Aptiv PLC
Automotive Technology and ComponentsFounded 2017- Updated July 2025
Reviewed by Swet Parvadiya
Last reviewed: July 2025
CorpDigest
Aptiv PLC
Financial Performance
Last reviewed: July 2025 · By Swet Parvadiya
Revenue
$20.3B
Market Cap
$20.0B
Net Income
$815M
Employees
160,000
Revenue grew from $17.5 billion in 2022 to $20.3 billion in FY2024, essentially flat between 2023 and 2024, tracking the automotive production volumes of the OEM customers that represent nearly all of Aptiv's revenue. Net income of $815 million in FY2024 on $20.3 billion in revenue is a 4% net margin that reflects the thin economics of supplying manufactured components to automakers who negotiate 2-3% annual price reductions into their supply contracts. The financial architecture of an automotive supplier is fundamentally about operating leverage and cost reduction speed. Aptiv's automated manufacturing equipment for high-voltage wiring harnesses drives labor costs down 15% annually — faster than the price concessions automakers demand — which means margins improve as production scales. But that automation investment requires capital expenditure that depresses free cash flow in the near term. Market capitalization of approximately $20 billion against $20.3 billion in revenue prices Aptiv as a cyclical industrial company tied to automotive production volumes, not as the technology infrastructure firm its product roadmap suggests it wants to be. The Signal and Power Solutions segment is the cash engine. The Advanced Safety segment is the multiple expansion argument — if software-defined vehicles become the norm, that $5.1 billion segment grows at technology company rates. The SEC inquiry into Brazilian operations was disclosed in 2023 without resolution details made public. Brazil represents a meaningful manufacturing footprint for Aptiv, and Foreign Corrupt Practices Act exposure in emerging market operations is a financial risk that doesn't appear in revenue projections but shows up in legal reserves and management bandwidth.
Revenue Trend Analysis
YoY Change
+0.5%
2-Year CAGR
+7.7%
Peak Year
2024
Trend
Consistent Growth
Aptiv PLC has reported revenue across 3 fiscal years, compounding at +7.7% annually over 2 years. The most recent year saw a 0.5% increase versus the prior year. Revenue peaked in 2024 at $20.3B. Out of 2 reported periods, 2 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2024 | $20.3B | $815M | +0.5% |
| FY2023 | $20.2B | — | +15.4% |
| FY2022 | $17.5B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Aptiv delivers 14-15% EBITDA margins, exceeding traditional suppliers like Magna (8-9%), Lear (6-7%), and BorgWarner (12-13%) through its focus on high-value electronics and software versus commodity mechanical parts. The company generates $2.9 billion in EBITDA on $20.3 billion revenue, with Advanced Safety & User Experience achieving 16-18% margins while Signal & Power operates at 10-12% due to commoditization pressure on harnesses. However, Aptiv's margins compressed 200 basis points from 2022's 17% as EV program launches required upfront investment and automaker price-down requests exceeded cost reductions, and management targets returning to 16-17% margins by 2026 through operational leverage as new programs ramp volume.
Aptiv ended 2023 with $8.2 billion in total debt and $1.4 billion in cash (net leverage 2.9x EBITDA), elevated from the $4.5 billion Veoneer acquisition and $2.5 billion in pandemic-era borrowing. The company's debt service costs $450 million annually at 5.5% average interest rate, consuming 30% of free cash flow and limiting Aptiv's ability to fund autonomous driving R&D or additional acquisitions. Management targets deleveraging to 2.0x net leverage by 2026 through $4-5 billion in cumulative free cash flow, but this requires suspending share buybacks and limiting Motional funding to $300 million annually versus the $500-700 million Motional requires for robotaxi development, forcing Aptiv to choose between balance sheet strength and technology leadership.
Aptiv spent $1.7 billion on R&D in 2023 (8.4% of revenue), targeting autonomous driving software, high-voltage electrical systems for 800V+ EVs, and Smart Vehicle Architecture development. The spending exceeds traditional suppliers' 3-5% of revenue but trails pure-play tech companies like Mobileye (28%) and Waymo (estimated $3+ billion annually), creating risk that Aptiv underspends relative to competition. Aptiv's R&D is split approximately 60% on Advanced Safety (ADAS, autonomous driving, user experience) and 40% on Signal & Power (connectors, high-voltage systems), and the company must maintain this investment level through automotive industry downturns to preserve technology leadership, though pressure to reduce costs during the 2023-2024 EV slowdown has limited R&D growth.
Aptiv generated $1.4 billion in free cash flow in 2023 (7% margin), allocating $400 million to Motional autonomous driving JV, $300 million to debt reduction, $200 million to dividends (0.9% yield), and $500 million to capex for EV program launches. The company suspended share buybacks in 2023 after repurchasing $3 billion from 2018-2022, prioritizing deleveraging and technology investment over shareholder returns. Management's capital allocation has been criticized for the poorly-timed $4.5 billion Veoneer acquisition at peak valuations and for continuing to fund Motional despite limited near-term robotaxi commercialization prospects, though supporters argue the investments position Aptiv for the long-term shift to autonomous EVs even if near-term returns disappoint.
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CorpDigest. "Aptiv PLC Revenue & Financials." CorpDigest, https://corpdigest.com/company/aptiv/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Aptiv PLC reported $20B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/aptiv/financials" target="_blank" rel="noopener">CorpDigest — Aptiv PLC financials</a></div>