Aptiv Reports Record Third Quarter 2025 Results, Raises Full-Year Guidance Amid Continued Operational Momentum
Aptiv PLC (NYSE: APTV), a global technology leader focused on advancing safer, greener, and more connected mobility, announced record financial results for the third quarter of 2025. The company reported strong revenue growth, improved operational performance, and raised its full-year outlook, underscoring the continued strength of its product portfolio and disciplined execution across regions.
Third Quarter 2025 Highlights
Aptiv achieved revenue of $5.2 billion in the third quarter, representing a 7% year-over-year increase. On a constant-currency basis and excluding commodity impacts, revenue rose 6%, reflecting robust demand for Aptiv’s electrical, electronic, and software solutions that enable next-generation mobility systems.
Despite strong top-line growth, Aptiv reported a U.S. GAAP net loss of $355 million, primarily driven by a non-cash goodwill impairment charge of $648 million related to the 2022 acquisition of Wind River. Excluding this special item, the company delivered adjusted earnings per diluted share of $2.17, up nearly 19% compared to the same period in 2024.
Additional third-quarter financial metrics included:
- Adjusted Operating Income: $654 million
- Adjusted EBITDA: $851 million
- Operating cash flow: $584 million
- Adjusted Operating Income Margin: 12.5%
Chair and CEO Kevin Clark highlighted the company’s resilience and execution focus, stating:
Aptiv delivered another quarter of record financial results, reflecting the strength of our product portfolio and our consistent operational execution. We also delivered on our commitment to maximizing shareholder value through continued share repurchases and debt reduction. Our team remains focused on the separation of our Electrical Distribution Systems business, which is progressing on schedule, and we look forward to providing further updates during our Investor Day on November 18.”
Regional and Segment Performance
During the third quarter, Aptiv recorded solid performance across most regions, showcasing balanced geographic strength:
- North America: Up 14% year-over-year, driven by continued demand for electrical architecture and ADAS (advanced driver-assistance system) components.
- Asia: Up 4%, reflecting broad market stability despite challenges in China, where growth was flat.
- South America: Increased 16%, albeit from a smaller base, as regional demand continued to strengthen.
- Europe: Declined 3%, primarily due to weaker automotive production volumes and currency headwinds.
This diversified geographic performance demonstrates Aptiv’s ability to offset regional volatility with a globally integrated business model and resilient product portfolio.
Earnings and Profitability Analysis
Aptiv reported a GAAP operating loss of $175 million in the third quarter, compared with operating income of $503 million in the same period last year. Excluding special items, Adjusted Operating Income rose to $654 million, up from $593 million in 2024, reflecting strong cost discipline, efficiency gains, and a favorable product mix.
Adjusted Operating Margin improved to 12.5%, up from 12.2% in the prior-year period. This performance was partially offset by higher commodity costs and adverse foreign exchange impacts totaling $56 million.
Depreciation and amortization expenses for the quarter were $249 million, slightly higher than the $241 million recorded a year ago.
Interest expense decreased to $90 million from $101 million in the prior-year quarter, reflecting ongoing debt repayment activity.
Tax expense for the period was $103 million, up from $32 million in the prior-year quarter.
On a cash basis, the company generated $584 million in net operating cash flow, compared with $499 million in the third quarter of 2024 — a reflection of Aptiv’s healthy operational cash generation and disciplined working capital management.
Year-to-Date 2025 Financial Performance
For the first nine months of 2025, Aptiv reported GAAP revenue of $15.2 billion, a 3% increase from the same period in 2024. Adjusted for currency exchange and commodity price fluctuations, revenue grew 2%, underscoring steady growth across its key business segments.
Regional performance through the first three quarters included:
- North America: +5%
- Asia: +5% (including +1% in China)
- South America: +5%
- Europe: −2%
GAAP net income for the year-to-date period was $27 million, compared with $1.52 billion a year ago. This result includes the aforementioned non-cash goodwill impairment charge. Excluding special items, Adjusted Net Income totaled $1.32 billion, or $5.96 per diluted share, compared with $1.20 billion, or $4.53 per share, in 2024 — an increase of 11% and 32%, respectively.
GAAP operating income was $759 million, down from $1.36 billion last year, while Adjusted Operating Income rose to $1.85 billion, up from $1.74 billion, reflecting sustained profitability despite inflationary and currency pressures.
Adjusted Operating Margin expanded to 12.2% from 11.8% year-over-year, supported by cost optimization initiatives and continued execution efficiency.
Depreciation and amortization expenses rose modestly to $741 million, from $719 million in 2024.
Interest expense increased to $274 million, primarily reflecting debt issued in late 2024 to fund a $3 billion accelerated share repurchase (ASR) program.
