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Revenues of $3.20 billion beat the consensus estimate of $3.16 billion by 1.1% and increased 2.3% year over year. Adjusted revenues grew 2%, supported by an 11% increase in non-automotive revenues, while automotive revenues declined 1%.
APTV’s shares have lost 45.3% over the past year compared with the industry’s 30.4% decline. The Zacks S&P 500 composite has risen 11.3% over the same time frame.
Image Source: Zacks Investment Research
APTV’s Regional Growth Remains Mixed
North American adjusted revenues increased 5% despite a 4% decline in regional vehicle production. Asia-Pacific revenues grew 5%, including a 1% increase in China, where vehicle production declined 6%.
Europe remained a headwind, with adjusted revenues declining 5% against a 1% increase in vehicle production. South American revenues advanced 3%. The regional performance reflected stronger demand in North America and Asia-Pacific, partly offset by weakness in Europe.
Aptiv’s Engineered Components Drives Growth
Engineered Components revenues increased 7.3% year over year to $1.84 billion. Adjusted revenues grew 6%, supported by a 2% increase in automotive revenues and 16% growth in non-automotive business. Growth across North America, Europe and Asia-Pacific supported the segment's performance.
Adjusted EBITDA increased 2.1% to $387 million. However, the adjusted EBITDA margin contracted to 21.1% from 22.1% on a pro forma basis. Commodity cost pressures weighed on profitability, partially offset by favorable volume contributions.
APTV’s Intelligent Systems Faces Pressure
Intelligent Systems revenues declined 2.8% year over year to $1.40 billion. Adjusted revenues decreased 3%, reflecting a 4% decline in automotive business, partially offset by 3% growth in non-automotive revenues. Weakness in Europe affected the segment, despite growth in North America and Asia-Pacific.
Adjusted EBITDA fell 17.8% to $180 million, while the segment's adjusted EBITDA margin contracted to 12.8% from 15.2%. Lower revenues and the timing of engineering credits weighed on profitability, partially offset by performance improvements.
Aptiv’s Profitability Weakens
Adjusted EBITDA decreased 5.2% year over year to $567 million. The adjusted EBITDA margin contracted 140 basis points to 17.7%, reflecting an unfavorable product mix, lower software revenues and investments supporting organic growth. Foreign exchange and commodity movements contributed a 40-basis-point margin headwind.
GAAP operating income was $281 million compared with an operating loss of $353 million a year ago, when results included a $648 million goodwill impairment charge. Interest expense declined to $59 million from $88 million, while income tax expense decreased to $36 million from $59 million.
APTV’s Product Expansion Gains Momentum
Aptiv secured approximately $4 billion in new commercial awards, comprising $2.3 billion in Engineered Components and $1.6 billion in Intelligent Systems. More than 20% of China’s year-to-date bookings came from export programs, highlighting opportunities beyond domestic automotive demand.
Non-automotive bookings more than doubled year over year during the first nine months. New awards covered drones, robotics, medical devices, telecommunications and data center infrastructure. Aptiv also expanded its NVIDIA collaboration to support Jetson Orin Nano 2, advancing production-ready physical artificial intelligence systems.
Aptiv’s Cash Flow & Capital Returns
Cash provided by continuing operations totaled $320 million during the quarter, while free cash flow reached $194 million. Capital expenditures amounted to $126 million, reflecting continued investment in the business.
Aptiv ended September with $670 million in cash and cash equivalents and $5.33 billion in long-term debt. The company repurchased 4.7 million shares for $233 million during the quarter, bringing year-to-date repurchases to $558 million. Approximately $1.6 billion remained under its repurchase authorization.
APTV Maintains Its Q4 & 2026 Earnings Outlook
For the fourth quarter, Aptiv expects revenues between $3.11 billion and $3.21 billion, with the midpoint of $3.16 billion in line with the Zacks Consensus Estimate. Adjusted earnings are projected between $1.35 and $1.55 per share. The Zacks Consensus Estimate for earnings is $1.33 per share for the same period. Adjusted EBITDA is anticipated between $582 million and $642 million, with a projected margin of 19.4%.
