Aptiv PLC Q2 FY26 Earnings Analysis

- Full-year 2026 adjusted revenue growth expected at midpoint of 4%, with acceleration through the year, driven by program launches and ramp-ups (Page 5, 12). - Strong bookings of $5 billion with a $20 billion outlook for New Aptiv by 2026, reflecting confidence in pipeline and next-gen architectures (Page 13). - Positive revenue growth in China starting Q2 2026 due to new program launches and normalization after prior headwinds (Page 14). - Growth drivers include improved customer mix, especially with top China local OEMs, expansion in APAC ex-China regions (Japan, Korea), and strong nonautomotive market growth (Page 13). - Software segment showing solid and strong revenue growth, supporting overall 4%-7% growth guidance (Page 14). - Exposure to next-gen ADAS, smart vehicle architectures, and AI-related opportunities expected to contribute to future revenue acceleration (Pages 10, 13).

- Aptiv expects full-year 2026 adjusted revenue growth of 4% at the midpoint, with acceleration through the year. - Adjusted EBITDA and EBITDA margin guided to $2.4 billion and 18.6% at midpoint. - Adjusted earnings per share (EPS) forecasted between $5.70 and $6.10 for 2026. - Q2 2026 adjusted revenue growth expected at 2% midpoint, with adjusted EBITDA of $580 million and margin of 17.6%. - EPS for Q2 projected at $1.40 midpoint. - Margins expected to improve second half due to program launches and operational performance initiatives despite inflationary pressures. - Management confident in offsetting increased input costs primarily via internal performance and partial customer pass-throughs. - Strong bookings pipeline of $20 billion by 2026 supports growth visibility. - Positive growth in China anticipated starting Q2 2026 and strong growth expected in full year 2026.

- Continued investments in supply chain resiliency for semiconductors, as noted in the 2026 financial guidance. - Focused investments in product engineering and go-to-market initiatives, particularly to diversify towards nonautomotive markets. - Ongoing investments in key strategic initiatives tied to next-generation end-to-end AI-powered ADAS platforms and robotics applications. - Committed to a balanced capital allocation approach that includes bolt-on acquisitions and organic investments to enhance earnings power. - Plans to leverage bolt-on M&A opportunities targeted for potential closing in calendar year 2026 to expand into new markets like aerospace, data centers, and industrial sectors. - Investments also target enhancing the data center and space product portfolios, building on existing Winchester products in Engineered Components. - Share repurchases planned alongside investments, indicating strategic deployment of free cash flow.

- Aptiv has raised $2.1 billion of gross debt by its EDS subsidiaries, assumed by Versigent on April 1st. - Year-to-date, Aptiv has paid down $2.1 billion of debt, including $300 million in Q1 and $1.8 billion in early April. - Debt repayment was funded by a $1.65 billion net dividend from Versigent and $400 million cash on hand. - Pro forma for the spin-off, New Aptiv's leverage remains consistent with previous levels. - Aptiv deployed $75 million toward share repurchases in Q1 and plans to continue share repurchases through the year. - The company is committed to a balanced capital allocation approach, focusing on bolt-on acquisitions, investments, and returning excess cash to shareholders. - No explicit announcement of new fundraising through debt or equity in this quarter, but ongoing investments and acquisitions are planned.

- Strong new business bookings of $5 billion reported. - Confident in $20 billion bookings outlook for New Aptiv by 2026. - Bookings growth driven by automotive sector, especially next-gen ADAS, user experience, and smart vehicle architecture programs. - Active engagements with China local OEMs and European OEMs supporting overseas manufacturing initiatives. - Significant bookings growth also seen in APAC non-China markets like Japan and Korea. - Nonautomotive space showing very strong growth with high potential bookings in sectors such as robotics, drones, and data centers. - Long funnel of bolt-on M&A opportunities targeted to close in 2026 to further accelerate growth in industrial and nonautomotive segments.