Aptiv Plc (NYSE:APTV) reported stronger-than-expected third-quarter earnings on Thursday, topping Wall Street expectations.
The company posted adjusted earnings of $2.17 per share, beating analysts' estimates of $1.82.
Revenue came in at $5.21 billion, above estimates of $5.09 billion and up 7.4% year over year.
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Aptiv reported adjusted operating income of $654 million and adjusted EBITDA of $851 million for the quarter.
Aptiv said its adjusted operating income margin rose to 12.5% in the latest quarter from 12.2% a year earlier, helped by improved operational efficiency and ongoing cost-reduction initiatives.
The company generated net cash flow from operating activities of $584 million in the third quarter, compared with $499 million in the prior-year period.
Aptiv ended the quarter with cash and cash equivalents of $1.64 billion and total available liquidity of $4.2 billion.
Debt and Share Repurchases
Aptiv redeemed $148 million in senior notes and repurchased 1.2 million shares for $96 million during the third quarter of 2025.
Segment Performance
In the third quarter, the Electrical Distribution Systems division saw the most substantial advance, with net sales rising 12% to $2.29 billion and adjusted operating income climbing to $192 million, up from $125 million a year ago.
The Engineered Components Group grew sales by 8% to $1.71 billion and generated $298 million in operating income from $272 million in the prior year.
Meanwhile, the Advanced Safety & User Experience segment recorded flat year-over-year sales at $1.44 billion and a drop in operating income to $164 million from $196 million last year.
Outlook
Aptiv forecast fourth-quarter adjusted earnings of $1.60 to $1.90 per share, below the analysts' estimate of $1.98, and projected revenue between $4.91 billion and $5.21 billion, versus Wall Street expectations of $5.16 billion.
The company also expects an adjusted EBITDA margin of 15.1% to 16.1% and an adjusted operating income margin of 11.1% to 12.4% for the quarter.
For the full year 2025, the company now expects adjusted earnings of $7.55 to $7.85 per share, up from a prior range of $7.30 to $7.60, broadly in line with the analyst estimate of $7.54.
Aptiv also lifted its 2025 revenue forecast to $20.15 billion to $20.45 billion, from $20.00 billion to $20.30 billion, compared with the consensus estimate of $20.25 billion.
The company expects a full-year adjusted EBITDA margin of 15.7% to 16.0% and an adjusted operating income margin of 11.9% to 12.2%.
Aptiv said its fourth-quarter and full-year 2025 guidance accounts for the recently imposed U.S. tariffs, but does not include potential effects of additional tariffs, trade restrictions, or retaliatory measures that the United States or other countries may introduce.
Management Commentary
Kevin Clark, chair and chief executive officer, stated, "Aptiv delivered another quarter of record financial results, reflecting the strength of our product portfolio and our consistent operational execution."
"We also delivered on our commitment to maximizing shareholder value through our continued share repurchases and debt retirement in the quarter. Our team continues to work diligently on the separation of our Electrical Distribution Systems business, which remains on track, and we look forward to sharing more at our Investor Day on November 18th."
Price Action: APTV shares were trading lower by 2.22% to $83.87 at last check Thursday.
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