Record Full Year Earnings Driven by Strong
Operating Performance
Aptiv PLC (NYSE: APTV), a global technology company focused on
making the world safer, greener and more connected, today reported
fourth quarter 2024 U.S. GAAP earnings of $1.14 per diluted share.
Excluding special items, fourth quarter earnings totaled $1.75 per
diluted share.
Fourth Quarter Financial Highlights
Include:
- U.S. GAAP revenue of $4.9 billion, consistent with the prior
year period
- Revenue decreased 1% adjusted for currency exchange and
commodity movements, compared to AWM1 of (4)%
- U.S. GAAP net income of $268 million, U.S. GAAP net income
margin of 5.5%; U.S. GAAP diluted earnings per share of $1.14
- Excluding special items, diluted earnings per share of
$1.75
- U.S. GAAP operating income of $479 million, U.S. GAAP
operating income margin of 9.8%
- Adjusted Operating Income of $623 million; Adjusted
Operating Income margin of 12.7%; Adjusted EBITDA of $811 million;
Adjusted EBITDA margin of 16.5%
- Generated $1,060 million of cash from operations
Full Year 2024 Financial Highlights
Include:
- U.S. GAAP revenue of $19.7 billion, a decrease of 2%
- Revenue decreased 2% adjusted for currency exchange and
commodity movements, compared to AWM1 of (3)%
- U.S. GAAP net income of $1,787 million, U.S. GAAP net income
margin of 9.1%; U.S. GAAP diluted earnings per share of $6.96
- Excluding special items, diluted earnings per share of
$6.26
- U.S. GAAP operating income of $1,842 million, U.S. GAAP
operating income margin of 9.3%
- Adjusted Operating Income of $2,366 million; Adjusted
Operating Income margin of 12.0%; Adjusted EBITDA of $3,097
million; Adjusted EBITDA margin of 15.7%
- Generated $2,446 million of cash from operations
- Funded $4.1 billion in share repurchases
“Our full-year results validate our proven track record of
operational excellence and the strength of Aptiv’s product
portfolio,” said Kevin Clark, chairman and chief executive officer.
“The company delivered record operating cash flow and strong
earnings growth with 140 basis points of operating margin expansion
year-over-year, reflecting continued cost discipline and solid
execution. We also finished the year with record fourth quarter new
business awards, resulting in our third consecutive year of $30+
billion bookings. Looking ahead, as we navigate a dynamic market
environment, we will remain focused on enabling our customers as
they transition to a more feature-rich, software-defined future.
This year also marks a major milestone in Aptiv’s evolution, as we
execute on the separation of our Electrical Distribution Systems
business, which will create two independent companies better
positioned to address the evolving needs of our customers and
further capitalize on market opportunities. With these strategic
actions and continued commercial momentum, we are confident in our
ability to drive further long-term growth and deliver significant
value to all of our stakeholders.”
1
Represents global vehicle production
weighted to the geographic regions in which the Company generates
its revenue (“AWM”).
Fourth Quarter 2024 Results
For the three months ended December 31, 2024, the Company
reported U.S. GAAP revenue of $4.9 billion, consistent with the
prior year period. Adjusted for currency exchange and commodity
movements, revenue decreased by 1% in the fourth quarter. This
reflects declines of 8% in Europe, partially offset by growth of 3%
in North America, 3% in Asia, which includes 4% in China, and flat
growth in South America, our smallest region.
The Company reported fourth quarter 2024 U.S. GAAP net income of
$268 million, earnings of $1.14 per diluted share and net income
margin of 5.5%, compared to $905 million, $3.22 per diluted share
and 18.4% in the prior year period. Fourth quarter Adjusted Net
Income, a non-GAAP financial measure defined below, totaled $411
million, or $1.75 per diluted share, compared to $395 million, or
$1.40 per diluted share in the prior year period.
Fourth quarter U.S. GAAP operating income was $479 million,
compared to $355 million in the prior year period. The Company
reported fourth quarter Adjusted Operating Income, a non-GAAP
financial measure defined below, of $623 million, compared to $600
million in the prior year period. Adjusted Operating Income margin
was 12.7%, compared to 12.2% in the prior year period, primarily
reflecting improved operating performance, including the benefits
of cost reduction initiatives. Depreciation and amortization
expense totaled $245 million, compared to $246 million in the prior
year period.
Interest expense for the fourth quarter totaled $107 million, an
increase from $71 million in the prior year period.
Tax expense in the fourth quarter of 2024 was $64 million,
resulting in an effective tax rate of approximately 18%. Tax
benefit in the fourth quarter of 2023 was $680 million, which
primarily reflects the recognition of a deferred tax benefit of
approximately $723 million as a result of transactions entered into
as part of a reorganization of the Company’s corporate entity
structure.
The Company generated net cash flow from operating activities of
$1,060 million in fourth quarter, compared to $624 million in the
prior year period.
