Aptiv Aims for $31B in New Business Awards by 2025 Amidst Earnings Call Insights and Market Uncertainty

Aptiv PLC targets $31B in new business awards for 2025, driven by strong market trends in electrification, automation, and digitalization. The company reported record Q2 2025 results, with management citing its business foundation and alignment with emerging trends as key factors. Aptiv is also navigating uncertain demand while advancing its EDS spin-off.

Aptiv PLC (APTV) has set an ambitious target of securing $31 billion in new business awards for the year 2025, driven by strong market trends in electrification, automation, and digitalization. The company reported record second quarter (Q2) 2025 results, with management citing its business foundation and alignment with emerging trends as key drivers. Aptiv is also navigating uncertain demand while advancing its electrical distribution systems (EDS) spin-off.

During the Q2 2025 earnings call, Kevin P. Clark, President, Chairman, and CEO, highlighted the company's alignment with the trends of electrification, automation, and digitalization. He reported that the company's second quarter revenue grew by 2%, with North American vehicle production contributing significantly to this growth. Operating income reached $628 million, and earnings per share (EPS) increased by 34% to $2.12. New business bookings totaled $5.4 billion, including $1.8 billion in Advanced Safety and User Experience (ASUX), $2.4 billion in Engineered Components Group (ECG), and $1.2 billion in EDS [1].

Varun Laroyia, Executive VP and CFO, noted that revenues were a record $5.2 billion, up 2% on an adjusted basis. He also highlighted that operating income totaled $628 million, and earnings per share reached $2.12, an increase of 34%. Laroyia emphasized that the company generated $510 million of operating cash flow in the second quarter and is continuing efforts to pay down debt and maintain balance sheet flexibility.

The full-year 2025 revenue outlook is $20.15 billion at the midpoint, representing a 2% adjusted growth rate. Adjusted EBITDA and operating income are forecast at $3.19 billion and $2.42 billion at the midpoint, respectively. Adjusted EPS guidance is $7.30 to $7.60, which is $0.15 higher than the prior range due to a lower share count and favorable net interest expense. Operating cash flow for the year is expected to be $2 billion, $100 million lower than prior guidance, reflecting accelerated actions related to the EDS separation. Third quarter revenue growth is expected to be 3% at the midpoint, with adjusted EPS between $1.60 and $1.80 [1].

Management emphasized a "period of uncertainty, driven by evolving trade and regulatory policies," and maintained a "cautious" view on potential consumer demand weakening in the second half. Despite these uncertainties, Aptiv remains confident about meeting its $31 billion new business awards target and is focused on navigating macroeconomic and regulatory uncertainties in the second half of 2025 through operational agility, supply chain resilience, and strategic portfolio actions, with a cautious outlook on consumer demand and external market risks [1].

In a separate report, Interact Analysis highlighted five trends driving demand for ultra-low voltage (ULV) motors and drives, which are crucial for Aptiv's growth. These trends include the growth of mobile robotics, warehouse automation recovery, semiconductor manufacturing expansion, increasing automation of small axes, and continued replacement of pneumatic systems [2].

References:
[1] https://seekingalpha.com/news/4475791-aptiv-targets-31b-in-new-business-awards-for-2025-while-advancing-eds-spin-and-navigating
[2] https://www.automation.com/en-us/articles/july-2025/ultra-low-voltage-five-trends-driving-demand