Aptiv Plc Q1 FY2025 earnings call

• Aptiv started the year strong with first quarter results exceeding guidance due to higher vehicle production volumes in China, growth in non-automotive end markets, and strong operating performance.
• Revenue totaled $4.8 billion, operating income reached a record $572 million, earnings per share $1.69, and operating cash flow $273 million.
• Key highlights include nearly $5 billion in new business bookings, progress on EDS separation, strategic partnerships with ServiceNow and Capgemini, and strong performance across segments.

Advanced Safety and User Experience (AS&UX): Revenue was flat; Active Safety revenues increased 9%, SV compute and software grew double digits. Segment adjusted operating income was $155 million with a 10.9% margin. Engineered Components Group (ECG): Revenue was approximately $1.6 billion, up 1%, with China revenues up 24%. Segment adjusted operating income was $274 million, 17.3% margin. Electrical Distribution Systems (EDS): Revenue was approximately $2 billion, down 3%, with commercial vehicles up 14%. Segment adjusted operating income was $143 million, 7.1% margin

• Second quarter revenue expected to be in the range of $4.92 billion to $5.12 billion, down 1% year-over-year at midpoint. Operating income and adjusted EPS expected to be $575 million and $1.80 at midpoint.
• Confident in initial full year outlook excluding tariff impact, will update full year guidance as visibility improves.

• Uncertainty from global trade policies impacting vehicle production and demand.
• Tariff exposure and potential need to pass on unmitigated tariff costs to customers.

Q: Joe Spak asked about second quarter outlook and moving high value production to the U.S.

A: Kevin Clark stated it's early days, not including wire harness business, and leveraging existing U.S. footprint with initial steps in increasing manufacturing.

Q: Dan Levy asked about advanced content bidding launch and EDS spin A: Kevin Clark said activity with OEMs is robust but award drag has persisted; EDS spin doesn't change plan, positions business to grow faster.

Q: Shreyas Patil asked about volume decline implication and China market A: Kevin Clark and Varun Laroyia explained guidance is based on customer schedules, China market remains strong but impacted by a global EV manufacturer's volume decline.

Q: Mark Delaney asked about auto production assumption for Q2 and EBIT margins A: Kevin Clark said Q2 guidance based on customer schedules, Varun Laroyia discussed Q1 margin strength from operational performance offsetting FX/commodity headwinds.

Q: Colin Langan asked about tariff commentary and sales guidance A: Kevin Clark said over 99% of U.S.-Mexico trade is USMCA compliant, sales guidance reflects current customer schedules with slight movement between OEMs/platforms.

Q: Edison Yu asked about performance numbers and China mix A: Varun Laroyia mentioned first half performance driven by operational excellence, Kevin Clark discussed China mix with aim to be ~70% local OEMs by year end