Full Year 2024 Results
For the year ended December 31, 2024, the Company reported U.S.
GAAP revenue of $19.7 billion, a decrease of 2% from the prior
year. Adjusted for currency exchange and commodity movements,
revenue decreased by 2% in 2024. This reflects declines of 4% in
Europe, 1% in North America and 9% in South America, our smallest
region, partially offset by growth of 1% in Asia, which includes 2%
in China.
The Company reported full year 2024 U.S. GAAP net income of
$1,787 million, earnings of $6.96 per diluted share and net income
margin of 9.1%, compared to $2,909 million, $10.39 per diluted
share and 14.5% in the prior year. Full year 2024 Adjusted Net
Income totaled $1,607 million, or $6.26 per diluted share, compared
to $1,376 million, or $4.86 per diluted share, in the prior
year.
Full year 2024 U.S. GAAP operating income was $1,842 million,
compared to $1,559 million in the prior year. The Company reported
full year Adjusted Operating Income of $2,366 million, compared to
$2,127 million in the prior year. Adjusted Operating Income margin
was 12.0%, compared to 10.6% in the prior year, primarily
reflecting improved operating performance, including the benefits
of cost reduction initiatives. Depreciation and amortization
expense totaled $964 million, an increase from $912 million in the
prior year.
Interest expense for full year 2024 totaled $337 million, as
compared to $285 million in the prior year, which primarily
reflects the impacts of debt transactions in the third quarter of
2024 in part to finance our $3.0 billion accelerated share
repurchase program.
Tax expense for full year 2024 was $223 million, resulting in an
effective tax rate of approximately 10%. Tax benefit for full year
2023 was $1,928 million, which primarily reflects the recognition
of a deferred tax benefit of approximately $2.1 billion as a result
of transactions entered into as part of a reorganization of the
Company’s corporate entity structure.
The Company generated net cash flow from operating activities of
$2,446 million in 2024, compared to $1,896 million in the prior
year. As of December 31, 2024, the Company had cash and cash
equivalents of $1.6 billion and total available liquidity of $3.6
billion.
Reconciliations of Adjusted Revenue Growth, Adjusted Operating
Income, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income
Per Share and Cash Flow Before Financing, which are non-GAAP
measures, to the most directly comparable financial measures,
respectively, calculated and presented in accordance with
accounting principles generally accepted in the United States
(“GAAP”) are provided in the attached supplemental schedules.
Share Repurchase Program
During 2024, the Company repurchased 44.4 million shares for
approximately $3.35 billion, including shares repurchased under the
terms of the Company’s Accelerated Share Repurchase Program, which
will be completed by the second quarter of 2025.
As of December 31, 2024, $2.5 billion remained available for
future share repurchases under the existing $5.0 billion
authorization. All repurchased shares were retired.
Planned Spin-off of Electrical Distribution Systems
Business
As previously announced on January 22, 2025, Aptiv intends to
execute a tax-free spin-off of its Electrical Distribution Systems
business into a new, independent publicly traded company, creating
two highly focused public companies strategically positioned to
drive incremental value for customers, shareholders and employees.
The transaction is expected to be completed by March 31, 2026.
In connection with the planned spin-off of the Company’s
Electrical Distribution Systems business, in the first quarter of
2025 Aptiv is realigning its business into three reportable
operating segments: Electrical Distribution Systems, Engineered
Components Group and Advanced Safety and User Experience. The
changes to Aptiv’s segment reporting will be reflected in Aptiv’s
financial statements commencing with the first Quarterly Report on
Form 10-Q of 2025.
Q1 and Full Year 2025 Outlook
The Company’s first quarter and full year 2025 financial
guidance is as follows:
(in millions, except per share
amounts)
Q1 2025 (1)
Full Year 2025 (1)
Net sales
$4,635 - $4,835
$19,600 - $20,400
U.S. GAAP net income
$215 - $255
$1,180 - $1,320
U.S. GAAP net income margin
4.6% - 5.3%
6.0% - 6.5%
U.S. GAAP operating income
$360 - $410
$1,855 - $2,035
U.S. GAAP operating income margin
7.8% - 8.5%
9.5% - 10.0%
Adjusted EBITDA
$685 - $735
$3,095 - $3,275
Adjusted EBITDA margin
14.8% - 15.2%
15.8% - 16.1%
Adjusted operating income
$495 - $545
$2,330 - $2,510
Adjusted operating income margin
10.7% - 11.3%
11.9% - 12.3%
U.S. GAAP diluted net income per share
$0.90 - $1.10
$5.25 - $5.85
Adjusted net income per share (2)
$1.40 - $1.60
$7.00 - $7.60
Cash flow from operations
$2,100
Capital expenditures
$880
U.S. GAAP effective tax rate
~17.5%
Adjusted effective tax rate
~17.5%
(1) The Company’s financial guidance does
not reflect the potential impacts of recent U.S. tariffs imposed or
threatened to be imposed on China, Canada and Mexico and other
countries as well as any retaliatory actions that may be taken by
such countries.
