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Aptiv PLC (NYSE:APTV) Earnings Preview: A Look into the Future

Aptiv PLC (NYSE:APTV) is a global technology company that develops safer, greener, and more connected solutions for the automotive industry. The company operates through segments like Electrical Distribution, Engineered Components, and Advanced Safety and User Experience. Aptiv is set to release its fourth-quarter 2025 earnings on February 2, 2026, before the market opens.

Wall Street analysts estimate Aptiv's earnings per share (EPS) to be $1.82, with projected revenue of approximately $5.1 billion. The company is expected to report revenues of $5.08 billion, marking a 3.5% increase from the previous year. This growth is driven by increased vehicle production demand, especially in North America and China.

Aptiv's segments, including Electrical Distribution and Engineered Components, benefit from the launch of SUVs, electric vehicles (EVs), and high-voltage systems. The Advanced Safety and User Experience unit is also anticipated to see revenue growth, although it may face some pressure on operating income. Aptiv has a strong track record of surpassing earnings estimates, with an average earnings surprise of 13.2% over the last four quarters.

The company's financial metrics provide insight into its market valuation. Aptiv's price-to-earnings (P/E) ratio is approximately 58.10, indicating how the market values its earnings. The price-to-sales ratio stands at 0.85, showing investor willingness to pay per dollar of sales. The enterprise value to sales ratio is 1.17, reflecting the company's total valuation relative to its sales.

Aptiv's enterprise value to operating cash flow ratio is 9.71, offering insight into its cash flow generation relative to valuation. With an earnings yield of 1.72%, Aptiv provides a modest return on its earnings. The debt-to-equity ratio of 0.88 indicates a balanced approach to leveraging debt versus equity, while a current ratio of 1.79 suggests a strong ability to cover short-term liabilities with short-term assets.