Aptiv Reports Fourth Quarter 2025 Financial Results
SCHAFFHAUSEN, Switzerland--( BUSINESS WIRE)--Aptiv PLC (NYSE: APTV), a global industrial technology company focused on enabling a more automated, electrified and digitalized future, today reported record full year financial results, with revenues increasing 3% to $20.4 billion.
Fourth Quarter Financial Highlights Include:
Full Year 2025 Financial Highlights Include:
“We delivered another year of record revenue, operating income, and earnings per share, demonstrating our agility within a dynamic landscape, our consistency of operational excellence, and the strength of our product portfolio of industry-leading technologies,” said Kevin Clark, chair and chief executive officer. “Looking ahead, we are working diligently toward the spin-off of our EDS business as Versigent, which will result in two optimally positioned, independent companies, with increased flexibility to pursue their own unique market opportunities and capital allocation strategies. With our track record of these strategic actions and consistent execution, we are confident in Aptiv’s ability to drive further long-term growth and enhance value for shareholders.”
Fourth Quarter 2025 Results
For the three months ended December 31, 2025, the Company reported U.S. GAAP revenue of $5.2 billion, an increase of 5% from the prior year period. Adjusted for currency exchange and commodity movements, revenue increased by 3% in the fourth quarter. This reflects growth of 8% in North America and 12% in South America, our smallest region, partially offset by declines of 1% in Europe and 1% in Asia.
The Company reported fourth quarter 2025 U.S. GAAP net income of $138 million, net income margin of 2.7% and earnings of $0.64 per diluted share, compared to $268 million, 5.5% and $1.14 per diluted share in the prior year period, reflecting higher tax expense. Fourth quarter Adjusted Net Income totaled $402 million, or earnings of $1.86 per diluted share, compared to $411 million, or $1.75 per diluted share in the prior year period.
Fourth quarter U.S. GAAP operating income was $425 million, compared to operating income of $479 million in the prior year period. The Company reported fourth quarter Adjusted Operating Income of $607 million, compared to $623 million in the prior year period. Adjusted Operating Income margin was 11.8%, compared to 12.7% in the prior year period, primarily reflecting improved operating performance, including the benefits of cost reduction initiatives, primarily offset by increased commodity costs and foreign exchange impacts totaling $66 million.
Depreciation and amortization expense totaled $250 million, compared to $245 million in the prior year period.
Interest expense for the fourth quarter totaled $87 million, a decrease from $107 million in the prior year period.
Tax expense in the fourth quarter of 2025 was $196 million. Tax expense in the fourth quarter of 2024 was $64 million.
The Company generated net cash flow from operating activities of $818 million in fourth quarter, compared to $1,060 million in the prior year period.
Full Year 2025 Results
For the year ended December 31, 2025, the Company reported U.S. GAAP revenue of $20.4 billion, an increase of 3% from the prior year. Adjusted for currency exchange and commodity movements, revenue increased by 2% in 2025. This reflects growth of 5% in North America, 3% in Asia and 7% in South America, our smallest region, partially offset by a decline of 2% in Europe.
The Company reported full year 2025 U.S. GAAP net income of $165 million, with net income margin of 0.8% and earnings of $0.75 per diluted share, which includes the impacts of a non-cash goodwill impairment charge of $648 million and an increase to valuation allowances of approximately $300 million on deferred tax assets impacted by the OECD Administrative Guidance issued in the first quarter of 2025. Prior year period net income totaled $1,787 million, with net income margin of 9.1% and earnings of $6.96 per diluted share. Full year 2025 Adjusted Net Income totaled $1,726 million, or earnings of $7.82 per diluted share, compared to $1,607 million, or $6.26 per diluted share, in the prior year, an increase of 7.4% and 24.9%, respectively.
