AAM Reports Second Quarter 2025 Financial Results
American Axle & Manufacturing (NYSE: AXL) reported its Q2 2025 financial results, with sales of $1.54 billion and net income of $39.3 million (2.6% of sales). The company achieved an Adjusted EBITDA of $202.2 million (13.2% of sales) and diluted EPS of $0.32.
AAM updated its 2025 financial outlook, targeting sales of $5.75-$5.95 billion, Adjusted EBITDA of $695-$745 million, and Adjusted free cash flow of $175-$215 million. The company highlighted progress in its upcoming combination with Dowlais, receiving shareholder approval from both companies.
Year-over-year comparisons show improved net income margins despite lower sales, with Q2 2025 net income at $39.3 million versus $18.2 million in Q2 2024, demonstrating effective cost management and productivity improvements.
American Axle & Manufacturing (NYSE: AXL) ha comunicato i risultati finanziari del secondo trimestre 2025, con vendite pari a 1,54 miliardi di dollari e un utile netto di 39,3 milioni di dollari (2,6% delle vendite). L'azienda ha registrato un EBITDA rettificato di 202,2 milioni di dollari (13,2% delle vendite) e un utile per azione diluito di 0,32 dollari.
AAM ha aggiornato le previsioni finanziarie per il 2025, puntando a vendite tra 5,75 e 5,95 miliardi di dollari, un EBITDA rettificato tra 695 e 745 milioni di dollari e un flusso di cassa libero rettificato tra 175 e 215 milioni di dollari. L'azienda ha sottolineato i progressi nella prossima fusione con Dowlais, che ha ricevuto l'approvazione degli azionisti di entrambe le società.
Il confronto anno su anno evidenzia un miglioramento dei margini di utile netto nonostante vendite inferiori, con un utile netto di 39,3 milioni di dollari nel secondo trimestre 2025 rispetto a 18,2 milioni nel secondo trimestre 2024, dimostrando una gestione efficace dei costi e miglioramenti di produttività.
American Axle & Manufacturing (NYSE: AXL) reportó sus resultados financieros del segundo trimestre de 2025, con ventas de 1.54 mil millones de dólares y un ingreso neto de 39.3 millones de dólares (2.6% de las ventas). La compañía alcanzó un EBITDA ajustado de 202.2 millones de dólares (13.2% de las ventas) y una ganancia por acción diluida de 0.32 dólares.
AAM actualizó sus perspectivas financieras para 2025, con objetivos de ventas entre 5.75 y 5.95 mil millones de dólares, un EBITDA ajustado de 695 a 745 millones de dólares y un flujo de caja libre ajustado de 175 a 215 millones de dólares. La empresa destacó avances en su próxima combinación con Dowlais, tras recibir la aprobación de los accionistas de ambas compañías.
Las comparaciones interanuales muestran una mejora en los márgenes de ingreso neto a pesar de menores ventas, con un ingreso neto de 39.3 millones de dólares en el segundo trimestre de 2025 frente a 18.2 millones en el mismo trimestre de 2024, demostrando una gestión eficiente de costos y mejoras en productividad.
American Axle & Manufacturing (NYSE: AXL)는 2025년 2분기 재무 실적을 발표하며 매출액 15억 4천만 달러, 순이익 3,930만 달러(매출의 2.6%)를 기록했습니다. 회사는 조정 EBITDA 2억 220만 달러(매출의 13.2%)와 희석 주당순이익 0.32달러를 달성했습니다.
AAM은 2025년 재무 전망을 업데이트하여 매출 목표를 57억 5천만~59억 5천만 달러, 조정 EBITDA를 6억 9,500만~7억 4,500만 달러, 조정 자유 현금 흐름을 1억 7,500만~2억 1,500만 달러로 제시했습니다. 회사는 Dowlais와의 향후 합병 진행 상황을 강조하며 양사 주주들의 승인을 받았다고 밝혔습니다.
전년 동기 대비 순이익 마진이 개선되었으며 매출은 감소했지만, 2025년 2분기 순이익은 3,930만 달러로 2024년 2분기 1,820만 달러에 비해 증가하여 효과적인 비용 관리와 생산성 향상을 입증했습니다.
American Axle & Manufacturing (NYSE : AXL) a publié ses résultats financiers du deuxième trimestre 2025, avec un chiffre d'affaires de 1,54 milliard de dollars et un bénéfice net de 39,3 millions de dollars (2,6 % du chiffre d'affaires). La société a réalisé un EBITDA ajusté de 202,2 millions de dollars (13,2 % du chiffre d'affaires) et un BPA dilué de 0,32 dollar.
