10-Q · May 5, 2026
Aptiv's Q1 2026 10-Q shows a positive trend with revenue increasing by 5% year-over-year to $5.1 billion, surpassing consensus estimates. Diluted EPS doubled to $1.71, reflecting management’s efforts in maintaining a…
Earnings analysis · 10-Q
APTV earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Aptiv's continuing business delivered modest Q2 sales growth of 2% to $3.274 billion, while gross margin expanded 80 basis points to 23.7% and operating income increased 13% to $367 million. Engineered Components drove…
Read full summary
Aptiv's continuing business delivered modest Q2 sales growth of 2% to $3.274 billion, while gross margin expanded 80 basis points to 23.7% and operating income increased 13% to $367 million. Engineered Components drove the improvement, whereas Intelligent Systems revenue and margin declined slightly. The post-spin balance sheet is stronger following $2.054 billion of debt repayments, but cash conversion was weak: first-half operating cash flow declined $449 million year over year to $82 million, resulting in calculated free cash flow of negative $196 million after $278 million of capex.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.4
What stood out
-
Revenue and volumes rose against flat production
Q2 continuing-operations revenue rose $75 million, or 2%, to $3.274 billion from $3.199 billion. Volumes increased 3% despite flat Aptiv-weighted global vehicle production, led by North America and Asia Pacific.
-
Meaningful year-over-year margin expansion
Gross margin expanded 80 basis points to 23.7% from 22.9%, lifting gross profit $44 million to $775 million. Operating income increased $42 million, or 13%, to $367 million, equivalent to an 11.2% operating margin versus 10.2% a year ago.
-
Continuing earnings improved
Income from continuing operations rose $33 million to $297 million from $264 million, and GAAP continuing-operations diluted EPS was $1.40. Lower interest expense of $62 million versus $92 million and $44 million of Q2 debt-extinguishment gains aided earnings.
-
Engineered Components drove growth and profit
Engineered Components was the growth engine: sales increased $82 million to $1.800 billion and adjusted operating income rose $58 million to $317 million. Its gross margin improved to 27.6% from 25.8%.
-
Spin-off proceeds supported deleveraging
The April 1 separation delivered a $1.920 billion cash dividend from Versigent, which supported $2.054 billion of senior-note repayments in the first half. At June 30, Aptiv reported $761 million cash, $4.6 billion net debt and $3.271 billion total available liquidity.
-
Ongoing share repurchases
Shareholder returns continued: Aptiv repurchased 5.1 million shares for $325 million in the first half, leaving $1.790 billion under its authorization at June 30; an additional $46 million was repurchased between July 1 and August 3.
What to watch
-
Working-capital outflow pressured cash conversion
Operating cash flow from continuing operations fell to $82 million for the first six months from $531 million a year earlier, as a $752 million working-capital outflow more than offset $425 million of continuing-operations income and $355 million of non-cash add-backs. With $278 million of capex, six-month FCF was negative $196 million (calculated).
-
Intelligent Systems margin and volume pressure
Intelligent Systems sales declined $6 million to $1.501 billion and segment gross margin fell 50 basis points to 18.5%. Its adjusted operating income increased only $5 million to $156 million, with a $24 million operational-performance headwind partly offset by $43 million in other favorable items.
-
Production volatility, pricing and restructuring burden
Management says productive, raw-material and component inventories were elevated at June 30 and December 31 because of customer production volatility and cancellations. Contractual price reductions net of recoveries reduced quarterly sales by $54 million; the company also expects to incur about $45 million of restructuring cash payments over the next 12 months.
-
Mexico labor-cost inflation remains a risk
The filing states there were no material changes to risk factors versus the 2025 Form 10-K. Nevertheless, management cites Mexico's 2026 statutory minimum-wage increase of about 13% nationally (5% in the Northern Border Zone), and a potential reduction in the workweek from 48 to 40 hours beginning as early as January 1, 2027.
-
Separation costs remain a near-term drag
The Electrical Distribution Systems separation produced a $50 million Q2 loss in discontinued operations, including approximately $50 million of bank-related success fees. Aptiv also expects additional Separation expenses during the remainder of 2026.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. MD&A says management expects available liquidity and operating cash flow to be sufficient for operations, restructuring, capex, debt obligations and separation activities, and expects additional Separation expenses during the remainder of 2026.
Earlier filings 4
10-K · February 6, 2026
Aptiv reports modest revenue growth in 2025 with revenue of approximately $20.4 billion (sum of 2025 quarters) versus $19.71 billion in 2024, offset by one-time and restructuring items tied to a planned spin-off and a…
10-Q · October 30, 2025
Aptiv reported Q3 net sales of $5,212 million, up from $4,854 million a year ago, but recorded an operating loss of $175 million and a goodwill impairment of $648 million, producing a diluted loss per share of $(1.63).…
10-Q · July 31, 2025
Aptiv reported Q2 net sales of $5,208,000,000, up $157,000,000 (+3.1%) versus Q2 2024, and operating income improved to $486,000,000 (+10.2%). Diluted EPS attributable to Aptiv was $1.80 in the quarter versus $3.47 a…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.