NYSE:APTV
Aptiv PLC
Aptiv provides critical electrification and digitalization solutions to the global automotive industry, focusing on intelligent mobility platforms for OEMs.
Key Metrics
Investment Thesis
Bull Case
Aptiv is well-positioned to capitalize on the massive structural shift toward electric vehicles and autonomous driving, where its high-voltage battery integration expertise offers superior margins. The company's transition away from legacy combustion engine modules into higher-growth electrification segments should drive long-term revenue expansion and margin improvement over the next cycle.
Bear Case
The sharp drop in net income to $181M raises concerns about operational efficiency or one-time charges that could mask underlying business health. With significant debt levels and a large retained earnings deficit, the company faces elevated financial risk if auto sales slow down again or interest rates remain high.
About Aptiv PLC
Aptiv PLC is a global leader in intelligent mobility solutions, serving major automotive original equipment manufacturers (OEMs) worldwide. The company designs and manufactures high-performance electronic systems, including powertrain control modules, battery management systems, and autonomous driving technologies for electric and conventional vehicles.
Analysis
Management Discussion
Revenue grew to $20.4B in the latest period, reflecting a recovery from the 2024 dip and driven by strong demand for electrification components despite a notable contraction in reported net income to $181M. The decline in profitability compared to prior years suggests potential headwinds in cost management or legacy portfolio mix adjustments, though cash flow from operations remains robust at $2.19B.
Industry Overview
The automotive electronics industry is undergoing a rapid transformation driven by the electrification of powertrains and the integration of software-defined vehicles. This shift requires suppliers to pivot from simple wiring harnesses to complex thermal management systems and battery control units, creating a bifurcated market with winners in high-voltage tech and losers in legacy parts.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $17.49B | $20.05B | $19.71B | $20.40B |
| Cost of Revenue | $14.85B | $16.61B | $16.00B | $16.50B |
| Gross Profit | $2.63B | $3.44B | $3.71B | $3.90B |
| Operating Expenses | $1.37B | $1.88B | $1.87B | $2.71B |
| Operating Income | $1.26B | $1.56B | $1.84B | $1.18B |
| R&D | $1.12B | $1.29B | $1.10B | $1.13B |
| G&A | $1.14B | $1.44B | $1.47B | $1.67B |
| Stock-Based Comp | $86.0M | $115.0M | $120.0M | $139.0M |
| D&A | $762.0M | $912.0M | $964.0M | $991.0M |
| Depreciation | $613.0M | $679.0M | $753.0M | $783.0M |
| Amortization | $149.0M | $233.0M | $211.0M | $208.0M |
| Other OpEx | $-886.0M | $-845.0M | $-693.0M | $-88.0M |
| Non-Operating Income | $-273.0M | $-222.0M | $309.0M | $-265.0M |
| Interest Expense | $219.0M | $285.0M | $337.0M | $361.0M |
| Pre-Tax Income | $990.0M | $1.34B | $2.15B | $919.0M |
| Income Tax | $121.0M | $-1.93B | $223.0M | $700.0M |
| Continuing Ops | $594.0M | $3.27B | $1.93B | $219.0M |
| Discontinued Ops | $-4.0M | $-299.0M | $-118.0M | $-38.0M |
| Net Income | $590.0M | $2.97B | $1.81B | $181.0M |
| Minority Interest | $-3.0M | $28.0M | $24.0M | $19.0M |
| Net to Common | $593.0M | $2.94B | $1.79B | $162.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $7.78B | $8.25B | $7.83B | $8.74B |
| Cash & Equivalents | $1.53B | $1.64B | $1.57B | $1.85B |
| Accounts Receivable | $3.43B | $3.55B | $3.26B | $3.48B |
