | $325 | 10.2% | | $641 | 10.2% | | $614 | 9.9% | |
| Amortization | 52 | | 52 | | 104 | | 103 | |
| Restructuring | 24 | | 27 | | 40 | | 49 | |
| Separation costs | 18 | | 1 | | 23 | | 1 | |
| Other acquisition and portfolio project costs | 8 | | 5 | | 15 | | 12 | |
| Asset impairments | 3 | | 1 | | 3 | | 6 | |
| Compensation expense related to acquisitions | 1 | | 4 | | 3 | | 9 | |
| Gain on asset sale | - | | (5) | | - | | (5) | |
| Adjusted operating income | $473 | 14.4% | | $410 | 12.8% | | $829 | 13.1% | | $789 | 12.8% | |
| Segment Adjusted Operating Income | | | |
| (in millions) | | | |
| Three Months Ended June 30, 2026 | Engineered Components | Intelligent Systems | Total |
| Operating income | $267 | $100 | $367 |
| Amortization | 29 | 23 | 52 |
| Restructuring | 8 | 16 | 24 |
| Separation costs | 10 | 8 | 18 |
| Other acquisition and portfolio project costs | 3 | 5 | 8 |
| Asset impairments | - | 3 | 3 |
| Compensation expense related to acquisitions | - | 1 | 1 |
| Adjusted operating income | $317 | $156 | $473 |
| Three Months Ended June 30, 2025 | Engineered Components | Intelligent Systems | Total |
| Operating income | $209 | $116 | $325 |
| Amortization | 30 | 22 | 52 |
| Restructuring | 17 | 10 | 27 |
| Separation costs | 1 | - | 1 |
| Other acquisition and portfolio project costs | 1 | 4 | 5 |
| Asset impairments | 1 | - | 1 |
| Compensation expense related to acquisitions | - | 4 | 4 |
| Gain on asset sale | - | (5) | (5) |
| Adjusted operating income | $259 | $151 | $410 |
| Six Months Ended June 30, 2026 | Engineered Components | Intelligent Systems | Total |
| Operating income | $468 | $173 | $641 |
| Amortization | 59 | 45 | 104 |
| Restructuring | 12 | 28 | 40 |
| Separation costs | 13 | 10 | 23 |
| Other acquisition and portfolio project costs | 7 | 8 | 15 |
| Asset impairments | - | 3 | 3 |
| Compensation expense related to acquisitions | - | 3 | 3 |
| Adjusted operating income | $559 | $270 | $829 |
| Six Months Ended June 30, 2025 | Engineered Components | Intelligent Systems | Total |
| Operating income | $403 | $211 | $614 |
| Amortization | 59 | 44 | 103 |
| Restructuring | 33 | 16 | 49 |
| Separation costs | 1 | - | 1 |
| Other acquisition and portfolio project costs | 4 | 8 | 12 |
| Asset impairments | 6 | - | 6 |
| Compensation expense related to acquisitions | - | 9 | 9 |
| Gain on asset sale | - | (5) | (5) |
| Adjusted operating income | $506 | $283 | $789 |
Adjusted Net Income and Adjusted Net Income Per Share: Adjusted Net Income and Adjusted Net Income Per Share, which are non-GAAP measures, are presented as supplemental measures of the Company’s financial performance which management believes are useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Management utilizes Adjusted Net Income and Adjusted Net Income Per Share in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Net Income is defined as net (loss) income attributable to Aptiv before income (loss) from discontinued operations, amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the Weighted Average Number of Diluted Shares Outstanding, for the period. Not all companies use identical calculations of Adjusted Net Income and Adjusted Net Income Per Share, therefore this presentation may not be comparable to other similarly titled measures of other companies.
| Three Months Ended June 30, | Six Months Ended June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (in millions, except per share amounts) |
|---|
| Net income attributable to Aptiv | $248 | | $393 | | $437 | | $382 | |
| (Loss) income from discontinued operations, net of tax | (50) | | 128 | | 10 | | 257 | |
| Income from continuing operations | $298 | | $265 | | $427 | | $125 | |
| Adjusting items: | | | | |
| Amortization | 52 | | 52 | | 104 | | 103 | |
| Restructuring | 24 | | 27 | | 40 | | 49 | |
| Separation costs | 18 | | 1 | | 23 | | 1 | |
| Other acquisition and portfolio project costs | 8 | | 5 | | 15 | | 12 | |
| Asset impairments | 3 | | 1 | | 3 | | 6 | |
| Compensation expense related to acquisitions | 1 | | 4 | | 3 | | 9 | |
| Gain on asset sale | - | | (5) | | - | | (5) | |
| (Gain) loss on extinguishment of debt | (44) | | - | | (39) | | 3 | |
| Gain on change in fair value of publicly traded equity securities | - | | (3) | | - | | (1) | |
| Net gain on equity method transactions | (3) | | (46) | | (3) | | (46) | |
| Tax impact of intercompany transfers of intellectual property and other related transactions (a) | - | | - | | - | | 294 | |
| Tax impact of adjusting items (b) | (12) | | (16) | | (28) | | (33) | |
| Adjusted net income attributable to Aptiv | $345 | | $285 | | $545 | | $517 | |
| Weighted average number of diluted shares outstanding | 212.10 | | 218.11 | | 212.53 | | 224.32 | |
| Diluted net income per share attributable to Aptiv | $1.40 | | $1.21 | | $2.01 | | $0.55 | |
| Adjusted net income per share | $1.63 | | $1.31 | | $2.56 | | $2.30 | |
- As a result of the Pillar Two OECD Administrative Guidance released in the first quarter of 2025, the Company no longer expects to obtain significant benefits from the tax incentive granted to its Swiss subsidiary in 2023. Accordingly, the Company recognized an increase to valuation allowances of $294 million to reduce the related deferred tax asset during the three months ended March 31, 2025.