(2) The Company’s first quarter and full
year 2025 financial guidance includes approximately $0.05 and
$0.30, respectively, per diluted share for the anticipated equity
losses to be recognized by Aptiv from the performance of the
Motional autonomous driving joint venture.
Conference Call and Webcast
The Company will host a conference call to discuss these results
at 8:00 a.m. (ET) today, which is accessible by dialing
+1.800.239.9838 (US) or +1.323.794.2423 (international) or through
a webcast at ir.aptiv.com. The conference ID number is 1176930. A
slide presentation will accompany the prepared remarks and has been
posted on the investor relations section of the Company’s website.
A replay will be available two hours following the conference
call.
Use of Non-GAAP Financial Information
This press release contains information about Aptiv’s financial
results which are not presented in accordance with GAAP.
Specifically, Adjusted Revenue Growth, Adjusted Operating Income,
Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income Per Share
and Cash Flow Before Financing are non-GAAP financial measures.
Adjusted Revenue Growth represents the year-over-year change in
reported net sales relative to the comparable period, excluding the
impact on net sales from currency exchange, commodity movements,
acquisitions, divestitures and other transactions. Adjusted
Operating Income represents net income before interest expense,
other income (expense), net, income tax (expense) benefit, equity
income (loss), net of tax, amortization, restructuring, other
acquisition and portfolio project costs, (which includes costs
incurred to integrate acquired businesses and to plan and execute
product portfolio transformation actions, including business and
product acquisitions and divestitures), asset impairments and other
related charges, compensation expense related to acquisitions and
gains (losses) on business divestitures and other transactions.
Adjusted Operating Income margin is defined as Adjusted Operating
Income as a percentage of net sales. Adjusted EBITDA represents net
income before depreciation and amortization (including asset
impairments), interest expense, income tax (expense) benefit, other
income (expense), net, equity income (loss), net of tax,
restructuring and other special items.
Adjusted Net Income represents net income attributable to Aptiv
before amortization, restructuring and other special items,
including the tax impact thereon. Adjusted Net Income Per Share
represents Adjusted Net Income divided by the Weighted Average
Number of Diluted Shares Outstanding for the period. Cash Flow
Before Financing represents cash provided by (used in) operating
activities plus cash provided by (used in) investing activities,
adjusted for the purchase price of business acquisitions and other
transactions, the cost of significant technology investments and
net proceeds from the divestiture of discontinued operations and
other significant businesses.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company’s financial position, results of operations
and liquidity. In particular, management believes Adjusted Revenue
Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net
Income, Adjusted Net Income Per Share and Cash Flow Before
Financing are useful measures in assessing the Company’s ongoing
financial performance that, when reconciled to the corresponding
GAAP measure, provide improved comparability between periods
through the exclusion of certain items that management believes are
not indicative of the Company’s core operating performance and that
may obscure underlying business results and trends. Management also
uses these non-GAAP financial measures for internal planning and
forecasting purposes.
Such non-GAAP financial measures are reconciled to the most
directly comparable GAAP financial measures in the attached
supplemental schedules at the end of this press release. Non-GAAP
measures should not be considered in isolation or as a substitute
for our reported results prepared in accordance with GAAP and, as
calculated, may not be comparable to other similarly titled
measures of other companies.
About Aptiv
Aptiv is a global technology company focused on making the world
safer, greener and more connected. Visit aptiv.com.
Forward-Looking Statements
This press release, as well as other statements made by Aptiv
PLC (the “Company”), contain forward-looking statements that
reflect, when made, the Company’s current views with respect to
current events, certain investments and acquisitions and financial
performance. Such forward-looking statements are subject to many
risks, uncertainties and factors relating to the Company’s
operations and business environment, which may cause the actual
results of the Company to be materially different from any future
results. All statements that address future operating, financial or
business performance or the Company’s strategies or expectations
are forward-looking statements. Factors that could cause actual
results to differ materially from these forward-looking statements
are discussed under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in the Company’s filings with the Securities and
Exchange Commission. New risks and uncertainties arise from time to
time, and it is impossible for us to predict these events or how
they may affect the Company. It should be remembered that the price
of the ordinary shares and any income from them can go down as well
as up. The Company disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events and/or otherwise, except as may be
required by law.
