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.