Full year 2025 U.S. GAAP operating income was $1,184 million, compared to $1,842 million in the prior year. The Company reported full year Adjusted Operating Income of $2,461 million, compared to $2,366 million in the prior year. Adjusted Operating Income margin was 12.1%, compared to 12.0% in the prior year, primarily reflecting improved operating performance, including the benefits of cost reduction initiatives, partially offset by increased commodity costs and foreign exchange impacts totaling $207 million.
Depreciation and amortization expense totaled $991 million, compared to $964 million in the prior year.
Interest expense for full year 2025 totaled $361 million, an increase from $337 million in the prior year, primarily driven by debt transactions in the third quarter of 2024 in part to finance our $3.0 billion accelerated share repurchase program.
Tax expense for full year 2025 was $700 million, which includes the impact of an increase to valuation allowances of approximately $300 million on deferred tax assets impacted by the OECD Administrative Guidance issued in the first quarter of 2025. Tax expense for full year 2024 was $223 million.
The Company generated net cash flow from operating activities of $2,185 million in 2025, compared to $2,446 million in the prior year. As of December 31, 2025, the Company had cash and cash equivalents of $1.9 billion.
Reconciliations of Adjusted Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Cash Flow Before Financing, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) are provided in the attached supplemental schedules.
Debt and Share Repurchases
During 2025, the Company repurchased $300 million of aggregate principal amount of certain senior notes.
The Company repurchased and retired 22.8 million shares with a value of $1.5 billion during 2025. As of December 31, 2025, $2.1 billion remained available for future share repurchases under the existing $5.0 billion authorization.
Reportable Segment Name Changes
In connection with the planned spin-off of our Electrical Distribution Systems business, commencing with the first quarter of 2026, Aptiv will rename its Advanced Safety and User Experience segment to Intelligent Systems, and will rename its Engineered Components Group segment to Engineered Components. There is no impact to the composition of either segment.
Q1 and Full Year 2026 Outlook
The Company’s first quarter 2026 financial guidance is as follows:
(in millions, except per share amounts)
Total Aptiv
Net sales
$4,950 - $5,150
U.S. GAAP net income
$130 - $170
U.S. GAAP net income margin
3.0%
Adjusted EBITDA
$715 - $765
Adjusted EBITDA margin
14.7%
U.S. GAAP diluted net income per share
$0.60 - $0.80
Adjusted net income per share
$1.55 - $1.75
U.S. GAAP effective tax rate
~22.0%
Adjusted effective tax rate
~20.5%
The Company’s full year 2026 financial guidance is as follows:
(in millions, except per share amounts)
Total Aptiv
New Aptiv
(Pro Forma)
Versigent
(Pro Forma)
Net sales
$21,120 - $21,820
$12,800 - $13,200
$9,100 - $9,400
U.S. GAAP net income
$1,235 - $1,365
$830 - $910
$315 - $375
U.S. GAAP net income margin
6.1%
6.7%
3.7%
Adjusted EBITDA
$3,385 - $3,585
$2,360 - $2,480
$950 - $1,030
Adjusted EBITDA margin
16.2%
18.6%
10.7%
U.S. GAAP diluted net income per share
$5.75 - $6.35
$3.85 - $4.25
Adjusted net income per share
$8.15 - $8.75
$5.70 - $6.10
Cash flow from operations
$1,315 - $1,515
$440 - $540
Free cash flow
$650 - $850
$200 - $300
U.S. GAAP effective tax rate
~20.5%
~18.5%
Adjusted effective tax rate
~20.5%
~18.5%
Conference Call and Webcast
The Company will host a conference call to discuss these results at 8:00 a.m. (ET) today, which is accessible by dialing +1.800.330.6710 (US) or +1.213.279.1505 (international) or through a webcast at ir.aptiv.com. The conference ID number is 1616808. A slide presentation will accompany the prepared remarks and has been posted on the investor relations section of the Company’s website. A replay will be available two hours following the conference call.
