Aptiv Q3 Adjusted EPS Falls 4.1% to $1.42 as Revenue Rises 2.3% to Record $3.20 Billion
Aptiv posted third-quarter adjusted earnings of $1.42 per share, down 4.1% from $1.48 a year earlier, as growth in its Engineered Components business was offset by a sharp profit decline in Intelligent Systems. The company also laid out its first fourth-quarter outlook as a standalone company after spinning off its Electrical Distribution Systems business.
Revenue rose 2.3% to $3.20 billion from $3.13 billion, according to the earnings release Aptiv filed with an 8-K on Tuesday. The company called it record third-quarter revenue. Adjusted for currency, commodity movements and the spin-off, revenue grew 2%, with North America and Asia Pacific each up 5% and EMEA down 5%.
On a GAAP basis, Aptiv swung to income from continuing operations of $194 million, or $0.94 per diluted share, from a loss of $488 million, or $2.24 per share, a year earlier. The prior-year quarter included a $648 million non-cash goodwill impairment charge.
"Strong non-automotive revenue and bookings growth reflects the applicability of our products and capabilities across new and existing end markets," Chair and CEO Kevin Clark said in the release.
Margins slip
Adjusted EBITDA fell 5.2% to $567 million, and the adjusted EBITDA margin narrowed to 17.7% from 19.1%. Adjusted net income dropped 9.0% to $292 million.
Adjusted figures for periods before the April 1, 2026, spin-off of the EDS business, now Versigent PLC, are presented on a pro forma basis, the company said.
Two segments, two directions
Engineered Components sales rose 7.3% to $1.84 billion, and its adjusted EBITDA grew 2.1% to $387 million.
Intelligent Systems sales slipped 2.8% to $1.40 billion, while its adjusted EBITDA fell 17.8% to $180 million from $219 million.
Outlook and buybacks
For the fourth quarter, Aptiv guided to net sales of $3.11 billion to $3.21 billion and adjusted EPS of $1.35 to $1.55. For full-year 2026, excluding EDS on a pro forma basis, it expects net sales of $12.65 billion to $12.75 billion, adjusted EPS of $5.60 to $5.80 and free cash flow of $625 million to $675 million.
The company repurchased and retired 4.7 million shares for $233 million in the quarter, bringing year-to-date buybacks to $558 million. It had $1.6 billion remaining under its repurchase authorization at Sept. 30.
Operating cash flow from continuing operations was $320 million in the quarter, with free cash flow of $194 million.
By the numbers
- Revenue: $3.20 billion, up 2.3%
- Adjusted EPS: $1.42, down 4.1%
- GAAP EPS from continuing operations: $0.94, versus a $2.24 loss
- Adjusted EBITDA margin: 17.7%, versus 19.1%
- Q4 adjusted EPS outlook: $1.35 to $1.55
- Q3 buybacks: $233 million
Sources
- Aptiv PLC Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001521332-26-000071)
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