APTV Auto Parts
Aptiv PLC
Aptiv is a vehicle technology supplier whose customers include the 25 largest automakers. In 2025 it had three segments: Advanced Safety and User Experience (sensors, compute, and software, including Wind River), Engineered Components (connectors and cables), and Electrical Distribution Systems (wiring). 2025 sales rose 3% to $20.4 billion, but net income fell to $165 million after a $648 million Wind River goodwill impairment. On April 1, 2026 Aptiv spun off Electrical Distribution Systems as Versigent (NYSE: VGNT), and Aptiv shareholders received one Versigent share for every three Aptiv shares.
Last updated
Analysis last edited: October 9, 2026 · Financial data fetched: October 8, 2026 13:37 (SEC EDGAR) · Source 10-K filed: February 6, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- Aptiv PLC
- Headquarters
- SCHAFFHAUSEN, Switzerland
- Incorporated in
- Jersey
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: APTV
- Industry
- Auto Parts
- CIK
- 1521332
- Website
- https://www.aptiv.com/ ↗
- IR page
- https://ir.aptiv.com/ ↗
Workforce (as of FY2025 year-end)
Employees
140,000
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 30–33 days after quarter end (Oct 30, 2025; Oct 31, 2024; Nov 2, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 22–35 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Aug 4, 2026 (+35 days) | Aug 4, 2026 10-Q (+35 days) |
| Q1 FY2026 | Mar 31, 2026 | May 5, 2026 (+35 days) | May 5, 2026 10-Q (+35 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 2, 2026 (+33 days) | Feb 6, 2026 10-K (+37 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 30, 2025 (+30 days) | Oct 30, 2025 10-Q (+30 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 31, 2025 (+31 days) | Jul 31, 2025 10-Q (+31 days) |
| Q1 FY2025 | Mar 31, 2025 | May 1, 2025 (+31 days) | May 1, 2025 10-Q (+31 days) |
| Q4 FY2024 | Dec 31, 2024 | Jan 22, 2025 (+22 days) | Feb 7, 2025 10-K (+38 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 31, 2024 (+31 days) | Oct 31, 2024 10-Q (+31 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 1, 2024 (+32 days) | Aug 1, 2024 10-Q (+32 days) |
| Q1 FY2024 | Mar 31, 2024 | May 2, 2024 (+32 days) | May 2, 2024 10-Q (+32 days) |
| Q4 FY2023 | Dec 31, 2023 | Jan 31, 2024 (+31 days) | Feb 6, 2024 10-K (+37 days) |
| Q3 FY2023 | Sep 30, 2023 | Nov 2, 2023 (+33 days) | Nov 2, 2023 10-Q (+33 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Advanced Safety & User Experience
Active safety and compute
Examples: ADAS sensors, smart vehicle compute, user experience, Wind River software
Engineered Components
Connection systems
Examples: Connectors, high-performance interconnects, cable management
Electrical Distribution Systems
Power and data distribution
Examples: Low- and high-voltage wiring
Now Versigent.
From the FY2025 Form 10-K, Item 1. From 2026, Advanced Safety and User Experience is renamed Intelligent Systems and Engineered Components Group is renamed Engineered Components.
04
Recent strategic focus
FY2025 from the 10-K, and 2026 events from 8-Ks.
Versigent spin-off
Completed April 1, 2026: one Versigent share for every three Aptiv shares; Versigent trades on the NYSE as VGNT.
Source: 8-K filed 2026-04-01
Special dividend and debt tender
Aptiv received a special dividend of at least $1.7B from Versigent and used it in a tender offer for up to $1.371B of its senior notes, completed in April 2026.
Source: 8-K filed 2026-04-06
Versigent financing
Versigent's subsidiaries priced $1.6B of senior notes (6.125% due 2031 and 6.375% due 2034) in March 2026 ahead of the spin-off.
Source: 8-K filed 2026-03-05
Leadership change
Javed Khan, President of Intelligent Systems, resigned effective March 30, 2026; Chair and CEO Kevin Clark took on that role until a successor is named.
