APTV · 10-Q · 2026Q3 · Full report

Goodwill Impairment Risk

Aptiv PLC · 2026-11-03 · Importance 58 · Surprise 42

In the third quarter of 2026, Aptiv identified potential goodwill impairment indicators, primarily due to a decline in its market capitalization, and assessed all reporting units; none had an impairment. The Intelligent Systems reporting unit had $1,678 million of goodwill, and its estimated fair value exceeded carrying value by approximately 9%. A 50-basis-point increase in the discount rate, a 5% decrease in estimated annual revenue, or a 50-basis-point decrease in estimated annual EBITDA margin would reduce that excess to approximately 5%, 4%, or 5%, respectively. If performance falls below expectations, assumptions are revised adversely, or market capitalization declines, Aptiv could record non-cash impairment charges in a future period.

Key facts

• Aptiv recorded a non-cash, pre-tax goodwill impairment charge of approximately $648 million related to the Wind River reporting unit in the three and nine months ended September 30, 2025. source
• For Aptiv’s Intelligent Systems reporting unit, a 50-basis-point increase in the discount rate, a 5% decrease in estimated annual revenue, or a 50-basis-point decrease in estimated annual EBITDA margin would leave fair value above carrying value by approximately 5%, 4% and 5%, respectively. source
• Aptiv’s Intelligent Systems reporting unit had $1,678 million of goodwill, and its estimated fair value exceeded its carrying value by approximately 9% in the third quarter of 2026. source
• In the third quarter of 2026, Aptiv identified potential goodwill impairment indicators, primarily due to a decline in its market capitalization, but its interim quantitative assessment found each reporting unit’s estimated fair value exceeded its carrying amount and no goodwill impairment existed. source
• Aptiv warned that below-expectation future financial performance, adverse revisions to significant assumptions or a decline in market capitalization could indicate that reporting-unit fair values have fallen below carrying value and result in non-cash impairment charges in a future period. source