Aptiv PLCAPTV
Aptiv PLC Revenue Disclosure
REVENUE
Refer to Note 2. Significant Accounting Policies for a complete description of the Company’s revenue recognition accounting policy.
Nature of Goods and Services
The principal activity from which the Company generates its revenue is the manufacturing of production parts for OEM customers. Aptiv recognizes revenue for production parts at a point in time, rather than over time, as the performance obligation is satisfied when customers obtain control of the product upon title transfer and not as the product is manufactured or developed.
Although production parts are highly customized with no alternative use, Aptiv does not have an enforceable right to payment as customers have the right to cancel a product program without a notification period. The amount of revenue recognized is based on the purchase order price and adjusted for revenue allocated to variable consideration (i.e., estimated rebates and price discounts), as applicable. Customers typically pay for production parts based on customary business practices with payment terms averaging 60 days.
The Company also generates revenue from the sale of software licenses, post delivery support and maintenance and professional software services. The Company generally recognizes revenue for software licenses and professional software services at a point in time upon delivery or when the services are provided. Revenue from post delivery support and maintenance for software contracts is generally recognized over time on a ratable basis over the contract term. Under certain of these arrangements, timing may differ between revenue recognition and billing.
Disaggregation of Revenue
Revenue generated from Aptiv’s operating segments is disaggregated by primary geographic market and by core product line in the following tables for the years ended December 31, 2025, 2024 and 2023. Information concerning geographic market reflects the manufacturing location.
Revenue by geographic market for the years ended December 31, 2025, 2024 and 2023 is as follows:
| For the Year Ended December 31, 2025: | Advanced Safety and User Experience | Engineered Components Group | Electrical Distribution Systems | Eliminations and Other | Total | ||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Geographic Market | |||||||||||||||||||||||||||||
| North America | $ | 2,269 | $ | 2,094 | $ | 3,566 | $ | (361) | $ | 7,568 | |||||||||||||||||||
| Europe, Middle East and Africa | 2,554 | 2,141 | 2,079 | (208) | 6,566 | ||||||||||||||||||||||||
| Asia Pacific | 969 | 2,291 | 2,897 | (285) | 5,872 | ||||||||||||||||||||||||
| South America | — | 136 | 276 | (20) | 392 | ||||||||||||||||||||||||
| Total net sales | $ | 5,792 | $ | 6,662 | $ | 8,818 | $ | (874) | $ | 20,398 | |||||||||||||||||||
| For the Year Ended December 31, 2024: | Advanced Safety and User Experience | Engineered Components Group | Electrical Distribution Systems | Eliminations and Other | Total | ||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Geographic Market | |||||||||||||||||||||||||||||
| North America | $ | 2,050 | $ | 2,094 | $ | 3,318 | $ | (321) | $ | 7,141 | |||||||||||||||||||
| Europe, Middle East and Africa | 2,655 | 2,025 | 1,977 | (168) | 6,489 | ||||||||||||||||||||||||
| Asia Pacific | 1,086 | 2,118 | 2,782 | (264) | 5,722 | ||||||||||||||||||||||||
| South America | — | 147 | 232 | (18) | 361 | ||||||||||||||||||||||||
| Total net sales | $ | 5,791 | $ | 6,384 | $ | 8,309 | $ | (771) | $ | 19,713 | |||||||||||||||||||
| For the Year Ended December 31, 2023: | Advanced Safety and User Experience | Engineered Components Group | Electrical Distribution Systems | Eliminations and Other | Total | ||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Geographic Market | |||||||||||||||||||||||||||||
| North America | $ | 1,860 | $ | 2,094 | $ | 3,601 | $ | (360) | $ | 7,195 | |||||||||||||||||||
| Europe, Middle East and Africa | 2,713 | 2,084 | 2,112 | (171) | 6,738 | ||||||||||||||||||||||||
| Asia Pacific | 1,122 | 2,049 | 2,866 | (340) | 5,697 | ||||||||||||||||||||||||
| South America | — | 188 | 253 | (20) | 421 | ||||||||||||||||||||||||
| Total net sales | $ | 5,695 | $ | 6,415 | $ | 8,832 | $ | (891) | $ | 20,051 | |||||||||||||||||||
Revenue by core product line for the years ended December 31, 2025, 2024 and 2023 is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Active Safety | $ | 3,049 | $ | 2,932 | $ | 2,522 | |||||||||||