APTIV PLC
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
(in millions, except per share
amounts)
Net sales
$
4,907
$
4,919
$
19,713
$
20,051
Operating expenses:
Cost of sales
3,945
3,997
16,002
16,612
Selling, general and administrative
363
381
1,465
1,436
Amortization
52
56
211
233
Restructuring
68
130
193
211
Total operating expenses
4,428
4,564
17,871
18,492
Operating income
479
355
1,842
1,559
Interest expense
(107
)
(71
)
(337
)
(285
)
Other income, net
11
27
41
63
Net (loss) gain on equity method
transactions
(36
)
—
605
—
Income before income taxes and equity
loss
347
311
2,151
1,337
Income tax (expense) benefit
(64
)
680
(223
)
1,928
Income before equity loss
283
991
1,928
3,265
Equity loss, net of tax
(8
)
(72
)
(118
)
(299
)
Net income
275
919
1,810
2,966
Net income attributable to noncontrolling
interest
6
13
24
28
Net income (loss) attributable to
redeemable noncontrolling interest
1
1
(1
)
—
Net income attributable to Aptiv
268
905
1,787
2,938
Mandatory convertible preferred share
dividends
—
—
—
(29
)
Net income attributable to ordinary
shareholders
$
268
$
905
$
1,787
$
2,909
Diluted net income per share:
Diluted net income per share attributable
to ordinary shareholders
$
1.14
$
3.22
$
6.96
$
10.39
Weighted average number of diluted shares
outstanding
235.46
281.21
256.66
282.88
APTIV PLC
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
December 31,
2024
December 31,
2023
(in millions)
ASSETS
Current assets:
Cash and cash equivalents
$
1,573
$
1,640
Restricted cash
1
—
Accounts receivable, net
3,261
3,546
Inventories
2,320
2,365
Other current assets
671
696
Total current assets
7,826
8,247
Long-term assets:
Property, net
3,698
3,785
Operating lease right-of-use assets
495
540
Investments in affiliates
1,433
1,443
Intangible assets, net
2,140
2,399
Goodwill
5,024
5,151
Other long-term assets
2,842
2,862
Total long-term assets
15,632
16,180
Total assets
$
23,458
$
24,427
LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt
$
509
$
9
Accounts payable
2,870
3,151
Accrued liabilities
1,752
1,648
Total current liabilities
5,131
4,808
Long-term liabilities:
Long-term debt
7,843
6,204
Pension benefit obligations
374
417
Long-term operating lease liabilities
412
453
Other long-term liabilities
613
701
Total long-term liabilities
9,242
7,775
Total liabilities
14,373
12,583
Commitments and contingencies
Redeemable noncontrolling interest
92
99
Total Aptiv shareholders’ equity
8,796
11,548
Noncontrolling interest
197
197
Total shareholders’ equity
8,993
11,745
Total liabilities, redeemable
noncontrolling interest and shareholders’ equity
$
23,458
$
24,427
APTIV PLC
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Year Ended December
31,
2024
2023
(in millions)
Cash flows from operating activities:
Net income
$
1,810
$
2,966
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
964
912
Restructuring expense, net of cash
paid
(45
)
83
Deferred income taxes
(34
)
(2,164
)
Loss from equity method investments, net
of dividends received
130
304
Loss on extinguishment of debt
15
1
Net gain on equity method transactions
(605
)
—
Other, net
182
170
Changes in operating assets and
liabilities:
Accounts receivable, net
285
(112
)
Inventories
45
(20
)
Accounts payable
(210
)
4
Other, net
(59
)
(215
)
Pension contributions
(32
)
(33
)
Net cash provided by operating
activities
2,446
1,896
Cash flows from investing activities:
Capital expenditures
(830
)
(906
)
Proceeds from sale of property
6
4
Proceeds from business divestitures, net
of cash sold
—
(17
)
Cost of business acquisitions and other
transactions, net of cash acquired
—
(83
)
Proceeds from sale of technology
investments
—
—
Cost of technology investments
(121
)
(6
)
Proceeds from the sale of equity method
investment
448
—
Purchase of short-term investments
(748
)
—
Redemption of short-term investments
740
—
Settlement of derivatives
(2
)
6
Net cash used in investing activities
(507
)
(1,002
)
Cash flows from financing activities:
Increase (decrease) in other short and
long-term debt, net
702
(332
)
Repayment of senior notes
(1,440
)
—
Proceeds from issuance of senior notes,
net of issuance costs
2,920
—
Proceeds from bridge loan, net of issuance
costs
2,483
—
Repayment of bridge loan
(2,500
)
—
Equity related transaction costs
(3
)
—
Contingent consideration payments
—
(10
)
Dividend payments of consolidated
affiliates to minority shareholders
—
(2
)
Repurchase of ordinary shares
(4,104
)
(398
)
Distribution of mandatory convertible
preferred share cash dividends
—
(32
)
Taxes withheld and paid on employees’
restricted share awards
(23
)
(33
)
Net cash used in financing activities
(1,965
)
(807
)
Effect of exchange rate fluctuations on
cash, cash equivalents and restricted cash
(40
)
(2
)
(Decrease) increase in cash, cash
equivalents and restricted cash
(66
)
85
Cash, cash equivalents and restricted cash
at beginning of the year
1,640
1,555
Cash, cash equivalents and restricted cash
at end of the year
$
1,574
$
1,640
APTIV PLC
FOOTNOTES
(Unaudited)
1. Segment Summary
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
%
2024
2023
%
(in millions)
(in millions)
Net Sales
Signal and Power Solutions
$
3,541
$
3,574
(1
)%
$
13,983
$
14,404
(3
)%
Advanced Safety and User Experience
1,381
1,356
2
%
5,791
5,695
2
%
Eliminations and Other (a)
(15
)
(11
)
(61
)
(48
)
Net Sales
$
4,907
$
4,919
$
19,713
$
20,051
Adjusted Operating
Income
Signal and Power Solutions
$
430
$
459
(6
)%
$
1,652
$
1,676
(1
)%
Advanced Safety and User Experience
193
141
37
%
714
451
58
%
Adjusted Operating Income
$
623
$
600
$
2,366
$
2,127
(a)
Eliminations and Other includes the
elimination of inter-segment transactions.
