Financial Data and Key Metrics Changes - Revenues increased by 6% year-over-year to $5.2 billion, driven by strong vehicle production in North America and China [5][17] - Operating income rose by 10% to $654 million, reflecting volume growth and strong operating performance [5][17] - Earnings per share reached a record $2.17, up 19% year-over-year, supported by lower share count and increased operating earnings [5][18] - Operating cash flow was strong at $584 million, with capital expenditures totaling $143 million [18][24] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience segment revenue was flat year-over-year at approximately $1.4 billion, with strong growth in Wind River exceeding 20% [7][20] - Engineered Components Group revenue increased by 6% to $1.7 billion, driven by nearly 30% growth with local OEMs in China [22] - Electrical Distribution Systems revenue grew by 11% to $2.3 billion, benefiting from strong EV production and an easier year-over-year comparison [23] Market Data and Key Metrics Changes - North America revenue grew by 14%, driven by double-digit growth in Electrical Distribution Systems and User Experience [19] - Europe experienced a revenue decline of 3%, primarily due to challenges in the Advanced Safety and User Experience segment [19] - Revenue in China was flat, impacted by unfavorable customer mix in the Advanced Safety and User Experience segment [19][20] Company Strategy and Development Direction - The company is progressing with the separation of its Electrical Distribution Systems business, expected to be completed by the end of Q1 2026, to enhance shareholder value [4][16] - The focus remains on maximizing shareholder value through proactive portfolio management and cost structure optimization [31] - The company anticipates revenue growth acceleration in 2026, driven by new automotive program launches and continued growth in non-automotive markets [15][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic macro environment, including geopolitical trends and trade policies, which pose challenges to forecasting [15][16] - Despite uncertainties, the company remains focused on navigating challenges and delivering strong financial results [16][31] - The company raised its full-year 2025 guidance, reflecting strong Q3 results, while incorporating conservatism due to recent production disruptions [15][27] Other Important Information - The company recorded a non-cash goodwill impairment charge of $648 million for Wind River, which is excluded from adjusted results [18][19] - New business bookings for the third quarter totaled $8.4 billion, bringing year-to-date bookings to approximately $19 billion [6][5] Q&A Session Summary Question: Can you break down the $80 million known impact on Q4 guidance? - The $80 million includes volume impacts from the facility issue in Oswego and other customer-specific situations affecting European production [34][35] Question: What is the current status of Nexperia and its political implications? - The situation is political, primarily between the Dutch government and China, but the company does not expect production in China to be impacted [39][40] Question: What are the growth dynamics in the quarter, particularly in China? - The company has seen specific OEM volume issues impacting growth in Europe and China, with program cancellations affecting the latter [56][58] Question: How is the company approaching M&A opportunities? - The company is committed to growth in non-automotive markets and is evaluating M&A opportunities based on potential synergies and market positioning [61][63] Question: What is the outlook for Active Safety and User Experience segments? - Active Safety growth is expected to be low single digits in the second half of the year, while User Experience is anticipated to return to growth in 2026 [66][69]

Core Insights - APTIV PLC reported quarterly earnings of $2.17 per share, exceeding the Zacks Consensus Estimate of $1.81 per share, and showing an increase from $1.83 per share a year ago, resulting in an earnings surprise of +19.89% [1] - The company achieved revenues of $5.21 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.00% and increasing from $4.85 billion year-over-year [2] - APTIV shares have appreciated approximately 41.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.93 on revenues of $5.07 billion, while for the current fiscal year, the estimate is $7.55 on revenues of $20.16 billion [7] - The trend of estimate revisions for APTIV was favorable ahead of the earnings release, contributing to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which APTIV belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

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Core Viewpoint - Aptiv raised its full-year profit forecast, driven by sustained demand for its electrical and software systems from the global auto industry [1] Company Summary - Aptiv's increased profit forecast indicates strong performance and confidence in the automotive sector's recovery and growth [1] Industry Summary - The global auto industry is experiencing sustained demand for electrical and software systems, which is positively impacting companies like Aptiv [1]

