Aptiv revenue rises as Versigent spin-off completes pivot

Aptiv (NYSE:APTV) reported a steady climb in first-quarter revenue and concluded a major corporate transformation with the successful spin-off of its high-volume wiring business, moving the industrial tech giant toward a more software-centric portfolio.

The Dublin-headquartered company posted U.S. GAAP revenue of $5.1 billion for the quarter ended March 31, representing a 5% increase over the prior year.

When adjusted for currency fluctuations and volatile commodity movements, revenue grew 1% organically.

The results include the final full quarter of the Electrical Distribution Systems (EDS) business, which began trading as an independent entity, Versigent, on April 1.

Profitability remained robust during the transition period.

Aptiv reported adjusted EBITDA of $752 million and adjusted diluted earnings per share of $1.71, comfortably ahead of internal targets.

On a GAAP basis, net income reached $189 million, or $0.88 per diluted share.

The quarter was defined by the completion of the Versigent separation, a move intended to allow "New Aptiv" to focus on its higher-margin Intelligent Systems and Engineered Components segments.

By shedding the asset-intensive EDS unit, Aptiv aims to accelerate its expansion into advanced driver-assistance systems (ADAS) and centralized vehicle computing.

Following the separation, Aptiv utilized the cash proceeds from the Versigent distribution to sharpen its balance sheet, redeeming over $2.1 billion in senior notes.