2. Weighted Average Number of Diluted
Shares Outstanding
The following table illustrates the
weighted average shares outstanding used in calculating basic and
diluted net income per share attributable to ordinary shareholders
for the three months and years ended December 31, 2024 and
2023:
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
(in millions, except per share
data)
Weighted average ordinary shares
outstanding, basic
235.04
280.95
256.38
276.92
Dilutive shares related to RSUs
0.42
0.26
0.28
0.17
Weighted average MCPS Converted Shares
—
—
—
5.79
Weighted average ordinary shares
outstanding, including dilutive shares
235.46
281.21
256.66
282.88
Net income per share attributable to
ordinary shareholders:
Basic
$
1.14
$
3.22
$
6.97
$
10.50
Diluted
$
1.14
$
3.22
$
6.96
$
10.39
APTIV PLC
RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
In this press release the Company has provided information
regarding certain non-GAAP financial measures, including “Adjusted
Revenue Growth,” “Adjusted Operating Income,” “Adjusted EBITDA,”
“Adjusted Net Income,” “Adjusted Net Income Per Share” and “Cash
Flow Before Financing.” Such non-GAAP financial measures are
reconciled to their closest GAAP financial measure in the following
schedules.
Adjusted Revenue Growth:
Adjusted Revenue Growth is presented as a supplemental measure of
the Company’s financial performance which management believes is
useful to investors in assessing the Company’s ongoing financial
performance that, when reconciled to the corresponding U.S. GAAP
measure, provides improved comparability between periods through
the exclusion of certain items that management believes are not
indicative of the Company’s core operating performance and which
may obscure underlying business results and trends. Our management
utilizes Adjusted Revenue Growth in its financial decision making
process, to evaluate performance of the Company and for internal
reporting, planning and forecasting purposes. Adjusted Revenue
Growth is defined as the year-over-year change in reported net
sales relative to the comparable period, excluding the impact on
net sales from currency exchange, commodity movements,
acquisitions, divestitures and other transactions. Not all
companies use identical calculations of Adjusted Revenue Growth,
therefore this presentation may not be comparable to other
similarly titled measures of other companies.
Three Months Ended December
31, 2024
Reported net sales % change
—
%
Less: foreign currency exchange and
commodities
1
%
Adjusted revenue growth
(1
)%
Year Ended December 31,
2024
Reported net sales % change
(2
)%
Less: foreign currency exchange and
commodities
—
%
Adjusted revenue growth
(2
)%
Adjusted Operating Income:
Adjusted Operating Income is presented as a supplemental measure of
the Company’s financial performance which management believes is
useful to investors in assessing the Company’s ongoing financial
performance that, when reconciled to the corresponding U.S. GAAP
measure, provides improved comparability between periods through
the exclusion of certain items that management believes are not
indicative of the Company’s core operating performance and which
may obscure underlying business results and trends. Our management
utilizes Adjusted Operating Income in its financial decision making
process, to evaluate performance of the Company and for internal
reporting, planning and forecasting purposes. Management also
utilizes Adjusted Operating Income as the key performance measure
of segment income or loss and for planning and forecasting purposes
to allocate resources to our segments, as management also believes
this measure is most reflective of the operational profitability or
loss of our operating segments. Adjusted Operating Income is
defined as net income before interest expense, other income
(expense), net, income tax (expense) benefit, equity income (loss),
net of tax, amortization, restructuring and other special items.
Not all companies use identical calculations of Adjusted Operating
Income, therefore this presentation may not be comparable to other
similarly titled measures of other companies. Operating income
margin represents Operating income as a percentage of net sales,
and Adjusted Operating Income margin represents Adjusted Operating
Income as a percentage of net sales.
