管理層發言
Good day, and welcome to the Aptiv Q2 2026 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Betsy Frank, Vice President, Investor Relations. Please go ahead.
Thank you, Shelly. Good morning, and thank you for joining Aptiv's Second Quarter 2026 Earnings Conference Call. The press release and slide presentation can be found on the Investor Relations portion of our website at aptiv.com. Today's review of our financials excludes amortization, restructuring and other special items and reflects the continuing operations of Aptiv as of June 30, reflecting the treatment of our EDS segment as a discontinued operation for the second quarter 2025. The reconciliations between GAAP and non-GAAP measures are included at the back of the slide presentation and the earnings press release. Unless stated otherwise, all references to growth rates are on a pro forma adjusted year-over-year basis. During today's call, we will be providing certain forward-looking information that reflects Aptiv's current view of future financial performance and may be materially different for reasons that we cite in our Form 10-K and other SEC filings. Joining us today are Kevin Clark, Chair and Chief Executive Officer; and Varun Laroyia, Executive Vice President and Chief Financial Officer. With that, I'll turn the call over to Kevin.
Thank you, Betsy, and thanks, everyone, for joining us this morning. Starting on Slide 3. During the second quarter, we generated 2% revenue growth and 10 basis points of EBITDA margin expansion. And we continue to demonstrate progress diversifying our business, evidenced by double-digit non-auto revenue growth in the quarter and new business awards in attractive, high-growth markets that present expansion opportunities for Aptiv. And while we're increasingly optimistic about the long-term opportunities presented in these areas, in the near term, we continue to contend with challenges in our traditional automotive market, which are leading us to lower our 2026 guidance, including prolonged sales weakness in the domestic China market, which is causing local OEMs to reduce second half production on vehicle platforms for the domestic market and also leading to a further reduction in schedules from luxury European OEMs for vehicles exported to the China market. Varun is going to walk you through how these dynamics and other factors are impacting our guidance for the remainder of the year and what specifically has changed since we last spoke to you. And I'll spend a bit more time discussing the actions we're taking including how we're working to evolve our business mix in and outside of the automotive market to mitigate the challenges we're experiencing today. And now that the separation of EDS is complete, we'll continue to evaluate additional opportunities to maximize value for shareholders over the long term. Now let's begin by reviewing our second quarter progress against our strategic priorities. During the second quarter, we continued the momentum we'd established, leveraging our product portfolio and operating capabilities across diverse end markets, including product innovations, where we secured our first Gen 8 radar award, an important component of our ADAS platform. Penetration into new end markets where the products we've developed for automotive have applications in other markets reflected in the award from Robust.AI, which I'll talk more about later and expansion of our software partnership ecosystem with leading-edge AI players, including most recently with NVIDIA. This list represents a small portion of the $5 billion of new business awards during the second quarter, bringing our year-to-date total to $10 billion, putting us on track for our $20 billion full year target. We also continue to increase the resiliency of our business model by leveraging our digital twin and end tier tracking capabilities to provide our automotive and adjacent market customers with a step change in supply chain visibility and reaching long-term supply agreements as part of our supply chain resiliency efforts. These are both great examples of the actions we've taken to enhance the robustness of our operating model that are enabling us to keep our customers connected in this dynamic environment and is one of the reasons we were recently recognized as Supplier of the Year by Ford in the supply chain category. On capital allocation, we repurchased $250 million of our shares in the second quarter, bringing our year-to-date total to $325 million with an intention to repurchase a similar amount in the second half of the year and bring the full year total to over $600 million. And over the next few years, we're committed to returning approximately half of our free cash flow to shareholders through share repurchases, while simultaneously pursuing smaller bolt-on M&A transactions to diversify the business and better position us for the long term. Turning to review our business segments through the lens of the automotive and non-automotive end markets we serve. Starting with the automotive market highlights during the quarter, we made some meaningful progress expanding our business with leading OEMs in Asia Pacific, and driving growth in new business bookings across next-generation technology areas, including our full stack Gen 6 ADAS system and in-cabin solutions like driver and cabin monitoring. Notable program launches in the quarter included within the Intelligent Systems segment, a full tech stack ADAS award across additional vehicle lines of a large European OEM, demonstrating the flexibility and scalability of our solutions and continued strength of our technology partnership. And the launch of our next-generation digital cockpit for a luxury European OEM incorporating software-enabled functionality via over-the-air updates and life cycle management capabilities. And within the Engineered Components segment, the integration of our high-voltage interconnects on a European OEM's next-gen high-powered 800-volt architecture program. We