Aptiv shares drop 20% on China auto weakness but diversify into robotics with $500M drone deal.

Aptiv PLC's shares fell about 20% following the spin-off of its electrical distribution business, impacted by a weak Chinese automotive market. The company is expanding beyond automotive into high-margin robotics and drones, targeting a $58 billion market by 2030, highlighted by a recent $500 million drone contract win. Despite lowering its 2026 guidance due to China, Aptiv plans aggressive buybacks totaling $300 million in the second half of 2026 and maintains a net leverage of 2.0x. Insider buying and a low EV/EBITDA ratio under 7 suggest a favorable risk/reward for a small investment as Aptiv diversifies its revenue streams.