Aptiv PLC has announced plans to separate its Electrical Distribution Systems (EDS) division into a standalone company. The move, approved by the company’s Board of Directors, is expected to be completed by March 31, 2026, pending regulatory approvals and customary conditions.
Post-separation, Aptiv will focus on advanced hardware and software innovations across sectors such as automotive, industrial, aerospace, defense, and telecommunications. Its portfolio will include software platforms for advanced driver-assistance systems (ADAS), in-cabin user experiences, and various interconnects and components. This strategic shift aims to capitalize on trends like automation, artificial intelligence, and electrification, targeting positive cash flow and mid-to-high single-digit sales growth.
The newly independent EDS company will specialize in electrical architectures for automotive and commercial vehicle markets, offering both high and low voltage solutions essential for the growing electric vehicle (EV) industry. As EV production increases, the demand for efficient vehicle architectures to manage the complexity of modern vehicles is expected to benefit EDS. The company anticipates solid free cash flow and mid-single-digit revenue growth.
The separation will be executed through a tax-free spin-off, with Aptiv shareholders receiving a pro-rata dividend of shares in the new EDS company while retaining their existing Aptiv shares. This move is designed to enhance the strategic focus of both entities, providing more tailored investment and growth opportunities.