Use of Non-GAAP Financial Information
This press release contains information about Aptiv’s financial results which are not presented in accordance with GAAP. Specifically, Adjusted Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share, Free Cash Flow and Cash Flow Before Financing are non-GAAP financial measures. Adjusted Revenue Growth represents the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements, acquisitions, divestitures and other transactions. Adjusted Operating Income represents net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring, separation costs related to the planned spin-off of the Electrical Distribution Systems business, other acquisition and portfolio project costs, (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), goodwill and other asset impairments, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions. Adjusted Operating Income margin is defined as Adjusted Operating Income as a percentage of net sales. Adjusted EBITDA represents net income before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, restructuring and other special items.
Adjusted Net Income represents net income attributable to Aptiv before amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share represents Adjusted Net Income divided by the Weighted Average Number of Diluted Shares Outstanding for the period. Cash Flow Before Financing represents cash provided by (used in) operating activities plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions and other transactions, the cost of significant technology investments and net proceeds from the divestiture of discontinued operations and other significant businesses. Free cash flow represents cash provided by (used in) operating activities less capital expenditures.
Management believes the non-GAAP financial measures used in this press release are useful to both management and investors in their analysis of the Company’s financial position, results of operations and liquidity. In particular, management believes Adjusted Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share, Free Cash Flow and Cash Flow Before Financing are useful measures in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and that may obscure underlying business results and trends. Management also uses these non-GAAP financial measures for internal planning and forecasting purposes.
Such non-GAAP financial measures are reconciled to the most directly comparable GAAP financial measures in the attached supplemental schedules at the end of this press release. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies.
About Aptiv
Aptiv is a global industrial technology company focused on enabling a more automated, electrified and digitalized future. Visit aptiv.com.
Forward-Looking Statements
This press release, as well as other statements made by Aptiv PLC (the “Company”), contain forward-looking statements that reflect, when made, the Company’s current views with respect to current events, certain investments and acquisitions and financial performance. Such forward-looking statements are subject to many risks, uncertainties and factors relating to the Company’s operations and business environment, which may cause the actual results of the Company to be materially different from any future results. All statements that address future operating, financial or business performance or the Company’s strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s filings with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.
APTIV PLC
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
(in millions, except per share amounts)
Net sales
$
5,153
$
4,907
$
20,398
$
19,713
Operating expenses:
Cost of sales
4,190
3,945
16,500
16,002
Selling, general and administrative
450
363
1,673
1,465
Amortization
52
52
208
211
Restructuring
36
68
185
193
Goodwill impairment
—
—
648
—
Total operating expenses
4,728
4,428
19,214
17,871
Operating income
425
479
1,184
1,842
Interest expense
(87
)
(107
)
(361
)
(337
)
Other income, net
16
11
50
41
Net (loss) gain on equity method transactions
—
(36
)
46
605
Income before income taxes and equity loss
354
347
919
2,151
Income tax expense
(196
)
(64
)
(700
)
(223
)
Income before equity loss
158
283
219
1,928
Equity loss, net of tax
(11
)
(8
)
(38
)
(118
)
Net income
147
275
181
1,810
Net income attributable to noncontrolling interest
10
6
19
24
Net (loss) income attributable to redeemable noncontrolling interest
(1
)
1
(3
)
(1
)
Net income attributable to Aptiv
$
138
