Aptiv Reports Q2 Earnings with Mixed Results Amid Tariff Pressures

On July 31, Irish automotive parts supplier Aptiv announced its financial results for the first half of the year, with revenue of $10 billion, up 1% year-over-year. Operating income was $934 million, an 8.6% increase from $860 million in the same period last year. However, net income fell to $382 million, down from $1.156 billion a year earlier, and diluted earnings per share were $1.70, lower than $4.24 last year. The net profit margin was 3.8%, down from 11.6% in the previous year. In the second quarter, Aptiv reported revenue of $5.2 billion, a 3% year-over-year increase, exceeding analysts' expectations of $5.09 billion. Operating income reached $486 million, up 10.2% from $441 million last year, while net income was $393 million compared to $938 million a year ago. Diluted earnings per share were $1.80, down from $3.47 last year, and the net profit margin was 7.5%, also a decline from 18.6% the previous year. Aptiv provided financial guidance for the third quarter and the full year of 2025, considering the impact of recent U.S. tariffs, but not additional tariffs or trade barriers that may arise in the U.S. or elsewhere. Despite facing tariff pressures and rising costs, Aptiv expects net sales for the third quarter to be between $4.95 billion and $5.1 billion, with operating income between $440 million and $490 million. Net income is projected to be between $290 million and $330 million, with a net profit margin of 5.9% to 6.5% and an operating profit margin of 8.9% to 9.6%. For the full year of 2025, Aptiv expects net sales to be between $20 billion and $20.3 billion, operating income between $1.83 billion and $1.93 billion, and net income between $975 million and $1.045 billion, with net profit margins of 4.9% to 5.1% and operating profit margins of 9.2% to 9.5%. The demand for advanced driver assistance features and infotainment systems has supported companies like Aptiv. However, the tariff policies introduced by former President Trump have impacted the import-reliant automotive sector. Global demand for electric vehicles has also slowed, prompting Aptiv to implement cost-cutting measures last year. Aptiv sources parts globally for its automotive business, with major clients including the Detroit Three automakers, Volkswagen Group, and BMW. Following this report, Aptiv's stock price rose nearly 3%.