Aptiv PLC (APTV) Stock Analysis and Metrics

Aptiv

NYSE: APTV

$59.24 ▼ -1.33 (-2.20%)

At close: Jul 13, 2026 · 3:59 PM UTC

Financial Ratios

Market Cap12.84 Bn

P/E-40.37

P/S0.62

Div. Yield0.00

ROIC (Qtr)0.00

Total Debt (Qtr)9.35 Bn

Revenue Growth (1y) (Qtr)5.41

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About

Aptiv PLC is a global industrial technology company that enables a more automated, electrified and digitalized future. The company delivers flexible and scalable solutions that span from sensor to cloud, combining hardware and software to support automotive and other industries worldwide. The company operates 139 major manufacturing facilities and 11 major technical centers across 50 countries, employing approximately 140,000 people.

Its revenue comes from advanced software and services, intelligent sensors, high performance compute platforms, connection systems, high performance interconnects, cable management and protection solutions, and low voltage and high voltage power, signal and data distribution solutions. The company also generates revenue from aftermarket parts and engineering services that support vehicle manufacturers throughout the product lifecycle.

The company operates through the following segments: Advanced Safety and User Experience, Engineered Components Group, and Electrical Distribution Systems. Following the announced separation of the Electrical Distribution Systems business, the company will retain the Advanced Safety and User Experience and Engineered Components Group segments as its core operations.

• Advanced Safety and User Experience: This segment provides advanced software and services, intelligent sensors, and high performance compute platforms to enhance vehicle safety, security, comfort and convenience. It also supplies software tools for over the air updates and data analytics.

• Engineered Components Group: This segment offers connection systems, high performance interconnects, and cable management and protection solutions that optimize the distribution of power, signal, and data for next generation applications across multiple end markets. These products are used in automotive, aerospace, defense and telecommunications applications.

• Electrical Distribution Systems: This segment supplies low voltage and high voltage power, signal, and data distribution solutions needed to deliver fully integrated, cost optimized architectures. The segment also provides solutions for power electronics and charging systems.

Aptiv ranks among the largest vehicle technology suppliers worldwide and competes with companies such as Bosch, Denso, Gentex, Harman International, Mobileye, Nutanix, Red Hat and Valeo in the Advanced Safety and User Experience space. In Engineered Components Group it faces competition from Amphenol, Molex and TE Connectivity while in Electrical Distribution Systems its rivals include Furukawa Electric, Lear Corporation, Sumitomo Electric Industries and Yazaki Corporation. The company’s competitive advantages stem from its global scale, diversified product portfolio, strong engineering capabilities and a cost structure that supports margin expansion. Aptiv invests heavily in research and development to stay at the forefront of emerging technologies such as artificial intelligence and machine learning.

The company serves the 25 largest automotive original equipment manufacturers in the world as well as many leading aerospace and defense companies and global telecom operators. Its ten largest customers accounted for approximately 56% of total net sales in 2025. Geographically, the company’s sales are diversified with approximately 29% of revenue coming from the Asia Pacific region, reflecting its focus on high growth markets.

Investment Thesis

▲ Bull case

The separation of the Electrical Distribution Systems business creates a pure play focused on higher growth software and hardware stacks that are directly exposed to automation electrification and digitalization trends, management highlighted strong non automotive revenue growth of nine% year over year and software services growth of ten% in the first quarter, indicating that the core business is already capturing secular demand beyond traditional automotive cycles and positioning the company for sustained top line expansion as these structural shifts accelerate.
The company reported four point six billion dollars of new business awards in the first quarter up roughly fifteen% versus the prior quarterly average with about nine hundred million dollars coming from non automotive customers, signaling a robust pipeline that management expects to exceed twenty billion dollars for the full year twenty twenty six, providing a visible runway for revenue acceleration that is not fully reflected in current consensus estimates and giving investors confidence in the durability of the award backlog.
Strategic partnerships such as the collaboration with Comau on intelligent automation and the Gen eight radar award from Volvo Cars demonstrate Aptiv’s ability to leverage its edge computing sensing and software capabilities into adjacent high growth markets like robotics data centers and energy storage, offering organic upside that management noted requires only modest bolt on M&A to scale, and these collaborations could unlock new revenue streams that are less cyclical than traditional automotive OEM dependent businesses.
Management highlighted margin expansion of thirty basis points excluding foreign exchange and commodity effects in the first quarter showing that the underlying operating model is improving through performance initiatives and cost pass throughs, and they anticipate further margin expansion as vehicle production recovers and higher margin software and services revenue contributes a larger share of the mix, suggesting that profitability can improve even if top line growth remains modest in the near term.
The balance sheet after the spin off shows pro forma gross leverage of two point three times and net leverage of one point nine times, levels consistent with historical ranges, while the company generated seven hundred fifty million dollars of free cash flow at the midpoint of full year guidance, providing ample capacity for share repurchases bolt on acquisitions and debt reduction without overstretching leverage and supporting a balanced capital allocation policy.

