APTV · Aptiv PLC

Aptiv PLC executed the spin-off of its Electrical Distribution Systems business into Versigent PLC on April 1, 2026, distributing one Versigent ordinary share for every three Aptiv shares held as of the March 17, 2026 record date. This separation marks Versigent as an independent public company listed on the NYSE under VGNT, with Aptiv retaining no ownership and reclassifying Versigent's results as discontinued operations starting Q2 2026. The pro forma condensed consolidated financial statements for 2025 illustrate the impact, showing continuing operations net sales of $12,397 million, down from historical $20,398 million after removing Versigent's $8,001 million contribution, and a shift to a net loss of $43 million attributable to Aptiv shareholders versus prior income. Key drivers include recasting $817 million in intercompany sales as third-party under ongoing supply agreements, without allocating corporate overhead or interest to discontinued operations. Balance sheet pro forma as of December 31, 2025 reflects a $2,125 million cash inflow from Versigent, funded by its $2,100 million debt issuance, enabling Aptiv to reduce long-term debt by $2,094 million to $5,373 million through redemptions of 4.350% and 4.650% Senior Notes due 2029 and a $1,371 million tender offer, all settling around April 7, 2026. Transaction adjustments also capture Transition Services Agreement costs and other separation expenses, lowering SG&A by $100 million. These changes streamline Aptiv's focus on continuing operations, bolster liquidity with cash at $1,638 million, and lower interest expense, though 2025 pro forma operating income of $588 million reflects restructuring and goodwill impairment pressures. Investors should note the preliminary nature of discontinued operations accounting, pending finalization in Q2 2026 10-Q, and that pro formas are not indicative of future results.