Aptiv ( NYSE: APTV ) shares rose sharply on Tuesday after outlining ambitious long-term targets during an investor day presentation.
During an investor event in Boston , the company said it sees a path to $40B in revenue and an operating margin over 17% by 2030. Those figures represent significant increases from $17.5B in revenue and 9.1% margin reported in 2022.
Management expects the company to capitalize on “megatrends” in EVs, automation, and “increasingly-connected, software-driven vehicles” to reach these goals. Revenue is expected to accelerate sharply by 2025 to a range of $23B to $24B as operating margins expand to a range between 14% and 14.5%.
The company expects further momentum from that point as vehicles shift from “hardware-defined” to “software defined” by 2026 to “cloud defined” in 2030 and beyond. New tech requirements in vehicles are expected to result in a $75B total addressable market by the close of the decade.
“Increasing consumer expectations for software-defined features combined with the need for a “clean sheet” approach to electric vehicle architecture, creates a natural catalyst for the transition to [Smart Vehicle Architecture],” the company said.
Shares of the Irish-American automotive tech supplier rose 8.25% in afternoon trading on Tuesday.
Read more on the company’s recent earnings results .
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Aptiv stock accelerates after investor day outlines bullish long-term targets