Aptiv's Q1 Earnings and Revenues Beat Estimates

Core Insights - Aptiv PLC reported better-than-expected first-quarter 2025 results with adjusted earnings of $1.69 per share, beating the Zacks Consensus Estimate by 9$4.80 billion, surpassing the Zacks Consensus Estimate by 0.4% but decreasing 1.6% year over year [1] Revenue Performance - Adjusted revenues declined 1% year over year, with specific declines of 4% in Europe, 2% in North America, and 3% in South America, while Asia saw a growth of 5%, including a 2% increase in China [1] - The Electrical Distribution Systems and Engineered Components Group reported revenues of $2 billion and$1.6 billion, declining 3% and 1% year over year, respectively [2] - The Advanced Safety and User Experience segment's revenues remained flat at $1.4 billion year over year [2] Operating Income and Margins - Adjusted operating income was$572 million, up 5.2% from the previous year, with an adjusted operating income margin of 11.9%, an increase of 80 basis points year over year [2] Cash Flow and Debt - At the end of the quarter, Aptiv had cash and cash equivalents of $1.1 billion, down from$1.6 billion in the previous quarter, while long-term debt decreased from $7.8 billion to$7.6 billion [3] - The company generated $273 million in cash from operating activities, compared to$244 million in the first quarter of 2024 [3] Future Outlook - For Q2 2025, Aptiv expects revenues between $4.92 billion and$5.12 billion, and adjusted EPS between $1.7 and$1.9, both higher than current Zacks Consensus Estimates [4] - For the full year 2025, revenues are expected to be between $19.6 billion and$20.4 billion, with adjusted EPS between $7 and$7.6, also above current estimates [5] - The adjusted operating income margin for 2025 is anticipated between 11.9% and 12.3%, with capital expenditure expected to be $880 million [5]