Aptiv (APTV) Q3 2024 earnings summary

Executive summary

• Record Q3 operating income and EPS achieved despite a 5–6% year-over-year revenue decline, driven by strong cost actions, operational efficiencies, and new program launches amid lower vehicle production and EV adoption slowdown.

• Portfolio remains aligned with industry megatrends, supporting resilience and growth in advanced safety and user experience, with record segment earnings and margin.

• Motional JV restructuring resulted in a $641M gain, reducing equity interest and eliminating future funding requirements.

• Significant capital actions included $4.1B in share repurchases and over $80M invested in vision technology partners.

• Gross margin improved to 18.6% for Q3 and the nine-month period, up from prior year.

Financial highlights

• Q3 2024 revenue was $4.85B–$4.9B, down 5–6% year-over-year; adjusted EBITDA: $778M (16.0% margin); adjusted operating income: $593M (12.2% margin); adjusted EPS: $1.83, up 41% year-over-year.

• Q3 GAAP net income was $363M–$368M (7.5% margin); Q3 operating margin: 10.4%.

• Year-to-date revenue: $14.8B, down 2%; operating cash flow: $1.39B; capex: $664M.

• Share repurchases totaled $4.1B YTD, including a $3B accelerated program.

• Cash and equivalents at quarter-end: $1.1B; total liquidity: $3.9B.

Outlook and guidance

• Full-year 2024 revenue guidance revised to $19.6B–$19.9B, reflecting lower production schedules and 2% adjusted growth in a market expected to decline 4%.

• Adjusted EBITDA forecast: $3.03B–$3.13B (15.4–15.7% margin); adjusted operating income: $2.3B–$2.4B (11.7–12.1% margin); adjusted EPS: $6.00–$6.30.

• Operating cash flow for FY 2024 projected at ~$2.15B; capex at ~$875M.

• Guidance reflects $0.55 per share in anticipated equity losses from Motional JV.

• Cautious on 2025 due to ongoing market volatility, but confident in cost actions and margin expansion.