Aptiv (APTV) Q1 2026 earnings summary

Executive summary

• Completed the spin-off of the Electrical Distribution Systems (EDS) business as Versigent, sharpening focus on advanced software and hardware solutions and enhancing portfolio diversification.

• Achieved record Q1 2026 revenue of $5.1 billion, up 5% year-over-year, with 1% adjusted growth, outperforming global vehicle production trends.

• Secured $7 billion in new business awards, with $4.6 billion attributed to the new entity, and maintained strong execution amid macroeconomic and geopolitical headwinds.

• Accelerated growth in non-automotive and software/services markets, with high single-digit and double-digit revenue growth, respectively.

• Ongoing restructuring and cost optimization initiatives to support long-term growth in automation, electrification, and digitalization.

Financial highlights

• Q1 2026 revenue was $5.1 billion, up 1% adjusted year-over-year; adjusted EBITDA was $752 million (14.8% margin), and adjusted EPS was $1.71.

• Net income attributable to shareholders was $189 million, reversing a net loss of $11 million in Q1 2025.

• Free cash flow was negative $362 million, impacted by $260 million in transaction/separation costs related to the EDS spin-off.

• Gross margin was 18.1% of net sales, down from 19.1% in Q1 2025; adjusted operating income margin was 11.0%.

• Cash and cash equivalents at quarter-end were $3.2 billion, with total available liquidity of $6.5 billion.

Outlook and guidance

• Full-year 2026 guidance: net sales of $12.8–$13.2 billion, adjusted revenue growth of 4%, adjusted EBITDA margin of 18.6%, and adjusted EPS of $5.70–$6.10.

• Free cash flow for 2026 expected between $650 million and $850 million.

• Q2 2026 guidance: net sales of $3.2–$3.4 billion, adjusted EBITDA margin of 17.6%, and EPS of $1.40 at midpoint.

• Management expects continued restructuring expenses and margin/revenue acceleration in the second half due to improved vehicle production and program launches.