AAM a mis à jour ses prévisions financières pour 2025, visant un chiffre d'affaires compris entre 5,75 et 5,95 milliards de dollars, un EBITDA ajusté entre 695 et 745 millions de dollars et un flux de trésorerie disponible ajusté entre 175 et 215 millions de dollars. L'entreprise a souligné les progrès réalisés dans sa future fusion avec Dowlais, ayant obtenu l'approbation des actionnaires des deux sociétés.
Les comparaisons annuelles montrent une amélioration des marges bénéficiaires nettes malgré une baisse du chiffre d'affaires, avec un bénéfice net de 39,3 millions de dollars au deuxième trimestre 2025 contre 18,2 millions au deuxième trimestre 2024, démontrant une gestion efficace des coûts et des gains de productivité.
American Axle & Manufacturing (NYSE: AXL) meldete seine Finanzergebnisse für das zweite Quartal 2025 mit einem Umsatz von 1,54 Milliarden US-Dollar und einem Nettogewinn von 39,3 Millionen US-Dollar (2,6 % des Umsatzes). Das Unternehmen erzielte ein bereinigtes EBITDA von 202,2 Millionen US-Dollar (13,2 % des Umsatzes) und einen verwässerten Gewinn je Aktie von 0,32 US-Dollar.
AAM aktualisierte seine Finanzprognose für 2025 und peilt Umsätze von 5,75 bis 5,95 Milliarden US-Dollar, ein bereinigtes EBITDA von 695 bis 745 Millionen US-Dollar sowie einen bereinigten freien Cashflow von 175 bis 215 Millionen US-Dollar an. Das Unternehmen hob Fortschritte bei der bevorstehenden Fusion mit Dowlais hervor, die von den Aktionären beider Unternehmen genehmigt wurde.
Der Jahresvergleich zeigt verbesserte Nettogewinnmargen trotz rückläufiger Umsätze, wobei der Nettogewinn im zweiten Quartal 2025 mit 39,3 Millionen US-Dollar deutlich über den 18,2 Millionen US-Dollar im zweiten Quartal 2024 liegt, was auf eine effektive Kostenkontrolle und Produktivitätssteigerungen hinweist.
- Net income increased to $39.3 million from $18.2 million year-over-year
- Adjusted EBITDA margin improved to 13.2% from 12.8% in Q2 2024
- Raised full-year 2025 sales guidance to $5.75-$5.95 billion
- Received shareholder approval for strategic Dowlais combination
- Adjusted earnings per share improved to $0.21 from $0.19 year-over-year
- Sales declined to $1.54 billion from $1.63 billion in Q2 2024
- Operating cash flow decreased to $91.9 million from $142.8 million year-over-year
- Adjusted free cash flow dropped to $48.7 million from $97.9 million in Q2 2024
- $8.0 million impairment charge recorded in Q2 2025
Insights
AAM reported improved profitability margins despite lower sales, raised guidance, and advanced its merger with Dowlais.
American Axle & Manufacturing's Q2 2025 results reveal a mixed financial picture with notable year-over-year profitability improvements despite revenue challenges. The company reported
Despite the sales decline, AAM significantly improved its bottom line. Net income more than doubled to
Cash flow metrics showed weakness, with operating cash flow falling to
Notably, AAM raised key elements of its full-year 2025 guidance:
- Sales target:
$5.75-5.95 billion (raised lower end from$5.65 billion ) - Adjusted EBITDA:
$695-745 million (raised lower end from$665 million ) - Adjusted free cash flow:
$175-215 million (raised lower end from$165 million )
The company highlighted a significant strategic development with its upcoming combination with Dowlais, reporting that shareholders from both companies have approved the merger. This represents a critical milestone toward creating what management describes as "a premier global driveline and metal forming auto supplier with significant size, scale, and robust value creation potential."
While AAM faces revenue headwinds, its margin improvements demonstrate effective cost management, and the raised guidance suggests management's confidence in continued operational efficiency for the remainder of 2025. The Dowlais merger progression indicates the company is actively positioning itself for long-term growth within the evolving automotive supply industry.
Year-Over-Year Net Income and Adjusted EBITDA Margin Growth
Second Quarter 2025 Results
- Sales of
$1.54 billion - Net income of
$39.3 million 2.6% of sales - Adjusted EBITDA of
$202.2 million 13.2% of sales - Diluted earnings per share of
$0.32 $0.21 - Net cash provided by operating activities of
$91.9 million $48.7 million
"AAM posted year-over-year Adjusted EBITDA margin growth in the second quarter driven by productivity and cost controls," said AAM's Chairman and Chief Executive Officer, David C. Dauch. "In addition, we are very excited about our upcoming combination with Dowlais as we passed a critical milestone with the approval from both sets of shareholders. This brings us one step closer in forming a premier global driveline and metal forming auto supplier with significant size, scale, and robust value creation potential."