also continue to innovate across our product portfolio, evidenced by the introduction of our advanced occupancy classification system which is the industry's first occupant detection system that utilizes AI/ML-based computer vision software and is powered entirely by an in-cabin camera, streamlining vehicle systems architecture as well as lowering cost. We also secured several important new business awards in the quarter. Within Intelligent Systems, these included a Gen 8 radar award by Volvo Cars for its next-gen software-defined vehicle platform, where we will enable robust perception across increasingly complex environments and driving scenarios. As well as an award from a large North American OEM's next-generation software-defined vehicle architecture, a critical milestone in the transition to more centralized vehicle architectures. And within Engineered Components, these include high-voltage busbars across the North America and China markets for battery pack and charging applications, demonstrating continued penetration of both existing and new OEM customers on their next-generation EV platforms and the continued expansion of our business with the leading China local OEMs across our key product lines, including high-speed cable assemblies and high-voltage inlets across platforms for both the domestic and the overseas markets. Moving to Slide 6 to discuss our progress in non-automotive markets, which reflects the applicability of our technologies across a diverse set of end markets and the strong operating execution by our team. Starting with program launches during the quarter. In Engineered Components, we launched a new program providing high-performance interconnects for a utility scale energy storage provider that leverages the same technology we're already delivering in automotive. And in Intelligent Systems, we launched our integrated cockpit controller for one of the industry-leading commercial vehicle OEMs. In terms of product development in the second quarter, this included expanding our high-performance interconnect product lines for complex aerospace and defense platforms where space-efficient, high-density solutions are critical for customers and collaborating on optimized power solutions for 800-volt DC architectures with a leading developer of power electronics for next-generation infrastructures, including data centers, a market where we experienced strong commercial momentum and see very meaningful growth opportunities over the next few years that will further accelerate with the transition to 800-volt architectures. And lastly, achieving a key software milestone and cybersecurity rating for enterprise Linux operating system, which will expand our potential opportunities in the government and the defense markets. A few notable business awards in the second quarter included Robust.AI selection of our intelligent perception solutions in compute, including AI and ML-based sensor fusion powered by our innovative PULSE Sensor, for its Gen 3 Carter robot, which I'll talk more about on the next slide. And in Engineered Components, an award for our high-performance cable management and protection solutions for large-scale solar energy and battery storage projects in the U.S. market. Lastly, we continue to expand our commercial presence in non-auto markets through our partnership ecosystem. First, with NVIDIA, where we extended our partnership to provide Aptiv's production-grade software to edge AI customers using NVIDIA compute, second with Kyndryl, which is an important extension of our enterprise partner ecosystem where Kyndryl will deploy our Wind River software as part of its mission-critical solutions portfolio. Together, they enable customers to more easily deploy and operate mission-critical systems while accelerating adoption through joint go-to-market initiatives and integrated offerings. Turning to Slide 7. I want to spend a few minutes providing an overview of our progress capturing opportunities in new end markets, which we're confident will meaningfully diversify our non-automotive revenue mix over the next few years. The robotics and drone markets are higher growth, higher-margin sectors where opportunities materialized much faster than we previously anticipated, driven by the same demand for autonomous solutions that have been transforming automotive over the past decade. Since initially outlining our addressable market opportunity and growth targets for non-automotive markets, we've achieved the following: in robotics, we secured partnerships with three leading robotics manufacturers and one of those partnerships has advanced to a meaningful commercial agreement, and we expect to be making additional commercial announcements during the balance of the year. In drones, in July, we secured our first commercial award from a leading drone manufacturer with total lifetime revenues of over $500 million over a five-year program. This award will be included in our third quarter bookings numbers. We're actively engaged in discussions with several drone manufacturers that we expect to translate into commercial agreements during the balance of the year. The content per device opportunity in the robotics and drone markets are significant, and our initial awards represent a large portion of that total content opportunity. And both of these markets present time-to-market advantages versus our experience in automotive. In summary, we're increasingly confident in the broad relevance of our product portfolio across multiple end markets, which will significantly change our business mix. We have a high degree of confidence in achieving annual revenues from the robotics and drone markets of about $300 million over the next few years. We believe we're also uniquely positioned to benefit from growth opportunities in the space, energy storage and data center markets, which we'll talk more about in the future. I'll now turn the call over to Varun to go through our financial results and guidance in more detail.
