Aptiv (APTV) Q4 2023 earnings summary

Executive summary

• FY2023 set records for revenue, adjusted operating income and operating cash flow; adjusted revenue growth was 12%, operating margin expanded 150 bps, and new business awards exceeded $34B for a third consecutive year.

• Q4 adjusted revenue growth was 2%; performance was affected by the UAW strike and customer mix.

• 2024 priorities include further margin expansion, 6–8% growth over market, investment in growth and planned share repurchases of ~$750M.

Financial highlights

• Q4 revenue was $4.919B, up 6% reported and 2% excluding currency, commodities and acquisitions; FY revenue was $20.1B, up 15% reported and 12% on that adjusted basis.

• Q4 GAAP net income was $905M and diluted EPS was $3.22; adjusted net income was $395M and adjusted diluted EPS was $1.40.

• FY GAAP net income was $2.909B and diluted EPS was $10.39; adjusted net income was $1.376B and adjusted diluted EPS was $4.86.

• FY adjusted EBITDA was $2.788B, with a 13.9% margin; Q4 adjusted EBITDA was $772M, with a 15.7% margin.

• Q4 operating cash flow was $624M; FY operating cash flow was a record $1.896B, versus $1.263B in 2022.

Outlook and guidance

• FY2024 revenue guidance is $21.3B–$21.9B, with adjusted growth of 7% at midpoint and growth over market of 6–8%.

• Adjusted EBITDA guidance is $3.2B–$3.35B, with a 15.0%–15.3% margin; adjusted operating income is $2.475B–$2.625B, with an 11.6%–12.0% margin.

• Adjusted EPS guidance is $5.55–$6.05, or $6.75–$7.25 excluding the projected $340M Motional JV equity loss; repurchases are expected to add ~$0.05 to EPS.

• FY2024 operating cash flow is projected at $2.3B, capital expenditures at $1.05B and the adjusted effective tax rate at 17.5%.

• FY2024 global vehicle production is expected to be flat at ~93M units.