v3.26.1
Revenue
6 Months Ended
Jun. 30, 2026
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, 2026 and 2025. Information concerning geographic market reflects the manufacturing location. In the first quarter of 2026, Aptiv realigned the product lines included in its Intelligent Systems segment into two core product lines: Sensors and Compute, and Software and Services. Prior period amounts have been adjusted retrospectively to reflect the change in core product lines, consistent with the current year presentation.
Revenue by geographic market for the three and six months ended June 30, 2026 and 2025 is as follows:
For the Three Months Ended June 30, 2026:Engineered ComponentsIntelligent SystemsEliminations and OtherTotal
(in millions)
Geographic Market
North America$563 $635 $(5)$1,193 
Europe, Middle East and Africa597 588 (5)1,180 
Asia Pacific602 278 (17)863 
South America38 — — 38 
Total net sales$1,800 $1,501 $(27)$3,274 
For the Three Months Ended June 30, 2025:Engineered ComponentsIntelligent SystemsEliminations and OtherTotal
(in millions)
Geographic Market
North America$535 $572 $(8)$1,099 
Europe, Middle East and Africa574 695 (14)1,255 
Asia Pacific573 240 (4)809 
South America36 — — 36 
Total net sales$1,718 $1,507 $(26)$3,199 
For the Six Months Ended June 30, 2026:Engineered ComponentsIntelligent SystemsEliminations and OtherTotal
(in millions)
Geographic Market
North America$1,084 $1,228 $(12)$2,300 
Europe, Middle East and Africa1,154 1,211 (9)2,356 
Asia Pacific1,115 495 (29)1,581 
South America69 — — 69 
Total net sales$3,422 $2,934 $(50)$6,306 
For the Six Months Ended June 30, 2025:Engineered ComponentsIntelligent SystemsEliminations and OtherTotal
(in millions)
Geographic Market
North America$1,046 $1,108 $(14)$2,140 
Europe, Middle East and Africa1,078 1,354 (14)2,418 
Asia Pacific1,108 469 (15)1,562 
South America66 — — 66 
Total net sales$3,298 $2,931 $(43)$6,186 

Revenue by core product line for the three and six months ended June 30, 2026 and 2025 are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Engineered Components$1,800 $1,718 $3,422 $3,298 
Sensors and Compute1,364 1,386 2,668 2,691 
Software and Services152 137 297 270 
Eliminations(15)(16)(31)(30)
Intelligent Systems1,501 1,507 2,934 2,931 
Eliminations(27)(26)(50)(43)
Total net sales$3,274 $3,199 $6,306 $6,186 
Contract Balances
Contract liabilities solely consist of deferred revenue. As of June 30, 2026 and December 31, 2025, the balance of contract liabilities was $74 million (of which $70 million was recorded in other current liabilities and $4 million was recorded in other long-term liabilities) and $90 million (of which $84 million was recorded in other current liabilities and $6 million was recorded in other long-term liabilities), respectively. The decrease in the contract liabilities balance was primarily driven by $58 million of revenues recognized during the six months ended June 30, 2026 that were included in the contract liability balance as of December 31, 2025, 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, 2026, the balance of contract assets was $206 million (of which $107 million was recorded in other current assets and $99 million was recorded in other long-term assets). As of December 31, 2025, 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).
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, 2026 was approximately $176 million. The Company expects to recognize approximately 55% 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, 2026 and December 31, 2025, Aptiv has recorded $31 million (of which $13 million was classified within other current assets and $18 million was classified within other long-term assets) and $21 million (of which $7 million was classified within other current assets and $14 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 $1 million and $1 million for the three months ended June 30, 2026 and 2025, respectively, and $2 million and $2 million for the six months ended June 30, 2026 and 2025, respectively.