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Aptiv PLC (APTV)
NYSE:APTV
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Aptiv
(NYSE:APTV)
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Rating:62Neutral
Price Target:
$90.00
▲(13.11% Upside)
The score is driven primarily by weakened profitability in the financials (large drop in net margin and ROE), partially offset by solid cash generation and manageable/improving leverage. Technicals are supportive with the stock trading above major moving averages and positive momentum. Valuation is a meaningful headwind due to a very high P/E, while earnings-call guidance and bookings provide a constructive (but near-term cost-pressured) outlook.
Positive Factors
Strong cash generation
Sustained OCF (~$2.2B) and FCF (~$1.5B) provide durable internal funding for R&D, capex, buybacks and debt reduction. Even with margin pressure, robust cash conversion (FCF > net income) supports strategic investments and balance sheet flexibility over the next 2-6 months.
Robust bookings and pipeline
A $27B win backlog and a >$30B bookings target provide multi-year revenue visibility tied to platform awards. Broad geographic wins (China, non-China Asia, India, non-auto) diversify demand and underpin medium-term volume growth and content upsell, reducing cyclicality risk.
Strategic spin to sharpen focus
Carving out the Electrical Distribution Systems business into a standalone entity realigns capital and management focus toward Intelligent Systems and software-defined features. The structural change can improve execution, capital allocation, and clarity of growth drivers for each business over the medium term.
Negative Factors
Severe profitability deterioration
A sharp drop in net margin and ROE signals weakened operating leverage and profitability quality. That deterioration limits the company's ability to self-fund growth and capital returns, increases sensitivity to cost shocks, and makes margin recovery a prerequisite for sustainable long-term returns.
Persistent FX and commodity margin headwinds
Material FX and commodity impacts (c.120-160 bps) compress margins across EDS and Intelligent Systems. Durable cost inflation or currency moves could erode margins unless pass-through to OEMs or productivity gains offset pressures, making margin sustainability uncertain over upcoming quarters.
Separation and inventory cash drag
Significant separation expenses and intentional semiconductor inventory accumulation materially reduce near-term free cash flow and delay deleveraging. These structural cash demands increase execution risk for the spin and constrain balance sheet improvement until costs and inventories normalize.
Aptiv (APTV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.83B
Dividend YieldN/A
Average Volume (3M)2.27M
Price to Earnings (P/E)63.9
Beta (1Y)1.02
Revenue Growth2.16%
EPS Growth-85.91%
CountryUS
Employees141,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)1.86
Shares Outstanding212,748,400
10 Day Avg. Volume1,669,949
30 Day Avg. Volume2,268,497
Financial Highlights & Ratios
PEG Ratio-1.14
Price to Book (P/B)1.82
Price to Sales (P/S)0.82
P/FCF Ratio10.99
Enterprise Value/Market Cap1.31
Enterprise Value/Revenue1.15
Enterprise Value/Gross Profit6.01
Enterprise Value/Ebitda10.50
Forecast
1Y Price Target
$100.33Price Target Upside26.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Aptiv Business Overview & Revenue Model
Company DescriptionAptiv PLC designs, manufacturers, and sells vehicle components worldwide. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates in two segment, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle's electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. The Advanced Safety and User Experience segment provides critical components, systems integration, and software development for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, and autonomous driving technologies. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was founded in 2011 and is based in Dublin, Ireland.
How the Company Makes MoneyAptiv generates revenue primarily through the sale of its automotive components and systems to original equipment manufacturers (OEMs) and Tier 1 suppliers. Key revenue streams include Signal and Power Solutions, which encompasses wiring harnesses, connectors, and electrical distribution systems, and Advanced Safety and User Experience, which includes software and hardware solutions for vehicle safety and connectivity. The company benefits from long-term contracts and partnerships with major automotive manufacturers, enabling it to secure consistent orders. Additionally, Aptiv invests in research and development to innovate and provide cutting-edge solutions in autonomous driving and electric vehicles, further diversifying its revenue potential.
Aptiv Key Performance Indicators (KPIs)
Any
Adjusted Operating Income by Segment
Provides a refined view of segment profitability by excluding one-time items, offering clearer insight into core operational performance and trends.
Provides a refined view of segment profitability by excluding one-time items, offering clearer insight into core operational performance and trends.