Consolidated Adjusted Operating
Income
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
($ in millions)
$
Margin
$
Margin
$
Margin
$
Margin
Net income attributable to ordinary
shareholders
$
268
5.5
%
$
905
18.4
%
$
1,787
9.1
%
$
2,909
14.5
%
Mandatory convertible preferred share
dividends
—
—
—
29
Net income attributable to Aptiv
$
268
5.5
%
$
905
18.4
%
$
1,787
9.1
%
$
2,938
14.7
%
Interest expense
107
71
337
285
Other income, net
(11
)
(27
)
(41
)
(63
)
Net loss (gain) on equity method
transactions
36
—
(605
)
—
Income tax expense (benefit)
64
(680
)
223
(1,928
)
Equity loss, net of tax
8
72
118
299
Net income attributable to noncontrolling
interest
6
13
24
28
Net income (loss) attributable to
redeemable noncontrolling interest
1
1
(1
)
—
Operating income
$
479
9.8
%
$
355
7.2
%
$
1,842
9.3
%
$
1,559
7.8
%
Amortization
52
56
211
233
Restructuring
68
130
193
211
Other acquisition and portfolio project
costs
14
35
80
80
Asset impairments
5
18
22
18
Compensation expense related to
acquisitions
5
6
18
26
Adjusted operating income
$
623
12.7
%
$
600
12.2
%
$
2,366
12.0
%
$
2,127
10.6
%
Segment Adjusted Operating
Income
(in millions)
Three Months Ended December 31,
2024
Signal and Power
Solutions
Advanced Safety and User
Experience
Total
Operating income
$
337
$
142
$
479
Amortization
29
23
52
Restructuring
51
17
68
Other acquisition and portfolio project
costs
8
6
14
Asset impairments
5
—
5
Compensation expense related to
acquisitions
—
5
5
Adjusted operating income
$
430
$
193
$
623
Depreciation and amortization (a)
$
171
$
74
$
245
Three Months Ended December 31,
2023
Signal and Power
Solutions
Advanced Safety and User
Experience
Total
Operating income
$
325
$
30
$
355
Amortization
33
23
56
Restructuring
60
70
130
Other acquisition and portfolio project
costs
26
9
35
Asset impairments
15
3
18
Compensation expense related to
acquisitions
—
6
6
Adjusted operating income
$
459
$
141
$
600
Depreciation and amortization (a)
$
174
$
72
$
246
Year Ended December 31, 2024
Signal and Power
Solutions
Advanced Safety and
User
Experience
Total
Operating income
$
1,329
$
513
$
1,842
Amortization
122
89
211
Restructuring
140
53
193
Other acquisition and portfolio project
costs
53
27
80
Asset impairments
8
14
22
Compensation expense related to
acquisitions
—
18
18
Adjusted operating income
$
1,652
$
714
$
2,366
Depreciation and amortization (a)
$
664
$
300
$
964
Year Ended December 31, 2023
Signal and Power
Solutions
Advanced Safety and User
Experience
Total
Operating income
$
1,379
$
180
$
1,559
Amortization
140
93
233
Restructuring
82
129
211
Other acquisition and portfolio project
costs
60
20
80
Asset impairments
15
3
18
Compensation expense related to
acquisitions
—
26
26
Adjusted operating income
$
1,676
$
451
$
2,127
Depreciation and amortization (a)
$
638
$
274
$
912
(a)
Includes asset impairments.
Adjusted EBITDA: Adjusted
EBITDA is presented as a supplemental measure of the Company’s
financial performance which management believes is useful to
investors in assessing the Company’s ongoing financial performance
that, when reconciled to the corresponding U.S. GAAP measure,
provides improved comparability between periods through the
exclusion of certain items that management believes are not
indicative of the Company’s core operating performance and which
may obscure underlying business results and trends. Our management
utilizes Adjusted EBITDA in its financial decision making process,
to evaluate performance of the Company and for internal reporting,
planning and forecasting purposes. Adjusted EBITDA is defined as
net income before depreciation and amortization (including asset
impairments), interest expense, income tax (expense) benefit, other
income (expense), net, equity income (loss), net of tax,
restructuring and other special items. Not all companies use
identical calculations of Adjusted EBITDA, therefore this
presentation may not be comparable to other similarly titled
measures of other companies.