Aptiv’s tax expense for the nine-month period totaled $504 million, compared to $159 million last year. The higher effective tax rate reflects an approximately $300 million increase in valuation allowances on deferred tax assets due to OECD Administrative Guidance issued earlier this year.
Operating cash flow year-to-date stood at $1.37 billion, compared with $1.39 billion in 2024. The company ended the quarter with $1.6 billion in cash and cash equivalents and total available liquidity of $4.2 billion, positioning it well for ongoing strategic initiatives and shareholder returns.
Capital Allocation: Debt Reduction and Share Repurchases
Aptiv continued to strengthen its balance sheet and return capital to shareholders during the third quarter of 2025.
- The company redeemed $148 million in aggregate principal amount of senior notes.
- It also repurchased 1.2 million shares for $96 million during the quarter.
- Year-to-date, Aptiv repurchased and retired 18.9 million shares valued at $1.2 billion, including incremental share deliveries under its ASR program.
- As of September 30, $2.4 billion remained available under the current repurchase authorization.
All repurchased shares were permanently retired, underscoring Aptiv’s commitment to long-term shareholder value creation.
Outlook: Raising Full-Year 2025 Guidance
Based on its strong third-quarter performance and continued business momentum, Aptiv raised its full-year 2025 guidance. The outlook incorporates recently implemented U.S. government tariffs but excludes potential future trade actions.
| Metric | Q4 2025 Guidance | Full-Year 2025 Guidance |
|---|---|---|
| Net Sales | $4.9B – $5.2B | $20.15B – $20.45B |
| GAAP Net Income | $210M – $270M | $230M – $300M |
| GAAP Net Income Margin | 4.3% – 5.2% | 1.1% – 1.5% |
| Adjusted Operating Income | $545M – $645M | $2.4B – $2.5B |
| Adjusted Operating Margin | 11.1% – 12.4% | 11.9% – 12.2% |
| Adjusted EBITDA | $740M – $840M | $3.17B – $3.27B |
| Adjusted EBITDA Margin | 15.1% – 16.1% | 15.7% – 16.0% |
| Adjusted EPS | $1.60 – $1.90 | $7.55 – $7.85 |
| GAAP EPS | $0.95 – $1.25 | $1.05 – $1.35 |
| Operating Cash Flow | — | ~$2.0B |
| Capital Expenditures | — | ~$780M |
| Adjusted Effective Tax Rate | — | ~17.5% |
The company also expects approximately $0.05 and $0.20 per share in anticipated equity losses from its Motional autonomous driving joint venture during the fourth quarter and full year, respectively.
Conference Call and Investor Presentation
Aptiv will host a conference call at 8:00 a.m. (ET) today to discuss third-quarter results and the company’s outlook. Investors and analysts may join by dialing +1.800.330.6710 (U.S.) or +1.213.279.1505 (international), using conference ID 6799167. A webcast and accompanying slide presentation are available at ir.aptiv.com.
A replay will be accessible approximately two hours after the live call.
Understanding Aptiv’s Non-GAAP Metrics
To provide better insight into operational performance, Aptiv supplements its GAAP results with several non-GAAP financial measures, including:
- Adjusted Revenue Growth
- Adjusted Operating Income and Margin
- Adjusted EBITDA
- Adjusted Net Income and EPS
- Cash Flow Before Financing
These metrics exclude the impact of currency fluctuations, commodity movements, restructuring, acquisitions and divestitures, goodwill impairments, and other one-time items that may distort underlying performance.
Management believes these non-GAAP measures provide a clearer view of Aptiv’s core financial and operational trends, helping investors assess the company’s progress toward long-term strategic goals. Detailed reconciliations to GAAP measures are included in the supplemental schedules accompanying the official earnings release.
Positioning for the Future
Aptiv continues to advance its mobility technology leadership, with a strong focus on vehicle electrification, advanced safety systems, and software-defined vehicle (SDV) architectures. The upcoming separation of the company’s Electrical Distribution Systems (EDS) business will further streamline its operations and sharpen its strategic focus on intelligent mobility solutions.
Clark emphasized the company’s long-term vision, adding:
As we prepare for our EDS business separation and future product launches, we are positioning Aptiv for sustained growth across both legacy and emerging mobility markets. Our focus on innovation, disciplined cost management, and strategic capital deployment continues to drive long-term value for our shareholders.”
About Aptiv
Aptiv PLC is a global technology company headquartered in Dublin, Ireland. The company designs and manufactures advanced electrical, electronic, and software solutions that enable safer, greener, and more connected vehicles. Aptiv’s technologies play a central role in accelerating the transition toward intelligent and electrified mobility.
Source Link: https://www.businesswire.com