| Smart Vehicle Compute and Software | 562 | 506 | 506 | ||||||||||||||
| User Experience and Other | 2,243 | 2,412 | 2,723 | ||||||||||||||
| Eliminations | (62) | (59) | (56) | ||||||||||||||
| Advanced Safety and User Experience | 5,792 | 5,791 | 5,695 | ||||||||||||||
| Engineered Components Group | 6,662 | 6,384 | 6,415 | ||||||||||||||
| Electrical Distribution Systems | 8,818 | 8,309 | 8,832 | ||||||||||||||
| Eliminations | (874) | (771) | (891) | ||||||||||||||
| Total net sales | $ | 20,398 | $ | 19,713 | $ | 20,051 | |||||||||||
Contract Balances
Contract liabilities solely consist of deferred revenue. As of December 31, 2025 and 2024, the balance of contract liabilities was $90 million (of which $84 million was recorded in other current liabilities and $6 million was recorded in other long-term liabilities) and $124 million (of which $111 million was recorded in other current liabilities and $13 million was recorded in other long-term liabilities), respectively. The decrease in the contract liabilities balance was primarily driven by $106 million of revenues recognized during the year ended December 31, 2025 that were included in the contract liability balance as of December 31, 2024, partially offset by cash payments received or due in advance of the performance obligation being satisfied.
Contract assets are primarily comprised of unbilled receivables, which consist of amounts related to the Company’s unconditional right to consideration for completed performance obligations that have not been invoiced. As of December 31, 2025 and 2024, the balance of contract assets was $160 million (of which $68 million was recorded in other current assets and $92 million was recorded in other long-term assets) and $130 million (of which $65 million was recorded in other current assets and $65 million was recorded in other long-term assets), respectively.
Remaining Performance Obligations
For production parts, customer contracts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer. There are no contracts for production parts outstanding beyond one year. Aptiv does not enter into fixed long-term supply agreements.
As permitted, Aptiv does not disclose information about remaining performance obligations that have original expected durations of one year or less for production parts.
Customer contracts for sales of software and related services are generally represented by a sales contract or purchase order with contract durations typically ranging from one to three years. Remaining performance obligations include contract liabilities and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is based on the standalone selling price. The value of the transaction price allocated to remaining performance obligations under software and related service contracts as of December 31, 2025 was approximately $172 million. The Company expects to recognize approximately 65% of remaining performance obligations as revenue in the next twelve months, and the remainder thereafter.
Payments to Customers
From time to time, Aptiv makes payments to customers in conjunction with ongoing business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments. However, certain other payments to customers, or upfront fees, are capitalized as they are directly attributable to a contract, are incremental and management expects the fees to be recoverable. As of December 31, 2025 and 2024, Aptiv has recorded $54 million (of which $14 million was classified within other current assets and $40 million was classified within other long-term assets) and $53 million (of which $10 million was classified within other current assets and $43 million was classified within other long-term assets), respectively, related to these capitalized upfront fees.
Capitalized upfront fees are amortized to revenue based on the transfer of goods and services to the customer for which the upfront fees relate, which typically range from three to five years. There have been no impairment losses in relation to the costs capitalized. The amount of amortization to net sales was $10 million, $17 million and $27 million for the years ended December 31, 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 6, 2024 | |
| 2022 | Feb 8, 2023 | |
| 2021 | Feb 7, 2022 | |
| 2020 | Feb 8, 2021 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.