$
268
$
165
$
1,787
Diluted net income per share:
Diluted net income per share attributable to Aptiv
$
0.64
$
1.14
$
0.75
$
6.96
Weighted average number of diluted shares outstanding
216.14
235.46
220.75
256.66
APTIV PLC
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 2025
December 31, 2024
(in millions)
ASSETS
Current assets:
Cash and cash equivalents
$
1,851
$
1,573
Restricted cash
3
1
Accounts receivable, net
3,477
3,261
Inventories
2,561
2,320
Other current assets
853
671
Total current assets
8,745
7,826
Long-term assets:
Property, net
3,774
3,698
Operating lease right-of-use assets
501
495
Investments in affiliates
1,431
1,433
Intangible assets, net
2,004
2,140
Goodwill
4,596
5,024
Other long-term assets
2,362
2,842
Total long-term assets
14,668
15,632
Total assets
$
23,413
$
23,458
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt
$
81
$
509
Accounts payable
3,157
2,870
Accrued liabilities
1,799
1,752
Total current liabilities
5,037
5,131
Long-term liabilities:
Long-term debt
7,470
7,843
Pension benefit obligations
430
374
Long-term operating lease liabilities
401
412
Other long-term liabilities
576
613
Total long-term liabilities
8,877
9,242
Total liabilities
13,914
14,373
Commitments and contingencies
Redeemable noncontrolling interest
102
92
Total Aptiv shareholders’ equity
9,207
8,796
Noncontrolling interest
190
197
Total shareholders’ equity
9,397
8,993
Total liabilities, redeemable noncontrolling interest and shareholders’ equity
$
23,413
$
23,458
APTIV PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended December 31,
2025
2024
(in millions)
Cash flows from operating activities:
Net income
$
181
$
1,810
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
991
964
Restructuring expense, net of cash paid
(10
)
(45
)
Deferred income taxes
394
(34
)
Loss from equity method investments, net of dividends received
58
130
Loss on extinguishment of debt
2
15
Goodwill impairment
648
—
Net gain on equity method transactions
(46
)
(605
)
Other, net
190
182
Changes in operating assets and liabilities:
Accounts receivable, net
(216
)
285
Inventories
(241
)
45
Accounts payable
251
(210
)
Other, net
13
(59
)
Pension contributions
(30
)
(32
)
Net cash provided by operating activities
2,185
2,446
Cash flows from investing activities:
Capital expenditures
(656
)
(830
)
Proceeds from sale of property
16
6
Net proceeds from divestiture of discontinued operations
4
—
Proceeds from sale of technology investments
12
—
Cost of technology investments
(42
)
(121
)
Proceeds from the sale of equity method investment
164
448
Purchase of short-term investments
—
(748
)
Redemption of short-term investments
—
740
Settlement of derivatives
4
(2
)
Net cash used in investing activities
(498
)
(507
)
Cash flows from financing activities:
(Decrease) increase in other short and long-term debt, net
(712
)
702
Repayment of senior notes
(296
)
(1,440
)
Proceeds from issuance of senior notes, net of issuance costs
—
2,920
Fees related to modification of debt agreements
(5
)
—
Proceeds from bridge loan, net of issuance costs
—
2,483
Repayment of bridge loan
—
(2,500
)
Equity related transaction costs
—
(3
)
Dividend payments of consolidated affiliates to minority shareholders
(6
)
—
Repurchase of ordinary shares
(397
)
(4,104
)
Taxes withheld and paid on employees’ restricted share awards
(26
)
(23
)
Net cash used in financing activities
(1,442
)
(1,965
)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash
35
(40
)
Increase (decrease) in cash, cash equivalents and restricted cash
280
(66
)
Cash, cash equivalents and restricted cash at beginning of the year
1,574
1,640
Cash, cash equivalents and restricted cash at end of the year
$
1,854
$
1,574
APTIV PLC
FOOTNOTES
(Unaudited)
1. Segment Summary
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
%
2025
2024
%
(in millions)
(in millions)
Net Sales
Advanced Safety and User Experience
$
1,419
$
1,381
3
%
$
5,792
$
5,791
—
%
Engineered Components Group
1,644
1,580
4
%
6,662
6,384
4
%
Electrical Distribution Systems
2,302
2,128
8
%
8,818
8,309
6
%
Eliminations and Other (a)
(212
)
(182
)
(874
)
(771
)
Net Sales
$
5,153
$
4,907
$
20,398
$
19,713
Adjusted Operating Income
Advanced Safety and User Experience
$
161
$
193
(17
)%
$
658
$
714
(8
)%
Engineered Components Group
270
250
8
%
1,129
1,073
5
%
Electrical Distribution Systems
176
180
(2
)%
674
579
16
%
Adjusted Operating Income
$
607
$
623
$
2,461
$
2,366
(a)
Eliminations and Other includes the elimination of inter-segment transactions.