Source: 8-K filed 2026-03-16
Capex ÷ D&A (FY2025)
0.66x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$656M ÷ $991M = 0.66x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2025)
5.5%
formularesearch & development expense ÷ revenue × 100
e.g.$1,129M ÷ $20,398M × 100 = 5.5%
M&A spend (5-year total)
$4.52B
Latest year: $0
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $611M in FY2021 to $656M in FY2025
- Capex
- R&D
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
05
Key figures at a glance
FY2021–FY2025, 5 years.
Revenue (FY2025)
$20.4B
As reported in the 10-K
Revenue CAGR (4 years)
+6.9%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($20,398M ÷ $15,618M) ^ (1÷4) − 1 = 6.9%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
5.8%▼caution
-1.8pt vs. 4 years ago
formulaoperating income ÷ revenue × 100
e.g.$1,184M ÷ $20,398M × 100 = 5.8%
ROE (FY2025)
1.8%▼caution
5-year average: 12.5%
As reported in the 10-K
P/B (FY2025 end)
1.76x
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
e.g.101.5x × $0.75 ÷ $43.28 = 1.76x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
10.4x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($16,739M + $7,734M − $1,851M) ÷ ($1,184M + $991M) = 10.4x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +6.9% a year over 4 years (strong growth)
From $15.62B in FY2021 to $20.4B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 7.6% → 5.8%
How much operating profit is left per $100 of revenue. It moved -1.8 points over 4 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 39.3% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 5 of 5 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 12.5% over 5 years (latest: 1.8%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
Advanced Safety and User Experience (Intelligent Systems from 2026)
Active safety sensors and systems, user experience, smart vehicle compute, and software, including Wind River's edge software for automotive and other industries.
01 what it draws on
Inputs & resources
- About 20,700 scientists, engineers, and technicians company-wide
- Wind River software (acquired 2022)
02 what it does
Activities
- Developing ADAS sensors, compute platforms, and software
03 who it serves
Customers
- Global automakers; other industries for Wind River
04 how money comes in
How it earns
- Product sales under OEM purchase orders
- Software and services
Advanced Safety and User Experience (Intelligent Systems from 2026): how it makes money
- Sales $5.79B and Adjusted Operating Income $658M in 2025.
Engineered Components Group (Engineered Components from 2026)
Connection systems, high-performance interconnects, and cable management and protection for vehicles, aerospace and defense, telecom and datacom, and industrial markets.
01 what it draws on
Inputs & resources
- 69 major manufacturing sites
02 what it does
Activities
- Manufacturing connectors and interconnects
03 who it serves
Customers
- Automakers, aerospace and defense companies, telecom operators
04 how money comes in
How it earns
- Product sales
Engineered Components Group (Engineered Components from 2026): how it makes money
- Sales $6.66B and Adjusted Operating Income $1.13B in 2025 — the highest-margin segment (26.0% gross margin).
Electrical Distribution Systems (spun off as Versigent, April 2026)
Low- and high-voltage power, signal, and data distribution (vehicle wiring).
01 what it draws on
Inputs & resources
- 61 major manufacturing sites
02 what it does
Activities
- Building wiring and power distribution systems
03 who it serves
Customers
- Automakers
04 how money comes in
How it earns
- Product sales
Electrical Distribution Systems (spun off as Versigent, April 2026): how it makes money
- Sales $8.82B and Adjusted Operating Income $674M in 2025 (12.2% gross margin).
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
Advanced Safety & User Experience
5,792 (27%)profit 658 · margin 11.4%
Engineered Components
6,662 (31%)profit 1,129 · margin 16.9%
Electrical Distribution Systems
8,818 (41%)profit 674 · margin 7.6%
Source: Form 10-K (FY2025) — MD&A, results by segment Profit is segment Adjusted Operating Income. Eliminations and other −$874M of sales. Electrical Distribution Systems became Versigent on April 1, 2026.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 36% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
7,361 (36%)Other North America
207 (1%)Europe, Middle East & Africa
6,566 (32%)Asia Pacific
5,872 (29%)South America
392 (2%)
Source: Form 10-K (FY2025) — Note 22, geographic information Germany was the largest EMEA market ($1.64B); Asia Pacific is primarily China.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Aptiv typically supplies automakers through purchase orders governed by each automaker's general terms. Customers generally require year-over-year cost reductions or price improvements.
