Full Transcript: Aptiv Q2 2026 Earnings Call

Aptiv (NYSE: APTV ) released second-quarter financial results and hosted an earnings call on Tuesday.

Read the complete transcript below.

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For comprehensive financial data and transcripts, visit View the webcast at Summary Aptiv generated 2% revenue growth with a 10 basis points expansion in EBITDA margin in Q2 2025, driven by diversification into non-automotive markets.

The company faced challenges in the traditional automotive market, particularly due to prolonged sales weakness in the domestic China market, leading to a lowered 2026 guidance.

Aptiv secured $5 billion in new business awards in Q2, bringing the year-to-date total to $10 billion, with a target of $20 billion for the full year.

Capital allocation included $250 million in share repurchases in Q2, with plans for over $600 million in buybacks for the full year.

Non-automotive revenue grew 12%, with significant progress in robotics and drone markets expected to reach $300 million in annual revenue in the coming years.

The company lowered its full-year 2026 revenue guidance by $300 million due to changes in customer production schedules, program launch delays, and software sales timing.

Despite challenges, Aptiv remains focused on long-term opportunities across diverse end markets, aiming for margin expansion and strong free cash flow generation.

Management emphasized a more conservative approach to forecasting, particularly regarding the volatile China market.

Full Transcript Betsy, Investor Relations 2025.

The reconciliations between GAAP and non-GAAP measures are included at the back of the slide presentation and the earnings press release.

Unless stated otherwise, all references to growth rates are on a pro forma adjusted year-over-year basis.

During today's call we will be providing certain forward-looking information that reflects Aptiv's current view of future financial performance and may be materially different for reasons that we cite in our Form 10-K and other SEC filings.

Joining us today are Kevin Clark, Chair and Chief Executive Officer, and Varun Laroyia, Executive Vice President and Chief Financial Officer.

With that, I'll turn the call over to Kevin.

Kevin Clark, Chair and Chief Executive Officer Thank you, Betsy, and thanks everyone for joining us this morning.

Starting on slide 3, during the second quarter we generated 2% revenue growth and 10 basis points of EBITDA margin expansion, and we continue to demonstrate progress diversifying our business, evidenced by double-digit non-auto revenue growth in the quarter and new business awards in attractive high-growth markets that present expansion opportunities for Aptiv.

And while we're increasingly optimistic about the long-term opportunities presented in these areas, in the near term we continue to contend with challenges in our traditional automotive market which are leading us to lower our 2026 guidance, including prolonged sales weakness in the domestic China market, which is causing local OEMs to reduce second-half production on vehicle platforms for the domestic market and also leading to a further reduction in schedules from luxury European OEMs for vehicles exported to the China market.

Varen is going to walk you through how these dynamics and other factors are impacting our guidance for the remainder of the year and what specifically has changed since we last spoke to you.

And I'll spend a bit more time discussing the actions we're taking, including how we're working to evolve our business mix in and outside of the automotive market to mitigate the challenges we're experiencing today.

And now that the separation of EDS is complete, we'll continue to evaluate additional opportunities to maximize value for shareholders over the long term.

Now let's begin by reviewing our second quarter progress against our strategic priorities.

During the second quarter we continued the momentum we'd established, leveraging our product portfolio and operating capabilities across diverse end markets, including product innovations where we secured our first Gen8 radar award, an important component of our ADAS platform; penetration into new end markets where the products we've developed for automotive have applications in other markets, reflected in the award from Robust AI, which I'll talk more about later; and expansion of our software partnership ecosystem with leading-edge AI players, including most recently with Nvidia.

This list represents a small portion of the $5 billion of new business awards during the second quarter, bringing our year-to-date total to $10 billion, putting us on track for our $20 billion full-year target.

We also continue to increase the resiliency of our business model by leveraging our digital twin and end-tier tracking capabilities to provide our automotive and adjacent market customers with a step change in supply chain visibility, and reaching long-term supply agreements as part of our supply chain resiliency efforts.

These are both great examples of the actions we've taken to enhance the robustness of our operating model that are enabling us to keep our customers connected in this dynamic environment and is one of the reasons we were recently recognized as Supplier of the Year by Ford in the supply chain category.

On capital allocation, we repurchased $250 million of our shares in the second quarter, bringing our year-to-date total to $325 million, with an intention to repurchase a similar amount in the second half of the year and bring the full-year total to over $600 million.

And over the next few years we're committed to returning approximately half of our free cash flow to shareholders through share repurchases while simultaneously pursuing smaller bolt-on M&A transactions to diversify the business and better position us for the long term.

Turning to review our business segments through the lens of the automotive and