Company: APTV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001521332-25-000051
Chunk: 133

Company: Aptiv PLC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 2
Chunk 133
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, manufacturing overhead, freight, fluctuations in foreign currency exchange rates, product engineering, design and development expenses, depreciation, warranty costs and other operating expenses. Gross margin is revenue less cost of sales and gross margin percentage is gross margin as a percentage of net sales.

Cost of sales increased $243 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, as summarized below. The Company’s material cost of sales was approximately 50% of net sales for both the three months ended September 30, 2025 and 2024.

 Three Months Ended September 30,Variance Due To: 20252024Favorable/(unfavorable)Volume (a)FXOperational performanceOtherTotal (dollars in millions)(in millions)Cost of sales$4,194 $3,951 $(243)$(177)$(92)$43 $(17)$(243)Gross margin$1,018 $903 $115 $108 $(29)$43 $(7)$115 Percentage of net sales19.5 %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 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