Aptiv PLC has announced plans to spin off its Electrical Distribution Systems (EDS) business into a separate, independent company. The move, approved by Aptiv’s Board of Directors, is expected to be completed by March 31, 2026, subject to regulatory approvals and customary conditions.
Post-separation, Aptiv will focus on cutting-edge software and hardware solutions across industries such as automotive, aerospace, defense, telecommunications, and industrial sectors. The company will continue to deliver advanced driver-assistance systems (ADAS), in-cabin experiences, and connectivity solutions. This restructuring will allow Aptiv to double down on key trends like electrification, automation, and AI, targeting consistent growth and strong cash flow.
Meanwhile, EDS will emerge as a standalone business, specializing in low and high-voltage electrical architectures for the automotive and commercial vehicle markets. With the rise in electric vehicle (EV) production, EDS is poised to benefit from the growing demand for optimized vehicle architectures to meet the evolving needs of modern vehicles. EDS is forecasted to achieve steady revenue growth and maintain strong free cash flow.
The spin-off will be executed as a tax-free distribution, with Aptiv shareholders receiving shares in the new EDS entity. The move is designed to sharpen the focus of both businesses, creating opportunities for more targeted investment and growth.
Aptiv’s expected revenue for 2024 is $12.1 billion, with operating income of $1.4 billion and adjusted EBITDA of $2.3 billion. EDS is expected to generate $8.3 billion in revenue, $0.4 billion in operating income, and $0.8 billion in adjusted EBITDA for the same period. Aptiv CEO Kevin Clark stated that this decision is a key step in the company’s transformation, setting up both Aptiv and EDS for continued success in their respective fields.
Aptiv PLC is a global technology company at the forefront of mobility innovation, focusing on developing safer, greener, and more connected solutions for the automotive industry. With a strong emphasis on sustainability and intelligent systems, Aptiv designs and manufactures advanced software and hardware platforms that support autonomous driving, electric vehicle systems, and smart vehicle architectures.
Headquartered in Dublin, Ireland, the company operates in over 40 countries and collaborates with leading automakers to transform how the world moves. Through its cutting-edge technologies, Aptiv is driving the evolution of transportation, enhancing vehicle performance, and reducing environmental impact.
