This article first appeared on GuruFocus.
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Revenue: $5.2 billion, up 6% year-over-year.
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Operating Income: $654 million, an increase of 10%.
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Earnings Per Share (EPS): $2.17, up 19%.
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Operating Cash Flow: $584 million.
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Share Repurchases and Debt Paydown: $250 million deployed.
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New Business Bookings: $8.4 billion in the third quarter.
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Advanced Safety and User Experience Revenue: Flat year-over-year.
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Engineered Components Group Revenue: $1.7 billion, up 6%.
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Electrical Distribution Systems Revenue: $2.3 billion, up 11%.
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Adjusted EBITDA Growth: 9% increase.
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Operating Income Margin Expansion: 30 basis points.
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Full Year Revenue Guidance: $20.3 billion at the midpoint.
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Adjusted Earnings Per Share Guidance: $7.55 to $7.85, up 23% at the midpoint.
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Capital Expenditures: $143 million in the third quarter.
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Goodwill Impairment Charge: $648 million for Wind River.
Release Date: October 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Aptiv PLC (NYSE:APTV) reported record financial results for the third quarter, including revenue, operating income, and earnings per share.
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The company achieved $8.4 billion in new business bookings, indicating strong customer confidence and demand for its advanced technologies.
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Aptiv PLC (NYSE:APTV) experienced double-digit growth in non-automotive markets, contributing to its overall revenue increase.
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The company is progressing with the separation of its electrical distribution systems business, expected to unlock incremental shareholder value.
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Aptiv PLC (NYSE:APTV) has a robust operating model, validated by Supplier Quality Excellence awards from Volkswagen and General Motors, underscoring its reputation for delivering high-quality solutions.
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The company recorded a non-cash goodwill impairment charge of $648 million for Wind River due to slower-than-expected growth.
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Aptiv PLC (NYSE:APTV) faces ongoing headwinds from the roll-off of a legacy infotainment program and program cancellations with two Chinese local OEMs.
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The macro environment remains dynamic with geopolitical trends, regulations, and trade policies posing challenges to precise forecasting.
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Recent customer-specific production disruptions and amplified trade tensions are impacting semiconductor supply chains, affecting fourth-quarter outlook.
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The company is experiencing unfavorable impacts from foreign exchange and commodity prices, particularly the Mexican peso and copper, affecting margins.
Q: Can you break down the $80 million impact on Q4 due to known issues and added uncertainties? A: Kevin Clark, CEO: The $80 million includes volume impacts from specific facility issues and other unique customer-specific situations, particularly in Europe. There’s also an element of conservatism related to supply chain issues tied to geopolitical tensions.
Q: How are you framing the NextEra issue and its potential impact on the semiconductor supply chain? A: Kevin Clark, CEO: It’s a political issue between the Dutch government and China. Currently, product is flowing in China, and we don’t expect immediate impacts. The industry has alternative sources, and we have validated solutions to mitigate risks.
Q: What are the key drivers for the lower margin guidance in Q4 compared to Q3? A: Varun Laroyia, CFO: The key drivers include the flow-through of weaker volumes, timing of customer recoveries, and elevated copper prices. These factors are marginally higher than the 20 basis points impact from recovery timing.
Q: Can you provide more context on the growth opportunity in non-automotive markets? A: Kevin Clark, CEO: The opportunity is significant, especially in areas like energy storage, robotics, and drones. Non-automotive revenues are approaching $3 billion, growing mid-teens, driven by our Engineered Components Group and Advanced Safety and User Experience segments.
Q: How did active safety growth perform in the quarter, and what is the outlook for the second half? A: Kevin Clark, CEO: Active safety growth is expected to be low-single digits in the second half due to program cancellations. However, we’ve had solid bookings, and we expect a return to growth in 2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.