Company: APTV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001521332-25-000051
Chunk: 248

Company: Aptiv PLC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 248
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 and commodities or manufacturing and engineering variances; and

•Other—including restructuring costs and any remaining variances not included in Volume, net of contractual price reductions or Operational performance.

The automotive technology and component supply industry is traditionally subject to inflationary pressures with respect to raw materials and labor which may place operational and profitability burdens on the entire supply chain. For instance, the industry has recently been subjected to increased pricing pressures, specifically in relation to copper and petroleum-based resin products, which have experienced significant volatility in price. We have also been impacted globally by increased overall inflation as a result of a variety of global trends. For example, the rapidly evolving trade policies and tariff actions could result in increased pricing pressures on our global supply chain, which could adversely affect our business and financial results. In addition, we expect semiconductor supply cost and commodity cost volatility to have a continual impact on future earnings and/or operating cash flows. Management continues to seek to mitigate both inflationary pressures and our material-related cost exposures using a number of approaches, including combining purchase requirements with customers and/or other suppliers, using alternate suppliers or product designs, negotiating cost reductions and/or commodity cost contract escalation clauses into our vehicle manufacturer supply contracts and hedging. We have also negotiated, and will continue to negotiate, price increases with our customers in response to the aforementioned increased overall inflation and global supply chain disruptions.

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Three and Nine Months Ended September 30, 2025 versus Three and Nine Months Ended September 30, 2024

The results of operations for the three and nine months ended September 30, 2025 and 2024 were as follows: Three Months Ended September 30,Nine Months Ended September 30, 2025 2024 Favorable/(unfavorable)2025 2024 Favorable/(unfavorable) (dollars in millions)Net sales$5,212 $4,854 $358 $15,245 $14,806 $439 Cost of sales4,194 3,951 (243)12,310 12,057 (253)Gross margin1,018 19.5%903 18.6%115 2,935 19.3%2,749 18.6%186 Selling, general and administrative433 331 (102)1,223 1,102 (121)Amortization52 53 1 156 159 3 Restructuring60 16