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FY2025 Q4
Improving
Aptiv PLC earnings call
Buzzberg read
Aptiv confident on semiconductor cost recoveries, sees minimal 2026 supply impact
Aptiv reported strong Q4 2025 results with record revenue of $5.2 billion, driven by solid execution despite FX and commodity headwinds. Management provided 2026 guidance for both newly standalone Aptiv and Versagen, emphasizing growth in non-auto markets and confidence in navigating supply chain challenges. Q4 revenue of $5.2B, up 3%, with adjusted EPS of $1.86; operating cash flow of $818M.
Buzzberg read Aptiv confident on semiconductor cost recoveries, sees minimal 2026 supply impact Aptiv reported strong Q4 2025 results with record revenue of $5.2 billion, driven by solid execution despite FX and commodity headwinds. Management provided 2026 guidance for both newly standalone Aptiv and Versagen, emphasizing growth in non-auto markets and confidence in navigating supply chain challenges. Q4 revenue of $5.2B, up 3%, with adjusted EPS of $1.86; operating cash flow of $818M. Read full analysisCollapse analysis
Aptiv reported strong Q4 2025 results with record revenue of $5.2 billion, driven by solid execution despite FX and commodity headwinds. Management provided 2026 guidance for both newly standalone Aptiv and Versagen, emphasizing growth in non-auto markets and confidence in navigating supply chain challenges. Q4 revenue of $5.2B, up 3%, with adjusted EPS of $1.86; operating cash flow of $818M.
- FY2025 bookings of $27B fell short of $31B target due to timing shifts into 2026, but management expects >$30B in 2026.
- Management guided 2026 revenue for new Aptiv (ex-EDS) at $12.8-13.2B and Versagen at $9.1-9.4B.
- Aptiv is building semiconductor inventory to 12 weeks, mitigating DRAM shortage and passing through low-double-digit price increases.
Revenue$5.153BReported
EPS$1.86Reported
Gross margin19.76%Reported
Operating margin7.61%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Bookings
Q4 bookings short of target on timing, stronger 2026 expected
AI
Wind River sees $6 billion robotics TAM, more partnerships coming
Show 3 more callouts
Margins
Aptiv expects to pass on higher semiconductor costs to customers
Capital Allocation
Versagen spin on track for April 1, with planned debt paydown
Demand
2026 EV growth expected at 15%, mostly driven by China
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $5.153B | Reported |
| EPS | $1.86 | Reported |
| Gross margin | 19.76% | Reported |
| Operating margin | 7.61% | Reported |
| Free cash flow | $0.651B | Reported |
| Capex | $0.167B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $5.70–$6.10 | $5.90 | Initiated |
| Free cash flow | FY2026 | $0.75B | $0.75B | Initiated |
| Free cash flowVERSAGEN | FY2026 | $0.25B | $0.25B | Initiated |
| Revenue | FY2026 | $12.8B–$13.2B | $13B | Maintained |
| Revenue | FY2026 | $9.1B–$9.4B | $9.25B | Maintained |
| Revenue | FY2026 Q1 | $5.05B | $5.05B | Initiated |
AI, capex & demand read
Management read
Confident
Management expressed confidence in executing through a dynamic macro environment, highlighting strong bookings, margin expansion plans, and successful cost pass-through.
Management AI read
Management discussed AI and robotics as a growing non-automotive opportunity, announcing partnerships with robotics companies and investing in AI-powered software solutions, with an estimated $6 billion TAM and expected further commercial announcements.
Investment and capacity
Aptiv is making targeted investments in engineering and go-to-market capabilities for non-auto markets, with $35 million in 2026, and investing in semiconductor inventory build ($200 million) and footprint rotation/automation for Versagen.
all 5 named companies below
Companiesreturns since call
Supply chain
Supply chain
Varen Laroia
Aptiv has built 12 weeks of semiconductor inventory, insulating its supply chain against the 2026 DRAM shortage, and has locked in pricing at low-double-digit increases, far below spot market 100-120% increases. — Aptiv's forward-buying signals tighter DRAM supply but also the ability to pass through higher costs, potentially squeezing OEM margins.
Evidence
“As we mentioned at the beginning of last year, we have worked diligently to strengthen the resiliency of our supply chain and invested to build semiconductor inventory coverage to approximately 12 weeks.”
Supply chain
Kevin Clark
Aptiv is embedding Wind River software and its sensing portfolio into robots, creating a $4,000-$5,000 content opportunity per unit, and expects more partnership announcements in Q1 2026. — Aptiv's pivot to robotics and non-auto markets creates new cross-company signals for industrial automation and robotics suppliers.
Evidence
“We think during the first quarter, we'll have more commercial relationships or partnerships that we'll be announcing that will show the traction that we have in place.”
Supply chain
Kevin Clark
Aptiv is selectively receiving cash recoveries from automakers for canceled EV programs, with negotiations underway, particularly in North America. — Cash recoveries from canceled EV programs provide an upside cushion to Aptiv's 2026 margin outlook, signaling ongoing weakness in North American EV demand.
Evidence
“As it relates to some of the larger decisions, principally in North America, as it relates to EV programs, those are discussions that are underway now at this point in time.”
Supply chain
Kevin Clark
Aptiv's China bookings are shifting heavily toward local OEMs, with around 80% of 2025 China awards coming from local players, signaling their growing influence in the global supply chain. — Aptiv's China revenue mix is improving but at lower margins, reflecting the pricing pressure exerted by Chinese EV makers.
Evidence
“And of note, approximately 80% of our China New Business Awards in 2025 were from the local OEMs.”
External signals
Supply-chain alpha · 4returns since call
Aptiv has built 12 weeks of semiconductor inventory, insulating its supply chain against the 2026 DRAM shortage, and has locked in pricing at low-double-digit increases, far below spot market 100-120% increases.
Aptiv is embedding Wind River software and its sensing portfolio into robots, creating a $4,000-$5,000 content opportunity per unit, and expects more partnership announcements in Q1 2026.
Aptiv is selectively receiving cash recoveries from automakers for canceled EV programs, with negotiations underway, particularly in North America.
Aptiv's China bookings are shifting heavily toward local OEMs, with around 80% of 2025 China awards coming from local players, signaling their growing influence in the global supply chain.
Methodology & coverage
Management-only analysis. All 5 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.