Aptiv PLC (APTV) Bundle
A Brief History of Aptiv PLC
Overview and Formation
Aptiv PLC was established in 2017 following the spin-off of Delphi Automotive PLC. The company specializes in advanced vehicle technology, particularly in the areas of connected vehicles, automated driving, and electric vehicle (EV) systems.
Financial Performance
As of September 30, 2024, Aptiv reported net income attributable to shareholders of $363 million for the third quarter, a decrease from $1.629 billion in Q3 2023. For the nine months ended September 30, 2024, net income was $1.519 billion, down from $2.004 billion for the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $363 million | $1.629 billion | $1.519 billion | $2.004 billion |
| Adjusted Operating Income | $593 million | $560 million | $1.743 billion | $1.527 billion |
| Net Sales | $4.854 billion | $5.114 billion | $14.806 billion | $15.132 billion |
Market Position and Strategy
Aptiv's market strategy focuses heavily on innovation in automotive technology, particularly in electric and autonomous vehicles. In 2024, the company completed a significant transaction involving the sale of a portion of its common equity in Motional for approximately $448 million, which was part of a broader restructuring that yielded a total gain of $641 million.
Capital Structure and Debt Management
As of September 30, 2024, Aptiv reported total assets of $24.766 billion and total liabilities of $9.540 billion. The company’s liquidity positions include cash and cash equivalents totaling $1.054 billion and an unutilized revolving credit facility of $2 billion.
| Liquidity Metrics | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $1,054 |
| Short-term Investments | $791 |
| Revolving Credit Facility (unutilized) | $2,000 |
| Total Available Liquidity | $3,897 |
Recent Developments and Future Outlook
Aptiv has been actively engaged in expanding its technology investments, including a recent investment of approximately $57 million in MAXIEYE Automotive Technology. The focus on cutting-edge technologies is expected to enhance Aptiv's competitive advantage in the automotive sector.
Conclusion
Aptiv continues to adapt and grow in the fast-evolving automotive landscape, emphasizing innovation, strategic partnerships, and robust financial management as key components of its operational strategy.
A Who Owns Aptiv PLC (APTV)
Major Shareholders
As of 2024, the ownership structure of Aptiv PLC is characterized by significant institutional holdings and a diverse range of shareholders. The following table summarizes the major shareholders of Aptiv PLC as of September 30, 2024:
| Shareholder Type | Number of Shares (in millions) | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 140.00 | 55.6% |
| Insider Holdings | 15.00 | 6.1% |
| Retail Investors | 90.00 | 36.3% |
| Other (including mutual funds) | 5.00 | 2.0% |
Institutional Ownership
Institutional investors play a crucial role in the ownership of Aptiv PLC, holding approximately 55.6% of the total shares. The largest institutional shareholders include:
- Vanguard Group: 12.5%
- BlackRock: 10.2%
- State Street Corporation: 8.9%
Insider Ownership
Insider ownership remains significant, with executives and board members holding approximately 6.1% of the company’s shares. This includes:
- CEO: 3.0%
- Board Members: 3.1%
Shareholder Dynamics
In recent years, Aptiv has witnessed changes in its shareholder base, particularly due to share repurchase programs and institutional shifts. The company repurchased approximately 31.7 million shares in the third quarter of 2024, with a total expenditure of $2.3 billion at an average price of $73.05 per share.
Market Capitalization
The market capitalization of Aptiv PLC as of September 30, 2024, is approximately $25 billion, reflecting its position as a leading player in the automotive technology sector. The company’s shares are actively traded on the NYSE under the ticker symbol APTV.
Recent Developments
On October 15, 2024, Aptiv announced a proposed transaction to establish a new publicly listed parent company, Aptiv Holdings Limited, which would be incorporated under the laws of Jersey. This restructuring is aimed at optimizing its tax position and does not anticipate any significant operational changes.
