Aptiv (APTV) Financials

Aptiv’s latest statements show improving operating profitability and a substantially lower debt burden, but weaker liquidity and inconsistent reported earnings data remain important risks for investors. Q2 2026 revenue was $3.27 billion, up approximately 2.3% from $3.20 billion in the restated Q2 2025 results. Gross profit increased to $775 million from $731 million, lifting the gross margin to roughly 23.7% from 22.9%. Operating income also improved to $367 million from $325 million.

The longer-term revenue trend is mixed. Quarterly revenue generally remained in the $4.6 billion-to-$5.2 billion range during 2022 through 2025, before falling to approximately $3.2 billion-$3.3 billion in the latest reported second quarters. This suggests that portfolio changes, divestitures, or reporting changes may be affecting comparability. Investors should focus on organic revenue growth and segment performance in future filings.

• Operating margins improved: Q2 2026 operating income represented approximately 11.2% of revenue, compared with 10.2% in Q2 2025. Selling, general and administrative expense also declined to $332 million from $327 million only modestly despite higher revenue, while restructuring charges fell to $24 million from $27 million.
• Debt reduction has been substantial: Total debt, including short-term debt, long-term debt and capital lease obligations, was approximately $5.60 billion at June 30, 2026, down from about $9.65 billion at June 30, 2025 and $8.87 billion at year-end 2024. Lower leverage should reduce financial risk and interest costs.
• Interest expense is trending lower: Q2 2026 interest expense was $62 million, versus $92 million in Q2 2025, $90 million in Q3 2025 and $107 million in Q4 2024. This provides additional support for pretax profitability.
• Operating cash flow remained positive: Aptiv generated $273 million, $510 million, $584 million and $818 million of operating cash flow in Q1 through Q4 2025, respectively. The improvement through the year indicates stronger cash conversion after the unusually weak first quarter.
• Capital spending appears manageable: Quarterly capital expenditures generally ranged from approximately $143 million to $226 million in the available 2024-2025 data. Operating cash flow exceeded capital expenditures in Q2, Q3 and Q4 2025, producing positive operating cash flow after capital investment.
• Share count has declined over the period: Diluted weighted-average shares fell from approximately 283 million in Q3 2023 to 212 million in Q2 2026. Continued share repurchases can support earnings per share when conducted at attractive valuations.
• Liquidity is adequate but has weakened: Q2 2026 current assets of $6.00 billion exceeded current liabilities of $2.98 billion, implying a current ratio of roughly 2.0. However, cash and equivalents declined to $761 million from $1.45 billion in Q2 2025 and $1.57 billion at year-end 2024.
• Asset composition requires monitoring: Goodwill and intangible assets totaled approximately $5.71 billion at June 30, 2026, or nearly one-third of total assets. These balances can be vulnerable to impairment charges if expected business performance deteriorates.
• Reported earnings are difficult to reconcile: Q2 2026 shows consolidated net income of $247 million and net income attributable to common shareholders of $248 million, while continuing operations are reported at a $50 million loss and discontinued operations at another $50 million loss. Several earlier periods also contain restated figures that do not reconcile cleanly across income and cash-flow statements.
• Profitability remains volatile: Aptiv reported a $355 million net loss attributable to common shareholders in Q3 2025, primarily reflecting a $648 million impairment charge and $60 million of restructuring costs. Although Q4 2025 and Q2 2026 returned to profitability, recurring restructuring charges and prior impairment activity highlight execution and portfolio risks.

Overall, Aptiv’s financial position has improved through debt repayment, lower interest expense and stronger operating cash flow. The primary questions for investors are whether the recent operating-margin improvement can continue, whether revenue can return to sustained growth, and how much of the latest earnings improvement reflects ongoing operations rather than reporting changes or nonrecurring items. Because the supplied statements include restatements and apparent classification inconsistencies, investors should verify the company’s latest filing before relying on headline net income or earnings-per-share figures.