Aptiv PLC
NYSE:APTV
Aptiv PLC
Aptiv PLC, a key player in the automotive industry, generates revenue by ingeniously fusing technology and engineering to craft advanced vehicle systems and software solutions. Originally a part of General Motors under the name Delphi Automotive, Aptiv split and rebranded itself to focus on the burgeoning opportunities in automotive electronics and safety technology. With its headquarters in Dublin, Ireland, Aptiv has positioned itself at the forefront of the industry's transformation towards connectivity and automation. Central to its operations is the development of sensory systems and sophisticated computing platforms, enabling vehicles to perceive and react to their environments—a crucial foundation for autonomous and smart vehicles.
Moreover, Aptiv's business model capitalizes on its ability to integrate hardware and software, thus providing end-to-end solutions for its customers. By offering a comprehensive suite of services, ranging from electrical architecture, advanced safety, and user experience interfaces to automated driving technologies, the company is not just selling individual components but delivering holistic vehicle improvement packages. This strategic approach not only fortifies its alliances with automakers around the globe but also ensures a steady stream of revenue from both the sale of systems and ongoing maintenance and updates. As the automotive landscape rapidly evolves with a tilt towards electric and autonomous vehicles, Aptiv continues to innovate, ensuring its place as a trusted enabler of next-generation mobility.
Aptiv PLC, a key player in the automotive industry, generates revenue by ingeniously fusing technology and engineering to craft advanced vehicle systems and software solutions. Originally a part of General Motors under the name Delphi Automotive, Aptiv split and rebranded itself to focus on the burgeoning opportunities in automotive electronics and safety technology. With its headquarters in Dublin, Ireland, Aptiv has positioned itself at the forefront of the industry's transformation towards connectivity and automation. Central to its operations is the development of sensory systems and sophisticated computing platforms, enabling vehicles to perceive and react to their environments—a crucial foundation for autonomous and smart vehicles.
Moreover, Aptiv's business model capitalizes on its ability to integrate hardware and software, thus providing end-to-end solutions for its customers. By offering a comprehensive suite of services, ranging from electrical architecture, advanced safety, and user experience interfaces to automated driving technologies, the company is not just selling individual components but delivering holistic vehicle improvement packages. This strategic approach not only fortifies its alliances with automakers around the globe but also ensures a steady stream of revenue from both the sale of systems and ongoing maintenance and updates. As the automotive landscape rapidly evolves with a tilt towards electric and autonomous vehicles, Aptiv continues to innovate, ensuring its place as a trusted enabler of next-generation mobility.
Record Revenue: Aptiv reported record Q4 revenue of $5.2 billion, up 3% year-over-year, driven by strength across multiple business segments.
EPS Growth: Earnings per share reached $1.86 for the quarter, increasing 6% from the prior year, benefiting from share repurchases and lower interest expenses.
Bookings Momentum: Full year new business bookings totaled $27 billion, just below the $31 billion target due to timing shifts, with strong awards across all segments and geographies.
2026 Guidance: For 2026, new Aptiv revenue is guided to $12.8–$13.2 billion (up 4% at midpoint), with EBITDA margin expected at 18.6% and adjusted EPS between $5.70 and $6.10.
Spin-off Update: The Electrical Distribution Systems (EDS) business is on track to spin out as Verstegen on April 1, with separate guidance provided for both entities.
Margin Pressures: FX and commodities represented a significant margin headwind, but underlying margin performance improved when excluding these impacts.
Strong Cash Generation: Q4 operating cash flow was $818 million, with over half deployed to share repurchases and debt reduction; full year operating cash flow exceeded $2 billion.