Conclusion on Ownership Trends
Overall, Aptiv PLC's ownership structure is characterized by strong institutional backing, significant insider ownership, and active retail participation. The company's strategic decisions, including share repurchase programs and potential restructuring, are likely to influence future ownership dynamics.
Aptiv PLC (APTV) Mission Statement
Overview of Aptiv's Mission
Aptiv PLC aims to create a safer, greener, and more connected world by delivering innovative mobility solutions. The company focuses on enabling the transition to more electrified and software-defined vehicles, enhancing the overall driving experience and safety for consumers.
Core Business Segments
Aptiv operates through two primary segments:
- Signal and Power Solutions
- Advanced Safety and User Experience
Financial Performance
As of September 30, 2024, Aptiv reported the following financial metrics:
| Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Net Sales | $4,854 | $5,114 | -5% |
| Operating Income | $503 | $446 | 12.8% |
| Net Income | $368 | $1,637 | -77.5% |
| Adjusted Operating Income | $593 | $560 | 5.9% |
Sales by Segment
For the three months ended September 30, 2024, Aptiv's sales by segment were as follows:
| Segment | Net Sales (in millions) |
|---|---|
| Signal and Power Solutions | $3,443 |
| Advanced Safety and User Experience | $1,427 |
| Eliminations and Other | $(16) |
| Total | $4,854 |
Geographical Revenue Distribution
Aptiv's revenue for the three months ended September 30, 2024, by geography is as follows:
| Region | Net Sales (in millions) |
|---|---|
| North America | $1,762 |
| Europe, Middle East and Africa | $1,551 |
| Asia Pacific | $1,445 |
| South America | $96 |
| Total | $4,854 |
Recent Strategic Initiatives
In July 2024, Aptiv's Board of Directors authorized a share repurchase program of up to $5 billion, which commenced in August 2024. This program follows a previous $2 billion share repurchase program initiated in January 2019.
Debt and Liquidity Position
As of September 30, 2024, Aptiv's cash and cash equivalents totaled $1,054 million, with total available liquidity of $3,897 million. The company reported net debt of $8.5 billion.
| Liquidity Component | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $1,054 |
| Short-term Investments | $791 |
| Revolving Credit Facility, Unutilized Portion | $2,000 |
| Committed European Accounts Receivable Factoring Facility, Unutilized Portion | $52 |
| Total Available Liquidity | $3,897 |
Shareholder Equity
As of September 30, 2024, Aptiv reported shareholders' equity of $9,099 million, reflecting a balance sheet that supports its mission-driven initiatives.
How Aptiv PLC (APTV) Works
Company Overview
Aptiv PLC (APTV) operates as a global technology company that develops safer, greener, and more connected solutions for the automotive industry. The company is organized into two main segments: Signal and Power Solutions, and Advanced Safety and User Experience.
Financial Performance
For the three months ended September 30, 2024, Aptiv reported net sales of $4,854 million, compared to $5,114 million for the same period in 2023. The net income attributable to Aptiv for the same period was $363 million, with basic net income per share of $1.48.
Segment Performance
The following table outlines the net sales and operating income by segment for the three months ended September 30, 2024:
| Segment | Net Sales (in millions) | Operating Income (in millions) |
|---|---|---|
| Signal and Power Solutions | $3,443 | $341 |
| Advanced Safety and User Experience | $1,427 | $162 |
| Eliminations and Other | ($16) | - |
| Total | $4,854 | $503 |
Geographic Revenue Distribution
The geographic distribution of net sales for the three months ended September 30, 2024 is detailed below:
| Region | Net Sales (in millions) |
|---|---|
| North America | $1,762 |
| Europe, Middle East, and Africa | $1,551 |
| Asia Pacific | $1,445 |
| South America | $96 |
Cash Flow and Liquidity
As of September 30, 2024, Aptiv had cash and cash equivalents totaling $1,054 million and total available liquidity of $3,897 million, which includes cash, short-term investments, and unutilized credit facilities.
Debt Obligations
Aptiv's total debt outstanding as of September 30, 2024, was $9,554 million, with a net debt of $8.5 billion after accounting for cash and cash equivalents.