For 2026, revenues are forecast between $12.65 billion and $12.75 billion, with the midpoint of $12.7 billion in line with the Zacks Consensus Estimate. Adjusted earnings guidance remains at $5.60-$5.80 per share, with the midpoint of $5.70 per share higher than the Zacks Consensus Estimate for earnings of $5.68 per share for the same period. Adjusted EBITDA is projected between $2.31 billion and $2.37 billion. However, Aptiv lowered its free cash flow outlook to $625-$675 million to reflect material cost inflation.
Aptiv’s Preliminary 2027 Outlook Reflects Caution
Aptiv projects 2027 revenues between $13.2 billion and $13.5 billion, with the midpoint of $13.35 billion lower than the Zacks Consensus Estimate for revenues of $13.46 billion for the same period. The company's projected figures incorporate $700 million in material cost inflation recoveries, which primarily relate to semiconductors and a $300 million European headwind from program roll-offs and lower exports to China.
Aptiv expects an adjusted EBITDA margin of approximately 17.2-17.5% in 2027. Semiconductor inflation, affordability pressures and trade uncertainties remain challenges, while portfolio diversification and cost-optimized solutions provide growth opportunities. Bottom of Form
Trane Technologies plc (TT - Free Report) reported better-than-expected third-quarter 2026 results. TT’s earnings per share of $4.86 beat the Zacks Consensus Estimate by 2.5% and increased 25.3% from the year-ago quarter. TT’s revenues of $6.76 billion surpassed the consensus estimate by 5% and improved 17.7% year over year.
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2026 results. EFX’s adjusted earnings per share of $2.26 beat the Zacks Consensus Estimate by 3.2% and increased 10.8% from the year-ago quarter. EFX’s revenues of $1.69 billion marginally surpassed the consensus estimate and improved 9.6% year over year.
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Aptiv Q3 Earnings Surpass Estimates Amid Non-Auto Growth
Key Takeaways
Aptiv PLC (APTV - Free Report) reported better-than-expected third-quarter 2026 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
APTV’s adjusted earnings of $1.42 per share topped the consensus mark by 6.8% but declined 4.1% year over year.
Aptiv PLC Price, Consensus and EPS Surprise
Aptiv PLC price-consensus-eps-surprise-chart | Aptiv PLC Quote
Revenues of $3.20 billion beat the consensus estimate of $3.16 billion by 1.1% and increased 2.3% year over year. Adjusted revenues grew 2%, supported by an 11% increase in non-automotive revenues, while automotive revenues declined 1%.
APTV’s shares have lost 45.3% over the past year compared with the industry’s 30.4% decline. The Zacks S&P 500 composite has risen 11.3% over the same time frame.
Image Source: Zacks Investment Research
APTV’s Regional Growth Remains Mixed
North American adjusted revenues increased 5% despite a 4% decline in regional vehicle production. Asia-Pacific revenues grew 5%, including a 1% increase in China, where vehicle production declined 6%.
Europe remained a headwind, with adjusted revenues declining 5% against a 1% increase in vehicle production. South American revenues advanced 3%. The regional performance reflected stronger demand in North America and Asia-Pacific, partly offset by weakness in Europe.
Aptiv’s Engineered Components Drives Growth
Engineered Components revenues increased 7.3% year over year to $1.84 billion. Adjusted revenues grew 6%, supported by a 2% increase in automotive revenues and 16% growth in non-automotive business. Growth across North America, Europe and Asia-Pacific supported the segment's performance.
Adjusted EBITDA increased 2.1% to $387 million. However, the adjusted EBITDA margin contracted to 21.1% from 22.1% on a pro forma basis. Commodity cost pressures weighed on profitability, partially offset by favorable volume contributions.
APTV’s Intelligent Systems Faces Pressure
Intelligent Systems revenues declined 2.8% year over year to $1.40 billion. Adjusted revenues decreased 3%, reflecting a 4% decline in automotive business, partially offset by 3% growth in non-automotive revenues. Weakness in Europe affected the segment, despite growth in North America and Asia-Pacific.