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
(in millions)
Net income attributable to ordinary
shareholders
$
268
$
905
$
1,787
$
2,909
Mandatory convertible preferred share
dividends
—
—
—
29
Net income attributable to Aptiv
$
268
$
905
$
1,787
$
2,938
Interest expense
107
71
337
285
Income tax expense (benefit)
64
(680
)
223
(1,928
)
Net income attributable to noncontrolling
interest
6
13
24
28
Net income (loss) attributable to
redeemable noncontrolling interest
1
1
(1
)
—
Depreciation and amortization
245
246
964
912
EBITDA
$
691
$
556
$
3,334
$
2,235
Other income, net
(11
)
(27
)
(41
)
(63
)
Net loss (gain) on equity method
transactions
36
—
(605
)
—
Equity loss, net of tax
8
72
118
299
Restructuring
68
130
193
211
Other acquisition and portfolio project
costs
14
35
80
80
Compensation expense related to
acquisitions
5
6
18
26
Adjusted EBITDA
$
811
$
772
$
3,097
$
2,788
Adjusted Net Income and Adjusted Net
Income Per Share: Adjusted Net Income and Adjusted Net
Income Per Share, which are non-GAAP measures, are presented as
supplemental measures of the Company’s financial performance which
management believes are useful to investors in assessing the
Company’s ongoing financial performance that, when reconciled to
the corresponding U.S. GAAP measure, provide improved comparability
between periods through the exclusion of certain items that
management believes are not indicative of the Company’s core
operating performance and which may obscure underlying business
results and trends. Management utilizes Adjusted Net Income and
Adjusted Net Income Per Share in its financial decision making
process, to evaluate performance of the Company and for internal
reporting, planning and forecasting purposes. Adjusted Net Income
is defined as net income attributable to Aptiv before amortization,
restructuring and other special items, including the tax impact
thereon. Adjusted Net Income Per Share is defined as Adjusted Net
Income divided by the Weighted Average Number of Diluted Shares
Outstanding, for the period. Not all companies use identical
calculations of Adjusted Net Income and Adjusted Net Income Per
Share, therefore this presentation may not be comparable to other
similarly titled measures of other companies.
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
(in millions, except per share
amounts)
Net income attributable to ordinary
shareholders
$
268
$
905
$
1,787
$
2,909
Mandatory convertible preferred share
dividends (a)
—
—
—
29
Net income attributable to Aptiv
$
268
$
905
$
1,787
$
2,938
Adjusting items:
Amortization
52
56
211
233
Restructuring
68
130
193
211
Other acquisition and portfolio project
costs
14
35
80
80
Asset impairments
5
18
22
18
Compensation expense related to
acquisitions
5
6
18
26
Debt extinguishment costs
3
1
15
1
Costs associated with acquisitions and
other transactions
—
—
—
4
Impairment of equity investments without
readily determinable fair value
—
—
—
18
Loss on change in fair value of publicly
traded equity securities
—
—
3
6
Net loss (gain) on equity method
transactions
36
—
(605
)
—
Tax impact of intercompany transfers of
intellectual property and other related transactions (b)
—
(723
)
—
(2,082
)
Tax impact of adjusting items (c)
(40
)
(33
)
(117
)
(77
)
Adjusted net income attributable to
Aptiv
$
411
$
395
$
1,607
$
1,376
Weighted average number of diluted shares
outstanding (a)
235.46
281.21
256.66
282.88
Diluted net income per share attributable
to ordinary shareholders
$
1.14
$
3.22
$
6.96
$
10.39
Adjusted net income per share
$
1.75
$
1.40
$
6.26
$
4.86
(a)
On June 15, 2023, each outstanding share
of the Company’s 5.50% Mandatory Convertible Preferred Shares (the
“MCPS”) converted into 1.0754 ordinary shares of the Company. For
purposes of calculating Adjusted Net Income Per Share, the Company
has excluded the impact of the MCPS dividends for the year ended
December 31, 2023 and assumed the “if converted” method of share
dilution as the assumed conversion of the MCPS into ordinary shares
on a weighted average basis was more dilutive to net income per
share than the impact of the MCPS dividends (method already applied
for U.S. GAAP purposes of calculating the weighted average number
of diluted shares outstanding).
(b)
In response to the OECD’s Pillar Two
Directive, the Company initiated changes to its corporate entity
structure, including intercompany transfers of certain intellectual
property to one of its subsidiaries in Switzerland during the
second half of 2023. Furthermore, during the third quarter, the
Company’s Swiss subsidiary was granted a ten year tax incentive,
beginning in 2024. The measurement of certain deferred tax assets
and associated income tax benefits resulting from these
transactions was impacted by tax legislation in Switzerland enacted
in the fourth quarter of 2023, which increased the statutory income
tax rate, resulting in additional deferred tax benefit impacts, net
of valuation allowances. These adjustments represent the total
income tax benefits recorded as a result of these transactions
during the three months and year ended December 31, 2023.
(c)
Represents the income tax impacts of the
adjustments made for amortization, restructuring and other special
items by calculating the income tax impact of these items using the
appropriate tax rate for the jurisdiction where the charges were
incurred.
Cash Flow Before Financing:
Cash Flow Before Financing is presented as a supplemental measure
of the Company’s liquidity which is consistent with the basis and
manner in which management presents financial information for the
purpose of making internal operating decisions, evaluating its
liquidity and determining appropriate capital allocation
strategies. Management believes this measure is useful to investors
to understand how the Company’s core operating activities generate
and use cash. Cash Flow Before Financing is defined as cash
provided by (used in) operating activities plus cash provided by
(used in) investing activities, adjusted for the purchase price of
business acquisitions and other transactions, the cost of
significant technology investments and net proceeds from the
divestiture of discontinued operations and other significant
businesses. Not all companies use identical calculations of Cash
Flow Before Financing, therefore this presentation may not be
comparable to other similarly titled measures of other companies.