- Represents the income tax impacts of the adjustments made for amortization, restructuring and other special items by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred.
Free Cash Flow: Free Cash Flow is presented as a supplemental measure of the Company’s liquidity, which is consistent with the basis and manner in which management presents financial information for the purpose of making internal operating decisions, evaluating its liquidity and determining appropriate capital allocation strategies. Management believes this measure is useful to investors to understand how the Company’s core operating activities generate and use cash. Free Cash Flow is defined as cash provided by (used in) operating activities from continuing operations less capital expenditures. Not all companies use identical calculations of Free Cash Flow, therefore this presentation may not be comparable to other similarly titled measures of other companies. The calculation of Free Cash Flow does not reflect cash used to service debt, pay dividends or repurchase shares, and therefore, does not necessarily reflect funds available for investment or other discretionary uses.
| Three Months Ended June 30, | Six Months Ended June 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| (in millions) |
|---|
| Net cash provided by operating activities from continuing operations | $137 | | $326 | | $82 | | $531 | |
| Capital expenditures | (125) | | (107) | | (278) | | (267) | |
| Free cash flow | $12 | | $219 | | $(196) | | $264 | |
Financial Guidance: The reconciliation of the forward-looking non-GAAP financial measures provided in the Company’s financial guidance to the most comparable forward-looking GAAP measure for the third quarter and full year 2026 is as follows. This reflects Aptiv without the EDS business, which is presented as discontinued operations.
| | | New Aptiv (Pro Forma) |
|---|
| Estimated Q3 | Estimated Full Year |
|---|
| 2026 (a) | 2026 (a) |
|---|
| ($ in millions) |
|---|
| Adjusted EBITDA | $ | Margin (b) | $ | Margin (b) |
| Net income from continuing operations attributable to Aptiv | $190 | 6.0% | $880 | 6.9% |
| Interest expense | 60 | | 245 | |
| Income tax expense | 50 | | 220 | |
| Net loss attributable to noncontrolling interest (c) | - | | (5) | |
| Depreciation and amortization | 195 | | 775 | |
| EBITDA | $495 | 15.6% | $2,115 | 16.7% |
| Other income, net | (5) | | (60) | |
| Net gain on equity method transactions | - | | (5) | |
| Equity loss, net of tax | 20 | | 70 | |
| Restructuring | 30 | | 95 | |
| Other acquisition and portfolio project costs, including costs related to the spin-off of the EDS business | 20 | | 70 | |
| Pro forma adjustment to continuing operations presentation (d) | - | | 55 | |
| Adjusted EBITDA | $560 | 17.7% | $2,340 | 18.4% |
- Prepared at the estimated mid-point of the Company’s financial guidance range.
- Represents net income attributable to Aptiv, EBITDA and Adjusted EBITDA as a percentage of estimated net sales.
- Includes portion attributable to redeemable noncontrolling interest.
- Adjustment to the Company’s presentation of U.S. GAAP continuing operations in historical periods to the New Aptiv Pro Forma basis, which represents the Company’s historical segment basis, with the Electrical Distribution Systems segment not included.
| | | | New Aptiv (Pro Forma) |
|---|
| Estimated Q3 | | Estimated Full Year | |
|---|
| 2026 (a) | | 2026 (a) | |
|---|
| Adjusted Net Income Per Share | | ($ and shares in millions, except per share amounts) |
| Net income from continuing operations attributable to Aptiv | | $190 | | $880 |
| Adjusting items: | | | | |
| Amortization | | 50 | | 210 |
| Restructuring | | 30 | | 95 |
| Other acquisition and portfolio project costs, including costs related to the spin-off of the EDS business | | 20 | | 70 |
| Asset impairments | | - | | 5 |
| Net gain on equity method transactions | | - | | (5) |
| Gain on extinguishment of debt | | - | | (45) |
| Tax impact of adjusting items | | (20) | | (60) |
| Pro forma adjustment to continuing operations presentation (b) | | - | | 55 |
| Adjusted net income attributable to Aptiv | | $270 | | $1,205 |
| Weighted average number of diluted shares outstanding | | 208.00 | | 211.50 |
| Diluted net income per share attributable to Aptiv | | $0.91 | | $4.16 |
| Adjusted net income per share | | $1.30 | | $5.70 |
- Prepared at the estimated mid-point of the Company’s financial guidance range.
- Adjustment to the Company’s presentation of U.S. GAAP continuing operations in historical periods to the New Aptiv Pro Forma basis, which represents the Company’s historical segment basis, with the Electrical Distribution Systems segment not included.
| New Aptiv (Pro Forma) |
|---|
| Estimated Full Year |
|---|
| 2026 (a) |
|---|
| Free Cash Flow | (in millions) |
| Net cash provided by operating activities from continuing operations | $1,320 |
| Capital expenditures | (600) |
| Pro forma adjustment to continuing operations presentation (b) | (45) |
| Free cash flow | $675 |
- Prepared at the estimated mid-point of the Company’s financial guidance range.
- Adjustment to the Company’s presentation of U.S. GAAP continuing operations in historical periods to the New Aptiv Pro Forma basis, which represents the Company’s historical segment basis, with the Electrical Distribution Systems segment not included.
Contacts
Betsy Frank
+1.929.240.1777 betsy.frank@aptiv.com