Aptiv PLC, a global technology company focused on making the world safer, greener and more connected, today reported second quarter 2025 U.S. GAAP earnings of $1.80 per diluted share. Excluding special items, second quarter earnings totaled $2.12 per diluted share.
Second Quarter Financial Highlights Include:
- U.S. GAAP revenue of $5.2 billion, an increase of 3%
- Revenue increased 2% adjusted for currency exchange and commodity movements, compared to flat growth on an AWM1 basis
- U.S. GAAP net income of $393 million, U.S. GAAP net income margin of 7.5%; U.S. GAAP diluted earnings per share of $1.80
- Excluding special items, diluted earnings per share of $2.12
- U.S. GAAP operating income of $486 million, U.S. GAAP operating income margin of 9.3%
- Adjusted Operating Income of $628 million, Adjusted Operating Income margin of 12.1%; Adjusted EBITDA of $821 million, Adjusted EBITDA margin of 15.8%
- Generated $510 million of cash from operations
Year-to-Date Financial Highlights Include:
- U.S. GAAP revenue of $10.0 billion, an increase of 1%
- Revenue increased 1% adjusted for currency exchange and commodity movements, compared to a decrease of 1% on an AWM1 basis
- U.S. GAAP net income of $382 million, U.S. GAAP net income margin of 3.8%; U.S. GAAP diluted earnings per share of $1.70
- Excluding special items, diluted earnings per share of $3.80
- U.S. GAAP operating income of $934 million, U.S. GAAP operating income margin of 9.3%
- Adjusted Operating Income of $1,200 million, Adjusted Operating Income margin of 12.0%; Adjusted EBITDA of $1,579 million, Adjusted EBITDA margin of 15.7%
- Generated $783 million of cash from operations
1 Represents global vehicle production weighted to the geographic regions in which the Company generates its revenue (“AWM”).
“We delivered record financial results in the second quarter, a testament to our efforts to build a resilient business model that allows us to operate efficiently, even in dynamic environments,” said Kevin Clark, chair and chief executive officer. “With continued customer demand for our high-performance, cost-effective solutions that are aligned to the accelerating trends of electrification, automation, and digitalization, as well as our relentless focus on operational execution, we are confident in our ability to drive long-term growth and value for our shareholders.”
Second quarter 2025 results
For the three months ended June 30, 2025, the Company reported U.S. GAAP revenue of $5.2 billion, an increase of 3% from the prior year period. Adjusted for currency exchange and commodity movements, revenue increased by 2% during the second quarter. This reflects growth of 4% in Asia, which includes a decline of 1% in China, growth of 3% in North America and growth of 3% in South America, our smallest region, partially offset by a decline of 1% in Europe.
The Company reported second quarter 2025 U.S. GAAP net income of $393 million, earnings of $1.80 per diluted share and net income margin of 7.5%, compared to $938 million, $3.47 per diluted share and 18.6% in the prior year period. Second quarter Adjusted Net Income, a non-GAAP financial measure defined below, totaled $463 million, or earnings of $2.12 per diluted share, compared to $428 million, or $1.58 per diluted share, in the prior year period.
Second quarter U.S. GAAP operating income was $486 million, compared to $441 million in the prior year period. The Company reported second quarter Adjusted Operating Income, a non-GAAP financial measure defined below, of $628 million, compared to $606 million in the prior year period. Adjusted Operating Income margin was 12.1%, compared to 12.0% in the prior year period, primarily reflecting improved operating performance, including the benefits of cost reduction initiatives. Depreciation and amortization expense totaled $250 million in the second quarter, compared to $248 million in the prior year period.
Interest expense for the second quarter totaled $91 million, an increase from $64 million in the prior year period, primarily driven by debt transactions in the third quarter of 2024 in part to finance our $3.0 billion accelerated share repurchase program.
Tax expense in the second quarter of 2025 was $45 million, resulting in an effective tax rate of approximately 10%. Tax expense in the second quarter of 2024 was $51 million, resulting in an effective tax rate of approximately 5%.
The Company generated net cash flow from operating activities of $510 million in the second quarter, compared to $643 million in the prior year period.
