Kevin P. Clark
Chairman and Chief Executive Officer at Aptiv
Thank you, Jane, and thanks everyone for joining us this morning. Let's begin on Slide 3. Operationally, we had a strong start to the year demonstrating our ability to execute despite some headwinds. Touching on a few highlights, new business bookings reached almost $13 billion reflecting the continued demand for our industry-leading product portfolio. First quarter revenue was just under $5 billion representing adjusted year-over-year growth of 2% impacted by continued slowing of electric vehicle production in North America and Europe. [Technical Issues] production and increased labor inflation and earnings per share increased 27% to $1.16. Lastly, we repurchased $600 million of stock during the quarter [Technical Issues].
Hello. Apologies. We seem to have had a technical difficulty. So if it's okay, I'll start from the beginning. So again thanks, Jane, and thanks, everyone, for joining us this morning. Let's begin on Slide 3. Operationally, we had a strong start to the year demonstrating our ability to execute despite some headwinds. Touching on a few highlights. New business bookings reached almost $13 billion reflecting the continued demand for our industry-leading product portfolio. First quarter revenue was just under $5 billion representing adjusted year-over-year growth of 2% impacted by continued slowing of electric vehicle production in both North America and Europe.
EBITDA and operating income totaled $720 million and $544 million, respectively, representing more than 20% growth and roughly 200 basis points of margin expansion reflecting benefits from productivity initiatives and cost actions, which offset lower vehicle production and increased labor inflation and earnings per share increased 27% to $1.16. Lastly, we repurchased $600 million of stock during the quarter bringing the total amount of shares repurchased to $900 million over the last two quarters. In summary, the team did an exceptional job delivering solutions to our customers while at the same time increasing operating efficiencies and reducing our cost structure.
Turning to Slide 4. While we were encouraged by our strong first quarter execution, we believe that it's prudent to update our 2024 outlook reflected continued weakness in electric vehicle production, including significant customer schedule reductions over the past few weeks and the current negative impact of foreign exchange rates. As a result, we're lowering our full year 2024 revenue guidance by $450 million principally reflecting a reduction in our outlook for high voltage revenue growth. While we continue to believe that all regions are on the path to full electrification, some will move faster than others. So we consider it prudent to reduce our near-term revenue expectations.
As the industry navigates the current headwinds, we are maintaining our high standard of flawless execution while continuing to reduce our cost structure and strengthen our sustainable business model. We're supporting our customers on a record number of new program launches, almost 2,300 in 2024, including over 750 program launches in the first quarter. The cadence of which gives us confidence in the acceleration of our second half revenue growth. We've also proactively executed initiatives that have lowered our cost structure. In early '23, we launched several initiatives to improve engineering efficiency in both our ASUX and SPF segments and in late 2023, we executed additional cost actions across all overhead and operating functions targeting more than a 10% reduction in salary payroll.
And in response to the recent softness of electric vehicle production schedules, we kicked off incremental cost actions that will generate an additional $50 million of cost savings through the balance of this year. The net result of these puts and takes is a $50 million reduction in our full year outlook for operating income to $2.5 billion above the bottom end of our prior guidance range representing 11.8% operating margin and just under 80% growth in operating income. I'm pleased to announce that we've reached a formal agreement with the Hyundai Motor Group regarding our Motional joint venture, which positions Motional for ongoing success while addressing the needs of both joint venture partners. Joel will go into more detail later in the presentation.
Lastly, we continue to believe that our stock is undervalued and presents an attractive opportunity to return capital to shareholders. As such, we're doubling our share repurchase target from $750 million to $1.5 billion during 2024. In summary, our conviction regarding the strength of our competitive position and the long-term value of our business is as high as ever and we remain committed to delivering value to our shareholders.
Moving to Slide 5. As mentioned, bookings reach nearly $13 billion in the quarter. Advanced safety and user experience bookings totaled $2.5 billion driven by active safety bookings of $1.9 billion, including our first full system Gen 6 ADAS award, including in cabin sensing and the full suite of Wind River embedded and studio developer software with an emerging EV player bringing the cumulative active safety and user experience segment awards to $33 billion since the first quarter of 2021. Signal and power solutions new business bookings reached a record of over $10.3 billion reflecting electrical distribution system bookings totaling a record $7 billion, including an award from a leading global Japanese OEM for both plug in hybrids and battery electric vehicles for the North American market and connection systems bookings totaling $2.5 billion, including an award from a leading electric vehicle OEM for high speed cable assemblies on a global electric vehicle platform bringing cumulative S&PS segment bookings to $70 billion since the first quarter of 2021.
In China across both segments, we were awarded $3 billion in new business awards with both local and multinational OEMs, including a vehicle architecture award from a leading local Chinese OEM for a low cost battery electric vehicle putting us on track to exceed our full year 2023 bookings of just under $6 billion. With our industry-leading portfolio, our global scale and our ability to execute highly complex programs, we remain confident in achieving our target of $35 billion of business awards during 2024.
Turning to Slide 6 to review our advanced safety and user experience segments first quarter highlights. The segment reported 5% growth driven by 24% growth in active safety, which is on track for 20% full year revenue growth, more than offsetting the challenging comparables for user experience in Wind River in the quarter. Solid revenue growth was coupled with ongoing productivity improvements, including the continued maturation of our global product qrganization driving higher levels of platform usage and software reuse.
The consolidation of engineering centers and the continued rotation of engineering resources to our tech center in Bangalore, India which is driving our percentage located in best cost countries to over 75%, the ongoing adoption of Wind River studio which is resulting in a roughly 40% improvement in workflow performance in the software building and scanning processes, and lastly, the continued progress we've made validating local Chinese semiconductor suppliers to meet the increasing demand from local Chinese OEMs for localized sources of supply and to provide our global OEMs with increased supply chain flexibility and resiliency at significantly lower costs.