2. Weighted Average Number of Diluted Shares Outstanding
The following table illustrates the weighted average shares outstanding used in calculating basic and diluted net income per share attributable to Aptiv for the three months and years ended December 31, 2025 and 2024:
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
(in millions, except per share data)
Weighted average ordinary shares outstanding, basic
214.89
235.04
220.00
256.38
Dilutive shares related to RSUs
1.25
0.42
0.75
0.28
Weighted average ordinary shares outstanding, including dilutive shares
216.14
235.46
220.75
256.66
Net income per share attributable to ordinary Aptiv:
Basic
$
0.64
$
1.14
$
0.75
$
6.97
Diluted
$
0.64
$
1.14
$
0.75
$
6.96
APTIV PLC
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
In this press release the Company has provided information regarding certain non-GAAP financial measures, including “Adjusted Revenue Growth,” “Adjusted Operating Income,” “Adjusted EBITDA,” “Adjusted Net Income,” “Adjusted Net Income Per Share” and “Cash Flow Before Financing.” Such non-GAAP financial measures are reconciled to their closest GAAP financial measure in the following schedules.
Adjusted Revenue Growth: Adjusted Revenue Growth is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Revenue Growth in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Revenue Growth is defined as the year-over-year change in reported net sales relative to the comparable period, excluding the impact on net sales from currency exchange, commodity movements, acquisitions, divestitures and other transactions. Not all companies use identical calculations of Adjusted Revenue Growth, therefore this presentation may not be comparable to other similarly titled measures of other companies.
Three Months Ended
December 31, 2025
Reported net sales % change
5
%
Less: foreign currency exchange and commodities
2
%
Adjusted revenue growth
3
%
Year Ended
December 31, 2025
Reported net sales % change
3
%
Less: foreign currency exchange and commodities
1
%
Adjusted revenue growth
2
%
Adjusted Operating Income: Adjusted Operating Income is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Operating Income in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Management also utilizes Adjusted Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes to allocate resources to our segments, as management also believes this measure is most reflective of the operational profitability or loss of our operating segments. Adjusted Operating Income is defined as net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring and other special items. Not all companies use identical calculations of Adjusted Operating Income, therefore this presentation may not be comparable to other similarly titled measures of other companies. Operating income margin represents Operating income as a percentage of net sales, and Adjusted Operating Income margin represents Adjusted Operating Income as a percentage of net sales.
Consolidated Adjusted Operating Income
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
($ in millions)
$
Margin
$
Margin
$
Margin
$
Margin
Net income attributable to Aptiv
$
138
2.7
%
$
268
5.5
%
$
165
0.8
%
$
1,787
9.1
%
Interest expense
87
107
361
337
Other income, net
(16
)
(11
)
(50
)
(41
)
Net loss (gain) on equity method transactions
—
36
(46
)
(605
)
Income tax expense
196
64
700
223
Equity loss, net of tax
11
8
38
118
Net income attributable to noncontrolling interest
10
6
19
24
Net (loss) income attributable to redeemable noncontrolling interest
(1
)
1
(3
)
(1
)
Operating income
$
425
8.2
%
$
479
9.8
%
$
1,184
5.8
%
$
1,842
9.3
%
Amortization
52
52
208
211
Restructuring
36
68
185
193
Separation costs
78
—
178
—
Other acquisition and portfolio project costs
5
14
30
80
Asset impairments
7
5
16
22
Goodwill impairment
—
—
648
—
Compensation expense related to acquisitions
4
5
17
18
Gain on asset sale
—
—
(5
)
—
Adjusted operating income
$
607
11.8
%
$
623
12.7
%
$
2,461
12.1
%
$
2,366
12.0
%
Segment Adjusted Operating Income
(in millions)
Three Months Ended December 31, 2025
Advanced
Safety and User
Experience
Engineered
Components
Group
Electrical
Distribution
Systems
Total
Operating income
$
124
$
231
$
70
$
425
Amortization
23