Thanks, Kevin, and good morning, everyone. Starting on Slide 8 with our second quarter financial results. We delivered revenues of $3.3 billion, which grew at an adjusted rate of 2% and were just shy of the midpoint of our guidance. Looking at revenue growth by region, North America grew 10%, driven by strength across both segments. In Europe, revenue was down 8%, primarily reflecting volume pressures with select luxury OEMs, predominantly in Intelligent Systems. And in Asia Pacific, revenue increased 6%, including 5% growth in China, driven by improved mix with local OEMs, partially offset by a slowdown in production for the domestic market. Adjusted EBITDA totaled $613 million, and adjusted EBITDA margin increased 10 basis points. This came in ahead of our guidance due to the timing of recoveries and operating performance. FX and commodities amounted to a 30 basis point headwind to margin, in line with our expectations. Earnings per share was $1.63, an increase of $0.12 from the new Aptiv pro forma results in Q2 2025, reflecting higher operating income, the benefit of share repurchases and interest other income, partially offset by higher tax expense. Free cash flow for the quarter was an outflow of $33 million and included approximately $70 million in cash separation costs associated with the Versigent spinoff, which we highlighted last quarter. Moving to Slide 9 and starting with highlights on the Consolidated business. We generated strong results in strategically important non-automotive revenues with 12% growth while absorbing some customer mix headwinds in our automotive business in the second quarter, where revenues declined 1%. Adjusted EBITDA margin increased 10 basis points driven by flow-through on revenue growth, strong performance across material and manufacturing and a benefit in timing of certain recoveries more than offsetting the impact of stranded costs following the Versigent spin, which we are aggressively working to eliminate. Turning to Intelligent Systems. Revenue of $1.5 billion was flat versus the prior year, which reflects strength in the non-auto driven by software and services, and this was offset by automotive revenues, which were impacted by weakness with certain European OEMs and a lower production at a North American OEM, impacted by a supplier fire. Intelligent Systems adjusted EBITDA margin declined 120 basis points, primarily driven by investments in non-auto markets and the impact of stranded costs. Moving to Engineered Components. Revenue of $1.8 billion grew 3% versus the prior year, driven by double-digit growth in non-auto markets and more specifically in diversified industrials and aerospace and defense, while automotive revenues were essentially flat. Adjusted EBITDA margin increased 100 basis points and reflects flow-through on volume growth, favorable timing of the previously mentioned recoveries and performance initiatives, partially offset by stranded costs. Turning to our full year 2026 financial guidance on Slide 10. As a reminder, historical new Aptiv pro forma financials are on the Investor Relations website under the Quarterly Financial section, and those correspond to our guidance that treats Q1 as new Aptiv pro forma. Starting with the full year, we now expect revenue in the range of $12.6 billion to $12.8 billion, which implies adjusted growth of 2% at the midpoint. I'll discuss the changes here in detail on the next slide. We expect adjusted EBITDA in the range of $2.31 billion to $2.37 billion, and an EBITDA margin of 18.4% at the midpoint, reflecting the impact of lower revenue growth, which is partially offset by performance. We now expect adjusted earnings per share in the range of $5.60 to $5.80 with the midpoint of $5.70, reflecting lower operating earnings, partially offset by a slightly lower effective tax rate and a lower share count. This also includes the projected impact of an additional $300 million in share repurchases through the remainder of the year, as Kevin mentioned. Lastly, free cash flow is expected to be in the range of $625 million to $725 million, reflecting the reduction in EBITDA. As a reminder, this includes the one-time cash separation costs associated with the Versigent spinoff, which have already been largely incurred year-to-date and the continued investments in supply chain resiliency for semiconductors. For the third quarter specifically, we expect adjusted revenue growth of 1% at the midpoint, adjusted EBITDA and EBITDA margin of $560 million and 17.7% at the midpoint, and earnings per share of $1.30 at the midpoint. Turning back to our full year guidance