A maker of the brains and wiring of modern cars, Aptiv designs sensors, compute platforms, and connection systems that power safety features and electric vehicles for the world's largest automakers. It began as a General Motors parts division in 1994, was spun off as Delphi in 1999, and took its current name in 2017 after splitting from its engine business. The name blends "apt" and "adaptive," and the company plans to spin off its electrical-distribution arm as a separate firm called Versigent by 2026.
Aptiv Q2 2026 gross margin rose to 23.7% as Engineered Components segment grew 5%.
reached its highest level in the reported quarterly series at 23.7%. rose 2.3% to $3,274M and was $1.17, with the margin gain driven by favorable currency and operational performance in the Engineered Components . The company closed the quarter with margin up and debt cut, ahead of the completed spin-off.
Key takeaways
improved 0.8 points to 23.7%, the highest in the quarterly table, from favorable currency impacts and operational performance. rose 2.3% to $3,274M with 3% volume growth in North America and Asia Pacific partially offset by European declines, outperforming flat global auto production. The Engineered Components sales grew 5% to $1.8B and its rose 22% to $317M on volume, operations, and favorable FX. Intelligent Systems segment sales were flat at $1.5B and Adjusted Operating Income rose 3% to $156M as favorable FX and lower SG&A offset volume and operational headwinds. fell 33% to $62M after debt redemptions, and a $44M gain on debt extinguishment related to the spin-off was recorded in Other Income. was $92M, down 82% , and was $33M, down 92.5%; cash fell to $761M and dropped 31.3% to $5,331M.
Section summaries
Management's Discussion and Analysis
Aptiv Q2 2026 sales rose 2% to $3.3B with gross margin expanding to 23.7%, driven by Engineered Components growth.
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Total increased 2% to $3.3B, with 3% volume growth in North America and Asia Pacific partially offset by European declines, outperforming flat global auto production.
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What changed
The Q1 2026 flag on Q2 after the 1.0pt decline to 18.1% was answered by a 5.6pt increase to 23.7%, the highest in the series. The Q1 flag on after the $1.6B Spin-Off Senior Notes and $500M term loan lifted debt to $9,248M was reversed as debt fell 42.4% to $5,331M in Q2 after redemptions. The FY 2025 flag on completion of the () spin-off by April 1, 2026 was resolved: the $44M debt extinguishment gain confirms the separation closed ahead of this quarter. The Q1 flag on Q2 after a 5.4% rise showed continuation of growth at 2.3%, with European contractual price reductions still a drag. The Q3 2025 flag on further charges found no new this quarter after the $648M charge last year.
What to watch
Track Q3 2026 and volume as European declines persist against North America and Asia Pacific growth. Monitor Q3 2026 trajectory after the 23.7% print to see if the currency and operational gains hold. Follow servicing as fell to $62M post-redemption with $5,331M outstanding. Watch for any post-spin-off restructuring or intangible charges now that is separated.
Engineered Components sales grew 5% to $1.8B and surged 22% to $317M, driven by volume, operational performance, and favorable FX.
Intelligent Systems sales were flat at $1.5B and rose 3% to $156M, as favorable FX and lower SG&A offset volume and operational headwinds.
improved 80 to 23.7%, benefiting from favorable currency impacts and operational performance, while SG&A remained steady at 10.1% of sales.
fell 33% to $62M following debt redemptions, and Other Income included a $44M gain on related to the spin-off.
Available liquidity stood at $3.3B as of June 30, 2026, with $761M in cash and no amounts drawn on the $2.0B .
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to the information concerning our exposures to market risk as stated in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. As described in the Form 10-K, we have currency exposures related to buying, selling and fin…
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There have been no material changes to the information concerning our exposures to market risk as stated in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. As described in the Form 10-K, we have currency exposures related to buying, selling and financing in currencies other than the local functional currencies in which we operate (“transactional exposure”). We also have currency exposures related to the translation of the financial statements of our non-U.S. subsidiaries that use the local currency as their functional currency into U.S. dollars, the Company’s reporting currency (“translational exposure”). As described in Note 13. Derivatives and Hedging Activities to the unaudited consolidated financial statements included in Part I, Item 1 of this report, to manage this risk the Company designates certain qualifying instruments as net investment hedges of certain non-U.S. subsidiaries. The effective portion of the gains or losses on instruments designated as net investment hedges are recognized within the cumulative translation adjustment component of OCI to offset changes in the value of the net investment in these foreign currency-denominated operations.
We are from time to time subject to various actions, claims, suits, government investigations, and other proceedings incidental to our business, including those arising out of alleged defects, alleged breaches of contracts, alleged competition and antitrust matters, product warr…
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We are from time to time subject to various actions, claims, suits, government investigations, and other proceedings incidental to our business, including those arising out of alleged defects, alleged breaches of contracts, alleged competition and antitrust matters, product warranties, alleged intellectual property matters, alleged personal injury claims and employment-related and environmental matters. For a description of risks related to various legal proceedings and claims, see Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025. For a description of our outstanding material legal proceedings, see Note 9. Commitments and Contingencies to the unaudited consolidated financial statements included in this report.
There have been no material changes in risk factors for the Company in the period covered by this report. For information regarding factors that could affect the Company’s results of operations, financial condition and liquidity, see the risk factors discussed in Part I, “Item 1…
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There have been no material changes in risk factors for the Company in the period covered by this report. For information regarding factors that could affect the Company’s results of operations, financial condition and liquidity, see the risk factors discussed in Part I, “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.