29
—
52
Restructuring
5
7
24
36
Separation costs
—
—
78
78
Other acquisition and portfolio project costs
3
1
1
5
Asset impairments
2
2
3
7
Compensation expense related to acquisitions
4
—
—
4
Adjusted operating income
$
161
$
270
$
176
$
607
Depreciation and amortization (a)
$
77
$
111
$
62
$
250
Three Months Ended December 31, 2024
Advanced
Safety and User
Experience
Engineered
Components
Group
Electrical
Distribution
Systems
Total
Operating income
$
142
$
204
$
133
$
479
Amortization
23
28
1
52
Restructuring
17
10
41
68
Other acquisition and portfolio project costs
6
3
5
14
Asset impairments
—
5
—
5
Compensation expense related to acquisitions
5
—
—
5
Adjusted operating income
$
193
$
250
$
180
$
623
Depreciation and amortization (a)
$
74
$
109
$
62
$
245
Year Ended December 31, 2025
Advanced
Safety and User
Experience
Engineered
Components
Group
Electrical
Distribution
Systems
Total
Operating (loss) income
$
(165
)
$
955
$
394
$
1,184
Amortization
89
118
1
208
Restructuring
58
41
86
185
Separation costs
—
—
178
178
Other acquisition and portfolio project costs
14
7
9
30
Asset impairments
2
8
6
16
Goodwill impairment
648
—
—
648
Compensation expense related to acquisitions
17
—
—
17
Gain on asset sale
(5
)
—
—
(5
)
Adjusted operating income
$
658
$
1,129
$
674
$
2,461
Depreciation and amortization (a)
$
300
$
447
$
244
$
991
Year Ended December 31, 2024
Advanced
Safety and User
Experience
Engineered
Components
Group
Electrical
Distribution
Systems
Total
Operating income
$
513
$
883
$
446
$
1,842
Amortization
89
120
2
211
Restructuring
53
39
101
193
Other acquisition and portfolio project costs
27
23
30
80
Asset impairments
14
8
—
22
Compensation expense related to acquisitions
18
—
—
18
Adjusted operating income
$
714
$
1,073
$
579
$
2,366
Depreciation and amortization (a)
$
300
$
429
$
235
$
964
(a)
Includes asset impairments.
Adjusted EBITDA: Adjusted EBITDA is presented as a supplemental measure of the Company’s financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted EBITDA in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted EBITDA is defined as net income before depreciation and amortization (including asset impairments), interest expense, income tax (expense) benefit, other income (expense), net, equity income (loss), net of tax, restructuring and other special items. Not all companies use identical calculations of Adjusted EBITDA, therefore this presentation may not be comparable to other similarly titled measures of other companies.
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
(in millions)
Net income attributable to Aptiv
$
138
$
268
$
165
$
1,787
Interest expense
87
107
361
337
Income tax expense
196
64
700
223
Net income attributable to noncontrolling interest
10
6
19
24
Net (loss) income attributable to redeemable noncontrolling interest
(1
)
1
(3
)
(1
)
Depreciation and amortization
250
245
991
964
EBITDA
$
680
$
691
$
2,233
$
3,334
Other income, net
(16
)
(11
)
(50
)
(41
)
Net loss (gain) on equity method transactions
—
36
(46
)
(605
)
Equity loss, net of tax
11
8
38
118
Restructuring
36
68
185
193
Separation costs
78
—
178
—
Other acquisition and portfolio project costs
5
14
30
80
Goodwill impairment
—
—
648
—
Compensation expense related to acquisitions
4
5
17
18
Gain on asset sale
—
—
(5
)
—
Adjusted EBITDA
$
798
$
811
$
3,228
$
3,097
Adjusted Net Income and Adjusted Net Income Per Share: Adjusted Net Income and Adjusted Net Income Per Share, which are non-GAAP measures, are presented as supplemental measures of the Company’s financial performance which management believes are useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Management utilizes Adjusted Net Income and Adjusted Net Income Per Share in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Net Income is defined as net income attributable to Aptiv before amortization, restructuring and other special items, including the tax impact thereon. Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the Weighted Average Number of Diluted Shares Outstanding, for the period. Not all companies use identical calculations of Adjusted Net Income and Adjusted Net Income Per Share, therefore this presentation may not be comparable to other similarly titled measures of other companies.