to discuss the key changes to revenue in further detail. We are reducing full year revenue guidance at the midpoint by $300 million, which reflects the following: first, approximately $150 million related to changes in customer production schedules. These schedule revisions are primarily related to weakness in the domestic China market with both local China OEMs and European OEMs that export to China. Second, $100 million related to delays in program launches and ramps, specifically delayed ramp in production volumes on certain programs in China and the launch with a European OEM, where the launch is delayed by the OEM, and we did not benefit from the expansion to additional car lines as we originally anticipated. And finally, approximately $50 million related to the timing of enterprise sales in software and services. While these items have impacted both business segments, the Intelligent Systems business is disproportionately impacted by the above factors. Now translating this to the implied ramp in year-over-year revenue growth from the first half to the second half that we outlined last quarter. As a result of what I just described, the following have changed. First, the 150 basis points improvement in growth from lapping of previously identified headwinds, specifically the lower production with a major North American customer due to a supplier fire and program cancellations with local China OEMs is unchanged. Second, launches and ramps are now expected to contribute 200 basis points to revenue growth in the second half of the year. This is lower by 100 basis points than initially anticipated, reflecting the programs I previously described. And beyond that, the outlook for vehicle production in the second half has turned from a tailwind to a headwind. This is further amplified by our customer and program mix due to the schedule changes I outlined earlier, which are cumulatively now a 150 basis point headwind to revenue growth in the second half. I want to wrap up with some closing comments on these revisions. First, the China domestic market, which has and continues to be a more volatile region, has clearly deteriorated relative to when we last updated you. And second, we were not conservative enough in certain assumptions, particularly around launches and ramps. To that end, we have incorporated an additional element of conservatism in the second half of this year. I will close by noting that we continue to see long-term opportunity across a diverse set of end markets and across regions where we are delivering solid progress as evidenced by our revenues, bookings and commercial awards. With that, I will turn the call back to Kevin for his closing remarks.
Thanks, Varun. I'll wrap up on Slide 12. In summary, we remain confident in the significant long-term opportunity resulting from secular trends that are demanding solutions that can sense, think, act and optimize and the customer needs they introduce for high performance and cost optimized solutions. However, we also acknowledge the more near-term challenges to our business, driven by ongoing volatility in the domestic China market and the related impact on our broader automotive customer mix. To be clear, our customer mix in China has improved and dramatically moved towards the local OEMs. However, this improvement has not been enough to offset the rapid shift of local OEMs' business toward export platforms as well as the reduction of European vehicle exports into the China market. Holistically, we continue to focus on improving the revenue mix of our business both inside and outside of automotive. We also remain laser focused on execution, delivering margin expansion, earnings growth and strong free cash flow generation across a variety of different macro backdrops, and we're keenly aware that these efforts need to translate into increased shareholder value. Based on the significant value opportunity we see in our stock, combined with the strength of our cash flow generation and balance sheet, we intend to remain active buyers of our shares, utilizing approximately 50% of our expected free cash flow on a more regular basis over the next few years to repurchase our shares. And in 2026, our repurchases will be materially above this level. We're also committed to continually evaluating our business portfolio in light of changes in the macro environment to maximize shareholder value. We're confident that we'll continue to deliver value for our customers, drive profitable growth and create sustainable long-term value for our shareholders. Operator, let's now open the line for questions.
