Aptiv — Third Quarter 2026 Earnings Summary

Financial Performance:

• U.S. GAAP revenue for Q3 2026 was $3.2 billion, a 2% increase year-over-year; adjusted revenue growth was 2%.
• Year-to-date (YTD) U.S. GAAP revenue was $9.5 billion, a 2% increase year-over-year; adjusted revenue growth was 1%.
• Q3 U.S. GAAP net income from continuing operations was $194 million (6.1% margin), compared to a net loss of $488 million (15.6% margin) in the prior year period, which included a $648 million non-cash goodwill impairment charge.
• Q3 Adjusted Net Income was $292 million ($1.42 per diluted share), compared to $321 million ($1.48 per diluted share) in the prior year.
• Q3 Adjusted EBITDA was $567 million (17.7% margin), compared to $598 million (19.1% margin) in the prior year.
• YTD U.S. GAAP net income from continuing operations was $621 million (6.5% margin), compared to a net loss of $363 million (3.9% margin) in the prior year.
• YTD Adjusted Net Income was $897 million ($4.26 per diluted share), compared to $940 million ($4.24 per diluted share) in the prior year.
• YTD Adjusted EBITDA was $1,729 million (18.1% margin), compared to $1,754 million (18.8% margin) in the prior year.
• Q3 Free Cash Flow was $194 million; YTD Free Cash Flow was $44 million.
• Q3 Net cash flow provided by operating activities from continuing operations was $320 million.
• Q3 Depreciation and amortization expense was $247 million (including $56 million non-cash intangible asset impairment charges).
• Q3 Interest expense was $59 million, down from $88 million in the prior year.
• Q3 Tax expense was $36 million, down from $59 million in the prior year.
• YTD Tax expense was $130 million, compared to $401 million in the prior year, which included a $300 million increase to valuation allowances on deferred tax assets.

Guidance and Future Outlook:

• Q4 2026 Net Sales Guidance: $3.11 billion to $3.21 billion.
• Full Year 2026 Net Sales Guidance: $12.65 billion to $12.75 billion.
• Q4 2026 U.S. GAAP Net Income Guidance: $197 million to $237 million.
• Full Year 2026 U.S. GAAP Net Income Guidance: $825 million to $865 million.
• Q4 2026 Adjusted EBITDA Guidance: $582 million to $642 million.
• Full Year 2026 Adjusted EBITDA Guidance: $2.31 billion to $2.37 billion.
• Q4 2026 Adjusted Net Income Per Share Guidance: $1.35 to $1.55.
• Full Year 2026 Adjusted Net Income Per Share Guidance: $5.60 to $5.80.
• Q4 2026 Free Cash Flow Guidance: $625 million to $675 million.
• Full Year 2026 Free Cash Flow Guidance: $1.154 billion to $1.204 billion (Cash flow from continuing operations).
• Full Year 2026 Adjusted Effective Tax Rate Guidance: ~18%.
• Full Year 2026 U.S. GAAP Effective Tax Rate Guidance: ~17%.

Business Segments and Product Lines:

• Engineered Components: Q3 Net Sales were $1.835 billion (7% growth); Q3 Adjusted EBITDA was $387 million (2% growth). YTD Net Sales were $5.257 billion (5% growth); YTD Adjusted EBITDA was $1.144 billion (4% growth).
• Intelligent Systems: Q3 Net Sales were $1.402 billion (3% decline); Q3 Adjusted EBITDA was $180 million (18% decline). YTD Net Sales were $4.336 billion (1% decline); YTD Adjusted EBITDA was $585 million (11% decline).
• Regional performance for Q3: North America grew 5%, Asia Pacific grew 5% (including 1% growth in China), South America grew 3%, while EMEA declined 5%.
• Regional performance for YTD: North America grew 8%, Asia Pacific grew 2% (including a 2% decline in China), EMEA declined 6%, and South America declined 1%.
• Strong non-automotive revenue and bookings growth was reported, reflecting applicability across new and existing end markets.

Market and Competitive Landscape:

• Aptiv operates across automotive, commercial vehicle, aerospace and defense, telecom and datacom, and other diversified industrial end markets.
• Management cited a changing macro environment and emphasized a resilient supply chain and differentiated portfolio as competitive advantages.

Risks and Challenges:

• Prior year results were impacted by a $648 million non-cash goodwill impairment charge.
• Prior year tax expense included a $300 million increase to valuation allowances on deferred tax assets due to OECD Administrative Guidance.
• Forward-looking statements are subject to risks, uncertainties, and factors that could cause actual results to differ materially, including market conditions, investment performance, and business environment factors.

Management Commentary and Tone:

• Kevin Clark, Chair and CEO, stated the company delivered solid financial results and continued to execute against strategic priorities.
• Management highlighted that the differentiated portfolio and resilient supply chain continue to deliver performance and cost benefits.
• Management emphasized a focus on operational execution, disciplined capital allocation, investing in long-term growth, and returning capital to shareholders.

Other Key Points:

• The Company repurchased and retired 4.7 million shares for $233 million in Q3 2026, bringing YTD share repurchases to $558 million.
• As of September 30, 2026, $1.6 billion remained available for future share repurchases under the existing authorization.
• The Company repaid approximately $2.1 billion in principal amount of debt in 2026 in connection with the spin-off of the Electrical Distribution Systems (EDS) segment.
• The EDS segment was spun off and is presented as discontinued operations; non-GAAP metrics are presented on a pro forma basis to exclude EDS impacts.
• Depreciation and amortization expense for YTD included $56 million in non-cash intangible asset impairment charges.
• The Company will host a conference call at 8:00 a.m. ET on the day of the release, accessible via dial-in and webcast at ir.aptiv.com.