Company: APTV
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001521332-25-000040
Chunk: 128

Company: Aptiv PLC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 128
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 (a)FXOperational performanceOtherTotal (dollars in millions)(in millions)Cost of sales$4,211 $4,083 $(128)$(70)$(85)$57 $(30)$(128)Gross margin$997 $968 $29 $26 $(47)$57 $(7)$29 Percentage of net sales19.1 %19.2 %

(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 item in Other above:

•$23 million of increased commodity pass-through costs.

Cost of sales increased $10 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, as summarized below. The Company’s material cost of sales was approximately 50% of net sales for both the six months ended June 30, 2025 and 2024. Six Months Ended June 30,Variance Due To: 20252024Favorable/(unfavorable)Volume (a)FXOperational performanceOtherTotal (dollars in millions)(in millions)Cost of sales$8,116 $8,106 $(10)$(37)$(41)$169 $(101)$(10)Gross margin$1,917 $1,846 $71 $17 $(67)$169 $(48)$71 Percentage of net sales19.1 %18.5 %

(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:

•$53 million of increased commodity pass-through costs;

•Approximately $20 million of increased depreciation, which includes increased long-lived asset impairment charges of $5 million; and

•$15 million of increased warranty costs.

60

Selling, General and Administrative Expense

Three Months Ended June 30,20252024Favorable/(unfavorable)(dollars in millions)Selling, general and administrative expense$406 $405 $(1)Percentage of net sales7.8 %8.0 % Six Months Ended June 30, 20252024Favorable/(