分析師問答
We'll now go to your first question. It will come from the line of Itay Michaeli with TD Cowen.
Great. I know it's a little bit early to talk about 2027, but I'm just curious how some of the changes you're seeing in the second half of the year inform you in terms of the prior 4% to 7% growth framework into 2027 and beyond, and how we should think about that given some of these changes here in the second half?
Yes, sure. Thanks, Itay. Our long-term view of what the business is capable of remains intact. Drivers of growth are constantly changing, especially in a dynamic environment. When you look at the automotive sector, IHS has reduced the growth outlook for future vehicle production. Clearly, material cost inflation is increasing in light of various macroeconomic factors. However, within the automotive sector, for the second straight year, we're running with very strong bookings across both of our businesses with leading automotive OEMs inside and outside of China. On the non-auto side, opportunities are materializing much faster than we had initially expected, and that's across both of our business segments. We've had a tremendous amount of success leveraging our automotive portfolio into these new markets. That's an area we're very optimistic about, but the environment is dynamic. I won't get into specifics on 2027 at this point. As we move later into the year, we'll provide incremental information and updates.
Great. That's helpful, Kevin. And as a quick follow-up, good to hear a little bit more conservatism in the second half guidance. I think the Q4 revenue guide still implies a pretty healthy uptick versus Q3. Maybe just talk about some of the drivers and puts and takes and degree of visibility into that Q4 ramp.
Itay, yes. In terms of the year-over-year second half and Q4 in particular, it's a couple of points. First is the year-over-year uptick in production with the North America customer, which had a fire at their supplier a year ago, so that unwinds from a comp perspective. Second is growth in our software and services business. The $50 million reduction in software enterprise bookings is from a timing perspective. We expect Q3 to be softer but to return to high single to double-digit levels in the fourth quarter and then growth in our Engineered Components business.
Your next question will come from the line of Mark Delaney with Goldman Sachs.
Kevin, you mentioned that even though Aptiv has been making good progress with its bookings for the Chinese domestic OEMs, not enough of those were on the export vehicles. Maybe you could talk a bit more on that. I would have thought Aptiv was well positioned for exports given the global nature of Aptiv and your strength in other regions. So maybe talk a little bit more on what's happening and what Aptiv is going to do on that front going forward?
That's a fair question. We are well positioned. Over the last couple of years, the focus was on getting stronger mix with leading local OEMs. Today, our revenues in China on export platforms are about 10% of total revenues, so the mix is more heavily weighted toward domestic platforms. As you look at our bookings over the last two years, that percentage has significantly increased. The benefit of our product portfolio and our capabilities outside of the China market are coming into play, but our revenues don't yet match the bookings mix over the last two years. That's something we're working on and have been making progress on over the last year or so.
Okay. I also wanted to ask about the non-automotive opportunities — nice to see the solid growth the last couple of quarters. You mentioned specific progress in drones and robotics. I think you said that business could approach $300 million of revenue in the next few years. What does that mean in terms of profitability? Non-auto can be higher margin, but maybe there's also a number of investments you're making. How should we think about the profit implications?
From a run-rate standpoint, the margin profile is much higher than in automotive. We're investing in non-automotive capabilities today from a product and go-to-market standpoint. There's minimal capital investment because we're using existing facilities, machinery and equipment, so capital outlay is less of an upfront cost and initial drag. Both markets have much higher margin profiles than the automotive industry.
Next question will come from the line of Emmanuel Rosner with Wolfe Research.
One quick question on the change in guidance. It seems the EBITDA implied decremental would be pretty high, around maybe 40%, which seems above the normal. Can you talk about the change in the EBITDA guidance?
Emmanuel, the specific driver is the software timing item I mentioned. That relates to product mix, and that's what leads to the second half $50 million reduction I referenced. That timing effect impacts profitability more than a typical hardware mix change.