Financial Performance - Record Q3 revenue of $5.2 billion, with adjusted growth of 6% year-over-year[4] - Record adjusted operating income of $654 million, up 10% year-over-year, driven by strong flow through on volume and manufacturing performance[4] - Record adjusted EPS of $2.17, up 19% year-over-year, driven by increased operating income and lower share count from repurchases[4] - Operating cash flow of $584 million, enabling ~$250 million of capital deployment in share repurchases and debt repayment[4] Business Highlights - Bookings of $8.4 billion, reflecting sequential acceleration in program award timing[4] - Strong performance outside of Automotive, with double-digit revenue growth attributable to markets outside of Automotive, including 20%+ growth in Wind River[3] - 30% growth in Software bookings year-to-date[10] - Approximately 85% of year-to-date bookings in China are with Local OEMs[10] Segment Performance - Advanced Safety & User Experience (AS&UX) revenue was $1.442 billion[34] - Engineered Components Group (ECG) revenue was $1.714 billion[35] - Electrical Distribution Systems (EDS) revenue was $2.286 billion[36] Outlook - Raising full-year revenue guidance to $20.15 billion - $20.45 billion, representing adjusted revenue growth of 2%[47] - Expecting revenue growth to accelerate into 2026[49]

Financial Performance - U.S. GAAP revenue for Q3 2025 was $5.2 billion, a 7% increase year-over-year, with a 6% increase when adjusted for currency exchange and commodity movements[6]. - The company reported a U.S. GAAP net loss of $355 million for Q3 2025, including a non-cash goodwill impairment charge of $648 million[8]. - Adjusted Operating Income for Q3 2025 was $654 million, with an Adjusted Operating Income margin of 12.5%, up from 12.2% in the prior year[9]. - Year-to-date revenue for 2025 reached $15.2 billion, a 3% increase from the prior year, with adjusted revenue growth of 2%[11]. - Year-to-date Adjusted Net Income totaled $1,324 million, or $5.96 per diluted share, reflecting a 10.8% increase in net income and a 31.6% increase in earnings per share compared to the prior year[12]. - Net sales for Q3 2025 reached $5,212 million, a 7% increase from $4,854 million in Q3 2024[32]. - Operating loss for Q3 2025 was $(175) million compared to an operating income of $503 million in Q3 2024[32]. - Net loss attributable to Aptiv for the nine months ended September 30, 2025, was $(355) million, a significant decrease from net income of $1,519 million in the same period of 2024[32]. - Adjusted Revenue Growth for the three months ended September 30, 2025, was 6%, with reported net sales increasing by 7%[43]. - For the nine months ended September 30, 2025, Adjusted Revenue Growth was 2%, with reported net sales increasing by 3%[43]. - The company reported a net loss attributable to Aptiv of $355 million for the three months ended September 30, 2025, with an operating loss of $175 million[46]. - Adjusted net income attributable to Aptiv for Q3 2025 was $471 million, up from $449 million in Q3 2024, representing a 4.9% increase[53]. Cash Flow and Assets - The company generated cash flow from operations of $584 million in Q3 2025, compared to $499 million in the prior year[10]. - Total current assets increased to $8,760 million as of September 30, 2025, up from $7,826 million at the end of 2024[34]. - Cash and cash equivalents at the end of Q3 2025 were $1,640 million, compared to $1,573 million at the end of 2024[34]. - The company reported a net cash provided by operating activities of $1,367 million for the nine months ended September 30, 2025, compared to $1,386 million in 2024[36]. - Cash flow before financing for Q3 2025 was $451 million, compared to $325 million in Q3 2024, indicating a 38.8% increase[56]. - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $1,367 million, slightly down from $1,386 million in the same period of 2024[56]. Shareholder Actions - The company repurchased 1.2 million shares for $96 million in Q3 2025, with a total of 18.9 million shares repurchased year-to-date for $1.2 billion[19]. - The weighted average diluted shares outstanding decreased to 217.41 million in Q3 2025 from 222.30 million in Q3 2024[39]. Future Guidance - The company expects Q4 2025 net sales to be between $4.905 billion and $5.205 billion, with full year 2025 guidance of $20.150 billion to $20.450 billion[21]. - The anticipated U.S. GAAP net income for Q4 2025 is projected to be between $210 million and $270 million, with a net income margin of 4.3% to 5.2%[21]. - Estimated adjusted operating income for Q4 2025 is projected to be $595 million, with an operating margin of 11.8%[58]. - Estimated full-year adjusted net income attributable to Aptiv for 2025 is expected to be $1,710 million, with an adjusted net income per share of $7.70[60]. - Estimated interest expense for the full year 2025 is projected to be $360 million[58]. - The company plans to incur restructuring costs of approximately $200 million for the full year 2025[58]. Segment Performance - Adjusted operating income for the Electrical Distribution Systems segment increased by 54% to $192 million in Q3 2025, compared to $125 million in Q3 2024[38]. - Adjusted Operating Income for the three months ended September 30, 2025, was $654 million, representing a margin of 12.5%[46]. - The Adjusted Operating Income margin for the nine months ended September 30, 2025, was 12.2%[46]. - Adjusted EBITDA for the three months ended September 30, 2025, was $851 million, compared to $778 million for the same period in 2024[51]. Impairments and Expenses - The company incurred a goodwill impairment of $648 million during the three months ended September 30, 2025[46]. - Goodwill impairment recorded in Q3 2025 was $648 million, with an additional estimated $650 million for the full year 2025[56][58]. - The company recognized a tax impact of $294 million due to changes in tax incentives for its Swiss subsidiary[53]. - The company reported interest expenses of $90 million for the three months ended September 30, 2025[51].

