Kevin P. Clark
President and Chief Executive Officer at Aptiv
Thanks, Elena, and thank you, everyone, for joining us this morning. Beginning with Slide three. Aptiv's first half performance, which includes record growth over market and record new business awards, validates the strength of our portfolio of market-relevant technologies and our success keeping our customers running in a challenging environment. Revenues in the second quarter were $3.8 billion, an increase of 85%, lapping prior year shutdowns in North America and Europe, and representing 17 points of growth over underlying vehicle production. Operating income and earnings per share in the second quarter totaled $301 million and $0.60, respectively, meaningfully impacted by ongoing COVID-related expenses as well as the increased supply chain disruption and input costs resulting from material shortages. Despite these headwinds, which we expect to somewhat ease during the balance of the year, we're raising our outlook for the full year, driven by continued strong customer demand for our solutions, continuing our track record of outperformance and value creation for all stakeholders. Turning to slide four. Our updated 2021 outlook also reflects our flexible and sustainable business model, which positions us to support the record number of customer program launches that are driving incremental volume and market share gains this year, while mitigating the supply chain headwinds.
As I mentioned, we expect the supply chain tightness to begin easing over the next few months, and we're happy with consumer demand levels, and our customers intend to make up as much of the first half production shortfalls as possible, which is the reason we've made no change to our outlook for growth in global vehicle production, which we still expect to be roughly 10% for the full year. At the same time, the demand for our portfolio of advanced technologies is benefiting from the acceleration of the safe, green and connected megatrends, which has led to an increase in our outlook for revenue growth and growth over market from 6% to approximately 10% for the year. Our team is diligently working to efficiently launch high-complexity programs in the Advanced Safety and User Experience segment, while we also delivered on the launch of a record number of high-voltage electrification programs in our Signal and Power Solutions segment. That said, it will continue to be more expensive to operate in the current environment, as customers cancel production shifts in idle plants in response to supply chain constraints, creating temporary labor inefficiencies in our operations and input costs increase as a result of material shortages, both of which have been factored into our updated full year outlook.
Our sourcing and commercial teams are actively pursuing recovery actions with suppliers and with customers, and our engineering teams are developing and validating product redesigns, providing access to incremental sources of supply and helping to offset the impact of increased input costs. Setting the near-term challenges aside, we're performing very well and continue to proactively position Aptiv for the future by investing in high-growth, high-margin technologies that further enhance the resiliency of our business and by leveraging our unique brain and nervous system capabilities to deliver more content on the electrified software-defined vehicles of the future, which, taken together, yield accretive growth opportunities on the path to the software-defined vehicle enabled through Smart Vehicle Architecture or SVA, as evidenced by our recent bookings and the size and quality of our new business pursuit pipeline. As shown on slide five, second quarter new business bookings reached $6 billion, bringing the year-to-date total to a record $11.2 billion. Our unique portfolio of advanced technologies, combined with our flawless operating execution, has positioned us as a partner of choice for our customers by enabling the transition to new architectures and software-defined features with our optimized solutions that enhance system's performance while also lowering the vehicle's total cost.
Our brain and nervous system capabilities and holistic platform approach sets us apart, while global scale and execution capabilities have allowed us to increase our share of wallet with both traditional and emerging OEM customers and strengthen our overall competitive position, which you'll hear more about in our upcoming segment discussions. Turning to the highlights from our Advanced Safety and User Experience segment on slide six. Second quarter revenues increased 83%, 15 points over market, reflecting the benefit of new program launches and content gains, which translated into strong growth over market in our active safety product line and continued growth in our user experience and connectivity and security product lines despite the supply chain constraints impacting the segment. Consumers are demanding more safety and connectivity features in their vehicles, which are increasingly delivered through software enabled by more advanced sensing and compute platforms. This presents us with additional opportunities to increase our customer share of wallet. The evolution of feature-rich, more automated vehicles is playing out just as we planned. We anticipated our customers' needs and took the actions necessary to position Aptiv as a strong collaboration partner.
As a result, we're experiencing firsthand the commercial validation of SVA with nine advanced development programs underway or recently completed, which we're confident will lead to new customer awards during the next year. And a new business award during the second quarter from Great Wall Motors for the development of a central vehicle controller. This is a new high-performance compute platform that will first launch with Great Wall's Wey brand in 2023, which up-integrates critical body functions and controls the flow of data in and out of the vehicle, making it a first-to-market solution globally and also representing a key SVA commercial milestone. Moving to slide seven. We're in a pivotal point in our industry's transition as consumers want more advanced features for safety, comfort and convenience. More stringent regulations regarding CO2 emissions and lower battery costs are accelerating the industry's move to high-voltage electrification. And 5G technology and the cloud are creating opportunities to deliver vehicles that leverage connectivity, even more than they do today, all of which is being enabled through a significant increase in the amount of software going into the vehicle, providing us with increased software content and new business model opportunities.