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
(in millions, except per share amounts)
Net income attributable to Aptiv
$
138
$
268
$
165
$
1,787
Adjusting items:
Amortization
52
52
208
211
Restructuring
36
68
185
193
Separation costs
78
—
178
—
Other acquisition and portfolio project costs
5
14
30
80
Asset impairments
7
5
16
22
Goodwill impairment
—
—
648
—
Compensation expense related to acquisitions
4
5
17
18
Gain on asset sale
—
—
(5
)
—
Loss on extinguishment of debt
2
3
2
15
(Gain) loss on change in fair value of publicly traded equity securities
—
—
(2
)
3
Net loss (gain) on equity method transactions
—
36
(46
)
(605
)
Tax impact of intercompany transfers of intellectual property and other related transactions (a)
—
—
294
—
Tax impact of adjusting items (b)
80
(40
)
36
(117
)
Adjusted net income attributable to Aptiv
$
402
$
411
$
1,726
$
1,607
Weighted average number of diluted shares outstanding
216.14
235.46
220.75
256.66
Diluted net income per share attributable to ordinary shareholders
$
0.64
$
1.14
$
0.75
$
6.96
Adjusted net income per share
$
1.86
$
1.75
$
7.82
$
6.26
(a)
As a result of the Pillar Two OECD Administrative Guidance released in the first quarter of 2025, the Company no longer expects to obtain significant benefits from the tax incentive granted to its Swiss subsidiary in 2023. Accordingly, the Company recognized an increase to valuation allowances of $294 million to reduce the related deferred tax asset during the year ended December 31, 2025.
(b)
Represents the income tax impacts of the adjustments made for amortization, restructuring and other special items by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred.
Cash Flow Before Financing: Cash Flow Before Financing is presented as a supplemental measure of the Company’s liquidity which is consistent with the basis and manner in which management presents financial information for the purpose of making internal operating decisions, evaluating its liquidity and determining appropriate capital allocation strategies. Management believes this measure is useful to investors to understand how the Company’s core operating activities generate and use cash. Cash Flow Before Financing is defined as cash provided by (used in) operating activities plus cash provided by (used in) investing activities, adjusted for the purchase price of business acquisitions and other transactions, the cost of significant technology investments and net proceeds from the divestiture of discontinued operations and other significant businesses. Not all companies use identical calculations of Cash Flow Before Financing, therefore this presentation may not be comparable to other similarly titled measures of other companies. The calculation of Cash Flow Before Financing does not reflect cash used to service debt, pay dividends or repurchase shares and, therefore, does not necessarily reflect funds available for investment or other discretionary uses.
