Company: APTV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001521332-25-000051
Chunk: 251

Company: Aptiv PLC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 251
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 item in Other above:

•$10 million of increased commodity pass-through cost.

Cost of sales increased $253 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, as summarized below. The Company’s material cost of sales was approximately 50% of net sales for both the nine months ended September 30, 2025 and 2024.

 Nine Months Ended September 30,Variance Due To: 20252024Favorable/(unfavorable)Volume (a)FXOperational performanceOtherTotal (dollars in millions)(in millions)Cost of sales$12,310 $12,057 $(253)$(214)$(133)$212 $(118)$(253)Gross margin$2,935 $2,749 $186 $125 $(96)$212 $(55)$186 Percentage of net sales19.3 %18.6 %

(a)Presented net of contractual price reductions for gross margin variance.

The increase in cost of sales reflects the impacts of improved operational performance, offset by increased volumes and currency exchange. Cost of sales was also impacted by the following items in Other above:

•$63 million of increased commodity pass-through costs;

•Approximately $20 million of increased depreciation, which includes the absence of long-lived asset impairment charges of $8 million; and

•Approximately $15 million of increased warranty costs.

63

Selling, General and Administrative Expense

Three Months Ended September 30,20252024Favorable/(unfavorable)(dollars in millions)Selling, general and administrative expense$433 $331 $(102)Percentage of net sales8.3 %6.8 % Nine Months Ended September 30, 20252024Favorable/(unfavorable) (dollars in millions)Selling, general and administrative expense$1,223 $1,102 $(121)Percentage of net sales8.0 %7.4 %

Selling, general and administrative expense (“SG&A”) primarily includes administrative expenses, information technology costs, incentive compensation related costs, separation, acquisition and project portfolio costs and selling and marketing expenses. SG&A increased as a percentage of net sales for the three months ended September 30, 2025 compared to 2024, primarily due to $53 million of separation costs and the absence of a credit loss recovery of approximately