v3.25.2
Revenue
 6 Months Ended
Jun. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue 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 three and six months ended June 30, 2025 and 2024. Information concerning geographic market reflects the manufacturing location.
Revenue by geographic market for the three and six months ended June 30, 2025 and 2024 is as follows:
For the Three Months Ended June 30, 2025:Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceEliminations and OtherTotal
(in millions)
Geographic Market
North America$921 $537 $572 $(95)$1,935 
Europe, Middle East and Africa555 575 695 (62)1,763 
Asia Pacific667 575 240 (66)1,416 
South America63 36 — (5)94 
Total net sales$2,206 $1,723 $1,507 $(228)$5,208 
For the Three Months Ended June 30, 2024:Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceEliminations and OtherTotal
(in millions)
Geographic Market
North America$855 $548 $554 $(80)$1,877 
Europe, Middle East and Africa519 526 714 (52)1,707 
Asia Pacific633 512 286 (58)1,373 
South America58 40 — (4)94 
Total net sales$2,065 $1,626 $1,554 $(194)$5,051 

For the Six Months Ended June 30, 2025:Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceEliminations and OtherTotal
(in millions)
Geographic Market
North America$1,742 $1,049 $1,108 $(181)$3,718 
Europe, Middle East and Africa1,069 1,079 1,354 (113)3,389 
Asia Pacific1,303 1,110 469 (129)2,753 
South America116 66 — (9)173 
Total net sales$4,230 $3,304 $2,931 $(432)$10,033 

For the Six Months Ended June 30, 2024:Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceEliminations and OtherTotal
(in millions)
Geographic Market
North America$1,731 $1,084 $1,044 $(166)$3,693 
Europe, Middle East and Africa1,045 1,063 1,407 (96)3,419 
Asia Pacific1,258 996 532 (128)2,658 
South America112 79 — (9)182 
Total net sales$4,146 $3,222 $2,983 $(399)$9,952 
Revenue by core product line for the three and six months ended June 30, 2025 and 2024 are as follows:
Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
 (in millions)
Electrical Distribution Systems$2,206 $2,065 $4,230 $4,146 
Engineered Components Group1,723 1,626 3,304 3,222 
Active Safety807 758 1,550 1,444 
Smart Vehicle Compute and Software138 134 271 252 
User Experience and Other578 676 1,140 1,316 
Eliminations(16)(14)(30)(29)
Advanced Safety and User Experience1,507 1,554 2,931 2,983 
Eliminations(228)(194)(432)(399)
Total net sales$5,208 $5,051 $10,033 $9,952 
Contract Balances
Contract liabilities solely consist of deferred revenue. As of June 30, 2025 and December 31, 2024, the balance of contract liabilities was $121 million (of which $96 million was recorded in other current liabilities and $25 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 $77 million of revenues recognized during the six months ended June 30, 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 June 30, 2025, the balance of contract assets was $156 million (of which $74 million was recorded in other current assets and $82 million was recorded in other long-term assets). As of December 31, 2024, the balance of contract assets was $130 million (of which $65 million was recorded in other current assets and $65 million was recorded in other long-term assets).
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 June 30, 2025 was approximately $188 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 June 30, 2025 and December 31, 2024, Aptiv has recorded $49 million (of which $11 million was classified within other current assets and $38 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 $2 million and $3 million for the three months ended June 30, 2025 and 2024, respectively, and $4 million and $11 million for the six months ended June 30, 2025 and 2024, respectively.