Okay. So this is a very high decremental, therefore on average the total is around that 40%. Understood. And then on software, can you give a little more color around what's going on on the ground and how you think about growth in software on a go-forward basis?
Growth in software has been in the high single digits to low double digits over the last several quarters. Our software business is twofold: Embedded Solutions, which tend to be less lumpy, and enterprise solutions that go into markets like telco and industrial, which tend to be larger and can be lumpier. When enterprise bookings shift, they can have a more pronounced impact on a quarter's growth rate.
Okay. But on a go-forward basis, what sort of growth rate would you expect?
I think our growth rate will continue in the double-digit range with a target of getting to mid-teens. We've been a bit below that over the last few quarters.
Next question will come from the line of Joseph Spak with UBS.
I appreciate the increased conservatism and that you've built in more cushion. But we've been here before. Can you walk through what you're doing to change your planning process for this uncertainty? How are you thinking about planning the business and communicating that going forward? What's changing from here?
That's a fair question. As China becomes a larger part of our revenue base and local OEMs become a larger part of our mix, we are applying significantly more conservatism to those schedules. Historically, we've discounted those schedules, but not enough. The China domestic market is significantly weaker today, with domestic retail sales down around 20%. We expected government support that hasn't materialized, and assuming that would happen was a mistake. So the major change is an overlay of significantly more conservatism in our forecasting process.
Okay. And then some quick questions on non-auto. How quickly can the drone business come into sales? You mentioned collaborating on 800V DC — can you describe that a bit more? Is that something you're licensing and building? Or creating your own solution? And the optical M&A — is that a tech buy you need to commercialize or is there an existing book of business?
For drone and robotics, depending on the customer, the path to market is much faster. For robotics and drone awards this year, we'll have revenues in 2027; typically roughly a six-month path to revenue. On the energy storage/data center side, our product portfolio is focused on power and the transition to 800-volt architectures presents incremental opportunities. We're working with several players and expect commercial awards over the next couple of months. Today in that space, we have under $50 million in revenues and expect rapid growth over the next three years. Most of that is in power to the rack and some capabilities in the rack. The M&A acquisition is building out our portfolio for products that we can take across multiple markets.
Your next question will come from the line of Colin Langan with Wells Fargo.
We've talked a lot about China being weak, and I'm not sure if I'm reading Slide 8 wrong, but it looks like you actually outperformed in China according to that slide — up 5% while the market was down 3% — and it was pretty weak in Europe. Is Europe the bigger issue? You also mentioned European exports to China weakening. Is that the bigger factor causing a headwind, and is that why other suppliers haven't cut guidance — do you have higher exposure to some of those players?
There are a couple of aspects. We showed growth in China due to traction with local OEMs, and we've made significant progress, which is reflected in year-over-year growth. However, that growth was not as strong as we had forecasted and included in our guidance. The decline in the domestic China market and the reduction in schedules impacted local OEMs, affecting both our Engineered Components and Intelligent Systems businesses. Our Intelligent Systems business was disproportionately impacted by the #2 player in the China market with whom we were launching several active safety programs. From Europe, the principal impact is the drop in exports of vehicles into the China market from two luxury European OEMs, where we saw a significant reduction in their schedules. Those OEMs have been public about their challenges in China, and that's where the biggest impact has been.
Got it. And then just to follow up on earlier questions, the margins seem to have an odd quarterly cadence: a negative decremental sequentially then a big incremental into Q4. Is this all recovery driven? Is there some cost headwinds in Q3?
There are three things: volume flow-through from Q2 to Q3, the software timing piece where software is higher margin and bounces back from Q3 to Q4, and recoveries and engineering credits that tend to be stronger in Q4. There is an element of Q3 margin being impacted by timing on recoveries that normally would have shown up in Q3, so Q3 is somewhat artificially lower. The main drivers are volume, software recoveries, and the usual Q4 recoveries.
Your next question will come from the line of James Picariello with BNP Paribas.
Kevin, can you share some thoughts behind the portfolio changes you had indicated at the tail end of your prepared remarks?
