AI Takeaway
APTV reported Q1 FY2025 revenue of $5.09B (+5.4% YoY) but saw operating income fall 15.6% to $378M as rising costs and SG&A pressures compressed margins, while net income surged to $189M versus a prior-year loss, aided by a significant financing inflow that boosted cash to $3.17B.
Revenue
$5.09B
++5.41% YoY
EPS (Basic)
$0.89
++1880.00% YoY
Operating Income
$378M
-15.63% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 5.4% YoY to $5.09B in Q1 FY2025, but cost of revenue rose faster at 6.7% YoY to $4.17B, squeezing gross profit and pushing operating margin down from 9.3% to 7.4%. This indicates top-line momentum is being offset by cost inflation and operational pressures.
Source: Source: 10-Q Income Statement
SG&A expenses increased 11.2% YoY to $427M, outpacing revenue growth of 5.4%, which was a key contributor to the 15.6% decline in operating income to $378M. This suggests increased overhead or restructuring-related costs weighing on profitability.
Source: Source: 10-Q Income Statement
Net income swung dramatically to $189M from a loss of $11M in the prior-year period, a YoY increase of over 1,800%. This recovery was driven by factors below the operating line, such as favorable non-operating items, rather than core operating improvement.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockAPTV generated -$143M in operating cash flow in Q1 FY2025, a sharp reversal from +$273M in the prior year. Sustained negative operating cash flow could pressure liquidity and limit the company's ability to fund capital expenditures and debt service without relying on external financing.
Source: Source: 10-Q Cash Flow Statement
Unlock 4 more detailed risk analysis
Upgrade to unlock| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.09B | $4.83B | +5.41% |
Cost of Revenue | $4.17B | $3.9B | +6.68% |
Operating Income | $378M | $448M | -15.63% |
Net Income | $189M | $-11M | +1818.18% |
EPS (Basic) | $0.89 | $-0.05 | +1880.00% |
EPS (Diluted) | $0.88 | $-0.05 | +1860.00% |
SG&A Expense | $427M | $384M | +11.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $25.2B | $23.1B | +9.09% |
Current Assets | $10.72B | $7.74B | +38.54% |
Total Liabilities | $15.68B | $13.85B | +13.24% |
Current Liabilities | $5.07B | $4.79B | +5.74% |
Stockholders' Equity | $9.23B | $8.96B | +3.04% |
Cash & Equivalents | $3.17B | $1.1B | +188.45% |
Long-Term Debt | $9.25B | $7.65B | +20.95% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-143M | $273M | -152.38% |
Investing Cash Flow | $-221M | $-203M | -8.87% |
Financing Cash Flow | $1.69B | $-553M | +405.97% |
Share Buybacks | $76M | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 7.4% | 9.3% | -1.85% |
Net Margin | 3.7% | — | — |
ROE | 2.0% | — | — |
ROA | 0.7% | — | — |
Current Ratio | $2.115 | — | — |
Debt to Equity | $1.698 | — | — |
APTV reported Q1 FY2025 revenue of $5.09B, up 5.4% YoY, but operating income fell 15.6% to $378M due to rising costs and higher SG&A. Net income recovered strongly to $189M from a prior-year loss of $11M, though this was largely driven by non-operating items rather than core business improvement.
APTV's operating income fell 15.6% YoY to $378M in Q1 FY2025 because cost of revenue grew 6.7% (faster than revenue growth of 5.4%) and SG&A expenses surged 11.2% to $427M. These combined cost pressures compressed operating margin from 9.3% to 7.4%.
APTV's cash and equivalents surged 188.5% YoY to $3.17B, primarily driven by $1.69B in financing cash flows, which likely reflects new debt issuance. However, operating cash flow turned negative at -$143M, compared to +$273M in Q1 FY2024, raising questions about underlying cash generation.
Key risks include a sharp deterioration in operating cash flow to -$143M, a 21% increase in long-term debt to $9.25B raising leverage concerns, and ongoing margin compression as costs rise faster than revenue. The reliance on non-operating items to drive net income recovery also raises earnings quality concerns.
APTV's current ratio of 2.11 suggests adequate short-term liquidity, and stockholders' equity grew modestly to $9.23B. However, long-term debt rose 21% YoY to $9.25B, pushing the debt-to-equity ratio to approximately 1.70, and negative operating cash flow of -$143M indicates the company is relying on external financing rather than operations to fund its activities.