Aptiv PLC (NYSE:APTV) Q3 2024 Earnings Conference Call October 31, 2024 8:00 AM ET

Company Participants

Kevin Clark - Chairman and CEO
Joe Massaro - Vice Chairman and CFO\
Jane Wu - VP, IR and Corporate Development

Conference Call Participants

Chris McNally - Evercore ISI
John Murphy - Bank of America
Joe Spak - UBS
Emmanuel Rosner - Wolfe Research
Mark Delaney - Goldman Sachs
Dan Levy - Barclays
Tom Narayan - RBC Capital Markets
James Picariello - BNP Paribas
Colin Langan - Wells Fargo

Operator

Good day and welcome to the Aptiv Q3 2024 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jane Wu, Vice President of Investor Relations and Corporate Development. Please go ahead.

Jane Wu

Thank you, Jess. Good morning and thank you for joining Aptiv's third quarter 2024 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 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 third quarter results, as well as our 2024 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 that 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.

Joining us today will be Kevin Clark, Aptiv's Chairman and CEO; and Joe Massaro, Vice Chair and Chief Financial Officer. 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

Thanks, Jane, and thanks, everyone, for joining us this morning. Let's begin on Slide 3. During the quarter, we were busy executing on a record number of year-to-date vehicle program launches, which were more than offset by further weakness in production schedules from the (decrease) in North America, especially with a large European-based OEM, and from select global OEMs in Europe, and continued weakness in production schedules with the multinational JVs in China. As a result, third quarter revenues declined 6% as we experienced more headwinds than previously anticipated, weighted more towards our electrical distribution product line. Despite the dynamic market environment, we delivered record third quarter operating income and margin, as well as an all-time record for quarterly earnings per share, reflecting our continued strong operating performance. EBITDA and operating margins expanded 180 basis points and 120 basis points, respectively, and EPS increased 41% versus the prior year, benefiting from strong operating performance, as well as completion of the Motional restructuring, and a lower share count.