Aptiv (APTV) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 operating earnings and EPS, with 180 basis points operating margin expansion year-over-year, despite a 2–3% revenue decline due to lower production at select customers, partially offset by growth with Chinese local OEMs.

• EPS grew 26% year-over-year, driven by record earnings, Motional JV restructuring, and share repurchases.

• Net income for Q2 2024 was $943M, up from $246M in Q2 2023, primarily due to a $641M gain from Motional JV restructuring.

• Announced a new $5B share repurchase authorization, including a $3B accelerated share repurchase program, representing over 25% of current market cap.

• Released annual sustainability report, reaffirming commitment to sustainability goals.

Financial highlights

• Q2 2024 revenue was $5.1B, down 2–3% year-over-year; year-to-date revenue was $10.0B, flat to down 1%.

• Adjusted EBITDA reached $788M (15.6% margin), and adjusted operating income was $606M (12.0% margin), both up year-over-year.

• Q2 GAAP net income was $938M (18.6% margin), or $3.47 per diluted share; adjusted EPS was $1.58, up 26% year-over-year.

• Operating cash flow was $643M in Q2 and $887M year-to-date, up significantly year-over-year.

• Share repurchases totaled $434M in Q2 and $1.03B year-to-date.

Outlook and guidance

• Full-year 2024 revenue guidance is $20.1B–$20.4B, reflecting ~1% adjusted growth and ~4% growth over market.

• Adjusted EBITDA guidance: $3.11B–$3.21B (15.4%–15.7% margin); adjusted operating income: $2.38B–$2.48B (11.8%–12.1% margin).

• Adjusted EPS guidance: $6.15–$6.45, including ~$0.50 per share in anticipated Motional equity losses; GAAP EPS: $7.00–$7.30.

• Operating cash flow expected at $2.15B, up 13% year-over-year; capital expenditures projected at $900M.

• Global vehicle production now expected to decline 3% in 2024, with North America down 1%, Europe down 5%, and China flat.