APTV · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Aptiv PLC · 2026-08-04 · Importance 37 · Surprise 32

Total gross margin increased to 23.7% in the second quarter of 2026 from 22.9% in the second quarter of 2025 and to 22.9% for the first six months from 22.7%. Engineered Components gross margin improved to 27.6% quarterly and 26.9% year to date, compared with 25.8% and 26.0% in the respective 2025 periods. Intelligent Systems gross margin declined to 18.5% quarterly and 17.8% year to date, compared with 19.0% and 18.6%. Management attributed adjusted operating-income changes to volume, contractual price reductions net of recoveries, product mix and operational performance; favorable foreign-currency effects contributed $35 million in the quarter and $46 million year to date, while warranty costs fell approximately $20 million year to date.

Key facts

• Gross margin dollars for the three months ended June 30, 2026: $1,445 million. source
• Gross margin dollars for the six months ended June 30, 2026: $1,445 million. source
• Cost of sales for the three months ended June 30, 2026: $2,499 million. source
• Cost of sales for the six months ended June 30, 2026: $4,861 million. source
• The Company's material cost of sales was approximately 50% of net sales for both the three months ended June 30, 2026 and 2025. source
• The Company’s material cost of sales was approximately 50% of net sales for both the six months ended June 30, 2026 and 2025. source
• Gross margin percentage for the three months ended June 30, 2026: 23.7%. source
• Gross margin percentage for the six months ended June 30, 2026: 22.9%. source