Q2 2026 APTIV PLC Earnings Call Transcript
Key Points
- Aptiv PLC (APTV) delivered 2% revenue growth and 10 basis points of EBITDA margin expansion in Q2 2026, with strong non-auto revenue growth of 12%.
- The company secured $5 billion in new business awards during Q2, bringing year-to-date bookings to $10 billion, on track for a $20 billion full-year target.
- Aptiv PLC (APTV) is making significant progress in diversifying into high-growth markets, including robotics, drones, energy storage, and data centers, with a first drone award worth over $500 million in lifetime revenues.
- The company continues to innovate, launching products like the Gen 8 radar and an AI-based occupant detection system, and expanding partnerships with Nvidia and other AI players.
- Aptiv PLC (APTV) is committed to returning capital to shareholders, with $325 million in share repurchases year-to-date and plans to repurchase over $600 million in 2026, using approximately 50% of free cash flow.
- The company's engineered components segment showed strong margin expansion of 100 basis points, driven by growth in diversified industrials and aerospace/defense.
- Aptiv PLC (APTV) is seeing faster-than-expected opportunities in robotics and drones, with a high degree of confidence in achieving $300 million in annual revenues from these markets over the next few years.
- Aptiv PLC (APTV) lowered its full-year 2026 guidance due to prolonged sales weakness in the domestic China market, leading to reduced production schedules from local OEMs and European luxury OEMs exporting to China.
- The company faces challenges from delays in program launches and ramps, particularly in China, and a delayed launch with a European OEM that also reduced expected expansion to additional car lines.
- Aptiv PLC (APTV) experienced a 120 basis point decline in intelligent systems EBITDA margin, impacted by investments in non-auto markets and stranded costs from the Vestigen spin-off.
- The company's software and services business saw a $50 million reduction in enterprise sales due to timing, leading to a softer Q3 and higher decremental margins in the second half.
- Aptiv PLC (APTV) acknowledged that it was not conservative enough in its assumptions, particularly around launches and ramps, and is incorporating additional conservatism in the second half of the year.
- The company's automotive revenue declined 1% in Q2, with Europe down 8% due to volume pressures with select luxury OEMs, and the outlook for vehicle production in the second half has turned from a tailwind to a headwind.
- Aptiv PLC (APTV) is facing stranded costs following the Vestigen spin-off, which are impacting margins, though the company is aggressively working to eliminate them.
Good day and welcome to the Active Q2 2026 earnings call.
Today's conference is being recorded at this time, Frank's President, investor relations, please go ahead.
Thank you, Shelly.
Good morning and thank you for joining Active second quarter 2026 earnings conference call, the press release and flag presentation can be found on the investor relations portion of our website at active.com.
Today's review of our financials exclude amortization, restructuring, and other special items and reflect the continuing operations of Active as of June 30th.
Reflecting the treatment of our EDS segment as a discontinued operation for the second quarter of 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 forwardl
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