OEM purchase orders
Most of the $20.4B of 2025 sales
Typical term: Purchase orders under each automaker's general terms and conditions
Sales volume follows vehicle production.
09
Alliances & capital ties
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Joint venture
Hyundai Motor Group (Motional)
Aptiv and Hyundai formed Motional, an autonomous driving joint venture, in 2020. After 2024 restructuring and further Hyundai funding in May 2025, Aptiv's stake fell from 50% to below 15%, with no further funding required from Aptiv.
Source: Form 10-K (FY2025) — Item 1
Business partnership
Versigent
Spun off on April 1, 2026; the two companies operate under a separation and distribution agreement.
Source: 8-K filed 2026-04-01
10
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
The 25 largest automakers, plus aerospace and defense companies and telecom operators.
Named by the company
- General Motors — Named in the 10-K as among Aptiv's largest customers.Form 10-K (FY2025) — Risk Factors
What the filings disclose
- The ten largest customers accounted for about 56% of 2025 sales, including about 10% from one global automaker. (Form 10-K (FY2025), Item 1)
Suppliers
Raw materials, components, and semiconductor suppliers.
Named by the company
None named in the 10-K or the company’s press releases.
11
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Aptiv's 10-K describes an extremely competitive automotive technology and components industry, with new entrants from China and from outside the auto industry, and names key competitors by segment.
Competitors named in the 10-K
Advanced Safety and User Experience
Electrical Distribution Systems (now Versigent)
Peer group the company chose
2025 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Companies comparable to Aptiv in size, industry, global reach, operating characteristics, and competition for executive talent.
- Adobesite ↗
- Amphenolsite ↗
- Corningsite ↗
- Cumminssite ↗
- Eatonsite ↗
- Emersonsite ↗
- Fortivesite ↗
- Honeywellsite ↗
- Johnson Controlssite ↗
- Learsite ↗
- PayPalsite ↗
- Rockwell Automationsite ↗
- Salesforcesite ↗
- TE Connectivitysite ↗
- Textronsite ↗
- Trane Technologiessite ↗
Also named as competitors in the 10-K
Source: Proxy statement (DEF 14A, filed 2026-03-16) — 2025 Peer Group AnalysisCompany names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
12
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
Aptiv's largest recent transaction is the Versigent spin-off.
Cash spent on acquisitions, FY2021–FY2025: $4.52B
Apr 2026
Electrical Distribution Systems (spun off as Versigent)
Distributed to shareholders: one Versigent share per three Aptiv shares; Aptiv received a special dividend of at least $1.7B
Since divestedAptiv's vehicle wiring and power distribution business ($8.8B of 2025 sales).
- Stated purpose (company)
- To create two independent, more focused public companies.
