Aptiv PLC
CEO : Mr. Kevin P. Clark
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 12.2% YoY | 69.2% | 1333.3% | 2023-02-02 |
Kevin Clark says,
Record New Business Bookings and Revenue Growth
- Aptiv had a record $32 billion of new business bookings in 2022, driven by significant active safety, high-voltage and smart vehicle architecture awards.
- $17.5 billion of revenues, representing 15 points of growth over vehicle production during the quarter, bringing full-year growth over market to 11 points.
- Strong revenue growth and customer recoveries were partially offset by costs related to COVID and ongoing supply chain disruptions.
Enhancement of Portfolio and Operating Model
- Aptiv enhanced its portfolio of safe, green and connected technologies with the additions of Wind River and Intercable Automotive.
- Aptiv is investing organically and inorganically to position itself for the future of software-defined electrified vehicles.
- Aptiv implemented structural cost reductions that will save roughly $100 million in annual expense, which will take full effect throughout 2023.
- Further strengthening our One Aptiv account-based model, positioning us to engage earlier in the development process and, therefore, more effectively design, specify and deliver optimized solutions across our portfolio.
- Enhanced regional operating model by increasing local capabilities and empowering those closest to the customer to address their needs quickly and efficiently.
Industry-Leading Portfolio and New Business Bookings Performance
- Advanced safety and user experience bookings totaled a record $12 billion, driven by $4.2 billion of customer awards for our smart vehicle architecture solutions across three different OEMs.
- Active safety bookings of $5.2 billion, representing a combination of next-gen hardware and perception software building blocks as well as full system turnkey awards.
- Signal Power Solutions new business bookings reached a record $20 billion for the year, the result of strong growth in low voltage vehicle architecture.
- A record $4.2 billion of high-voltage electrification bookings including awards from several North American, European and China-based OEMs, representing both traditional and new mobility providers.
- Aptiv has a clear line of sight to roughly $32 billion of business awards during 2023.
Segment Highlights
- Advanced Safety & User Experience segment became the first technology provider to successfully launch a full stack hands-free Level 2+ ADAS system with a European-based global OEM.
- Perfectly positioned with an industry-leading portfolio of electrification solutions that span multi-voltage distribution, connection and cable management.
- High-voltage revenues increased 33% over the prior year, 28 points over vehicle production.
- Turnkey Gen 6 ADAS platform, including differentiating KPIs and a public road demonstration.
- Over 400 customers, 150 partners and 75 suppliers visiting the Aptiv CES pavilion in 2022.
Outlook for 2023
- Aptiv expects a very strong year for new business bookings, revenue growth over market and margin expansion.
- Continued investment in advanced technologies and capabilities that drive operational excellence, resulting in sustainable value creation.
- Expected 8 to 10 points of growth over vehicle production, and 140 basis points of operating margin expansion and strong cash flow growth.
Joe Massaro says,
Q4 2022 Financial Performance
- Revenues of $4.6 billion, up 19% over prior year
- Adjusted EBITDA and operating income were $674 million and $523 million, respectively
- EPS in the quarter was $1.27, an increase of 87% from the prior year
- Operating cash flow totaled $933 million and capital expenditures were $178 million for the quarter
Q4 2022 Revenue Growth
- Growth was broad-based across all regions, with revenues up in North America by 21%, Europe by 22%, and China by 8%
- Price downs net cost recoveries and commodities were favorable by approximately $100 million
- Foreign exchange negatively impacted revenue by approximately $300 million
2023 Global Vehicle Production Forecast
- Forecasting a decrease of 1% for the year reflecting approximately 85 million units of global production
- Regionally, North America is flat at approximately 15 million units; Europe is down 2% or approximately 16 million units; and China is flat at approximately 27 million units
2023 Full Year Outlook
- Revenue in the range of $18.7 billion to $19.3 billion, up 8% at the midpoint compared to 2022 with 9 points of growth over market
- EBITDA and operating income are expected to be approximately $2.7 billion and $2 billion at the midpoint
- Adjusted earnings per share, excluding amortization, is estimated to be $4.25
Capital Deployment in 2023
- Continuing organic investments in the business to support the portfolio of advanced technologies and record new business awards
- Executing M&A strategy and focusing on transactions that enhance scalability, accelerate speed to market with relevant technologies, and access new markets
- Opportunistic in share buybacks, returning cash to shareholders
2023 Revenue and Operating Income Guidance
- Expect margin expansion of 110 basis points before the benefit of acquisitions, driven by continued strong flow-through on incremental volumes of approximately 30%
- Supply chain disruption costs estimated to be $180 million in 2023
- Wind River and Intercable expected to contribute approximately $700 million for the year
Q & A sessions,
Disruption Costs
- North of $300 million of disruption costs for 2022
- $180 million of COVID and disruption costs in the P&L for 2023
Bookings
- Line of sight to another $32 billion of bookings in 2023
- Mix should be generally consistent with 2022
Segment Growth
- ASUX at around 12% growth over market full year
- SPS at about 8% growth over market full year
Margin Cadence
- SPS in that 11% to 12% range, and ASUX in that 8% to 9% range, full year OI margin
Growth Areas
- High voltage business at north of 30%
- Active safety close to 30% growth in 2023
- Infotainment business to grow high single digits in 2023
Supply Chain Disruptions
- Continued disruptions from specific semiconductor suppliers in 2023 and periodic surprises
- Consciously absorbing a portion of the cost near term and going back to customers for relief once issues have been addressed
No bad stock 