Aptiv (APTV) Company Report

Aptiv will split into New Aptiv (RemainCo) and EDS (SpinCo); New Aptiv targets 4–7% organic revenue CAGR through 2028 with 8–10% non-auto growth, while EDS expects 3–4% CAGR post-spin.
RemainCo aims for 200 bps margin expansion from 2025–2028 via manufacturing efficiencies, higher-margin non-auto flow-through and SG&A savings, and will eliminate $70 m of stranded costs by 2027.
EDS plans a parallel 200 bps margin uplift driven by product mix shifts to full-service solutions, automation of wire harness assembly and overhead reductions.
Aptiv has de-risked semiconductor supply with a $250 m investment in memory and chip inventory, multi-sourcing and localized supply in China to mitigate shortages and price volatility through 2027.

1 day ago

Transcript

Aptiv outlines spin-off growth and supply-chain strategy at UBS conference

APTV

Guidance Update

New Projects/Investments

Aptiv is on track with its full-year and Q4 guidance, having embedded appropriate conservatism for semiconductor shortages and supply-chain disruptions, and remains confident in meeting its targets.
New Aptiv (RemainCo) is targeted to achieve 4%–7% organic CAGR through 2028, with mid-single-digit automotive growth, 8%–10% non-auto growth, and 200 bps margin expansion driven by manufacturing efficiencies, higher-margin non-auto flow-through, and SG&A savings; aims for 40% non-auto revenue by 2030 and 100% FCF conversion.
EDS (SpinCo) is projected for 3%–4% organic CAGR through 2028, including mid- to high-single-digit commercial-vehicle growth, nascent robotics and storage businesses, and 200 bps of margin improvement via mix shift, automation, and footprint optimization.
To mitigate future memory constraints, Aptiv has invested $250 million in semiconductor and memory capacity, increased inventory, and secured multiple local supply sources, expecting pricing pressure but limited volume impact through 2027.

1 day ago

Transcript

Aptiv reiterates 2025 guidance and 2028 growth targets at UBS conference

APTV

Guidance Update

New Projects/Investments

Management confirmed full-year 2025 guidance and reinforced a “prudent” outlook amid global vehicle production and supply-chain dynamics, remaining confident in on-track delivery.
Aptiv has invested ~$250 million in semiconductor inventory and multi-source validation to de-risk DRAM shortages, anticipating industry-wide tightness may only pressure production after 2027.
At its analyst day, Aptiv forecast 4–7% organic revenue CAGR through 2028 for the standalone RemainCo: ~4% automotive growth and 8–10% non-auto growth, driven by robust bookings, mid-single-digit Active Safety, UX program ramps and software-defined vehicle architectures.
RemainCo margins are expected to expand by 200 bps from 2025 to 2028 via manufacturing and material efficiencies, higher-margin non-auto flow-through and SG&A reductions, with $70 million of stranded separation costs eliminated between 2026–27.

1 day ago

Transcript

Aptiv outlines separation of EDS and growth trajectory at 2025 Investor Day

APTV

Guidance Update

M&A

Aptiv will spin off its Electrical Distribution Systems (EDS) business into an independent public company by the end of Q1 2026 to sharpen focus and enhance shareholder value.
“New Aptiv,” comprising Intelligent Systems and Engineered Components, is set to deliver >$12 billion in 2025 revenue, with 24% non-automotive exposure, $600 million in software revenues, a 19% EBITDA margin, $5.50 pro forma EPS, and ~$1 billion free cash flow.
Through 2028, New Aptiv targets 4-7% annual revenue growth, ~200 bps cumulative margin expansion to ~21%, mid-teens EPS growth, and ~$4 billion of cumulative free cash flow conversion.
EDS expects $8.6 billion in 2025 revenue and ~$900 million adjusted EBITDA, pursuing 3-4% CAGR, ~200 bps margin uplift to 12%, low-teens net income growth, and ~$1 billion free cash flow from 2026–28.

Nov 18, 2025, 3:00 PM

Transcript

Aptiv outlines Investor Day 2025 strategy with EDS spinoff and growth targets

APTV

Guidance Update

M&A

Aptiv to spin off its Electrical Distribution Systems (EDS) business into a standalone public company, while “New Aptiv” consolidates Intelligent Systems and Engineered Components with $12 billion in revenues and 24% non-automotive exposure.
New Aptiv targets 4–7% annual revenue growth through 2028, ~200 bps EBITDA margin expansion to ~21%, mid-teens EPS CAGR, and ~$4 billion free cash flow (2026–28).
The standalone EDS business forecasts 3–4% revenue CAGR, 200 bps margin uplift to ~12% by 2028, low-teens net income growth, and ~$1 billion free cash flow (2026–28), with disciplined CapEx (3–4% of sales), dividends, and bolt-on M&A.
Both entities will leverage secular automotive trends (automation, electrification, digitalization) and diversify end markets—New Aptiv into aerospace and 5G, EDS into commercial vehicles and emerging sectors like energy storage.

