Yeah, why don't we get started? Maybe people will come in after. Yeah, I'm happy to kick off the, actually, the first section, mostly autos today on this track. With Aptiv, we have Kevin Clark, the CEO, and Varun Leroy, the CFO. So following the spin of Versigent, Aptiv is now a much cleaner connector play with active safety and user experience and more focused on the secular growth areas. And the strong underlying growth profile is really one of the drivers of our overweight rating on the stock. I think we just did our navigator report looking at all the different parts of the vehicle and there's just really few parts of the car that are actually growing. It's pretty tough for suppliers and you guys are focused on some of those key growth areas. So maybe to kick it off, as I mentioned, you do have this spin, you know, how should investors think about the company with the refocus on the new business divisions and what do you think is important going forward with that transformation?

Sure. So first, thanks for having us here. We really appreciate it. Yeah, when we look at our, the spin, the rationale for the spin and the resulting, you know, strategy for, I'll call it the new active, to a certain extent, it Our underlying strategy hasn't really changed, right? We're very much focused on participating in those trends that are driven by more automation, more electrification, more digitalization. I would say new Aptiv is better positioned from a portfolio standpoint to pursue those opportunities, obviously in automotive but outside of automotive because we have positions in areas like Andy telecom data com diversified industrial so we have a fairly solid platform both on the intelligent system side as well as the engineered component side from which we can leverage and grow and as more of product businesses versus the the versatile business tends to be more of a program business, but more as a product business, it uniquely positions us to combine our product portfolio and go to customers in the A&D space, go to customers in the robotic space, go to customers in the telecom space, and build upon our strong position in areas that are higher margin, tend to be higher growth, and are earlier in the stage of benefiting or being impacted by the trends of automation, electrification, digitalization. And a couple great examples would be in the A&D space, for example, we talk about drones, and there's a lot of activity that we have in and around the drone sector. our unique portfolio from a software stack standpoint from the real-time operating system on up to to actually our future development when you look at our perception systems whether they be camera vision based or they'd be radar based you look at our advanced compute you look at our high-speed cable assemblies and and our high-speed interconnects those are all solutions that have applications um in in that particular product area and then you overlay on top of it you know what we do every day from an industrialization from a supply chain management standpoint um and importantly taking costs out of bill of materials on a regular basis it provides us a very unique position to bring um um you know to bring real benefits to those those sectors especially those areas where they're earlier stage. To remind people it's 24% is non-auto of the current portfolio post-spin with 10% being commercial truck right yeah so about 20 yeah 20 24 25 percent is non-automotive 10 points of that is is commercial vehicle the balance is is in the A&D and telecom datacom space that non-automotive sector is is growing high single digits uh so it's a faster growing area at this point in time um and as we as i mentioned colin we feel like we're well positioned to take real advantage of the trends in those markets maybe just getting through some of the more maintenance questions i mean any color on how the quarter's trending production i think we've seen s p cut their forecast is that a risk at all yeah i think the i think we should first start with um explaining the s p forecast we operate off of customer schedules long term we look at sources like uh s p or ihs i think the ihs adjustment was really a macro adjustment as they looked at what's going on in the middle east the conflict and the implications that that could have for supply chains uh cost of vehicles and ultimately demand so that's the the position they they took um we're comfortable with our with our guidance we're watching the market closely just given the dynamics again in the you know in the Middle East and some of the news that we were you and I were talking about just prior to our meeting so we're watching it closely there have been some puts and some takes quite frankly from an overall customer mix so that's something that will continue to watch very closely but sitting here today we're comfortable with it I don't know very comprehensive Kevin yeah when you say put some takes on customer mix some customers are slightly stronger production some customers are slightly weaker but for you that's sort of a neutral factor yeah something we managed through I think the only other final piece actually Kevin now that you can remind me is you know from a year ago you know where the overall trade policy elements was still being worked out so from a year ago in the second quarter

