Aptiv PLC Reports $19.7 Billion in Net Sales for 2024, Plans Spin-Off of Electrical Distribution Systems

Aptiv PLC, a global technology company focused on mobility solutions, reported net sales of $19.7 billion for the year ended December 31, 2024, a 2% decrease compared to 2023. This decline was primarily attributed to a 2% decrease in overall volumes, reflecting a 1% decrease in global automotive production (3% on an Aptiv weighted market basis). Despite the volume decrease, the company achieved operating income of $1.8 billion ($2.4 billion adjusted) and cash flow from operations of $2.4 billion. Operating income margin expanded to 9.3% (12% adjusted).

Significant changes from the previous fiscal year included a $610 million decrease in cost of sales, driven by improved operational performance and decreased volumes, partially offset by increased commodity pass-through costs and other factors. The company also recorded $193 million in restructuring charges, primarily related to aligning manufacturing capacity with current production levels. Aptiv completed a reorganization transaction in December 2024, establishing a new publicly-listed Jersey parent company resident for tax purposes in Switzerland, resulting in no material changes to operations or governance. The company also announced plans to spin off its Electrical Distribution Systems business by March 31, 2026.

Strategic developments during the year included the completion of a Motional joint venture restructuring, reducing Aptiv's equity interest from 50% to 15% and eliminating future funding requirements. The company also acquired Höhle Ltd., a microducts manufacturer, in April 2023. Aptiv continued its investment in technology, making investments in StradVision and Maxieye, providers of advanced driver-assistance systems and software. The company repurchased $3.35 billion of its ordinary shares during the year, including $3 billion under an accelerated share repurchase program.

Key operational developments included new business awards totaling approximately $31 billion. Aptiv maintained a global presence in 49 countries with approximately 141,000 employees (31,000 salaried and 110,000 hourly, plus a contingent workforce of approximately 50,000). The company's lost time injury frequency rate was 0.132 cases per million hours worked, and its lost workday case rate was 0.026 per 100 employees. Aptiv also highlighted its commitment to environmental sustainability, aiming for net-zero greenhouse gas emissions by 2040.

Aptiv's outlook anticipates continued investment in research and development, targeting approximately $1.1 billion in expenditures for the year ended December 31, 2025. The company expects additional restructuring charges in 2025, primarily related to reducing global overhead costs and aligning manufacturing capacity with production levels. The company also noted risks related to global economic conditions, supply chain disruptions, and the evolving automotive industry, including the transition to electric vehicles and autonomous driving technologies. The planned spin-off of the Electrical Distribution Systems business is subject to customary closing conditions and may not be completed as planned or at all.