In terms of commercial highlights in the quarter, in addition to the Gen 6 ADAS award I mentioned earlier, we were awarded a radar program by a global Japanese OEM for applications across multiple vehicle platforms in the North American, European and Asia Pacific markets and Wind River studio developer was selected by a major local Chinese OEM to help increase efficiency and reduce costs associated with the development, deployment, operation and servicing of intelligent edge systems.
Moving to Slide 7. As I mentioned earlier, an emerging electric vehicle OEM has selected the Aptiv Gen 6 ADAS platform to enable turnkey ADAS across a wide range of platforms and models with the start of production in 2026, This is our first full system productized Gen 6 ADAS platform award building on Aptiv's proven handsfree highway full system solutions, which are already in production. This open, modular and scalable ADAS platform will enable advanced handsfree urban and highway vehicle automation, driver safety and region specific features, including fully integrated sensors tightly coupled with Aptiv's edge to cloud compute framework.
A containerized feature stack enabled by Aptiv\s AIML enhanced solutions including radar machine learning and ML base vehicle behavior and Wind River's extensive offerings such as Wind River Edge with VX Works and Wind River studio develop, deploy and operate the software over the life of the program. This awards a test inventory ability to deliver a full system productized solution to our customers while validating the value of our Gen 6 ADAS platform, which includes flexibility across key layers of the staff to meet our customers' needs, scalability, hardware and software components from entry level compliance up to level 3 and industry-leading performance at a very competitive cost.
Turning to signal and power solutions first quarter highlights on Slide 8. We continue to benefit from our industry-leading portfolio of global scale and experienced designing and developing optimized vehicle architecture solutions across the entire range of powertrain platforms from the internal combustion engine to battery electric vehicles. First quarter revenues increased 1% driven by strong growth in China, partially offset by a decline in high voltage revenues as a result of the softened production schedules for electric vehicle platforms in both North America and Europe that I mentioned earlier. New business bookings during the quarter totaled over $10 billion. We continue to gain traction with top local OEMs in China.
During the quarter, electrical architecture bookings with China local OEMs reached more than $1 billion, including major awards across each of the five top local OEMs and we received our first high voltage Integrated power electronics award for a DC to DC converters from a global EV manufacturer for its next-gen vehicle platforms. As discussed previously, our signal and power solutions segment continues to be impacted by increased labor inflation. To mitigate the impact, the operating team has initiated several actions, including the further consolidation of our manufacturing footprint while rotating more of our footprint to Central America and North Africa and modifying the architecture designs to enable the increased automation of select manufacturing processes with the target to increase automation to 30% of standard labor hours by 2026.Aad over 50% by 2030.
Moving to Slide 9. As our OEM partners adapt to the shifting pace of consumer electric vehicle demand and emission requirements, after this position to deliver high performance, cost effective solutions that span the powertrain spectrum and adapt our capacity to align with the needs of our customers. Starting on the left of the slide, as we've discussed previously, we're benefiting from significant and increasing addressable content per vehicle from approximately 800 in electrical architecture content for an internal combustion engine platform to approximately 2,300 for a full battery electric vehicle. In many cases, this incremental content represents an opportunity to apply existing capabilities for much larger adjustable market.
Although global penetration rates for hybrids and battery electric vehicles may fluctuate in the near term, we firmly believe that the long-term macro tailwind remains attractive as the industry continues down the path to full electrification. That said, we've taken a more conservative approach to the pace of electrification and while we will continue to be more conservative than the broader market sentiment, our outlook still represents a significant market opportunity with meaningful future upside.
Finally, on the right side of the slide, the strength of our current portfolio across regions, powertrains and platforms significantly insulates the business from any single industry headwind. To illustrate this point, if we were to assume that growth of all electrified vehicle platforms on which we have content was reduced to zero in 2024, including low voltage solutions on battery electric vehicles with no substitution from ICE vehicle platforms, our overall growth rate would decline by 1 to 2 points. As a result, we believe that we're uniquely positioned to deliver innovative solutions to our customers and value to our shareholders across all powertrain platforms.
Moving to Slide 10. Before I turn the call over to Joe to walk through the financials, I wanted to touch on two recent customer events. In late February, the Wind River and Aptiv teams exhibited at Mobile World Congress in Barcelona giving us the opportunity to collaborate with a wide range of telco customers and partners. The team showcased our ability to support operations at scale for 5G vRAN and oRAN deployments while highlighting solutions being leveraged by our customers to improve performance and reliability, reduce cost and unlock new business models. Among the many years of interest to our telco customers was our unique ability to support the convergence of telco infrastructure with a software defined vehicle enabling the deployment and update of new services much faster and much more efficiently.
Last week, we took the opportunity to further strengthen our strategic partnerships in China during the 2024 Beijing Auto Show. Led by our local China management team, we engaged with a wide range of customers to discuss key technology trends, consumer expectations and performance and cost requirements that are unique to the China market. Local OEMs are demanding full system solutions spanning both hardware and software while consumer interest is accelerating for higher levels of ADAS and enhanced user experience. Aptiv is perfectly positioned in this market to deliver solutions with increased flexibility, higher performance and faster speed to market, all at a much lower cost.
While we have active engagements with customers across all regions and end markets, it's important to note that all are essentially asking for the same thing, the right hardware, the right software and the right engineering tool chain to support software defined functionality for mission critical applications. And as a result, our unique edge to cloud portfolio positions Aptiv to capitalize not only on the automotive industry's transition to software defined vehicles, but also on the digital transformation and convergence of multiple industries as intelligence increasingly moves to the edge. By leveraging these proven solutions across industries, Aptiv is positioned for sustained long-term profitable growth.
With that, I'll now turn the call over to Joe.
