1) Strategic Portfolio Evolution
- Aptiv successfully completed the separation of its Electrical Distribution Systems (EDS) business into a new independent company, Versigent, enhancing its focus on advanced software and hardware solutions.
- The company aims to diversify its end market mix and accelerate revenue growth, with approximately 25% of its business now in non-automotive markets.
- Significant progress has been made in penetrating leading OEMs in Japan, Korea, India, and China, with strong momentum in local Chinese OEMs.

2) Financial Performance Overview
- Total revenue for Q1 2026 was over $5 billion, reflecting a 1% increase YoY, despite a decline in underlying vehicle production.
- Adjusted EBITDA was approximately $752 million, with a record earnings per share of $1.71, up $0.02 from the prior year.
- New business awards totaled $7 billion, with $4.6 billion in Q1 alone, marking a 15% increase from the 2025 quarterly average.

3) Segment Results and Growth Drivers
- Intelligent Systems revenue was $1.4 billion, down 1% YoY, impacted by program cancellations and supply chain disruptions.
- Engineered Components revenue was flat at $1.7 billion, with a 6% growth in non-automotive markets offset by a 2% decline in automotive.
- The software and services portfolio experienced double-digit growth, contributing to overall revenue diversification.

4) Challenges and Operational Headwinds
- The company faces ongoing headwinds from rising input costs, particularly due to geopolitical tensions affecting commodity prices.
- FX impacts and commodity inflation have pressured margins, with adjusted EBITDA margins declining by 90 basis points YoY.
- Aptiv anticipates approximately $100 million in separation costs for New Aptiv in Q2, alongside a $362 million negative free cash flow in Q1 due to transaction payments.

5) Guidance and Future Outlook
- Aptiv maintains its full-year 2026 guidance, expecting adjusted revenue growth of 4% at the midpoint, driven by improved vehicle production and new program launches.
- Adjusted EBITDA is projected at $2.4 billion with an EBITDA margin of 18.6%.
- The company is confident in its ability to offset input cost inflation through operational initiatives and customer pass-throughs, while also focusing on capital allocation for acquisitions and shareholder returns.

Bottom line: Aptiv's strategic separation and focus on advanced technology solutions position it well for future growth, despite current operational challenges and inflationary pressures. The company remains committed to enhancing shareholder value through diversified revenue streams and strong execution in its core and emerging markets.