APTV · Aptiv PLC

Aptiv PLC reported first quarter 2026 results that included the EDS business, which was spun off as Versigent on April 1, 2026. GAAP revenue of $5.1 billion grew 5% year-over-year, or 1% adjusted for currency and commodity movements. Growth was driven by North America (+7%), Asia Pacific (+3%, with China down 2%), and South America (+7%), partially offset by a 7% decline in EMEA. GAAP net income swung to $189 million from a loss of $11 million in the prior year, benefiting from a significantly lower tax expense ($81 million vs. $356 million, which included a $300 million valuation allowance in 2025). Adjusted net income was $365 million, down from $390 million, and adjusted diluted EPS was $1.71 versus $1.69. Adjusted EBITDA declined to $752 million from $758 million, with margin contracting 90 basis points to 14.8%, primarily due to higher commodity costs and unfavorable foreign exchange, partially offset by higher volumes. Adjusted operating income margin fell to 11.0% from 11.9%. The company generated negative free cash flow of $362 million in the quarter, compared to positive $76 million a year ago, reflecting higher working capital outflows and capital expenditures. During the quarter, Aptiv redeemed $266 million of 4.35% senior notes due 2029 and repurchased 1.0 million shares for $75 million, leaving $2.0 billion remaining under its $5.0 billion buyback authorization. Management highlighted the successful spin-off of the EDS business, positioning New Aptiv with a sharper focus on sensing, thinking, and acting technologies. Guidance for the second quarter and full year 2026 reflects New Aptiv (excluding EDS). Q2 net sales are expected between $3.2 billion and $3.4 billion, with adjusted EPS of $1.30 to $1.50. Full year 2026 net sales are guided at $12.8 billion to $13.2 billion, adjusted EBITDA margin of approximately 18.6%, and adjusted EPS of $5.70 to $6.10. Free cash flow for the full year is expected between $650 million and $850 million. The guidance implies a significant margin improvement as the company transitions to a higher-margin, technology-focused portfolio.