with the tariffs being announced in the first quarter a year ago there was some level of conservatism I'd say just to kind of see as to how things would settle out we don't have that conservatism built in as of now so it's a very realistic set of guidance and numbers that we provided out there we've been pretty open in terms of the framework as to how we deal with the various puts and takes so no real update at this point in time and one of the big questions coming out of last quarter was the guide is sort of 1% growth in the first half but six to seven in the second half can you remind us of what are the the big puts to get you there and are those all still on track obviously yeah listen a great point essentially have three three key elements of that the first is just in terms of first half to second half with regards to the underlying global vehicle production right and that adds about 100 basis points you know to the overall uptake from the first half to the second half on a year-over-year basis right so that's point number one the second one we'd called out was about 150 basis points of just customer supplier fire for example that we've called out in the past I think that's how then the public domain but also the annualization or the anniversary of three programs in China with two different OEMs which essentially anniversary by the end of the second quarter right so that's 150 basis points that's basically not debatable because it's just math right so the hundred basis points I mentioned GVP 150 basis points on the couple of points I mentioned here the final one really is about 300 basis points of launches and ramps right that's coming through but to be clear these aren't you know these are largely kind of launches that have already begun so it's basically a ramp going into the second half so we have good insight in terms of how those programs are tracking yeah and that's again across both of our segments engineered components and also intelligence systems and we go half over half I think it's something like 260 in sales and 160 and EBITDA so it's a pretty high conversion what are the drivers again listen the first point in fact the single biggest point really is is flow through on revenue if you kind of go post spin the incremental margin is roughly about 26 to 27 points on the incremental revenue so that's kind of point number one the second point is just strong operating performance because we've been working through as part of the spin looking at structural cost improvements right and it's a playbook that we have worked through for a long long time in any case so just working that playbook through the final point really is if you think about where the FX and commodities impact was a year ago in the second half to this time around that begins to flatten out a little bit okay so those are kind of three key points and that's why we feel comfortable about you know the first half second half you know margin move up also.

I guess moving more thematically you recently announced that you have a partnership with NVIDIA which obviously a pretty important company these days maybe if you could talk a little bit about it I think it's was it a production ready edge AI so what does that involve how extensive is your relationship with nvidia sure so um you know we've worked with nvidia adaptive i think that 2017 was the first program it was actually a an 8s controller program for uh for for vw so so adaptive we we go pretty far back um on the wind river side when rivers had a relationship uh with with um nvidia as well for a number of years. When you look at the more recent agreement, we're very much aligned in terms of our view on AI at the edge and the opportunity across multiple markets. We have a strong view on that. NVIDIA certainly does. The partnership is really about how do we take our software stack, how do we put it on their silicon, and then how do we go across multiple markets and sell that solution? And how do we do it across multiple NVIDIA technologies in a joint commercialization effort? So that's the real focus. we think there's big opportunities as I mentioned on edge AI we think there's big opportunity opportunities on the 5g to 6g transition and then more broadly speaking just across industrial applications and this is Wind River type technology this is Aptiv and Wind River so it's everything from the middleware real-time operating system viewer the X works the helix hypervisor to a portion of the active software stack does it is it just a tech partnership at this point or is it actually going to drive revenue and it actually will drive revenue what kind of products it's uh like uh what kind of software it's going on to it's everything like i said it's it's everything from active middleware to wind river vx works and hypervisor to um uh some of our features as it relates to um vision and other perception technologies I think you signed your third robotics partnership any color on when the starts becoming a real contributor and what kind of investments yeah so so so the level of interest is extremely high we have a number of I call them proofs of concept there are We're also transitioning to commercial opportunities now across the humanoid and AMR space. We're more focused on AMRs transparently than we are in the humanoid space, just given our view on maturity of the technology and the applications. So we're working with a number of players, confident in the second half of this year we'll have announcements as it relates to commercial awards in that space, and that That should translate into revenue either late this year or beginning early next year. On the drone side, a significant amount of interest. Similar situation in terms of cruisive concepts. I would say closer to commercial opportunities in those discussions in that particular space, just given the nature of the product. When you think about the perception system, so whether it be vision or radar, when you think about compute, when you think about the software stack, and you think about our interconnect portfolio, high-speed cable assemblies, all those sorts of things that enable performance and something like that, a big content per unit opportunity, and a high-volume opportunity. I should say the second thing across those two markets that we talked about is a real focus on resiliency of our supply chain. It's fully mapped. We can identify where products are sourced from, from our suppliers down to, in some areas, seven or eight levels down. So having clear visibility to where products come from, where they're manufactured, where they're sourced from. The ability to industrialize solutions, so high performance and reduced cost, those are areas of significant interest, and just ability to scale in light of the volumes that are being forecasted in those areas with those manufacturers, whether they be U.S.-based or European-based, with dedicated supply chains.