Nov 18, 2025, 3:00 PM

Transcript

Aptiv outlines New Aptiv strategy and EDS spin-off at Investor Day 2025

APTV

Guidance Update

M&A

Share Buyback

Aptiv to complete a tax-free spin-off of its Electrical Distribution Systems (EDS) segment into a separate public company in Q1 2026, creating New Aptiv focused on Intelligent Systems and Engineered Components.
New Aptiv targets 4-7% annual revenue growth, ~200 bps margin expansion to ~21%, mid-teens EPS growth, and $4 billion cumulative free cash flow from 2026–2028.
Stand-alone EDS (2025 pro forma: $8.6 billion revenue, $900 million Adj. EBITDA) plans 3-4% annual revenue growth, 200 bps margin expansion to ~12%, and $1 billion free cash flow from 2026–2028.
Aptiv is diversifying beyond automotive into industrial markets under secular trends of Automation, Electrification, and Digitalization, expanding its addressable market to $240 billion.
Capital allocation priorities include maintaining 2-2.5x leverage, investing in organic growth and bolt-on M&A, and returning excess cash via share repurchases.

Nov 18, 2025, 3:00 PM

Transcript

Aptiv outlines spin-off of EDS and 2025–2028 financial targets

APTV

Guidance Update

M&A

Aptiv will spin off its Electrical Distribution Systems (EDS) segment into a standalone public company, creating “New Aptiv” (comprising Intelligent Systems and Engineered Components) and EDS as independent entities.
“New Aptiv” is targeted to generate $12.4 billion in revenue in 2025, with a 19% EBITDA margin, expanding by ~200 bps to ~21% by 2028 and delivering ~$4 billion of cumulative free cash flow over 2026–2028.
The strategy leverages secular trends—Automation, Electrification, and Digitalization—with a software-to-cloud and sensor-to-compute portfolio designed to drive growth across Automotive, Aerospace & Defense, Telecom, and Industrial markets.
Financial framework calls for 4–7% annual revenue CAGR, mid-teens EPS CAGR through 2028, and disciplined capital allocation: targeting 2.0–2.5× gross leverage, dividends, and share repurchases.

Nov 18, 2025, 2:05 PM

8-K

Aptiv partners with Robust.AI to develop AI-powered collaborative robots

APTV

New Projects/Investments

Aptiv and Robust.AI form a strategic alliance to co-develop AI-powered cobots, integrating Aptiv’s portfolio—including the PULSE™ sensor—with Robust.AI’s robotics expertise.
The solution merges Aptiv’s advanced perceptual and ML technologies and Wind River platform with Robust.AI’s SLAM, holonomic drive system, and human-centered design for scalable, safe automation.
The Carter™ cobot will handle order fulfillment, point-to-point transport, and mobile sorting, boosting warehouse efficiency and delivering data-driven workflow insights.
Leveraging Aptiv’s global supply chain and manufacturing scale, the partnership aims to accelerate deployment of cobots across warehouse and industrial environments.

Nov 10, 2025, 8:52 PM

Press Release

Aptiv partners with Robust.AI to develop AI-powered collaborative robots

APTV

New Projects/Investments

Aptiv PLC (NYSE: APTV) and Robust.AI announced a strategic collaboration to co-develop next-gen AI-powered collaborative robots (cobots) by integrating Aptiv’s advanced sensor portfolio with Robust.AI’s robotics expertise.
The joint solution will combine Aptiv’s PULSE™ sensor, Radar ML and Behavior ML technologies with Robust.AI’s SLAM-based decision-making, holonomic drive system, and low-latency VxWorks RTOS and Helix Hypervisor for high performance.
The multifunctional cobot Carter™ will support order picking, point-to-point transport, and mobile sorting workflows on a single platform, delivering rapid productivity gains and data-driven workflow optimization.
Aptiv’s global manufacturing scale and resilient supply chain enable cost-effective, large-scale production of the integrated cobot systems across diverse markets.

Nov 10, 2025, 1:00 PM

Press Release

Aptiv and Robust.AI to co-develop AI-powered collaborative robots

APTV

New Projects/Investments

Product Launch

Aptiv and Robust.AI announced a strategic partnership to co-develop AI-powered collaborative robots (cobots), combining Aptiv’s automotive-grade sensors and software with Robust.AI’s robotics design and human-centered platform.
The joint solution integrates the Aptiv PULSE™ Sensor, Radar ML, Behavior ML and Wind River real-time OS technologies with Robust.AI’s SLAM, holonomic training system and force-sensitive handle to enable scalable, efficient and secure workflows.
Robust.AI’s Carter™ cobot will offer three software-defined functions—order fulfillment, point-to-point transport and mobile sorting—on a single platform, aiming for rapid productivity gains and continuous learning insights.
Aptiv’s global integration capabilities and resilient supply chain will support large-scale production and deployment of the co-developed cobots across multiple industries.

Nov 10, 2025, 1:00 PM

Press Release

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