Aptiv tops Q3 profit estimates, revenue dips below forecast

Aptiv (APTV) said on Nov. 3 that its adjusted profit for the third quarter was $1.42 per share, above the $1.35 consensus estimate, while revenue of $3.20 billion came in below the $3.24 billion estimate. Shares rose 1.6% in premarket trading as of 8:49 a.m. ET, from a regular-session close of $41.34.

Aptiv is a global industrial technology company that serves automotive, commercial vehicle, aerospace and defense, telecom and datacom, and other diversified industrial markets.

Here's how the company did:

• Revenue: $3.20 billion vs. $3.13 billion a year earlier, $3.24 billion expected
• Adjusted EPS: $1.42 vs. $1.48 a year earlier, $1.35 expected
• GAAP diluted EPS from continuing operations: 94 cents vs. a loss of $2.24 a year earlier
• Adjusted EBITDA: $567 million vs. $598 million a year earlier

Revenue and segments

Revenue rose 2% from a year earlier, the company said. Adjusted for currency, commodity movements and the spin-off of its Electrical Distribution Systems business, revenue grew 2%.

By region, North America grew 5%, Asia Pacific rose 5% including growth of 1% in China, and South America rose 3%. EMEA declined 5%.

Engineered Components sales rose 7% to $1.84 billion, and its adjusted EBITDA was $387 million, up 2%. Intelligent Systems sales fell 3% to $1.40 billion, and its adjusted EBITDA was $180 million, down 18% from a year earlier.

Costs and cash flow

Interest expense fell to $59 million from $88 million a year earlier. Depreciation and amortization totaled $247 million, including $56 million of non-cash intangible asset impairment charges.

Restructuring costs were $8 million, compared with $39 million a year earlier.

Net cash from operating activities from continuing operations was $320 million in the quarter, and free cash flow was $194 million.

Buybacks and guidance

Aptiv repurchased and retired 4.7 million shares for $233 million in the third quarter, bringing its year-to-date total to $558 million. As of Sept. 30, $1.6 billion remained available under its existing authorization.

For the fourth quarter, the company expects net sales of $3.11 billion to $3.21 billion and adjusted EPS of $1.35 to $1.55. Its full-year 2026 forecast reflects Aptiv without the spin-off business. The full-year adjusted EPS forecast of $5.60 to $5.80 is unchanged from the range it gave on Aug. 4. Full-year net sales are now expected at $12.65 billion to $12.75 billion, against the $12.60 billion to $12.80 billion range given then.

Chair and chief executive officer Kevin Clark said, “Strong non-automotive revenue and bookings growth reflects the applicability of our products and capabilities across new and existing end markets.” He added that the company remains focused on investing in long-term growth and returning capital to shareholders.