Got it. How about I think probably the most popular question I've been getting is on sort of this shift to 800 volt data centers. How can maybe you talk about how does that change your competitive positioning in the data center space? Yeah, how do you think about it? What do you think your chances are on sort of winning sort of in data centers?

Yeah, so we're very competitive in data centers. I think maybe there's a little bit of confusion there and i i'm probably created by myself we're we're very competitive but principally on the power side right just given our our roots when you think about power distribution in a car i believe we're on 19 of the top 2800 volt platforms across the globe we actually have programs with the two leading global vehicle battery electric vehicle companies not only on their vehicle platforms but on their energy storage platforms so we're well positioned for for for that transition and we're getting a lot of interest from suppliers to the energy storage market or the data center market in and around you know power distribution for those applications so so it's a it's a big opportunity it's small revenues now but we think just given our experience in automotive given what we've done in terms of energy storage with the two leading electric vehicle manufacturers in the world we're well positioned and have developed strong skill sets and product portfolio to benefit from that trend I'm very mentioning I missed about the data

center side of it because I thought because today I mean some of the other connector players have pretty dominant positions in the data center and you have pretty limited revenue there my understanding is the 800 bolt opens it up that you could have your your products are more competitive or is that a misunderstanding yeah I think well I think it's two things there are players that are more competitive on the data distribution side within data centers, so data distribution.

We're very capable and competitive on the power side of the business, just moving power. So there's an opportunity at 400 volt. Given our unique, given the fact that we feel like we're ahead of the curve on 800 volt, given what we've done from a customer mix standpoint, in automotive that uniquely positions us as there's a transition to 800 volt but we can play in both any color on the percent of a data center connector market that's the data versus the power yeah I don't have that often but we follow up with you on it maybe we could talk about new wins outside autos how quickly can those ramp and I think you mentioned earlier their higher margin any color on how much higher margin?

Listen so first of all I think it's fair to say we're perhaps one of the first few within the industry talk about non-auto right and the focus associated with that so I just want to put that thing out there it's not starting from kind of ground zero we've already had a really good strong run rate both pre-spin and post-spin you know for both businesses but arguably more on the new active Remainco side right with regards to non-auto and it's across a whole series of industries aerospace and defense commercial space telecom datacom diversified industrials so given that kind of strong run rate we already have and the you know increased focus that we've put into that arena we are seeing you know that eight to ten points top line growth you know that's what we kind of put out for our financial targets through 2028 at invest today last november and then you obviously saw in the first quarter we posted nine points of uh revenue growth you know within that uh non-auto side i will share within that you know 24 25 points of revenue within new active uh as kevin mentioned 10 of that 25 is commercial vehicles uh and even out there it's not just kind of the heavy the hevs we also include some of the light commercial vehicles right so class three class four essentially think of it for some of the delivery vans across you know european cities for example those ones we essentially would expect to grow mid single digits right and so then you can say the rest of the non-auto side aerospace and defense strong growth coming through on that front diversified industrials and we're kind of happy with the way that cyber business is progressing both in terms of wins but also just the traction we are getting this 800 volt piece that you just mentioned is relatively new but I think that again opens up given our incumbency with the 800 volt architecture it opens up more opportunities for us right and then from a margin profile perspective listen we are making investments while the margin profile is slightly better but we are making investments to just double down and this relates to both product engineering but also kind of enhancing our go-to-market capabilities but again this was something that we'd call that when we give guidance for 2026 in any case that's all embedded within our guide for the full year I think maybe some examples some specifics from an award standpoint consistent with what we've talked about in the past we'll talk about Q2 when we announce Q2 earnings but you think about it when I map it out in the commercial aerospace space area.

