APTV earnings call summary

Prepared Highlights

• Q3 2025 revenue record $5.2B, +6% adjusted (vs prior year) (CEO, CFO, prepared).
• Q3 2025 operating income record $654M, +10% (CEO, CFO, prepared).
• Q3 2025 EPS record $2.17, +19% (CEO, CFO, prepared).
• Q3 2025 operating cash flow $584M; CapEx $143M (CFO, prepared).
• Q3 2025 new business bookings $8.4B; year-to-date ~$19B; FY2025 target ~$31B (CEO, prepared).
• Segment revenues (adjusted): AS&UX ~$1.4B, flat; ECG $1.7B, +6%; EDS $2.3B, +11% (CFO, prepared).
• Segment margins (adj. operating income): AS&UX -16% (incl. $21M customer settlement lapping); ECG +10%, +20bps margin; EDS +54%, >200bps margin expansion (CFO, prepared).
• Regional revenue growth (adjusted): North America +14%; Europe -3%; China flat (CFO, prepared).
• Balance sheet / capital allocation: Q3 share repurchases $96M, debt paydown $148M; gross leverage 2.4x, net leverage 1.8x (CFO, prepared).
• Wind River impairment (non-cash, excluded from adjusted): $648M goodwill charge Q3; revenue growth >20% in Q3; FY2025 mid-teens growth expected (CFO, CEO, prepared).
• Separation of EDS business on track for end of Q1 2026 (CEO, prepared).

Official Guidance (FY2025)

• Revenue: ~$20.3B at midpoint, +2% adjusted (CFO, prepared).
• Adjusted EBITDA: ~$3.22B at midpoint, +4% vs prior year (CFO, prepared).
• Adjusted operating income: ~$2.45B at midpoint, +4% vs prior year (CFO, prepared).
• Adjusted EPS: $7.55–$7.85, +23% at midpoint (CFO, prepared).
• Operating cash flow: ~$2.0B (CFO, prepared).
• CapEx: ~4% of revenue (CFO, prepared).

Q4 2025 Guidance (implied)

• Revenue growth: +1% adjusted at midpoint (CFO, prepared).
• Operating income margin: 11.8% at midpoint (CFO, prepared).
• Adjusted EPS: $1.60–$1.90 (CFO, prepared).

Mgmt Quotes

• "[W]e capitalized on the underlying growth in vehicle production in North America and Asia Pacific, while also continuing to experience strong revenue growth in nonautomotive markets." (CEO)
• "The impairment charge of $648 million for Wind River... reflects slower than originally expected growth... That being said, this impairment does not change our expectation for the long-term structural growth and value that Wind River represents for our business." (CFO)
• "[W]e're raising our full year 2025 guidance, reflecting the strength of our third quarter results, partially offset by recent customer-specific production disruptions and an outlook for the fourth quarter that prudently incorporates an element of conservatism." (CEO)
• "[O]ur direct exposure to tariffs is minimal, in large part because of a high compliance with USMCA and our low level of non-USMCA imports into the United States." (CFO)
• "The separation of our EDS business... will result in 2 independent companies that are well positioned to pursue their unique market opportunities and capital allocation strategies and will unlock incremental value for shareholders." (CEO)

Prepared Metrics