Year-to-date 2025 results
For the six months ended June 30, 2025, the Company reported U.S. GAAP revenue of $10.0 billion, an increase of 1% from the prior year period. Adjusted for currency exchange and commodity movements, revenue increased by 1% during the period. This reflects growth of 5% in Asia, which includes growth of 1% in China, partially offset by declines of 2% in Europe. Growth was flat in North America and in South America, our smallest region.
The Company reported 2025 year-to-date U.S. GAAP net income of $382 million, earnings of $1.70 per diluted share and net income margin of 3.8%, compared to $1,156 million, $4.24 per diluted share and 11.6% in the prior year period. Year-to-date Adjusted Net Income totaled $853 million, or $3.80 per diluted share, compared to $746 million, or $2.73 per diluted share, in the prior year period.
For the 2025 year-to-date period, U.S. GAAP operating income was $934 million, compared to $860 million in the prior year period. The Company reported Adjusted Operating Income of $1,200 million for the 2025 year-to-date period, compared to $1,150 million in the prior year period. Adjusted Operating Income margin was 12.0%, compared to 11.6% in the prior year period, primarily reflecting improved operating performance, including the benefits of cost reduction initiatives. Depreciation and amortization expense totaled $492 million, an increase from $478 million in the prior year period.
Interest expense for the six months ended June 30, 2025 totaled $184 million, an increase from $129 million in the prior year period, primarily driven by debt transactions in the third quarter of 2024 in part to finance our $3.0 billion accelerated share repurchase program.
Tax expense for the six months ended June 30, 2025 was $401 million, which primarily reflects 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. Tax expense in the prior year period was $127 million.
The Company generated net cash flow from operating activities of $783 million in the six months ended June 30, 2025, compared to $887 million in the prior year period. As of June 30, 2025, the Company had cash and cash equivalents of $1.4 billion and total available liquidity of $4.0 billion.
Reconciliations of Adjusted Revenue Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share and Cash Flow Before Financing, which are non-GAAP measures, to the most directly comparable financial measures, respectively, calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”) are provided in the attached supplemental schedules.
Share Repurchase Program
During the second quarter of 2025, under the Company’s Accelerated Share Repurchase (ASR) Program, Aptiv received incremental deliveries of 6.1 million shares, representing the final settlement under the ASR Program. Under the ASR Program, Aptiv received total deliveries of 48.5 million shares at an average price of $61.84 per share. All shares received under the ASR program were retired. There was no other share repurchase activity during the quarter. As of June 30, 2025, $2.52 billion remained available for future share repurchases under the existing $5.0 billion authorization.
Q3 and full year 2025 outlook
The Company’s third quarter and full year 2025 financial guidance is below. The Company’s third quarter and full year 2025 financial guidance reflects the potential impacts of recently imposed tariffs by the U.S. government, but does not reflect the impacts of the potential for additional tariffs, trade barriers or retaliatory actions by the U.S. or other countries.
| (in millions, except per share amounts) | Q3 2025 | Full Year 2025 |
|---|---|---|
| Net sales | $4,950 – $5,100 | $20,000 – $20,300 |
| U.S. GAAP net income | $290 – $330 | $975 – $1,045 |
| U.S. GAAP net income margin | 5.9% – 6.5% | 4.9% – 5.1% |
| U.S. GAAP operating income | $440 – $490 | $1,830 – $1,930 |
| U.S. GAAP operating income margin | 8.9% – 9.6% | 9.2% – 9.5% |
| Adjusted EBITDA | $755 – $805 | $3,135 – $3,235 |
| Adjusted EBITDA margin | 15.3% – 15.8% | 15.7% – 15.9% |
| Adjusted operating income | $560 – $610 | $2,370 – $2,470 |
| Adjusted operating income margin | 11.3% – 12.0% | 11.9% – 12.2% |
| U.S. GAAP diluted net income per share (a) | $1.30 – $1.50 | $4.40 – $4.70 |
| Adjusted net income per share (a) | $1.60 – $1.80 | $7.30 – $7.60 |
| Cash flow from operations | $2,000 | |
| Capital expenditures | $780 | |
| U.S. GAAP effective tax rate | ~35.0% | |
| Adjusted effective tax rate | ~17.5% |
(a) The Company’s third quarter and full year 2025 financial guidance includes approximately $0.05 and $0.20, respectively, per diluted share for the anticipated equity losses to be recognized by Aptiv from the performance of the Motional autonomous driving joint venture.
SOURCE: Aptiv
