Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 72

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 7
Chunk 72
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 expected to be treated as a tax-free spin-off to Aptiv’s shareholders. The Company plans to complete the separation by March 31, 2026, subject to customary closing conditions.

Business Strategy

We believe the Company is well-positioned for growth from the industry’s accelerating transition to software-defined vehicles, the commercialization of active safety, the adoption of autonomous driving technologies, enhanced user experiences and connected services, and providing the software, advanced computing platforms and networking architecture required to do so. We have successfully created a competitive cost structure while investing in research and development to grow our product offerings, which are aligned with the high-growth industry mega-trends, and re-aligned our manufacturing footprint into an efficient, low-cost regional service model, focused on increasing our profit margins.

Our 2024 performance reflects our solid execution and cost reduction initiatives despite declines in volume and the global inflationary environment. Our recent financial and business achievements include the following:

•Generating new business awards of approximately $31 billion, based on expected volumes and prices, validating our industry leading portfolio of advanced technologies tied to the accelerating megatrends in our industry

•Delivering strong earnings growth over the prior year despite declines in volume and the global inflationary environment

•Producing $1.8 billion of operating income, or $2.4 billion of adjusted operating income, and cash flow from operations of $2.4 billion, demonstrating strong operating execution in the face of continuing material cost inflation

◦Delivering expanded operating income margin of 9.3%, or adjusted operating income margin of 12.0%, driven by strong operating performance and cost reduction initiatives 

•Funding $4.1 billion in share repurchases, including $3.0 billion under the terms of the Company’s accelerated share repurchase program (“ASR”)

•Refinancing over $1.4 billion in near-term debt maturities and successfully maintaining a well-laddered debt maturity profile, providing financial flexibility and reducing short-term refinancing risks

•Restructuring our Motional AD LLC (“Motional”) joint venture ownership, reducing our common equity interest in Motional from 50% to 15%, eliminating future cash funding requirements while maintaining access to insights and market intelligence 

•Continuing our relentless focus on cost structure and operational optimization

◦Maximizing our operational flexibility and profitability at all points in the normal automotive business cycle, by having approximately 97% of our hourly workforce based in best cost countries, and approximately 31% of our hourly workforce composed