Aptiv PLC (NYSE:APTV) reported its fourth-quarter results for 2025 on Monday, as the stock traded lower following the release. The global automotive technology supplier reported U.S. GAAP revenue of $5.153 billion, up from $4.907 billion a year earlier.
The company said fourth-quarter revenue increased 3% on an adjusted basis, reflecting growth of 8% in North America and 12% in South America, partially offset by declines of 1% in Europe and 1% in Asia.
Aptiv’s fourth-quarter adjusted EPS of $1.86 beat a $1.85 analyst estimate, while revenue of $5.153 billion exceeded a $5.105 billion estimate. Earnings were down on a GAAP basis from the prior year, the company said, reflecting higher tax expense.
Adjusted operating income was $607 million, with an adjusted operating income margin of 11.8%. Cash from operations totaled $818 million in the quarter.
Segment Performance
By segment, Advanced Safety and User Experience reported fourth-quarter net sales of $1.419 billion, up 3% year over year. Engineered Components Group reported $1.644 billion, an increase of 4%, while Electrical Distribution Systems reported $2.302 billion, up 8%.
Adjusted operating income was $161 million, down 17% for Advanced Safety and User Experience, $270 million, up 8% for Engineered Components Group, and $176 million, down 2% for Electrical Distribution Systems.
Aptiv said adjusted operating income performance reflected improved operating performance, including the benefits of cost reduction initiatives, partially offset by increased commodity costs and foreign exchange impacts totaling $66 million in the fourth quarter and $207 million for the full year.
Beginning in the first quarter of 2026, Aptiv will rename its Advanced Safety and User Experience segment to Intelligent Systems and its Engineered Components Group segment to Engineered Components.
Capital Return and Balance Sheet
During 2025, the company repurchased and retired 22.8 million shares for $1.5 billion and repurchased $300 million of aggregate principal amount of certain senior notes.
As of Dec. 31, 2025, $2.1 billion remained available under its $5.0 billion share repurchase authorization. Long-term debt stood at $7.47 billion, and short-term debt totaled $81 million.
Outlook And Spin-Off
Looking ahead, Aptiv guided first-quarter 2026 net sales of $4.950 billion to $5.150 billion. The company forecast U.S. GAAP diluted EPS of $0.60 to $0.80, versus a $1.77 estimate, and adjusted EPS of $1.55 to $1.75, versus $1.92.
For the full year 2026, Aptiv forecasts net sales of $21.120 billion to $21.820 billion versus $21.126 billion. The company guided U.S. GAAP diluted EPS of $5.75 to $6.35, versus $7.21, and adjusted EPS of $8.15 to $8.75, versus $8.46.
The company also reiterated plans to spin off its Electrical Distribution Systems business as Versigent, saying the transaction will result in two independent companies.
Aptiv provided pro forma 2026 guidance for both New Aptiv and Versigent, including free cash flow ranges of $650 million to $850 million and $200 million to $300 million, respectively.
“Looking ahead, we are working diligently toward the spin-off of our EDS business as Versigent, which will result in two optimally positioned, independent companies, with increased flexibility to pursue their own unique market opportunities and capital allocation strategies,” stated Kevin Clark, chair and chief executive officer.
APTV Price Action: Aptiv shares were down 1.50% at $74.61 during premarket trading on Monday, according to Benzinga Pro data.
Photo by RYO Alexandre via Shutterstock