To put the opportunity into context, the total automotive software market, which includes integration, feature development and validation and verification services, totals an estimated $30 billion today and is expected to grow to roughly $80 billion by 2030. This represents a significant opportunity for Aptiv. We're confident that we have a right to play across the full software stack with over 5,000 software engineers who successfully deploy advanced software solution across literally millions of vehicles with multiple OEM customers across the globe, including our advanced ADAS systems currently launching on the Jeep Grand Cherokee and Wagoneer, which includes radar, camera, perception and feature software, enabling 360-degree sensing and scalable ADAS functionality through L2+, and, with the addition of in-cabin sensing technology, will also include hands-free active driving assist. We're also helping to enable L2+ ADAS system capabilities for Ford as well as other OEMs, with our scalable ADAS platform, which includes modular software building blocks and industry-leading perception systems. And lastly, Volvo's Polestar two was first to market with native Android automotive running Google Automotive Services. Aptiv's Android-based software and hardware platform powers this best-in-class infotainment system and enables real-time over-the-air updates.
These examples underscore Aptiv's software and systems capabilities as well as our role as a partner of choice, delivering more advanced, higher-value, margin-accretive solutions to our customers. Turning to slide eight. Our Signal and Power Solutions segment is the industry leader in high-speed, high-fidelity data transmission, multi-voltage electrical distribution and automotive-grade cable management and connection systems. Revenues increased 86% during the quarter, 18 points over market, driven by OEMs prioritizing the production of more highly contented vehicles as well as the increased production of high-voltage electrified vehicles resulting in increased demand for both our low-voltage and high-voltage architecture solutions and continued very strong demand for engineered components for applications in the automotive, commercial vehicle and industrial markets. We're well positioned to support our customers globally with a comprehensive portfolio of vehicle architecture solutions that leverage a high degree of vertical integration, which has translated into a significant increase in new business awards for high-voltage electrified platforms, where we've been able to design and deliver fully optimized vehicle architecture that provide up to a 40% reduction in weight and mass, significantly lowering the total system cost of an electrified vehicle platform, positioning us to have content of more than 50% of the battery electric vehicles launching over the next few years. In addition, several OEMs have asked us to help define their next-generation electrified vehicle architecture with advanced development programs, including a multi-voltage predevelopment partnership with a major German OEM on their premium electrified vehicle platform and development of the next-generation electrical architecture for a future battery electric vehicle platform with a major high-volume global OEM.
These customer awards validate our leadership position, optimizing power and data distribution for new vehicle architectures that delivers significant value for our customers. Turning to slide nine. In June, we hosted our virtual electrification teach-in, which showcased our industry-leading high- and low-voltage technology portfolio, the accelerated outlook for the EV market and how those translate into sustainable and profitable growth for Aptiv. The recent increased demand for electric vehicles has been encouraging, but it's nothing compared to what's on the horizon. As governments around the world fuel a green recovery, never has Aptiv's value proposition had more meaning than it does today. The European Union recently proposed regulations calling for zero CO2 emissions from vehicles by 2035, and the U.S. administration has recommended targets for significantly higher EV penetration, both of which are driving an increase in commercial activity. Every major global customer has announced an increase in pull forward of investment in the development of new electric vehicle platforms. And combined, OEMs are now targeting to launch over 400 vehicle programs between now and 2025, which has translated into a tenfold increase in business pursuit activity over the last few years. We've been quick to support our customers globally with high-voltage new business awards totaling $1.4 billion year-to-date and a clear line of sight to future awards.
We now expect high-voltage bookings to exceed $2.5 billion for the year. That's an increase of 25% over our prior record of $2 billion. And we expect our high-voltage revenues to increase from just under $1 billion in '21 to over $2.5 billion in 2025, making high-voltage electrification our fastest-growing product segment. Our success has been driven by our end-to-end full system level capabilities, which enable a more efficient path to vehicle electrification. Our portfolio of advanced technologies enables faster charging, improved reliability, performance and packaging as well as increased safety and security, while optimization of the vehicle architecture design leads to reduced complexity, enables more flexible and scalable implementation and, as I mentioned, results in significant weight and cost savings on the path to full SVA, all of which is developed and delivered to our customers flawlessly due to our global scale and manufacturing excellence. Our industry-leading position in high-voltage electrification solutions positions us to pursue additional opportunities and deliver incremental value to customers through a much broader system level design and software solution. Moving to slide 10. We're proud of the progress we've made on our enterprise-wide commitment to corporate social responsibility, which can be further explored in our 2021 Sustainability Report that was published in July.
This year's report includes our sustainability strategy and 2025 commitments for each of our foundational pillars, which include people, product, planet and platform, and enhanced disclosures specifically around our approach to diversity, inclusion and human capital development, our path to carbon neutrality by 2040, our Lean 2.0 initiatives focused on product quality and execution and the governance and operating processes around our sustainability objectives. Our report also highlights the tremendous contributions made by our team during the pandemic and how each of us live the Aptiv values, thinking and acting like owners and always doing the right thing the right way. Through our team's resiliency and dedication, we've continued to deliver on our mission, creating product that helps transform society by saving lives, reducing carbon emissions and connecting people in new ways. We believe that our long-term success and ability to create value for our stakeholders are directly linked to building more sustainable business that continuously delivers on this mission and our strategy. As a result, we're proud to be an early adopter, linking our sustainability commitments with our bottom line and our recently amended credit facility, which Joe is going to cover in more detail shortly. And we fully understand that reaching our goals will take a comprehensive strategy, intense coordination and operating execution by all of our team members over a sustained period of time.
So with that, I'll hand the call over to Joe to take us through the financials in more detail.