Data provided by:
The Fly
The FlyAptiv Earnings Call Summary
Earnings Call Date:Feb 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a mix of strong execution and strategic progress alongside near-term headwinds. Highlights include record quarterly revenue, EPS growth, robust bookings ($27B) and a large pipeline, significant cash generation and disciplined capital deployment (debt paydown and $3.5B of buybacks since 2024), and improved supply-chain resilience and product/market expansion (robotics, non-auto growth, Wind River momentum). Offsetting these positives are meaningful margin pressures from foreign exchange and commodity costs (c.160 bps impact in Q4), segment-level profitability weakness (Intelligent Systems operating income down 17%, EDS margin contraction), China mix-related revenue decline, separation/stranded costs tied to the Versagen spin, and inventory-driven working capital use. Management communicated confidence in passing through semiconductor cost increases, executing the spin, and returning to margin expansion over the 2026–2028 horizon, but near-term results reflect the noted headwinds.Q4-2025 Updates
Positive Updates
Record Q4 Revenue
Reported record fourth-quarter revenue of $5.2 billion, up 5% on a reported basis and up 3% on an adjusted year-over-year basis.
Earnings and Profitability
Adjusted operating income of $607 million in Q4 and adjusted EPS of $1.86, up 6% year over year, supported by flow-through on volume, lower net interest expense, and reduced share count.
Strong Operating Cash Flow and Capital Deployment
Generated $818 million of operating cash flow in Q4 and well north of $2 billion for the full year; deployed capital to retire $1.0 billion of debt in 2025, repurchased ~$400 million of stock in Q3/Q4 (3.9M shares in Q4), and have returned ~$3.5 billion toward buybacks since 2024 (share count reduced ~20%).
Robust New Business Bookings and Pipeline
Full-year new business awards totaled $27 billion with a record second half; notable bookings included ~$5 billion in China (nearly $4B with leading local OEMs), just under $4B with non-China Asian OEMs (up ~20% YoY), >$800M in India, and >$4B in non-automotive bookings; pipeline expected to exceed $30 billion in 2026 (including Versagen).
Segment and Product Momentum
Product/program launches and partnerships across segments including Gen7 radar (4-month time-to-market), smart cameras, interior sensing, high-voltage connectors, modular connector series, high-power distribution systems, and robotics partnerships with Robust AI and Vecna Robotics; Engineered Components operating income increased 8% and margin expanded +60 bps in Q4.
Supply Chain Resiliency Improvements
Enhanced supply-chain visibility (95% to Tier-3, 99% of semiconductor chain to Tier-5) and semiconductor inventory strategy (~12 weeks of coverage) positioning the company to mitigate industry DRAM/semiconductor shortages.
Clear Capital and Spin Strategy
Versagen spin on track for April 1, 2026; pro forma 2026 guidance provided for NuAptiv (revenue $12.8–$13.2B, +4% midpoint; EBITDA margin 18.6%) and Versagen (revenue $9.1–$9.4B; EBITDA margin ~10.7%); plan to use ~ $1.6B Versagen spin dividend to pay down ~$1.9B debt in 2026.
Geographic Strength — North America Outperformance
North America revenue increased 8% in Q4 with double-digit growth in Intelligent Systems and EDS, and continued leadership expected in 2026 regional performance.
Negative Updates
Margin Headwinds from FX and Commodities
Unfavorable foreign exchange and commodity headwinds reduced Q4 margin by ~160 basis points; Varun noted a 120 bps FX/commodity headwind built into Q1 2026 and commodity/Fx pressure continues to be a near-term drag.
Segment Profitability Pressure — Intelligent Systems
Intelligent Systems operating income declined 17% year over year in Q4, driven by investments in non-auto markets, timing of engineering/commercial credits and adverse FX effects; incremental engineering/go-to-market investments expected to continue to weigh on near-term margins.
EDS Margin Contraction
Electrical Distribution Systems (EDS) operating income declined 2% in Q4 and margin contracted ~90 basis points due to significant FX/commodity headwinds and unfavorable labor economics despite manufacturing and material performance improvements.
China Revenue and Mix Headwind
China revenue declined 5% in Q4 due to unfavorable mix; full-year bookings were strong in China ($5B) but 2025 performance was negatively affected by mix and market dynamics.
Bookings Short of Target
Full-year new business awards were $27 billion versus a target of $31 billion — shortfall attributed to timing shifts with certain customer awards moving into 2026.
Operating Cash Flow Drag from Inventory and Separation Costs
Q4 operating cash flow decreased vs prior year due to higher net working capital from semiconductor inventory builds and ~$80 million in Q4 separation costs (YTD separation costs ~$180 million); NuAptiv free cash flow guidance for 2026 factors in ~$250 million of separation costs and ~$200 million semiconductor inventory build.
Higher Input Cost Pass-Through and Tax Rate Increase
Expect higher semiconductor input costs in 2026 (memory purchase value ~$175M; price increases low double-digits) that will be passed through to customers; Q1 2026 effective tax rate for total Aptiv increased to 20.5% (from 17.2%) due to Pillar Two global minimum tax considerations.
