Aptiv (NYSE: APTV) revenue edges up 2% but adjusted EBITDA margin slips

What happened

Aptiv PLC (NYSE: APTV) reported third-quarter revenue of $3.2 billion, up 2%. Adjusted EBITDA margin fell to 17.7% from 19.1% a year earlier. Adjusted EBITDA was $567 million against $598 million in the third quarter of 2025, a 5.2% drop by OptimistFi's calculation.

U.S. GAAP net income from continuing operations was $194 million, or $0.94 per diluted share. The year-earlier quarter was a net loss of $488 million that included a non-cash goodwill impairment charge of $648 million. The swing to profit is not an operating gain on its own.

Adjusted net income per share was $1.42, down from $1.48. Through nine months, revenue was $9.5 billion, also up 2%, while adjusted revenue growth was 1%. Nine-month adjusted EBITDA was $1.73 billion, down from $1.75 billion. The margin was 18.1% against 18.8%.

Key numbers

Metric	Latest	Change	Source
Q3 U.S. GAAP revenue	$3.2 billion	from $3.13 billion, +2%	SEC 8-K Exhibit 99.1
Q3 adjusted EBITDA	$567 million	from $598 million, -5.2%	Calculated from SEC 8-K
Q3 adjusted EBITDA margin	17.7%	from 19.1%, -1.4 percentage points	Calculated from SEC 8-K
Q3 U.S. GAAP net income (loss) from continuing operations	$194 million	from -$488 million	SEC 8-K Exhibit 99.1
Q3 share repurchases	$233 million		SEC 8-K Exhibit 99.1
Full-year 2026 free cash flow guidance	$625 million to $675 million		SEC 8-K Exhibit 99.1

Read more: Aptiv (APTV) company research

Where the pressure came from

The margin squeeze sits in Intelligent Systems. Its sales fell 3% to $1.40 billion. Its adjusted EBITDA dropped 18% to $180 million from $219 million. Engineered Components moved the other way. Sales rose 7% to $1.84 billion and adjusted EBITDA rose 2% to $387 million from $379 million.

By region, revenue adjusted for currency, commodities and the EDS spin-off grew 5% in North America and 5% in Asia Pacific. It fell 5% in EMEA. Aptiv's release headlined strong growth in non-automotive revenue.

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Cash, debt and buybacks

Third-quarter operating cash flow from continuing operations was $320 million. Free cash flow matched the quarter's GAAP net income from continuing operations. Operating cash flow through nine months was $402 million, down from $853 million a year earlier. Accounts receivable and inventories each used more cash than in the prior-year period.

Aptiv repurchased and retired 4.7 million shares for $233 million in the quarter. The nine-month total is $558 million. Up to $1.6 billion remains under its authorization, which is a cap, not a commitment.

Cash and cash equivalents were $670 million on Sept. 30, down from $1.58 billion at Dec. 31, 2025. Long-term debt was $5.33 billion against $7.47 billion. The company says it repaid approximately $2.1 billion of debt in 2026 in connection with the EDS spin-off. Third-quarter interest expense fell to $59 million from $88 million.

What the guidance requires

Fourth-quarter net sales are guided to $3.11 billion to $3.21 billion. Full-year net sales are guided to $12.65 billion to $12.75 billion. Full-year adjusted EBITDA guidance is $2.31 billion to $2.37 billion at an 18.4% margin. Fourth-quarter adjusted EBITDA is guided to $582 million to $642 million at a 19.4% margin, prepared at the midpoint of the range.

Full-year adjusted net income per share is guided to $5.60 to $5.80. Free cash flow is guided to $625 million to $675 million. Free cash flow was $44 million through nine months. OptimistFi's calculation puts the implied fourth-quarter figure at $581 million to $631 million, far above the third quarter's result.

Why it matters

OptimistFi has argued that Aptiv works if automakers keep outsourcing more vehicle architecture to it. The company must also restore supplier margins and turn content growth into cash. This quarter gives mixed evidence. Sales grew and Engineered Components expanded. But the margin and nine-month operating cash flow both moved the wrong way.

The quarter does not yet prove a margin recovery. Guidance asks for both a higher margin and a large cash step-up in a single quarter. The company's adjusted figures also exclude items such as restructuring and EDS separation costs.

What's next

Aptiv's fourth-quarter and full-year 2026 results are the next test against the net sales and free cash flow guidance. A fourth quarter inside the guided adjusted EBITDA range, with free cash flow near the implied level, would support the recovery case. A margin that stays near the third-quarter level would weaken it.

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