Adjusted EBITDA fell 17.8% to $180 million, while the segment's adjusted EBITDA margin contracted to 12.8% from 15.2%. Lower revenues and the timing of engineering credits weighed on profitability, partially offset by performance improvements.
Aptiv’s Profitability Weakens
Adjusted EBITDA decreased 5.2% year over year to $567 million. The adjusted EBITDA margin contracted 140 basis points to 17.7%, reflecting an unfavorable product mix, lower software revenues and investments supporting organic growth. Foreign exchange and commodity movements contributed a 40-basis-point margin headwind.
GAAP operating income was $281 million compared with an operating loss of $353 million a year ago, when results included a $648 million goodwill impairment charge. Interest expense declined to $59 million from $88 million, while income tax expense decreased to $36 million from $59 million.
APTV’s Product Expansion Gains Momentum
Aptiv secured approximately $4 billion in new commercial awards, comprising $2.3 billion in Engineered Components and $1.6 billion in Intelligent Systems. More than 20% of China’s year-to-date bookings came from export programs, highlighting opportunities beyond domestic automotive demand.
Non-automotive bookings more than doubled year over year during the first nine months. New awards covered drones, robotics, medical devices, telecommunications and data center infrastructure. Aptiv also expanded its NVIDIA collaboration to support Jetson Orin Nano 2, advancing production-ready physical artificial intelligence systems.
Aptiv’s Cash Flow & Capital Returns
Cash provided by continuing operations totaled $320 million during the quarter, while free cash flow reached $194 million. Capital expenditures amounted to $126 million, reflecting continued investment in the business.
Aptiv ended September with $670 million in cash and cash equivalents and $5.33 billion in long-term debt. The company repurchased 4.7 million shares for $233 million during the quarter, bringing year-to-date repurchases to $558 million. Approximately $1.6 billion remained under its repurchase authorization.
APTV Maintains Its Q4 & 2026 Earnings Outlook
For the fourth quarter, Aptiv expects revenues between $3.11 billion and $3.21 billion, with the midpoint of $3.16 billion in line with the Zacks Consensus Estimate. Adjusted earnings are projected between $1.35 and $1.55 per share. The Zacks Consensus Estimate for earnings is $1.33 per share for the same period. Adjusted EBITDA is anticipated between $582 million and $642 million, with a projected margin of 19.4%.
For 2026, revenues are forecast between $12.65 billion and $12.75 billion, with the midpoint of $12.7 billion in line with the Zacks Consensus Estimate. Adjusted earnings guidance remains at $5.60-$5.80 per share, with the midpoint of $5.70 per share higher than the Zacks Consensus Estimate for earnings of $5.68 per share for the same period. Adjusted EBITDA is projected between $2.31 billion and $2.37 billion. However, Aptiv lowered its free cash flow outlook to $625-$675 million to reflect material cost inflation.
Aptiv’s Preliminary 2027 Outlook Reflects Caution
Aptiv projects 2027 revenues between $13.2 billion and $13.5 billion, with the midpoint of $13.35 billion lower than the Zacks Consensus Estimate for revenues of $13.46 billion for the same period. The company's projected figures incorporate $700 million in material cost inflation recoveries, which primarily relate to semiconductors and a $300 million European headwind from program roll-offs and lower exports to China.
Aptiv expects an adjusted EBITDA margin of approximately 17.2-17.5% in 2027. Semiconductor inflation, affordability pressures and trade uncertainties remain challenges, while portfolio diversification and cost-optimized solutions provide growth opportunities. Bottom of Form
Aptiv currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Trane Technologies plc (TT - Free Report) reported better-than-expected third-quarter 2026 results. TT’s earnings per share of $4.86 beat the Zacks Consensus Estimate by 2.5% and increased 25.3% from the year-ago quarter. TT’s revenues of $6.76 billion surpassed the consensus estimate by 5% and improved 17.7% year over year.
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2026 results. EFX’s adjusted earnings per share of $2.26 beat the Zacks Consensus Estimate by 3.2% and increased 10.8% from the year-ago quarter. EFX’s revenues of $1.69 billion marginally surpassed the consensus estimate and improved 9.6% year over year.