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
(in millions)
Cash flows from operating activities:
Net income
$
147
$
275
$
181
$
1,810
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
250
245
991
964
Restructuring expense, net of cash paid
(34
)
20
(10
)
(45
)
Working capital
215
451
(206
)
120
Pension contributions
(14
)
(11
)
(30
)
(32
)
Goodwill impairment
—
—
648
—
Net loss (gain) on equity method transactions
—
36
(46
)
(605
)
Other, net
254
44
657
234
Net cash provided by operating activities
818
1,060
2,185
2,446
Cash flows from investing activities:
Capital expenditures
(167
)
(166
)
(656
)
(830
)
Proceeds from sale of technology investment
—
—
12
—
Cost of technology investments
—
—
(42
)
(121
)
Proceeds from sale of equity method investments
—
—
164
448
Purchase of short-term investments
—
—
—
(748
)
Redemption of short-term investments
—
740
—
740
Settlement of derivatives
—
—
4
(2
)
Other, net
14
3
20
6
Net cash (used in) provided by investing activities
(153
)
577
(498
)
(507
)
Adjusting items:
Adjustment for cost of significant technology investments
—
—
40
121
Adjustment for proceeds from sale of equity method investment
—
—
(164
)
(448
)
Cash flow before financing
$
665
$
1,637
$
1,563
$
1,612
Financial Guidance: The reconciliation of the forward-looking non-GAAP financial measures provided in the Company’s financial guidance to the most comparable forward-looking GAAP measure is as follows:
Total Aptiv
Estimated Q1
($ in millions)
2026 (a)
Adjusted EBITDA
$
Margin (b)
Net income attributable to the Company
$
150
3.0
%
Interest expense
85
Income tax expense
45
Depreciation and amortization
255
EBITDA
$
535
10.6
%
Other income, net
(5
)
Equity loss, net of tax
10
Restructuring
85
Other acquisition and portfolio project costs, including separation costs
115
Adjusted EBITDA
$
740
14.7
%
Total Aptiv
New Aptiv (Pro Forma)
Versigent (Pro Forma)
Estimated Full Year
Estimated Full Year
Estimated Full Year
($ in millions)
2026 (a)
2026 (a)
2026 (a)
Adjusted EBITDA
$
Margin (b)
$
Margin (b)
$
Margin (b)
Net income attributable to the Company
$
1,300
6.1
%
$
870
6.7
%
$
345
3.7
%
Interest expense
335
270
95
Income tax expense
350
210
100
Net income (loss) attributable to noncontrolling interest (c)
15
(5
)
15
Depreciation and amortization
1,025
785
245
EBITDA
$
3,025
14.1
%
$
2,130
16.4
%
$
800
8.6
%
Other (income) expense, net
(35
)
(45
)
10
Equity loss (income), net of tax
55
55
(15
)
Restructuring
210
115
115
Other acquisition and portfolio project costs, including separation costs
230
165
80
Adjusted EBITDA
$
3,485
16.2
%
$
2,420
18.6
%
$
990
10.7
%
(a)
Prepared at the estimated mid-point of the Company’s financial guidance range.
(b)
Represents net income attributable to the Company, EBITDA and Adjusted EBITDA, respectively, as a percentage of estimated net sales.
(c)
Includes portion attributable to redeemable noncontrolling interest.
Total Aptiv
Total Aptiv
New Aptiv
(Pro Forma)
Estimated Q1
Estimated
Full Year
Estimated
Full Year
($ and shares in millions, except per share amounts)
2026 (a)
2026 (a)
2026 (a)
Adjusted Net Income Per Share
Net income attributable to the Company
$
150
$
1,300
$
870
Adjusting items:
Amortization
55
215
210
Restructuring
85
210
115
Other acquisition and portfolio project costs, including separation costs
115
230
165
Tax impact of adjusting items
(50
)
(135
)
(90
)
Adjusted net income attributable to the Company
$
355
$
1,820
$
1,270
Weighted average number of diluted shares outstanding
215.00
215.00
215.00
Diluted net income per share attributable to the Company
$
0.70
$
6.05
$
4.05
Adjusted net income per share
$
1.65
$
8.45
$
5.90
(a)
Prepared at the estimated mid-point of the Company’s financial guidance range.
New Aptiv
(Pro Forma)
Versigent
(Pro Forma)
Estimated
Full Year
Estimated
Full Year
($ in millions)
2026 (a)
2026 (a)
Free Cash Flow
Net cash provided by operating activities
$
1,415
$
490
Capital expenditures
(665
)
(240
)
Free cash flow
$
750
$
250
(a)
Prepared at the estimated mid-point of the Company’s financial guidance range.