Aptiv PLC (APTV) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

November 3, 2022 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and welcome to the Aptiv Q3 2022 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jessica Kourakos, Vice President of Investor Relations and ESG. Please go ahead.

Jessica Kourakos - VP, IR & ESG

Thank you, Bettina. Good morning, and thank you for joining Aptiv's Third Quarter 2022 Earnings Conference Call. The press release and related tables, along with the slide presentation, can be found on the Investor Relations portion of our website at www.aptiv.com.

Today's review of our financials exclude amortization, restructuring and other special items and will address the continuing operations of Aptiv. The reconciliation between GAAP and non-GAAP measures for our Q3 financials as well as our full year 2022 outlook are included at the back of the slide presentation and the earnings press release.

During today's call, we will be providing certain forward-looking information, which reflects Aptiv's current view of future financial performance and may be materially different for reasons that we cite in our Form 10-K and other SEC filings, including uncertainties posed by the COVID-19 pandemic, the ongoing supply chain disruptions and the conflict between Ukraine and Russia.

Joining us today will be Kevin Clark, Aptiv's Chairman and CEO; and Joe Massaro, CFO and Senior Vice President of Business Operations. Kevin will provide a strategic update on the business, and Joe will cover the financial results in more detail before we open the call to Q&A.

With that, I'd like to turn the call over to Kevin Clark.

Kevin Clark - Chairman and CEO

Thank you, Jessica, and thanks, everyone, for joining us this morning. Beginning on Slide 3. We had a strong third quarter, so let me touch on a few of the highlights. New business bookings totaled over $5 billion, bringing the year-to-date total to over $25 billion, already outpacing last year's record full year amount of $24 billion, and cementing another record year in 2022. Revenue increased 33% to $4.6 billion, representing 9 points of growth over underlying vehicle production, driven by the strength of our safe, green and connected product portfolio.

We continue to execute well despite the constrained environment and macro headwinds. EBITDA and earnings per share totaled $673 million and $1.28, respectively, reflecting flow-through on volume growth and material cost recoveries partially offset by costs related to material inflation and supply chain disruptions. We remain on track to reach this year's target of $500 million of material cost recoveries and $100 million of cost reductions, increasing our profitability and enhancing the resiliency of our business model.