APTVHIGH SIGNALOPERATIONAL10-K

Aptiv is spinning off its Electrical Distribution Systems business into a new public company called Versigent by April 2026, while experiencing a dramatic 91% decline in net income despite maintaining operational cash flow.

This major corporate restructuring represents a strategic pivot that will fundamentally reshape Aptiv's business profile and focus. The spin-off suggests management believes both entities will be more valuable separately, but investors face uncertainty about the post-separation financial performance and market positioning of the remaining Aptiv business.

Comparing 2026-02-06 vs 2025-02-07View on EDGAR →
FINANCIAL ANALYSIS

Aptiv's financial performance deteriorated significantly with net income plummeting 91% from $1.8B to $165M and operating income falling 36% to $1.2B, while the company sharply reduced share buybacks by 90% to $397M and nearly doubled dividend payments to $63M. Despite the earnings decline, the company maintained strong liquidity with cash increasing 18% to $1.9B and current assets growing 12% to $8.7B, though operating cash flow declined 11% to $2.2B. The financial profile suggests a company managing through a major transition while preserving cash for the upcoming separation, with the dramatic earnings decline likely reflecting one-time separation costs and operational challenges.

FINANCIAL STATEMENT CHANGES
Dividends Paid
Cash Flow
+96.9%
$32.0M→$63.0M

Dividend payments increased 96.9% — management confidence in sustained cash generation.

Net Income
P&L
-90.8%
$1.8B→$165.0M

Net income declined 90.8% — review whether driven by operations, interest costs, or non-recurring items.

Share Buybacks
Cash Flow
-90.3%
$4.1B→$397.0M

Buyback activity reduced 90.3% — capital being redeployed elsewhere or cash conservation underway.

Capital Expenditure
Cash Flow
+38.1%
$611.0M→$844.0M

Capital expenditure jumped 38.1% — major investment cycle underway; assess returns on deployment.

Operating Income
P&L
-35.7%
$1.8B→$1.2B

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Net Interest Income
P&L
-31%
$87.0M→$60.0M

Net interest income declined 31% — margin compression from rate changes or funding cost increases.

Cash & Equivalents
Balance Sheet
+17.7%
$1.6B→$1.9B

Cash grew 17.7% — improving liquidity position supports investment and shareholder returns.

SG&A Expense
P&L
+14.2%
$1.5B→$1.7B

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Current Assets
Balance Sheet
+11.7%
$7.8B→$8.7B

Current assets grew 11.7% — improving short-term liquidity or inventory/receivables build.

Operating Cash Flow
Cash Flow
-10.7%
$2.4B→$2.2B

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

LANGUAGE CHANGES
NEW — 2026-02-06
PRIOR — 2025-02-07
ADDED
The number of the registrant s ordinary shares outstanding, $0.01 par value per share as of January 30, 2026, was 212,748,401 .
Following the reorganization transaction, Aptiv Swiss Holdings (i) replaced Old Aptiv as a guarantor of the borrowers obligations under the Credit Agreement, and (ii) succeeded to Old Aptiv as an obligor under the senior notes and the junior notes, and New Aptiv became a guarantor under the Credit Agreement (and will act as the parent entity thereunder) and the indentures.
On January 22, 2025, we announced our intention to pursue a separation of our Electrical Distribution Systems business into a new, independent publicly traded company, through a transaction expected to be treated as a tax-free spin-off to its shareholders (the Separation ).
The Company plans to complete the Separation by April 1, 2026, subject to customary closing conditions.
The new publicly traded Electrical Distributions Systems spin-off company will be named Versigent, and will trade on the NYSE under the symbol VGNT following the distribution date.
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REMOVED
The number of the registrant s ordinary shares outstanding, $0.01 par value per share as of January 31, 2025, was 229,446,368 .
Following the reorganization transaction, Aptiv Swiss Holdings replaced Old Aptiv as an obligor under the Credit Agreements, the senior notes and the junior notes, and New Aptiv became a guarantor under the Credit Agreements (and will act as the parent entity thereunder) and the indentures.
Aptiv is a global technology company focused on making the world safer, greener and more connected.
We deliver end-to-end mobility solutions, enabling our customers transition to a more electrified, software-defined future.
We design and manufacture vehicle components and provide electrical, electronic and active safety technology to the global automotive and commercial vehicle markets, creating the software and hardware foundation for vehicle features and functionality.
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