Company: APTV
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001521332-25-000040
Chunk: 241

Company: Aptiv PLC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 241
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 declines in Europe, compared to increased global automotive production of 3% (down 1% on an AWM basis). Our net sales also reflect the impact of contractual price reductions, net of price recoveries, of $30 million, and unfavorable foreign currency impacts, primarily related to the Chinese Yuan Renminbi and South Korean Won, partially offset by the Euro.

Cost of Sales

Cost of sales is primarily comprised of material, labor, 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 $128 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, as summarized below. The Company’s material cost of sales was approximately 50% of net sales for both the three months ended June 30, 2025 and 2024.

 Three Months Ended June 30,Variance Due To: 20252024Favorable/(unfavorable)Volume (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 $(