Aptiv PLC (APTV) SEC Filings & Earnings Calls

Automotive customer mix headwind and dynamic macroeconomic landscape

“While the macroeconomic landscape for Automotive remains dynamic and customer mix has presented as an incremental headwind” · word for word

Free cash flow significantly declined year-over-year in Q2 and negative YTD

“Free Cash Flow of $12 million in the second quarter, compared to $219 million generated in the prior year period. Negative Free Cash Flow of $196 million in the six months ended June 30, 2026, compared to $264 million generated in the prior year period.”

Working capital pressure on cash flow

“Net cash provided by operating activities from continuing operations $82 million for six months ended June 30, 2026 vs $531 million for 2025.” · word for word

Customer concentration

“Our ten largest customers accounted for approximately 44% and 41% of our total net sales for the three and six months ended June 30, 2026.” · word for word

Commodity cost pressure and FX headwinds impacting margins.

“Adjusted EBITDA margin declined to 14.8% from 15.7% due to increased commodity costs and unfavorable FX.”

Negative free cash flow in Q1 due to working capital.

“Free Cash Flow negative $362 million in Q1.”

Separation execution risk

“The Company expects to recognize the payment of approximately $50 million in bank-related success fees in the second quarter of 2026 coinciding with completion of the Separation.” · word for word

Motional investment risk

“As of March 31, 2026, the carrying values of the Company’s common equity and preferred equity investments in Motional were $234 million and $899 million, respectively.” · word for word

Execution risk related to spin-off and integration of Versigent as a standalone company.

“Company’s failure to manage Versigent’s transition to a standalone public company” · word for word

Post-spin-off, Aptiv may face reduced scale and diversification, potentially increasing business risk.

“The separation and distribution agreement sets forth agreements that govern aspects of the Company’s relationship with Versigent following the Spin-Off.” · word for word

Spin-off completion risk and potential failure to achieve expected benefits.

“Company’s failure to complete the Spin-Off and related financing transactions as planned or at all” · word for word

Loss of senior leadership in Intelligent Systems segment may disrupt operations or strategy.

“Resignation of EVP and President, Intelligent Systems.”

Tariff Impact on Financials

“Amounts reported above include the unfavorable impacts of tariffs, foreign exchange and commodities, and semiconductor inventory. The total impact of these items was 3.7%, 0.3% and 2.6% for the years ended December 31, 2025, 2024 and 2023, respectively.” · word for word

Goodwill Impairment

“Goodwill impairment 648” · word for word

Separation Execution Risk

“The separation of our Electrical Distribution Systems business as Versigent (NYSE: VGNT) is on track for completion on April 1, 2026” · word for word

Spin-off and tender offer conditions may not be satisfied

“The Tender Offer is subject to the terms and conditions set forth in the Offer to Purchase, dated March 6, 2026, including the satisfaction of the following conditions prior to the settlement of the Tender Offer: (i) the consummation of the previously announced separation (the 'Spin-Off') ... and (ii) the receipt by the Company of a special dividend from Ver” · word for word

Spin-off execution risk and potential tax implications

“through a transaction expected to be treated as a tax-free spin-off to its shareholders. The Company plans to complete the Separation by April 1, 2026, subject to customary closing conditions.” · word for word

Spin-off execution risk; potential operational disruption; separation costs.

“Spin-off subject to conditions; forward-looking statements highlight risks.”

Increased leverage; interest expense burden; spin-off execution risk.

“$1.6B in new debt; interest rates 6.125% and 6.375%.”

Increased debt load; interest expense; spin-off execution risk.

“$1.5B in new debt.”

Debt redemption reduces interest expense but uses cash; no material risk beyond standard execution.

“Redemption price includes make-whole premium; no new risk factors identified.”

Spin-off execution risk

“The proposed Separation is contingent upon the satisfaction of a number of conditions, may not be completed on the currently contemplated timeline, or at all.” · word for word

Goodwill impairment risk

“Goodwill impairment for the year ended December 31, 2025 reflects a non-cash, pre-tax goodwill impairment charge of approximately $648 million related to the Wind River reporting unit.” · word for word

Consumer credit risk

“Any changes in consumer credit availability or cost of borrowing could adversely affect our business.” · word for word

Goodwill impairment charge of $648 million and $300 million deferred tax asset valuation allowance due to OECD guidance; commodity and FX headwinds of $207 million for the year.

“U.S. GAAP net income of $165 million, which includes a non-cash goodwill impairment charge of $648 million and an increase to valuation allowances of approximately $300 million on deferred tax assets impacted by the OECD Administrative Guidance issued in the first quarter of 2025.” · word for word

Execution risk associated with spin-off; potential operational disruption and costs.

“Separation expected to close by March 31, 2026 subject to conditions.”

Spin-off execution risk

“The Company plans to complete the Separation by March 31, 2026, subject to customary closing conditions.” · word for word

Motional investment risk

“As of September 30, 2025, the carrying values of the Company’s common equity and preferred equity investments in Motional were $ 258 million and $ 899 million, respectively.” · word for word

Semiconductor supply disruption

“the potential disruptions in the supply of and changes in the competitive environment for raw material and other components integral to the Company’s products, including the ongoing semiconductor supply shortage” · word for word

Tariff and trade policy risk

“the effects of significant increases in trade tariffs, import quotas and other trade restrictions or actions, including retaliatory responses to such actions” · word for word

Wind River goodwill impairment signals slower-than-expected growth in software-defined vehicle and 5G markets, posing execution risk for the segment

“non-cash goodwill impairment charge of $648 million related to the Company’s acquisition of Wind River in 2022, reflecting slower growth than original expectations over 2023 and 2024 due to delays in 5G adoption and the launch of software-defined vehicle programs” · word for word

Commodity cost and FX headwinds of $56M in Q3 and $141M YTD pressure margins

“increased commodity costs and foreign exchange impacts totaling $56 million” · word for word

Europe revenue decline of 3% signals regional demand weakness

“decline of 3% in Europe” · word for word