I don't have specific comments at this time. We're operating in a dynamic market across regions and technologies, and as always, we're evaluating our product mix and portfolio to optimize and drive shareholder value.
Understood. Can you share segment-level color on the updated guide for the full year? What's embedded for each segment's non-auto growth in the outlook?
Non-auto growth for the full year is relatively strong across both businesses. Intelligent Systems will be weaker in Q3 given the software adjustment, but we see a strong bounce back in Q4. Non-automotive revenue growth across both businesses has been very strong and in line with our prior 8% to 10% framework.
On the latest update, the revision in guidance is largely impacting the Intelligent Systems business. We expect Intelligent Systems revenue to be approximately flat year-over-year and Engineered Components to grow in the low to mid-single digits. Regarding margins, we expect solid margins across both businesses with Intelligent Systems EBITDA margins around the mid-teens and Engineered Components around the low 20s, roughly about 22% for the full year.
Your next question will come from the line of Gautam Narayan with RBC.
A couple more questions on the three buckets you described after the change. You had schedule changes, delayed programs and the timing item. The timing item is clear for Q4. For the other two — schedule changes and delayed programs — do you have confidence those could come back in 2027? Is this reliant on Chinese government stimulus, or are some of those recoverable from other factors?
There are two aspects to the China local market. First is the domestic China market with local OEMs and how that plays out in 2027. It's difficult to envision another year where the China local market is down 20% and production schedules are adjusted to that level. The bulk of the approximately $150 million is China local OEMs, and part of it is European exports into China. It's possible those European exports don't bounce back in 2027 given the competitiveness of the China market. Regarding program delays and launch ramps, local China OEM launches are likely to ramp at a lower slope than originally forecasted. There is one program with BYD that will be launched, shifted and is an export vehicle program. And there is a European OEM program that had a delayed launch; that program is launching now and will be a tailwind heading into 2027.
That's helpful. On non-automotive, you mentioned this is coming in ahead of expectations. These are different verticals — what are you seeing on the competitive side that allows you to win so much here? I would have thought there'd be incumbents in these verticals.
There are two buckets. In robotics and drones, our principal focus is autonomy: AMRs and related platforms. These markets are more nascent, and beyond our technology, our systems engineering, material supply chain and manufacturing capabilities differentiate us versus typical players in a nascent industry. In drones, there's significant demand and a requirement for a non-China supply chain and various technologies where we can provide perception systems, compute and cost reductions. Our capability and automotive-scale manufacturing are advantages. For energy storage and data center, our sweet spot is power. We've assembled a focused team and are working with players who are well known in automotive energy storage and others who support these markets. Today revenues in that space are small, but the commercial pursuits and bookings should ramp revenue faster than we experienced in automotive.
Your next question will come from the line of Rajat Gupta with JPMorgan.
I wanted to clarify the Q1 restatement. If I look at the press release and take the six-month EBITDA number, it implies a lower Q1 than what was provided in the Q1 deck and the financials on the website. Is that an accounting nuance we should be aware of?
Rajat, that's all CODO related to the Versigent spin. What you should look at is the Q1 pro forma on our Investor Relations portal.
Understood. And just a follow-up on Intelligent Systems bookings: can you share more detail on how much of the year-to-date or second quarter bookings are full-stack ADAS including software versus modular? Has that mix changed as manufacturers build more internal capability?
We're seeing a trend toward more software opportunities and separation between software and hardware. The bulk of our 2026 bookings for Gen 6 ADAS solutions include both hardware and software. We're seeing more OEMs ask us to do software development in areas like middleware and other parts of their software stack. In-sourcing varies by OEM, but overall we're not seeing a massive trend toward in-sourcing; several OEMs that attempted broad software projects have shifted to being more reliant on suppliers.
And that was our last question. This will now conclude today's question-and-answer session. I will now turn the call back over to Mr. Kevin Clark for any additional or closing remarks.
Thank you, everyone, for joining us today. Have a great day.
This call is now complete, and thank you so much for joining.