APTVHIGH SIGNALOPERATIONAL10-K

Aptiv announced a major business separation spinning off its Electrical Distribution Systems business as "Versigent" by April 2026, while experiencing a severe 91% decline in net income despite increased capital investments.

This represents a fundamental transformation of Aptiv's business model, reducing the company's scope while potentially unlocking shareholder value through the tax-free spinoff. The dramatic shift from aggressive share buybacks ($4.1B to $397M) to substantial separation costs ($178M) and increased capex suggests management is prioritizing strategic repositioning over immediate shareholder returns.

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, while gross profit declined 27% and operating income fell 36%. However, the company strengthened its balance sheet with cash increasing 18% to $1.9B and doubled dividend payments, suggesting confidence in future cash generation. The dramatic reduction in share buybacks combined with 38% higher capital expenditure indicates a strategic pivot toward investment and restructuring rather than capital returns, likely driven by the upcoming business separation.

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.

Gross Profit
P&L
-26.7%
$2.6B→$1.9B

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

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.

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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