This article first appeared on GuruFocus.
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Revenue: $5.2 billion, an increase of 3% year-over-year.
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Adjusted Operating Income: $607 million.
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Earnings Per Share (EPS): $1.86.
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Operating Cash Flow: $818 million.
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New Business Bookings: $27 billion for the full year, with $5 billion in the China market.
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Intelligent Systems Revenue: $1.4 billion, increased by 2% year-over-year.
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Engineered Components Revenue: $1.6 billion, increased by 1% year-over-year.
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Electrical Distribution Systems (EDS) Revenue: $2.3 billion, increased by 5% year-over-year.
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Debt Reduction: $1 billion retired in 2025, with $150 million in Q4.
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Share Repurchases: $400 million deployed in Q3 and Q4, reducing share count by 20% since Q3 2024.
Release Date: February 02, 2026
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 fourth quarter revenue of $5.2 billion, reflecting a 3% increase, showcasing strong performance across multiple business areas.
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The company successfully leveraged its product portfolio to penetrate non-automotive markets, aligning with trends in automation, electrification, and digitalization.
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Aptiv PLC (NYSE:APTV) announced partnerships with robotics companies Robust AI and Vecna Robotics, enhancing its presence in the robotics sector.
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The company achieved strong new business bookings, totaling $27 billion for the year, with significant contributions from China, Japan, Korea, and India.
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Aptiv PLC (NYSE:APTV) generated $818 million in operating cash flow, deploying more than half towards share repurchases and debt reduction, demonstrating strong financial management.
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Aptiv PLC (NYSE:APTV) faced stronger than anticipated headwinds from foreign exchange and commodities, impacting margins.
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The company’s full-year new business awards fell short of the $31 billion target, with some awards shifting to the first half of 2026.
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Intelligent Systems segment experienced a decline in operating income due to investments in non-auto markets and unfavorable foreign exchange.
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The company incurred approximately $80 million in separation costs related to the upcoming spin-off of Versigent.
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Aptiv PLC (NYSE:APTV) anticipates higher input costs related to semiconductors in 2026, which may impact profitability despite plans to pass costs to customers.
Q: Can you provide more insight into Aptiv’s memory exposure and its impact on costs? A: Kevin Clark, CEO, explained that the purchase value of memory is approximately $175 million for 2026, with price increases in the low double-digits due to strategic supply chain management. Negotiations for 2027 are underway, and Aptiv is confident in managing cost increases and passing them on to OEM customers.
Q: What factors are influencing the 2026 growth guidance for new Aptiv? A: Varun Laroyia, CFO, noted that the 4% growth guidance is influenced by vehicle production assumptions, with expectations for global production to be down 1% in 2026. Non-auto revenues are growing strongly, and software and services are expected to grow at mid-teens rates.
Q: Can you explain the EBITDA outlook for new Aptiv in 2026? A: Varun Laroyia highlighted that revenue growth and volume flow-through will positively impact EBITDA. However, there are headwinds from commodities, net price downs, and investments in non-auto business growth. Stranded costs are expected to impact margins, but performance improvements in manufacturing and material will help offset these.
Q: How is Aptiv addressing FX and commodity impacts beyond 2026? A: Kevin Clark stated that Aptiv remains confident in expanding margins by 200 basis points by 2028. Stranded costs will be eliminated by 2028, and investments in engineering and market capabilities are more focused on 2026, with improvements expected in subsequent years.
Q: What is the regional revenue outlook for Aptiv in 2026? A: Varun Laroyia indicated that North America will continue to lead due to non-auto revenue growth, while Europe is expected to be flat to slightly down. In China, improved customer mix and growth with local OEMs are anticipated, with better performance expected in the second half of the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.