Aptiv Q1 2025 Financial Summary

Aptiv reported mixed results for the first quarter of 2025, with record adjusted earnings per share and strong operating cash flow, but a GAAP net loss due to a significant tax valuation allowance.

Key results:

- Revenue was $4.83 billion, down 2 percent year-over-year.
- Net loss attributable to Aptiv was $11 million, or a loss of $0.05 per diluted share (compared to $218 million net income or $0.79 EPS last year).
- Adjusted net income was $390 million, or $1.69 per diluted share, up from $318 million or $1.16 in Q1 2024.
- GAAP operating income was $448 million; adjusted operating income rose to $572 million (margin of 11.9 percent, up from 11.1 percent).
- Adjusted EBITDA was $758 million, up from $720 million.
- Net operating cash flow was $273 million, up from $244 million.
- Capital expenditures were $197 million.

Segment performance:

- Electrical Distribution Systems revenue: $2.02 billion, down 3 percent; adjusted operating income up 5 percent to $143 million.
- Engineered Components Group revenue: $1.58 billion, down 1 percent; adjusted operating income up 8 percent to $274 million.
- Advanced Safety and User Experience revenue: flat at $1.42 billion; adjusted operating income flat at $155 million.

Special items:

- Tax expense was $356 million, driven by a $294 million increase in valuation allowances after OECD guidance affected Swiss tax benefits.
- Equity losses of $10 million related to Motional joint venture.
- Separation costs of $19 million for the planned spin-off of the Electrical Distribution Systems business.

Share repurchases:

- No repurchases in Q1, but 48.5 million shares were settled and retired under the ASR program at an average of $61.84 per share.
- $2.52 billion remains authorized for future buybacks.

Outlook:

- Q2 2025 revenue expected between $4.92 to $5.12 billion; adjusted EPS between $1.70 and $1.90.
- Full-year 2025 revenue expected between $19.6 to $20.4 billion; adjusted EPS between $7.00 and $7.60.
- Operating cash flow forecast for the year: $2.1 billion.
- Capital expenditures forecast: $880 million.

Aptiv PLC Announces 2025 AGM Results

Schaffhausen, Switzerland – Aptiv PLC (NYSE: APTV) held its Annual General Meeting on April 23, 2025. Key outcomes include:

Election of Directors: All nominees were elected, including Kevin P. Clark and Nancy E. Cooper.

Re-appointment of Ernst & Young: Shareholders approved Ernst & Young as the company's auditors.

Advisory Approval of Executive Compensation: Shareholders approved the executive compensation plan.

ServiceNow and Aptiv Announce Strategic Partnership to Drive Intelligent Automation Across Industries

ServiceNow and Aptiv have formed a strategic partnership to deliver intelligent automation and operational resilience for the telco, automotive, enterprise, and industrial sectors. The collaboration combines ServiceNow’s AI-powered enterprise platform with Aptiv’s edge intelligence and virtualization solutions built on Wind River technologies.

The joint solution aims to streamline complex, manual processes into digital workflows, enabling customers to make faster decisions, increase operational agility, and enhance resilience. Aptiv has also selected ServiceNow to scale intelligence and collaboration across its own global operations, currently running more than 450 AI-driven workflows.

Key highlights of the collaboration include:

- Real-time insights via secure, low-latency cloud deployments
- Automated connectivity across networks and operations
- Enhanced scalability and security for managing mission-critical workloads

This partnership is designed to transform enterprise operations, particularly in asset-heavy environments such as vehicles, factories, and networks, by bridging the gap between physical systems and digital processes.

Aptiv PLC reported its financial results for the fourth quarter and full year of 2024, highlighting strong operating performance and record earnings.

**Fourth Quarter 2024 Highlights:**
- Revenue remained stable at $4.9 billion.
- U.S. GAAP net income was $268 million, or $1.14 per diluted share.
- Adjusted earnings per share (EPS) were $1.75.
- Operating income was $479 million with a margin of 9.8%.
- The company generated $1.06 billion in cash from operations.
- Revenue decreased by 1% when adjusted for currency exchange and commodity movements.

**Full Year 2024 Highlights:**
- Total revenue reached $19.7 billion, a 2% decline.
- U.S. GAAP net income was $1.79 billion, or $6.96 per diluted share.
- Adjusted EPS was $6.26.
- Operating income for the year was $1.84 billion, with a margin of 9.3%.
- Cash from operations totaled $2.45 billion, reflecting strong cash generation.
- The company repurchased $4.1 billion in shares during the year.

**Key Developments and Guidance:**
- Aptiv experienced declines in Europe and South America, but saw growth in North America and Asia.
- The company is focused on cost discipline and continued execution, and is transitioning into a more feature-rich, software-defined future.
- In 2025, Aptiv plans to separate its Electrical Distribution Systems business into two independent companies to capitalize on market opportunities.

Aptiv’s strong cash flow and operating performance in 2024 underscore the company’s strategy to drive long-term growth and provide value to its stakeholders.

Aptiv PLC announced its plan to separate its Electrical Distribution Systems (EDS) business to create two independent companies, each tailored to serve its market and maximize shareholder value. Aptiv will focus on advanced technology solutions, while EDS will specialize in electrical architectures for the automotive and commercial vehicle sectors. The separation will be achieved via a tax-free spin-off to shareholders, targeted for completion by March 31, 2026.

Aptiv, post-separation, will focus on high-growth industries like aerospace, defense, telecommunications, and automotive, with a portfolio emphasizing software and hardware solutions. EDS will leverage its expertise in vehicle electrical systems, positioning itself to capitalize on the increasing demand for electric vehicles. Both companies are projected to maintain robust financial health, with Aptiv targeting mid-to-high single-digit revenue growth and EDS aiming for mid-single-digit growth.

The company confirmed its 2024 financial outlook and detailed the separation's anticipated benefits, including enhanced focus, tailored strategies, and optimized capital allocation. Aptiv will host a conference call to discuss the transaction, reaffirming its commitment to transparency and investor engagement.