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Sep 30, 2022

Aptiv Q3 2022 Earnings Report

Operational execution drove strong growth and margin expansion.

Key Takeaways

Aptiv's Q3 2022 results demonstrated strong growth over underlying vehicle production, achieving a 26% increase in U.S. GAAP revenue to $4.6 billion and a U.S. GAAP net income of $286 million, or $1.05 per diluted share. Excluding special items, earnings per share totaled $1.28. The company generated $437 million in cash from operations.

U.S. GAAP revenue of $4.6 billion, an increase of 26%

Revenue increased 33% adjusted for currency exchange and commodity movements; growth over market of 9% based on AWM1 of 24%

U.S. GAAP net income of $286 million, diluted earnings per share of $1.05

Adjusted Operating Income margin of 11.4%, Adjusted Operating Income of $525 million; Adjusted EBITDA of $673 million

Total Revenue
$4.61B
Previous year: $3.65B
+26.3%
EPS
$1.28
Previous year: $0.38
+236.8%
Adjusted Operating Income
$525M
Gross Profit
$793M
Previous year: $516M
+53.7%
Cash and Equivalents
$4.85B
Previous year: $2.74B
+76.9%
Total Assets
$20B
Previous year: $17.7B
+13.1%

Aptiv

Aptiv

Aptiv Revenue by Segment

Forward Guidance

The Company’s full year 2022 financial guidance is as follows: Net sales $17,000 - $17,300, Adjusted EBITDA $2,160 - $2,310, Adjusted EBITDA margin 12.7% - 13.4%, Adjusted operating income $1,525 - $1,675, Adjusted operating income margin 9.0% - 9.7%, Adjusted net income per share $3.05 - $3.55, Cash flow from operations $1,350, Capital expenditures $800, Adjusted effective tax rate ~13%

Positive Outlook

  • Net sales $17,000 - $17,300 million
  • Adjusted EBITDA $2,160 - $2,310 million
  • Adjusted EBITDA margin 12.7% - 13.4%
  • Adjusted operating income $1,525 - $1,675 million
  • Adjusted operating income margin 9.0% - 9.7%

Challenges Ahead

  • Adjusted net income per share $3.05 - $3.55
  • Cash flow from operations $1,350 million
  • Capital expenditures $800 million
  • Adjusted effective tax rate ~13%
  • Includes approximately $1.05 per diluted share for the anticipated equity losses to be recognized by Aptiv from the performance of the Motional autonomous driving joint venture.

Revenue & Expenses

Visualization of income flow from segment revenue to net income