The calculation of Cash Flow Before Financing does not reflect cash
used to service debt, pay dividends or repurchase shares and,
therefore, does not necessarily reflect funds available for
investment or other discretionary uses.
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
(in millions)
Cash flows from operating activities:
Net income
$
275
$
919
$
1,810
$
2,966
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
245
246
964
912
Restructuring expense, net of cash
paid
20
79
(45
)
83
Working capital
451
173
120
(128
)
Pension contributions
(11
)
(13
)
(32
)
(33
)
Increase in deferred income tax assets
from intercompany transfers of intellectual property and other
related transactions
—
(723
)
—
(2,082
)
Net loss (gain) on equity method
transactions
36
—
(605
)
—
Other, net
44
(57
)
234
178
Net cash provided by operating
activities
1,060
624
2,446
1,896
Cash flows from investing activities:
Capital expenditures
(166
)
(203
)
(830
)
(906
)
Proceeds from business divestitures, net
of cash sold
—
—
—
(17
)
Cost of business acquisitions and other
transactions, net of cash acquired
—
—
—
(83
)
Cost of technology investments
—
(5
)
(121
)
(6
)
Proceeds from sale of equity method
investments
—
448
Purchase of short-term investments
—
—
(748
)
—
Redemption of short-term investments
740
—
740
—
Settlement of derivatives
—
—
(2
)
6
Other, net
3
1
6
4
Net cash provided by (used in) investing
activities
577
(207
)
(507
)
(1,002
)
Adjusting items:
Adjustment for the cost of business
acquisitions and other transactions, net
—
—
—
83
Adjustment for cost of significant
technology investments
—
4
121
4
Adjustment for proceeds from sale of
equity method investment
—
—
(448
)
—
Cash flow before financing
$
1,637
$
421
$
1,612
$
981
Financial Guidance: The
reconciliation of the forward-looking non-GAAP financial measures
provided in the Company’s financial guidance to the most comparable
forward-looking GAAP measure is as follows:
Estimated Q1
Estimated Full Year
2025 (a)
2025 (a)
($ in millions)
Adjusted
Operating Income
$
Margin (b)
$
Margin (b)
Net income attributable to Aptiv
$
235
5.0
%
$
1,250
6.3
%
Interest expense
95
365
Other income, net
(5
)
(20
)
Income tax expense
50
280
Equity loss, net of tax
10
50
Net income attributable to noncontrolling
interest (c)
—
20
Operating income
$
385
8.1
%
$
1,945
9.7
%
Amortization
50
210
Restructuring
60
175
Other acquisition and portfolio project
costs
20
70
Compensation expense related to
acquisitions
5
20
Adjusted operating income
$
520
11.0
%
$
2,420
12.1
%
Adjusted
EBITDA
Net income attributable to Aptiv
$
235
5.0
%
$
1,250
6.3
%
Interest expense
95
365
Income tax expense
50
280
Net income attributable to noncontrolling
interest (c)
—
20
Depreciation and amortization
240
975
EBITDA
$
620
13.1
%
$
2,890
14.5
%
Other income, net
(5
)
(20
)
Equity loss, net of tax
10
50
Restructuring
60
175
Other acquisition and portfolio project
costs
20
70
Compensation expense related to
acquisitions
5
20
Adjusted EBITDA
$
710
15.0
%
$
3,185
15.9
%
(a)
Prepared at the estimated mid-point of the
Company’s financial guidance range.
(b)
Represents net income attributable to
Aptiv, operating income, Adjusted Operating Income, EBITDA and
Adjusted EBITDA, respectively, as a percentage of estimated net
sales.
(c)
Includes portion attributable to
redeemable noncontrolling interest.
Estimated Q1
Estimated Full Year
2025 (a)
2025 (a)
Adjusted Net
Income Per Share
($ and shares in millions,
except per share amounts)
Net income attributable to Aptiv
$
235
$
1,250
Adjusting items:
Amortization
50
210
Restructuring
60
175
Other acquisition and portfolio project
costs
20
70
Compensation expense related to
acquisitions
5
20
Tax impact of adjusting items
(25
)
(85
)
Adjusted net income attributable to
Aptiv
$
345
$
1,640
Weighted average number of diluted shares
outstanding
233.00
225.00
Diluted net income per share attributable
to ordinary shareholders
$
1.00
$
5.55
Adjusted net income per share
$
1.50
$
7.30
(a)
Prepared at the estimated mid-point of the
Company’s financial guidance range.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250206677057/en/
Investor Contact: Jane Wu +1.617.603.7941
jane.wu@aptiv.com
Aptiv (NYSE:APTV)
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