Aptiv Reaccelerates Revenue Growth Following Versigent Spin-off
The automotive technology supplier projected a full-year adjusted EBITDA margin of 18.4% for 2026.
Aptiv (APTV), the automotive technology supplier, reported second-quarter revenue of $3.3 billion, a 2% increase year over year.
The result marked a reacceleration in growth from the 1% adjusted revenue increase recorded in the first quarter. The period followed a significant structural shift as the company completed the spin-off of its Electrical Distribution Systems segment into Versigent PLC on April 1, 2026.
Profitability margins improved across key metrics. Adjusted EBITDA margin expanded to 18.7%, up from 17.1% in the prior year period and a rise from 14.8% in the first quarter. Adjusted operating income margin increased to 14.4%, compared to 12.8% in the prior year and 11.0% in the first quarter.
Regional performance was mixed. North America led growth with a 10% increase, while Asia Pacific rose 6%, which included a 5% increase in China. Conversely, revenue declined in EMEA by 8% and in South America by 4%.
The company expanded its footprint beyond traditional automotive sectors. Aptiv achieved double-digit growth in non-automotive revenues and secured a new commercial win in the drone market in July 2026.
Free cash flow for the quarter was $12 million. This represented a decline from $219 million in the prior year period, though it was an improvement over the negative $362 million reported in the first quarter.
Aptiv used a $1.9 billion cash dividend from the Versigent spin-off to redeem $1,847 million of senior notes in April 2026. The company also accelerated share repurchases, retiring 4.1 million shares for $250 million, compared to 1.0 million shares for $75 million in the first quarter.
Full-year 2026 guidance for adjusted EBITDA is projected between $2,310 million and $2,370 million, with an expected margin of 18.4%.