Core Viewpoint - Aptiv PLC reported record financial results for Q3 2025, with a revenue increase of 7% to $5.2 billion, and raised its full year 2025 guidance based on strong performance in the third quarter [1] Financial Performance - U.S. GAAP revenue for Q3 2025 reached $5.2 billion, marking a 7% increase compared to the previous year [1]

Core Insights - Aptiv PLC (APTV) is expected to release its third-quarter 2025 results on October 30, with earnings estimated at $1.81 per share, reflecting a 1.09% decline year-over-year, while revenues are projected at $5.06 billion, indicating a 4.25% increase from the previous year [1][8] Financial Performance Expectations - For Q3 2025, Aptiv anticipates revenues between $4.95 billion and $5.10 billion, with adjusted EPS expected between $1.6 and $1.8. The adjusted operating income margin is projected to be between 11.3% and 12%, and the adjusted EBITDA margin is expected to range from 15.3% to 15.8% [3] - For the full year 2025, Aptiv expects revenues between $20 billion and $20.3 billion, with adjusted EPS anticipated between $7.3 and $7.6 per share. The adjusted operating income margin is projected to be between 11.9% and 12.2%, with capital expenditure expected at $780 million [4] Recent Performance and Trends - Aptiv has a strong earnings surprise history, having beaten earnings estimates in each of the last four quarters, with an average surprise of 10.29% [2] - In Q2 2025, Aptiv reported adjusted earnings of $2.12 per share, surpassing estimates by 18.4% and increasing 34.2% year-over-year. Revenues for the same quarter were $5.21 billion, exceeding estimates by 3.5% and rising 3.1% year-over-year [7] Strategic Initiatives - The company's advanced safety and user experience segment is expected to benefit from cost reductions through the optimization of AI workloads. Collaboration with ServiceNow aims to enhance automation and efficiency across various sectors, potentially creating new revenue opportunities [5][8] - Aptiv's adoption of over 450 AI workflows is expected to accelerate digital transformation, supporting long-term growth and profitability [5] Earnings Prediction Model - The Zacks model predicts an earnings beat for Aptiv in the upcoming reporting cycle, supported by a positive Earnings ESP of +4.83% and a Zacks Rank of 2 (Buy) [6]

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Core Insights - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns [1] - Identifying a growth stock that can fulfill its potential is challenging due to inherent risks and volatility associated with such investments [1] Company Overview - Aptiv PLC (APTV) is highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 32.7%, with projected EPS growth of 20.7% this year, surpassing the industry average of 15.1% [4] Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being a strong indicator of a company's prospects [3] - APTIV's projected EPS growth of 20.7% this year positions it favorably compared to industry standards [4] Cash Flow Growth - APTIV's year-over-year cash flow growth stands at 12.5%, significantly higher than the industry average of -8.6% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 5.7%, compared to the industry average of 1.8% [6] Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, and APTIV has seen a 1.4% increase in current-year earnings estimates over the past month [7] Conclusion - APTIV holds a Growth Score of A and a Zacks Rank of 2, indicating strong potential for outperformance in the growth stock category [9]