APTV · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

Aptiv PLC · 2026-11-03 · Importance 36 · Surprise 40

Total gross margin was 21.6% in the third quarter of 2026, down from 23.0% in the third quarter of 2025, and was 22.5% for the first nine months of 2026 versus 22.8% a year earlier. Intelligent Systems’ third-quarter gross margin fell to 16.0% from 18.7%, a decline of 2.7 percentage points, or about 14% relative. Engineered Components’ third-quarter gross margin was 25.3%, compared with 26.3% a year earlier, while its nine-month margin improved to 26.4% from 26.1%. Segment operating income commentary attributes pressure to volume, contractual price reductions net of price recoveries, product mix and operational performance.

Key facts

• Aptiv’s nine-month 2026 cost of sales included approximately $25 million of decreased warranty costs. source
• Aptiv’s cost of sales increased $101 million in the three months ended September 30, 2026; material cost of sales was approximately 50% of net sales in both 2026 and 2025. source
• Aptiv’s cost of sales increased $178 million in the nine months ended September 30, 2026; material cost of sales was approximately 50% of net sales in both 2026 and 2025. source
• Aptiv attributed the third-quarter 2026 cost-of-sales increase to operational performance and higher volumes, partly offset by favorable currency impacts. source
• Aptiv attributed the nine-month 2026 cost-of-sales increase to operational performance, higher volumes, and unfavorable currency impacts. source