Source: 8-K filed 2026-04-01 · 8-K filed 2026-04-06
13
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|
| Income statement ($M) | |||||
| Revenue | 15,618 | 17,489 | 20,051 | 19,713 | 20,398 |
| Operating income | 1,189 | 1,263 | 1,559 | 1,842 | 1,184 |
| Pretax income | 910 | 990 | 1,337 | 2,151 | 919 |
| Net income (attributable) | 590 | 594 | 2,938 | 1,787 | 165 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 12.0% | 14.6% | -1.7% | 3.5% |
| Operating margincalcoperating income ÷ revenue × 100 | 7.6% | 7.2% | 7.8% | 9.3% | 5.8% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 3.8% | 3.4% | 14.7% | 9.1% | 0.8% |
| Balance sheet ($M) | |||||
| Total assets | 18,007 | 21,884 | 24,427 | 23,458 | 23,413 |
| Total equity | 8,561 | 8,998 | 11,745 | 8,993 | 9,397 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 4,067 | 6,612 | 6,305 | 8,974 | 7,734 |
| Equity ratio | 46.4% | 40.3% | 47.3% | 37.5% | 39.3% |
| ROE | 7.1% | 6.9% | 28.9% | 17.6% | 1.8% |
| Cash flow ($M) | |||||
| Operating CF | 1,222 | 1,263 | 1,896 | 2,446 | 2,185 |
| Investing CF | -729 | -5,182 | -1,002 | -507 | -498 |
| Financing CF | -191 | 2,359 | -807 | -1,965 | -1,442 |
| Free cash flowcalccash flow from operations − capital expenditures | 611 | 419 | 990 | 1,616 | 1,529 |
| Cash and equivalents | 3,139 | 1,531 | 1,640 | 1,573 | 1,851 |
| Per share & other | |||||
| EPS ($) | 1.94 | 1.96 | 10.39 | 6.96 | 0.75 |
| BVPS ($) | 30.86 | 32.51 | 41.39 | 37.42 | 43.28 |
| Dividend per share ($) | 0.00 | — | — | — | — |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 0.0% | — | — | — | — |
| P/E (x) | 85.0 | 47.5 | 8.6 | 8.7 | 101.5 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 26.0 | 16.4 | 12.2 | 8.2 | 10.4 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 5.35 | 2.86 | 2.17 | 1.62 | 1.76 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
14
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
5.3%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$1,184M × (1 − 21%) ÷ $17,549M × 100 = 5.3%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
7.17%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $16.74B ÷ ($16.74B + $7.73B) = 68.4%
e.g.Debt weight: $7.73B ÷ ($16.74B + $7.73B) = 31.6%
e.g.WACC: 8.8% × 68.4% + 4.7% × (1 − 21%) × 31.6% = 7.17%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 7.17% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.87 (price-derived adjusted beta, but correlation with the market is low (R² 0.09), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 8.79%
- Cost of debt
- 4.67%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 68% : 32%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 7.17%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.87 (price-derived adjusted beta. Raw β 0.81, R² 0.09, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.806 + 0.33 = 0.870
termsβ (beta)
Period 2024-04-12–2026-10-07, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.87 × 5.5% = 8.8%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
0.4%
Perpetual FCF growth: g = r − FCF ÷ EV = 7.2% − 6.8%
Past FCF growth (FY2021–FY2025)
+25.8%
Compound annual rate, 4 years
Past revenue growth (FY2021–FY2025)
+6.9%
Compound annual rate, 4 years
Inputs (FY2025): free cash flow $1.53B (operating CF − capex); enterprise value $22.62B = market cap $16.74B + debt $7.73B − cash and short-term investments $1.85B; r = WACC of 7.2% using this page’s default assumptions (β 0.87, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$22.49B
FCF $1.53B ÷ (7.2% − 0.4%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 5.2% | 6.2% | 7.2% | 8.2% | 9.2% |
|---|---|---|---|---|---|
| 0% | 1.30x | 1.09x | 0.94x | 0.82x | 0.73x |
| 2% | 2.11x | 1.61x | 1.30x | 1.09x | 0.94x |
| 4% | 5.63x | 3.07x | 2.11x | 1.61x | 1.30x |
| 6% | — | 33.79x | 5.63x | 3.07x | 2.11x |
| 8% | — | — | — | 33.79x | 5.63x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
16
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 3.89x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -8.6%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 129%
Most profit comes from core operations.
- ✓
Days sales outstanding: 65 → 62 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-06
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$2,185M ÷ $165M = 13.24x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$1,184M ÷ $919M × 100 = 129%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$3,477M ÷ $20,398M × 365 = 62 days
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Strengths & weaknesses
Strengths
1. Broad customer base
Customers include the 25 largest automakers plus aerospace and defense companies and telecom operators.
Evidence: Form 10-K (FY2025), Item 1
2. High-margin connectors
Engineered Components earned $1.13B of Adjusted Operating Income on $6.66B of sales in 2025.
Evidence: Form 10-K (FY2025), MD&A
3. Global footprint
139 major manufacturing facilities and 11 technical centers in 50 countries.
Evidence: Form 10-K (FY2025), Item 1
4. Cash generation
Operating cash flow of $2.19B in 2025 against $656M of capital spending.
