Aptiv (APTV) Q2 2026 earnings summary

Executive summary

• Achieved 2% adjusted revenue growth and 10 basis points of EBITDA margin expansion year-over-year in Q2 2026, with strong non-automotive revenue growth and $5 billion in new business awards in the quarter.

• Completed the separation/spin-off of the EDS segment (now Versigent), receiving a $1.9 billion cash dividend and now focusing on maximizing shareholder value and diversifying the business mix.

• Significant progress in diversifying into high-growth non-automotive markets, including robotics, drones, energy storage, and data centers, with new commercial agreements and awards.

• Returned $325 million to shareholders year-to-date via share repurchases, with plans to return a similar amount in H2 2026 and targeting over $600 million for the full year.

• Volume growth was driven by North America and Asia Pacific, offset by declines in Europe.

Financial highlights

• Q2 2026 revenues were $3.3 billion, up 2% year-over-year on an adjusted basis, with adjusted EBITDA of $613 million (18.7% margin) and adjusted EPS of $1.63, up $0.12 from Q2 2025.

• Free cash flow was an outflow of $33 million in Q2, including $70 million in one-time separation costs; year-to-date free cash flow was -$196 million.

• Gross margin improved to 23.7% from 22.9% year-over-year.

• Q2 2026 GAAP net income from continuing operations was $298 million (9.1% margin); adjusted net income was $345 million.

• Interest expense decreased to $62 million from $92 million year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance lowered to $12.6–$12.8 billion (2% adjusted growth at midpoint), reflecting $300 million reduction due to China market weakness, delayed program launches, and timing of software sales.

• Adjusted EBITDA expected at $2.31–$2.37 billion (18.4% margin at midpoint); adjusted EPS $5.60–$5.80; free cash flow $625–$725 million.

• Q3 2026 guidance: net sales $3.12–$3.22 billion, adjusted EBITDA $545–$575 million (17.7% margin), and adjusted EPS $1.25–$1.35.

• Management expects continued restructuring expenses in 2026 and ongoing investments in advanced technologies and engineering.