Stranded and One-Time Costs Related to Spin
NuAptiv guidance includes ~$50M of stranded costs and ~ $35M of incremental engineering/go-to-market investments in 2026; Versagen has standing standalone costs (Investor Day noted ~ $15M), and separation-related cash costs (~$250M in 2026) will pressure near-term free cash flow.
Company Guidance
Aptiv’s guidance frames the post‑spin NuAptiv outlook at $12.8–$13.2B revenue (≈+4% at midpoint), $2.42B EBITDA and an 18.6% margin (which includes ~ $50M of stranded costs and ~$35M of engineering/go‑to‑market spend; ex‑stranded costs margin +30 bps YoY), EPS $5.70–$6.10 (18.5% ETR) and free cash flow ~$750M midpoint (after ~$250M separation costs and ~$200M semiconductor inventory build); Versagen is guided to $9.1–$9.4B revenue (≈+2% midpoint), ~$990M EBITDA and a 10.7% margin, and ~$250M free cash flow; total‑Aptiv Q1 is guided to $5.05B revenue (~+1% adjusted), $740M EBITDA (14.7% margin) and $1.65 EPS (ETR 20.5%); management also targets 2026 bookings > $30B (2025 bookings $27B), disclosed Q4 revenue $5.2B and Q4 operating cash flow $818M (FY OCF > $2B), plans to use a ~ $1.6B Versagen spin dividend toward ~$1.9B 2026 debt paydown, holds ~12 weeks of semiconductor coverage, budgeted copper at $5.50/lb (vs $4.51 in 2025, ~+$200M top‑line impact for EDS), and noted ~$3.5B of buybacks since 2024 (share count down ~20%).Aptiv Financial Statement Overview
Summary
Modest revenue growth (~2% TTM) and solid operating/free cash flow (~$2.2B OCF, ~$1.5B FCF) support the profile, and leverage is moderate with improvement in debt-to-equity (~0.88 vs ~1.01 in 2024). The key drag is a sharp profitability step-down (TTM net margin ~1.5% vs ~9.1% in 2024; ROE ~3% vs ~20%), which weakens financial resilience despite the cash generation.Income Statement
TTM (Trailing-Twelve-Months) revenue rose about 2% versus the prior year, indicating modest top-line momentum, but profitability weakened materially. Net margin fell to ~1.5% in TTM from ~9.1% in 2024 (and higher in earlier years), alongside lower EBIT and EBITDA margins, suggesting a meaningful compression in operating efficiency and/or higher costs. Gross margin improved versus 2024, but the sharp drop in bottom-line profitability is the key offset.56
Neutral
Balance Sheet
Leverage is moderate for the group: total debt of ~$8.0B against equity of ~$9.2B in TTM (debt-to-equity ~0.88), an improvement versus 2024 (~1.01) but higher than 2023 (~0.59). Equity remains sizeable, yet returns have cooled sharply: return on equity is ~3% in TTM versus ~20% in 2024, reflecting the weaker earnings profile. Overall balance sheet risk looks manageable, but profitability-driven balance sheet strength has deteriorated.62
Positive
Cash Flow
Cash generation remains a relative bright spot: TTM operating cash flow was ~$2.2B and free cash flow ~$1.5B, both solid in absolute terms. However, free cash flow declined ~14% year over year in TTM, signaling softer conversion versus last year. Free cash flow is still larger than net income (free cash flow to net income ~0.73), which helps quality-of-earnings, but the downward free-cash-flow trend is a near-term watch item.68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 20.40B | 19.71B | 20.05B | 17.49B | 15.62B |
| Gross Profit | 3.90B | 3.53B | 3.09B | 2.50B | 2.35B |
| EBITDA | 2.23B | 3.45B | 2.53B | 1.97B | 1.83B |
| Net Income | 165.00M | 1.79B | 2.94B | 594.00M | 590.00M |
Balance Sheet | |||||
| Total Assets | 23.41B | 23.46B | 24.43B | 21.88B | 18.01B |
| Cash, Cash Equivalents and Short-Term Investments | 1.85B | 1.57B | 1.64B | 1.53B | 3.14B |
| Total Debt | 8.09B | 8.89B | 6.79B | 6.96B | 4.46B |
| Total Liabilities | 13.91B | 14.37B | 12.58B | 12.79B | 9.45B |
| Stockholders Equity | 9.21B | 8.80B | 11.55B | 8.83B | 8.35B |
Cash Flow | |||||
| Free Cash Flow | 1.53B | 1.62B | 990.00M | 419.00M | 611.00M |
| Operating Cash Flow | 2.19B | 2.45B | 1.90B | 1.26B | 1.22B |
| Investing Cash Flow | -498.00M | -507.00M | -1.00B | -5.18B | -729.00M |
| Financing Cash Flow | -1.44B | -1.97B | -807.00M | 2.36B | -191.00M |
Aptiv Technical Analysis
Negative
79.57
Price Trends
80.03
Negative
80.73
Negative
76.35
Positive
Market Momentum
0.64
Positive
46.57
Neutral
28.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APTV, the sentiment is Negative. The current price of 79.57 is below the 20-day moving average (MA) of 80.51, below the 50-day MA of 80.03, and above the 200-day MA of 76.35, indicating a neutral trend. The MACD of 0.64 indicates Positive momentum. The RSI at 46.57 is Neutral, neither overbought nor oversold. The STOCH value of 28.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APTV.
