0001521332-25-000040
SEC filingAptiv's Q2 2025 revenue grew 3% YoY to $5.2B, with gross margin flat at 19.1%, as operational improvements offset currency and restructuring costs.
Aptiv's consolidated net sales for the three months ended June 30, 2025 were $5.208 billion, a 3% increase compared to $5.051 billion in the same period of 2024. The increase was driven by 2% volume growth, primarily reflecting growth in Asia Pacific and North America, partially offset by volume declines in Europe. Favorable foreign currency impacts, mainly from the Euro, and commodity pass-through also contributed. Contractual price reductions, net of price recoveries, totaled $17 million.
Gross margin was $997 million, or 19.1% of net sales, compared to $968 million, or 19.2% in the prior year. The slight margin decline was due to unfavorable foreign currency impacts and increased commodity pass-through costs, partially offset by improved operational performance. Material costs remained at approximately 50% of net sales.
Operating income increased to $486 million from $441 million, driven by improved operational performance and lower restructuring charges ($52 million vs. $70 million). Selling, general and administrative expense was relatively flat at $406 million, including $28 million in separation costs related to the planned spin-off of the Electrical Distribution Systems business.
Net income attributable to Aptiv was $393 million, a significant decrease from $938 million in Q2 2024, primarily due to a $595 million decrease in net gain on equity method transactions ($46 million in 2025 vs. $641 million in 2024, which included the Motional restructuring). Interest expense increased to $91 million from $64 million due to new debt issuances in 2024.
Electrical Distribution Systems revenue grew 7% to $2.206 billion, driven by volume growth and commodity pass-through. Adjusted Operating Income increased to $163 million from $138 million, benefiting from operational performance and volume.
Engineered Components Group revenue increased 6% to $1.723 billion, with Adjusted Operating Income slightly declining to $287 million from $298 million, as volume gains were offset by unfavorable foreign currency impacts and increased depreciation.
Advanced Safety and User Experience revenue declined 3% to $1.507 billion, reflecting volume declines. However, Adjusted Operating Income improved to $178 million from $170 million, driven by strong operational performance.
Management's outlook focuses on the planned separation of the Electrical Distribution Systems business, expected to close by March 31, 2026, with $47 million in separation costs incurred in the first half of 2025. The company continues to monitor geopolitical risks, including trade tariffs and the Ukraine/Russia conflict, and is working with customers and suppliers to mitigate impacts. Restructuring programs are ongoing, with expected cash payments of approximately $110 million over the next twelve months. The company maintains a strong balance sheet with $1.4 billion in cash and $4.0 billion in total available liquidity.