Management commentary
Strong Operating Performance and Significant Progress Diversifying Towards Non-Auto Markets
Results
SCHAFFHAUSEN - Aptiv PLC (NYSE: APTV), a global industrial technology company, today reported financial results for the second quarter of 2026.
Second Quarter Financial Highlights Include :
U.S. GAAP revenue of $3.3 billion, an increase of 2%
1Adjusted revenue growth of 2%
U.S. GAAP net income from continuing operations of $298 million
Adjusted EBITDA of $613 million
U.S. GAAP diluted earnings per share from continuing operations of $1.40
Adjusted net income per share of $1.63
Corporate events
Completed the spin-off of Electrical Distribution Systems segment
Electrical Distribution Systems segment classified as discontinued operations for all periods presented
Received cash dividend of $1.9 billion in connection with the spin-off
Results
Year-to-Date Financial Highlights Include :
U.S. GAAP revenue of $6.3 billion, an increase of 2%
2Adjusted revenue growth of 1%
U.S. GAAP net income from continuing operations of $427 million
Adjusted EBITDA of $1,106 million
U.S. GAAP diluted earnings per share from continuing operations of $2.01
Adjusted net income per share of $2.56
Management commentary
"We delivered solid results in the second quarter, our first as New Aptiv, with a reacceleration in revenue growth and margin expansion year-over-year,” said Kevin Clark, chair and chief executive officer.
“In addition, we continued to demonstrate progress on many of our strategic initiatives, including double digit revenue growth in Non-Automotive revenues, advancing our presence in the Robotics market from partnerships to commercial stage, and securing a major Drone market commercial win in early July.
While the macroeconomic landscape for Automotive remains dynamic and customer mix has presented as an incremental headwind, we remain committed to delivering continued revenue growth and strong operating performance this year.
Moreover, our strong belief in the long-term value of our business and opportunity for growth across markets has reinforced our commitment in
Capital return
returning capital to shareholders, with half of our expected cash flow for the year already having been allocated towards share repurchases, a level we see continuing for the next few years."
Results
Second Quarter 2026 Results
For the three months ended June 30, 2026, the Company reported U.S. GAAP revenue of $3.3 billion, an increase of 2% from the prior year period.
Adjusted for currency exchange and commodity movements, revenue increased by 2% in the second quarter.
6This reflects growth of 10% in North America, 6% in Asia Pacific, which includes growth of 5% in China, partially offset by declines of 8% in EMEA and 4% in South America, our smallest region.
The Company reported second quarter 2026 U.S. GAAP net income from continuing operations of $298 million, net income margin from continuing operations of 9.1% and earnings from continuing operations of $1.40 per diluted share, compared to U.S. GAAP net income from continuing operations of $265 million, net income margin from continuing operations of 8.3% and earnings from continuing operations of $1.21 per diluted share in the prior year period.
Second quarter Adjusted Net Income totaled $345 million, or earnings of $1.63 per diluted share, compared to $285 million, or $1.31 per diluted share, in the prior year period.
The Company reported second quarter Adjusted EBITDA of $613 million, compared to $547 million in the prior year period.
Adjusted EBITDA margin was 18.7%, compared to 17.1% in the prior year period, primarily reflecting increased volumes and favorable impacts of foreign currency exchange, partially offset by increased commodity costs.
The Company reported second quarter Adjusted Operating Income of $473 million, compared to $410 million in the prior year period.
Adjusted Operating Income margin was 14.4%, compared to 12.8% in the prior year period.
Depreciation and amortization expense totaled $195 million, compared to $190 million in the prior year period.
Interest expense for the second quarter totaled $62 million, compared to $92 million in the prior year period.
Tax expense in the second quarter of 2026 was $52 million, compared to $16 million in the prior year period.
5Net cash flow provided by operating activities from continuing operations totaled $137 million in the second quarter, compared to $326 million in the prior year period.
The Company generated Free Cash Flow of $12 million in the second quarter, compared to $219 million generated in the prior year period.
Year-to-Date 2026 Results
For the six months ended June 30, 2026, the Company reported U.S. GAAP revenue of $6.3 billion, an increase of 2% from the prior year period.
Adjusted for currency exchange and commodity movements, revenue increased by 1% during the period.
7This reflects growth of 9% in North America and 1% in Asia Pacific, which includes a decline of 4% in China, partially offset by declines of 7% in EMEA and 3% in South America, our smallest region.
The Company reported 2026 year-to-date U.S. GAAP net income from continuing operations of $427 million, net income margin from continuing operation of 6.8% and earnings from continuing operations of $2.01 per diluted share, compared to U.S. GAAP net income from continuing operations of $125 million, net income margin from continuing operation of 2.0% and earnings from continuing operations of $0.55 per diluted share in the prior year period.
Year-to-date Adjusted Net Income totaled $545 million, or earnings of $2.56 per diluted share, compared to $517 million, or $2.30 per diluted share, in the prior year period.
8For the 2026 year-to-date period, The Company reported Adjusted EBITDA of $1,106 million, compared to $1,059 million in the prior year period.
Adjusted EBITDA margin was 17.5%, compared to 17.1% in the prior year period, primarily reflecting increased volumes and favorable impacts of foreign currency exchange, partially offset by increased commodity costs.
4The Company reported Adjusted Operating Income of $829 million for the year-to-date 2026 period, compared to $789 million in the prior year period.
Adjusted Operating Income margin was 13.1%, compared to 12.8% in the prior year period.
Depreciation and amortization expense totaled $384 million, compared to $379 million in the prior year period.
Interest expense for the year-to-date period totaled $146 million, compared to $185 million in the prior year period.
Tax expense in the six months ended June 30, 2026 was $94 million.
Tax expense in the six months ended June 30, 2025 was $342 million, which primarily reflects 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.
3Net cash flow provided by operating activities from continuing operations totaled $82 million in the six months ended June 30, 2026, compared to $531 million in the prior year period.
The Company reported negative Free Cash Flow of $196 million in the six months ended June 30, 2026, compared to $264 million generated in the prior year period.
Capital return
Debt Redemptions and Share Repurchases
In April 2026, the Company redeemed $1,847 million of aggregate principal amount of certain senior notes principally utilizing proceeds from the cash distribution received from Versigent in connection with the spin-off.
The Company repurchased and retired 4.1 million shares for $250 million in the second quarter of 2026, bringing the year-to-date total to $325 million.
As of June 30, 2026, $1.8 billion remained available for future share repurchases under the Company’s existing authorization.
Corporate events
EDS Spin-Off
As previously disclosed, the spin-off of the Company’s former Electrical Distribution Systems segment into a new independent publicly traded company, Versigent PLC, was completed on April 1, 2026.
The results of the Electrical Distribution Systems business through April 1, 2026 are presented as discontinued operations separate from the Company’s continuing operations for all periods presented.
In connection with the spin-off, Aptiv received a dividend of approximately $1.9 billion from Versigent, which the Company used to opportunistically redeem outstanding debt prior to maturity.
Outlook
Q3 and Full Year 2026 Outlook
The Company’s third quarter and full year 2026 financial guidance is as follows.
This reflects Aptiv without the EDS business, which is presented as discontinued operations.
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