Aptiv (APTV) Q3 2024 earnings summary

Executive summary

• Record third-quarter operating income and EPS achieved despite a 5–6% year-over-year revenue decline, driven by strong execution, cost reduction initiatives, and capital allocation actions.

• New program launches, operational efficiencies, and portfolio alignment with industry megatrends supported resilience amid lower vehicle production and EV adoption slowdown.

• A $641M gain was recognized from Motional JV restructuring, reducing equity interest from 50% to 15% and eliminating future funding requirements.

• Gross margin improved to 18.6% for Q3 and the nine-month period, up from prior year.

Financial highlights

• Q3 2024 revenue was $4.85–$4.9B, down 5–6% year-over-year; year-to-date revenue at $14.8B, down 2%.

• Q3 adjusted EBITDA was $778M (16.0% margin), and adjusted operating income was $593M (12.2% margin), both up year-over-year.

• Record Q3 adjusted EPS of $1.83, up 41% year-over-year; Q3 GAAP EPS was $1.48.

• Q3 operating cash flow was $499M; year-to-date cash flow from operations was $1.39B.

• Share repurchases totaled $4.1B year-to-date, including a $3B accelerated program.

Outlook and guidance

• Full-year 2024 revenue guidance revised to $19.6–$19.9B, reflecting lower production schedules.

• Adjusted EBITDA forecast at $3.03–$3.13B (15.4–15.7% margin); adjusted operating income at $2.3–$2.4B (11.7–12.1% margin).

• Adjusted EPS guidance at $6.00–$6.30; pro forma adjusted EPS at $6.55–$6.85.

• Operating cash flow projected at $2.15B; capital expenditures at $875M.

• Guidance reflects $0.55 per share in anticipated equity losses from Motional JV.