Evidence: Form 10-K (FY2025)
Weaknesses
1. Customer concentration
The ten largest customers made up about 56% of 2025 sales, including about 10% from one global automaker.
Evidence: Form 10-K (FY2025), Item 1
2. Wind River write-down
A $648M goodwill impairment in 2025 on Wind River, acquired in 2022.
Evidence: Form 10-K (FY2025), Note 7
3. Annual price pressure
Automakers generally require year-over-year cost reductions or price improvements.
Evidence: Form 10-K (FY2025), Item 1
18
What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
101.5x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
—
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
—
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
9.1%
(Operating CF − capex) ÷ market cap
1. A more focused technology company
After the spin-off, Aptiv keeps its software, sensing, compute, and connector businesses.
- What has to hold
- These businesses grow faster and earn higher margins than wiring.
- The other side
- The smaller company is less diversified, and Intelligent Systems' earnings fell in 2025.
Evidence: Form 10-K (FY2025); 8-K filed 2026-04-01
2. Buybacks
About $2.1B of repurchase authorization remained at year-end 2025.
- What has to hold
- Cash flow stays strong.
- The other side
- Vehicle production is cyclical.
Evidence: Form 10-K (FY2025)
Figures are for Aptiv including Electrical Distribution Systems, which was spun off in April 2026. 2025 net income was also reduced by a 76% effective tax rate, which reflected changes in valuation allowances and the non-deductible impairment, among other items. Aptiv pays no dividend.
19
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
11.4x
$1.85B vs. $162M
Interest coverage (operating income ÷ interest expense)
3.3x
$1.18B vs. $361M
Free cash flow ÷ dividends paid
—
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -1.7% in FY2024 ($20.05B → $19.71B) | Yes, by FY2025 |
| Operating income | -35.7% in FY2025 ($1.84B → $1.18B) | Not yet, as of FY2025 |
Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Diversified regions
Sales split between the U.S. ($7.4B), Europe, Middle East & Africa ($6.6B), and Asia Pacific ($5.9B).
Source: Form 10-K (FY2025), Note 22
Cash flow
Operating cash flow of $2.19B in 2025.
Source: Form 10-K (FY2025)
Debt
About $7.7B of debt at year-end 2025; Aptiv tendered for up to $1.371B of notes after the spin-off.
Source: SEC EDGAR XBRL; 8-K filed 2026-04-06
20
Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Demand & macro
Vehicle production
- Company disclosure (summarized from the 10-K)
- Demand follows new-vehicle production, driven by credit, interest rates, fuel prices, and consumer confidence; tariffs and shortages add uncertainty.
- Company’s stated mitigation
- Expansion into aerospace, defense, telecom, datacom, and industrial markets.
- This site’s assessment
- Impact High / Likelihood High
- 2Competition & technology shift
Competition and new entrants
- Company disclosure (summarized from the 10-K)
- Extremely competitive industry with new entrants from China and from outside the auto industry in software and automated driving.
- Company’s stated mitigation
- Technology investment and cost structure.
- This site’s assessment
- Impact Med / Likelihood High
- 3Geopolitics & supply chain
China
- Company disclosure (summarized from the 10-K)
- Non-Chinese automakers, including GM — among Aptiv's largest customers — have lost share in China and restructured operations there.
- Company’s stated mitigation
- Growing with Chinese automakers.
- This site’s assessment
- Impact Med / Likelihood High
- 4M&A & integration
Separation execution
- Company disclosure (summarized from the 10-K)
- After the spin-off each company is smaller and less diversified, and the separation must qualify as tax-free.
- Company’s stated mitigation
- Tax opinions and separation agreements.
- This site’s assessment
- Impact Med / Likelihood Med
21
What to watch going forward
- Results of the slimmer Aptiv after the Versigent spin-off.
- Intelligent Systems (Wind River) performance after the impairment.
- Use of the Versigent special dividend and debt reduction.
- Automakers' production and China exposure.
- Tariffs and trade policy.
22
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 9, 2026 · Financial data fetched: October 8, 2026 13:37 (SEC EDGAR) · Source 10-K filed: February 6, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Aptiv PLC’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.