So awards on the interconnect side, high-speed cable assembly side, power side, across the major rocket manufacturers in North America. Similarly awards for low earth orbit applications across the players that are in that space similarly heavier weighted towards the the EC product portfolio there on the software side real-time operating system awards so VX works helix hypervisor active middleware with one of the major primes for more called traditional aerospace and defense applications more more defense from an application standpoint battery energy storage awards with the leading EV manufacturer out of China as well as the leading EV manufacturer out of out of the United States so those are the areas that are the most interesting in terms of and the most different from our traditional applications in and around automotive let me say eight to ten percent what is the assumption for the market how much over the underlying market because I know some of the truck markets are supposed to yeah listen so it's it's an aggregation of the various industries and markets right so I gave you you know that you know the ten points of the 25 points is commercial vehicles and that's kind of mid single digits but if you can get into an eight to 10 corridor uh that would just kind of naturally imply that some of the other in markets such as aerospace and defense commercial space we see growing faster than that than that range yeah it really varies by it varies significantly by market so so uh to veron's point on the a and d space market outlooks there are roughly eight eight percent plus sort of overall outlook for growth when you look at some of the sub sets that we were talking about those are really you know today markets that from a content standpoint roughly five billion dollars of content opportunity for for Aptiv growing 30 to 40 percent from a compounded growth rate standpoint so very high very high there are other markets diversified industrials and you You look at the robotics applications, depending upon where you're playing. If you're in the AMR and humanoid space, it's a higher growth rate. It tends to be in the neighborhood of about 30%. If you're in just the traditional industrial space, it tends to be kind of a mid-single-digit sort of overall growth rate. So the growth rate's appealing. The margin profile is even more appealing, and the ability for us to take an existing product portfolio, some modifications to the product, but relatively minimal investment in go-to-market resources. So think marketing and commercial capabilities, but it's not a significant investment. And being able to penetrate those markets and having high confidence in our ability to do so, it puts us in a really attractive position.

And like I said, in addition to that technology capability that is really important our ability to bring our supply chain manufacturing quality industrialization capabilities is is we found it very unique so we're getting a lot of pull and a lot of demand that last pieces are just the operating model right from an from an auto perspective global footprint the supply chain resiliency in region for region and as you think about some of these applications our ability to help them scale up at an auto rate that frankly is I say very attractive given a heritage and the ability to you know be able to deliver that same level of

scalability and quality you know to other end markets can we talk about the active safety market in China it seems like China moves super fast and it's It's been pretty shocking how they have a take rate in level two plus and China's gone through the roof. We've also seen, though, an emergence of China tech players in that market. So, you know, what is your view of sort of how that market works? And can you remain competitive with those new players emerging in that space?

Yeah, it moves. China market moves very fast. You're absolutely right there. Our China revenues, that will be our fastest growing market in 2026 calendar year. And part of that is the program launches that Varen had talked about earlier, the ramp up of those program launches. A big piece of that is 8S. We've been in China now for 35 years for the China market. our China team participates in the development of our global ADAS platform so they're a big piece of our our application capabilities or development and application capabilities and a big piece of it is skill set and speed so we certainly leverage we leverage that we partner with China local OEMs so our our solutions tend to have be based on china socs um so we have a very strong partnership um uh with a a semiconductor company called xera local based we partner from a vision standpoint and with a company called maxi um who we actually have an investment in um and as as well as horizon robotics so those tend to be our vision partners we develop systems that are almost 95% sourced with China inputs to meet what we're seeing is increasing demand from our customers in China for for more resilient supply chains and for a number of those OEMs we're taking that technology developed in China and the making modifications where required so that they can sell solutions in Europe for example. So Leapmotor is one. We provide them, we're their ADAS supplier for the China market. They're focused on growing outside of China. We're launching a program this year with them that actually will have more non-China parts, non-China vision solutions to meet the demands and the regulatory requirements for the for the european market so having that capability to move at speed having the flexibility the open architected solution that allows us to plug in different sort of solutions to meet regulatory requirements or customer preferences is really important and we do that across the globe so i think if you go to our oem customers in china they will say active operates as a local China OEM. It's not a source for low-cost sourcing or manufacturing. We've been there for 35 years supporting the growth of the local market.

I think you mentioned you had sort of three partners in China. Are those more on the supply side and would you consider other sort of tech partnerships in China?

Yeah, we would definitely consider other tech partnerships in China. It needs to make sense right obviously dating the obvious but yeah we would consider other partners as long as they're win-win situations for Aptiv and for the partner and maybe talking about connectors you know what does the connector market look like in China and globally are you seeing some of the China connector players show up around the world we see some we're very Very competitive in China. Very competitive. The mix of China local OEMs, programs and revenues is highest in our interconnect business. Roughly 70% of their business today is at market mix for production. Very strong positions with the top five OEMs in China for China applications, export platforms, as well as supporting today supporting players like BYD, like Cherry, like Geely in their overseas manufacturing efforts. So we're very well positioned. But like any market, as it advance and grows, the supply base, there'll be more competitors out there. We just need to stay in front of them, which is something we've been able to do.

Maybe we can talk about user experience.