| Inventory | $2.34B | $2.37B | $2.32B | $2.56B |
| Prepaid Expenses | $75.0M | $91.0M | $97.0M | $137.0M |
| Other Current Assets | $405.0M | $605.0M | $575.0M | $719.0M |
| Long-Term Assets | $14.10B | $16.18B | $15.63B | $14.67B |
| PP&E (Net) | $3.50B | $3.79B | $3.70B | $3.77B |
| Intangibles | $2.58B | $2.40B | $2.14B | $2.00B |
| Goodwill | $5.11B | $5.15B | $5.02B | $4.60B |
| Operating Leases | $451.0M | $540.0M | $495.0M | $501.0M |
| Other LT Assets | $740.0M | $2.86B | $2.84B | $2.36B |
| Total Assets | $21.88B | $24.43B | $23.46B | $23.41B |
| Current Liabilities | $4.87B | $4.81B | $5.13B | $5.04B |
| Accounts Payable | $3.15B | $3.15B | $2.87B | $3.16B |
| Current Leases | $109.0M | $121.0M | $124.0M | $142.0M |
| Deferred Revenue | $90.0M | $93.0M | $111.0M | $84.0M |
| Other Current Liab | $-168.0M | $-205.0M | $274.0M | $-145.0M |
| Long-Term Liabilities | $7.92B | $7.78B | $9.24B | $8.88B |
| Long-Term Debt | $6.46B | $6.20B | $7.84B | $7.47B |
| LT Operating Leases | $361.0M | $453.0M | $412.0M | $401.0M |
| Other LT Liab | $934.0M | $933.0M | $809.0M | $797.0M |
| Total Liabilities | $12.79B | $12.58B | $14.37B | $13.91B |
| Shareholders' Equity | $9.09B | $11.84B | $9.09B | $9.50B |
| Paid-In Capital | $3.99B | $4.03B | $2.97B | $3.62B |
| Retained Earnings | $5.61B | $8.16B | $7.00B | $6.23B |
| AOCI | $-791.0M | $-645.0M | $-1.17B | $-641.0M |
| Total L&E | $21.88B | $24.43B | $23.46B | $23.41B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $590.0M | $2.97B | $1.81B | $181.0M |
| Non-Cash Adjustments | $-288.0M | $-1.42B | $997.0M | $1.06B |
| Working Capital Changes | $961.0M | $351.0M | $-361.0M | $945.0M |
| Cash from Operations | $1.26B | $1.90B | $2.45B | $2.19B |
| Capital Expenditures | $844.0M | — | — | — |
| Cash from Investing | $-5.18B | $-1.00B | $-507.0M | $-498.0M |
| Share Buybacks | $0 | $398.0M | $4.10B | $397.0M |
| Dividends Paid | $0 | — | — | — |
| Cash from Financing | $2.36B | $-807.0M | $-1.97B | $-1.44B |
| FX Effect | $-24.0M | $-2.0M | $-40.0M | $35.0M |
| Net Change in Cash | $-1.58B | $85.0M | $-66.0M | $280.0M |
| Beginning Cash | $3.14B | $1.53B | $1.64B | $1.57B |
| Ending Cash | $1.53B | $1.64B | $1.57B | $1.85B |
Frequently Asked Questions
How does Aptiv PLC make money?
The company's revenue is derived primarily from its Intelligent Mobility Solutions segment, which includes electronic control units (ECUs), powertrain modules, and body electronics. Additional streams come from Battery Systems offering high-voltage components for EVs, and Emerging Mobility Solutions providing connectivity and autonomous driving software/hardware platforms.
What are the main risks for APTV?
Significant exposure to global automotive cyclical downturns which directly impact order volumes and pricing power. Intense competition from specialized semiconductor firms and traditional Tier 1 rivals threatens margin compression on core electronic modules. Geopolitical tensions and trade tariffs could disrupt complex global supply chains for rare earth materials and chips.
What is APTV's competitive advantage?
Aptiv leverages a massive global footprint with over 30 manufacturing facilities to ensure supply chain resilience and local content compliance for OEMs. Its deep engineering expertise in power electronics and thermal management creates high switching costs, while its strategic partnerships with key battery suppliers secure first-mover advantages in the EV transition.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.