The separation of the Electrical Distribution Systems business creates a pure play focused on higher growth software and hardware stacks that are directly exposed to automation electrification and digitalization trends, management highlighted strong non automotive revenue growth of nine% year over year and software services growth of ten% in the first quarter, indicating that the core business is already capturing secular demand beyond traditional automotive cycles and positioning the company for sustained top line expansion as these structural shifts accelerate.
The company reported four point six billion dollars of new business awards in the first quarter up roughly fifteen% versus the prior quarterly average with about nine hundred million dollars coming from non automotive customers, signaling a robust pipeline that management expects to exceed twenty billion dollars for the full year twenty twenty six, providing a visible runway for revenue acceleration that is not fully reflected in current consensus estimates and giving investors confidence in the durability of the award backlog.
Strategic partnerships such as the collaboration with Comau on intelligent automation and the Gen eight radar award from Volvo Cars demonstrate Aptiv’s ability to leverage its edge computing sensing and software capabilities into adjacent high growth markets like robotics data centers and energy storage, offering organic upside that management noted requires only modest bolt on M&A to scale, and these collaborations could unlock new revenue streams that are less cyclical than traditional automotive OEM dependent businesses.
Management highlighted margin expansion of thirty basis points excluding foreign exchange and commodity effects in the first quarter showing that the underlying operating model is improving through performance initiatives and cost pass throughs, and they anticipate further margin expansion as vehicle production recovers and higher margin software and services revenue contributes a larger share of the mix, suggesting that profitability can improve even if top line growth remains modest in the near term.
The balance sheet after the spin off shows pro forma gross leverage of two point three times and net leverage of one point nine times, levels consistent with historical ranges, while the company generated seven hundred fifty million dollars of free cash flow at the midpoint of full year guidance, providing ample capacity for share repurchases bolt on acquisitions and debt reduction without overstretching leverage and supporting a balanced capital allocation policy.

▼ Bear case

Management acknowledged significant headwinds from foreign exchange and commodity inflation that exceeded expectations, with foreign exchange and commodity costs dragging one hundred eighty basis points off EBITDA margin versus a forecast of one hundred twenty basis points, and they cautioned that incremental inflationary pressures from the conflict in the Middle East could persist, posing a risk to margins if cost pass throughs or performance initiatives fall short, which could erode profitability even if volumes improve.
The Intelligent Systems segment revenue declined one% year over year due to program cancellations at local China OEMs and lower production at a major North American customer following a supplier fire, and while management expects a partial recovery in the second half, the reliance on a few large OEM schedules creates concentration risk that could delay the anticipated rebound, making the segment vulnerable to any further disruptions in those key customer relationships.
Engineered Components revenue was flat on an adjusted basis with automotive sales down two% and non automotive growth of only six%, indicating that the traditional hardware business is struggling to offset weakness in core automotive markets and that growth in adjacent industries may not be sufficient to drive overall segment expansion, leaving the company exposed to cyclical downturns in the automotive sector.
The company highlighted that it still carries seventy million dollars of annualized stranded costs from the EDS separation that it aims to eliminate only by the end of twenty twenty seven, meaning that near term profitability will be diluted by these inefficiencies and any delay in achieving cost savings could weigh on earnings, creating a drag on margins that management may not be able to fully offset in the short term.
Free cash flow was negative three hundred sixty two million dollars in the first quarter largely due to separation related transaction payments, and while full year guidance anticipates seven hundred fifty million dollars of free cash flow, the timing of cash conversion remains dependent on the successful completion of the spin off and the ability to collect tax related recoveries later in the year, introducing uncertainty to liquidity forecasts and potentially constraining flexibility for shareholder returns or investment.

Management acknowledged significant headwinds from foreign exchange and commodity inflation that exceeded expectations, with foreign exchange and commodity costs dragging one hundred eighty basis points off EBITDA margin versus a forecast of one hundred twenty basis points, and they cautioned that incremental inflationary pressures from the conflict in the Middle East could persist, posing a risk to margins if cost pass throughs or performance initiatives fall short, which could erode profitability even if volumes improve.
The Intelligent Systems segment revenue declined one% year over year due to program cancellations at local China OEMs and lower production at a major North American customer following a supplier fire, and while management expects a partial recovery in the second half, the reliance on a few large OEM schedules creates concentration risk that could delay the anticipated rebound, making the segment vulnerable to any further disruptions in those key customer relationships.
Engineered Components revenue was flat on an adjusted basis with automotive sales down two% and non automotive growth of only six%, indicating that the traditional hardware business is struggling to offset weakness in core automotive markets and that growth in adjacent industries may not be sufficient to drive overall segment expansion, leaving the company exposed to cyclical downturns in the automotive sector.
The company highlighted that it still carries seventy million dollars of annualized stranded costs from the EDS separation that it aims to eliminate only by the end of twenty twenty seven, meaning that near term profitability will be diluted by these inefficiencies and any delay in achieving cost savings could weigh on earnings, creating a drag on margins that management may not be able to fully offset in the short term.
Free cash flow was negative three hundred sixty two million dollars in the first quarter largely due to separation related transaction payments, and while full year guidance anticipates seven hundred fifty million dollars of free cash flow, the timing of cash conversion remains dependent on the successful completion of the spin off and the ability to collect tax related recoveries later in the year, introducing uncertainty to liquidity forecasts and potentially constraining flexibility for shareholder returns or investment.

Peer Comparison

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S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	AAP	Advance Auto Parts Inc	65.13 Bn	-2,713.78	7.57	3.41 Bn
2	AZO	Autozone Inc	53.07 Bn	28.80	2.66	9.02 Bn
3	MGA	Magna International Inc	17.54 Bn	44.62	0.56	4.66 Bn
4	GPC	Genuine Parts Co	16.15 Bn	268.82	0.65	4.64 Bn
5	AUR	Aurora Innovation, Inc.	13.77 Bn	-16.57	3,443.09	-
6	BWA	Borgwarner Inc	13.21 Bn	51.79	0.92	3.88 Bn
7	APTV	Aptiv PLC	12.84 Bn	-40.37	0.62	9.35 Bn
8	ALV	Autoliv Inc	8.73 Bn	-72.12	0.79	2.09 Bn

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