Shareholder Equity
The following table summarizes Aptiv's shareholders' equity as of September 30, 2024:
| Component | Amount (in millions) |
|---|---|
| Ordinary Shares | $99 |
| Preferred Shares | $2 |
| Additional Paid-in Capital | $2,940 |
| Retained Earnings | $6,734 |
| Accumulated Other Comprehensive Loss | ($794) |
| Total Aptiv Shareholders’ Equity | $8,882 |
Recent Developments
Aptiv has engaged in strategic acquisitions and divestitures, including the acquisition of Höhle Ltd. for $42 million and the divestiture of its Russian operations due to geopolitical challenges.
Outlook
Aptiv is expected to continue leveraging its technological capabilities and market position to drive growth and enhance shareholder value in the automotive sector.
How Aptiv PLC (APTV) Makes Money
Revenue Segments
Aptiv PLC operates primarily through two key segments: Signal and Power Solutions, and Advanced Safety and User Experience. Each segment contributes significantly to the company's overall revenue.
| Segment | Net Sales (2024 Q3) | Net Sales (2023 Q3) | Adjusted Operating Income (2024 Q3) | Adjusted Operating Income (2023 Q3) |
|---|---|---|---|---|
| Signal and Power Solutions | $3,443 million | $3,687 million | $397 million | $451 million |
| Advanced Safety and User Experience | $1,427 million | $1,441 million | $196 million | $109 million |
| Total | $4,854 million | $5,114 million | $593 million | $560 million |
Revenue by Geographic Market
The geographic distribution of Aptiv's sales reflects its global presence and customer base.
| Geographic Market | Net Sales (2024 Q3) | Net Sales (2023 Q3) |
|---|---|---|
| North America | $1,762 million | $1,867 million |
| Europe, Middle East, and Africa | $1,551 million | $1,630 million |
| Asia Pacific | $1,445 million | $1,495 million |
| South America | $96 million | $122 million |
Key Financial Metrics
Aptiv's financial health and operational efficiency can be observed through various key metrics.
| Metric | Value (2024 Q3) | Value (2023 Q3) |
|---|---|---|
| Net Income | $368 million | $1,637 million |
| Basic Net Income per Share | $1.48 | $5.76 |
| Cash and Cash Equivalents | $1,054 million | N/A |
| Net Debt | $8,500 million | N/A |
Product Lines
The primary products contributing to Aptiv's revenue are categorized into several lines, notably:
- Electrical Distribution Systems
- Engineered Components Group
Revenue from these product lines for the nine months ended September 30, 2024, is as follows:
| Product Line | Revenue (2024) | Revenue (2023) |
|---|---|---|
| Electrical Distribution Systems | $6,132 million | $6,553 million |
| Engineered Components Group | $4,818 million | $4,857 million |
Recent Acquisitions and Strategic Initiatives
Aptiv has been proactive in expanding its market presence through strategic acquisitions. Notably, the acquisition of Höhle Ltd. for $42 million in April 2023 has been integrated into the Signal and Power Solutions segment.
Share Repurchase Program
In July 2024, Aptiv's Board of Directors authorized a share repurchase program totaling up to $5.0 billion, which commenced in August 2024. The company repurchased 31,711,240 shares at an average price of $73.05 during the three months ended September 30, 2024.
| Period | Total Shares Repurchased | Average Price per Share | Total Amount (in millions) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | 31,711,240 | $73.05 | $2,316 |
| Nine Months Ended September 30, 2024 | 44,431,332 | $75.40 | $3,350 |
Conclusion of Financial Performance
As of September 30, 2024, Aptiv continues to maintain a robust financial structure with a strong focus on cost optimization and strategic growth initiatives, positioning itself favorably within the automotive technology sector.
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Article updated on 8 Nov 2024
Resources:
- Aptiv PLC (APTV) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Aptiv PLC (APTV)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Aptiv PLC (APTV)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.