That's been a pretty big drag on growth. when does that start to inflect and you know how core is it to the you're pretty nimble with your product portfolio I mean is that too integrated in the rest of the business to you know at some point well listen we always look we're always leaning and reassessing our product portfolio I I think I think we need to define what user experiences for us it's it's it's we participate in the software stack we participate in the software stack that is a big piece of which I we would say today is more ADAS driven than it is quite frankly user experience driven so it's the all the in-cabin sensing driver monitor monitoring cabin monitoring some of that for safety applications some of that for how does the sound system operate how does the human machine interface operate so So there's overlaps with the use of that particular technology. We've talked in the past, we had a large program that was effectively in runoff and we're about done with that program in runoff. If you look at the whole in-cabin experience sector, the way we look at it today, we're in growth mode today. there are some areas of there are less of a priority for us the traditional infotainment system which going way back is how we we thought about it there are small areas that we play there very small areas but the development or the integration of an OEMs infotainment system is an area that we significantly backed off of Kevin I guess is to kind of add to one piece right I mean Kevin mentioned the blurring of the lines inactive safety and user experience for example with in-cab and sensing you know being out there but that also kind of

goes back to the renaming of what was our AS and UX segment to intelligent systems right and so and then within that product lines being sensors and compute and software and services which we believe better addresses and better positions us you know for both the auto and the non-auto side right if you think of the push and both of our segments are making tremendous progress on both fronts is just to make sure that we don't kind of you know pigeonhole ourselves you know with an eight auto world as such because we believe and as we're seeing our technologies and our capabilities are vastly applicable to multiple end markets so that's the other piece to just kind of share that piece I know we talked about user experience you know in the past we just want to give get everyone up to speed with that segment.

How about an update on DRAM? Obviously the costs have gone through the roof. You seem to have it pretty well managed. I think you had 12, starting the year you had 12 weeks of inventory. You said the cost was about 175 percent by last year and you only expect low double increases in that cost.

Is that still on track and is the supply gotten worse and how should we think about 20 listen the the memory sector is constrained with with their without a doubt um for 2026 you know we we had end of last year contracted for the full year and locked in prices and commitments from a sourcing standpoint i i would say um 2027 we're in a situation where supply for us is virtually guaranteed at this point prices will be higher in in order to receive supply you need to operate at market pricing so for those oem customers that are willing to commit with us back to back we're in a position where we can guarantee them supply and and at least a range of of overall pricing but we'll have what we need to support our customers as long as our customers understand and I think the industry's at a point where they they do just given up just just given all the noise around it that you know prices are gonna be significantly higher in 27 than they were in 26 so so you're you feel pretty confident yeah yeah we feel very comfortable on supply we have no I shouldn't say no concern we're very confident on on supply price prices uh given the constraint um in overall capacity are going to

um uh increase in 2027 and we're passing that through to our customers and colin i think if you can recall a year ago we'd made approximately about 200 million dollars of investments you know on that on that front you know semiconductors memory and stuff and so and again for 26 also So, you know, we call that piece out as part of our free cash flow generation, right? So there are certain areas that, you know, based on our conversations, you know, that are out there, you know, we've been continuing to, you know, utilize the balance sheet to, you know, double down on supply chain resiliency. As Kevin mentioned, 26, we feel good about, you know, 27 supply guaranteed, but pricing remains open, but it will be up.

Maybe just to wrap it up, maybe last question on M&A. I mean, with the spin, you have a little stronger balance sheet, cash. How should we think about what are your priorities for M&A going forward? Is it mostly trying to find assets on the not-auto side, or are you open to everything?

Yeah, I would say I'd answer your question more broadly on capital allocation. So the new Aptiv is a more cash-generated business, to your point, given the margin profile and the nature of the business. our focus is really on how do we continue to invest organically in the business both on the automotive side as well as the non-automotive side continue to do that where we can accelerate the advancement of capabilities whether that be broaden a product portfolio or capabilities from an engineering or go-to-market standpoint we'll look to acquire i would say the focus there from an M&A standpoint, our bolt-on acquisitions, I'd say principally in the interconnect space, I'd say principally outside of automotive, just given the strength of our existing product portfolio. On the intelligence system side, more either commercial partnerships or investments in different technology players. And then, you know, the balance of the cash, you know, that the extent that we have access cash flow will return it to shareholders consistent with you know what we've done in the past well I think we'll wrap it up there thank you very much thanks for having us thank you Colin thank you for having me appreciate it have a great