Aptiv Risk Analysis
Aptiv disclosed 42 risk factors in its most recent earnings report. Aptiv reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aptiv Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $6.94B | 16.80 | 9.21% | 2.63% | -1.90% | -13.86% | |
72 Outperform | $2.90B | 9.53 | 14.37% | 0.57% | -4.03% | -39.51% | |
71 Outperform | $9.51B | 13.09 | 30.32% | 2.60% | 0.84% | 26.17% | |
62 Neutral | $17.83B | 63.89 | 3.25% | ― | 2.16% | -85.91% | |
62 Neutral | $12.78B | 48.22 | 5.05% | 1.24% | 0.08% | -83.69% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $7.66B | -19.06 | -3.27% | ― | 7.61% | 88.66% |
* Consumer Cyclical Sector Average
APTV
Aptiv
79.57
12.78
19.13%
ALV
Autoliv
123.07
27.62
28.94%
BWA
BorgWarner
58.92
29.62
101.09%
LEA
Lear
134.75
40.72
43.31%
VC
Visteon
92.91
5.23
5.97%
MBLY
Mobileye Global, Inc. Class A
9.05
-7.49
-45.28%
Aptiv Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Aptiv Advances Tax-Free Spin-Off of Versigent Unit
Positive
Feb 17, 2026
On February 17, 2026, Aptiv subsidiary Versigent Limited filed an amended preliminary registration statement with the U.S. Securities and Exchange Commission as part of Aptiv’s plan to separate its Electrical Distribution Systems business into a new, independent public company via a tax-free spin-off to shareholders. The company aims to complete the separation by April 1, 2026, a move that will carve out its electrical distribution operations into a standalone entity, potentially sharpening Aptiv’s strategic focus while giving investors distinct exposure to the electrical architecture segment of the automotive supply chain.
The most recent analyst rating on (APTV) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on Aptiv stock, see the APTV Stock Forecast page.
Business Operations and Strategy
Aptiv Plans Early Redemption of 2029 Senior Notes
Positive
Feb 11, 2026
On February 11, 2026, Aptiv PLC said that its subsidiary Aptiv Swiss Holdings Limited plans to redeem in cash the entire $266 million principal amount of its 4.350% Senior Notes due 2029. The notes will be redeemed at a price that includes a make-whole premium plus accrued and unpaid interest, with the redemption expected to be completed on February 25, 2026.
The move will retire this tranche of debt ahead of its 2029 maturity, signaling an active approach to managing the company’s capital structure and interest expense. This early redemption may improve Aptiv’s financial flexibility and could be viewed positively by creditors and investors monitoring its leverage and balance sheet discipline.
The most recent analyst rating on (APTV) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Aptiv stock, see the APTV Stock Forecast page.
Business Operations and StrategyExecutive/Board Changes
Aptiv Appoints Håkan Agnevall to Board of Directors
Positive
Dec 5, 2025
On December 2, 2025, Aptiv PLC announced the appointment of Håkan Agnevall, President and CEO of Wärtsilä Corporation, to its Board of Directors, effective December 10, 2025. Agnevall’s extensive experience in electrification, automation, and international leadership is expected to bolster Aptiv’s strategic execution and expansion across industrial sectors.
The most recent analyst rating on (APTV) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Aptiv stock, see the APTV Stock Forecast page.
Business Operations and StrategyM&A Transactions
Aptiv Announces Spin-Off at Investor Day 2025
Positive
Nov 18, 2025
On November 18, 2025, Aptiv PLC hosted its Investor Day, where the management team presented strategic updates and financial insights. The event highlighted Aptiv’s resilient business model and its plans to spin off its Electrical Distribution Systems segment, creating two well-positioned public companies. This strategic move aims to enhance Aptiv’s focus on Intelligent Systems and Engineered Components, aligning capital allocation priorities with growth opportunities in software-defined features and electrification.
The most recent analyst rating on (APTV) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Aptiv stock, see the APTV Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.