AAM's sales in the second quarter of 2025 were
AAM's net income in the second quarter of 2025 was
Adjusted earnings per share in the second quarter of 2025 was
In the second quarter of 2025, Adjusted EBITDA was
AAM's net cash provided by operating activities for the second quarter of 2025 was
AAM's Adjusted free cash flow for the second quarter of 2025 was
AAM's 2025 Updated Financial Outlook
AAM's full year 2025 financial targets are as follows:
- AAM is targeting sales in the range of
$5.75 $5.95 billion $5.65 $5.95 billion - AAM is targeting Adjusted EBITDA in the range of
$695 $745 million $665 $745 million - AAM is targeting Adjusted free cash flow in the range of
$175 $215 million $165 $215 million 5% of sales.
These targets are based on the following assumptions for 2025:
- North American light vehicle production of approximately 14.6 - 15.1 million units.
- AAM's production estimates of key programs that we support.
- Excludes costs and expenses associated with the announced combination with Dowlais. Reflects AAM on a stand-alone pre-combination basis only.
- No changes to USMCA.
- Mitigation of a majority of incremental tariff costs.
Second Quarter 2025 Conference Call Information
A conference call to review AAM's second quarter results is scheduled for today at 10:00 a.m. ET. Interested participants may listen to the live conference call by logging onto AAM's investor web site at http://investor.aam.com or calling (877) 883-0383 from
Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles generally accepted in
Certain of the forward-looking financial measures included in this earnings release are provided on a non-GAAP basis. A reconciliation of non-GAAP forward-looking financial measures to the most directly comparable forward-looking financial measures calculated and presented in accordance with GAAP has been provided. The amounts in these reconciliations are based on our current estimates and actual results may differ materially from these forward-looking estimates for many reasons, including potential event driven transactional and other non-core operating items and their related effects in any future period, the magnitude of which may be significant.
Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of AAM's business and operating performance. Management also uses this information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, non-GAAP financial measures as presented by AAM may not be comparable to similarly titled measures reported by other companies.
Definition of Non-GAAP Financial Measures
AAM defines Adjusted earnings per share to be diluted earnings per share excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our business combination with Dowlais, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges, and non-recurring items, including the tax effect thereon.
AAM defines EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our business combination with Dowlais, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges and non-recurring items.
AAM defines free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment and from government grants. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs.
Company Description
As a leading global Tier 1 Automotive and Mobility Supplier, AAM (NYSE: AXL) designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in
Forward-Looking Statements
In this earnings release, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and relate to trends and events that may affect our future financial position and operating results. The terms such as "will," "may," "could," "would," "plan," "believe," "expect," "anticipate," "intend," "project," "target," and similar words or expressions, as well as statements in future tense, are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and may differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: global economic conditions, including the impact of inflation, recession or recessionary concerns, or slower growth in the markets in which we operate; reduced purchases of our products by General Motors Company (GM), Stellantis N.V. (Stellantis), Ford Motor Company (Ford) or other customers; our ability to respond to changes in technology, increased competition or pricing pressures; our ability to develop and produce new products that reflect market demand; lower-than-anticipated market acceptance of new or existing products; our ability to attract new customers and programs for new products; reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM, Stellantis and Ford); our ability to consummate strategic initiatives and successfully integrate acquisitions and joint ventures; risks inherent in our global operations (including tariffs and the potential consequences thereof to us, our suppliers, and our customers and their suppliers, adverse changes in trade agreements, such as
Profit Forecasts and Estimates
The statements in this press release setting out targets for Adjusted EBITDA and Adjusted free cash flow of AAM for FY25 (together, the "FY25 Updated Profit Forecast") constitute profit forecasts of AAM for the purposes of Rule 28.1(a) of the
Other than the FY25 Updated Profit Forecast, nothing in this press release (including any statement of estimated cost savings or synergies) is intended, or is to be construed, as a profit forecast or profit estimate for any period or is to be interpreted to mean that earnings or earnings per share of AAM or Dowlais for the current or future financial years will necessarily match or exceed the published earnings or earnings per share of AAM or Dowlais, as appropriate.
AAM Directors' Confirmation
In accordance with Rule 28.1(c)(i) of the Code, the AAM directors confirm that, as at the date of this press release, the FY25 Updated Profit Forecast is valid and has been properly compiled on the basis of the assumptions stated in AAM's
For more information:
Investor Contact
David H. Lim
Head of Investor Relations
(313) 758-2006
david.lim@aam.com
Media Contact
Christopher M. Son
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com
Or visit the AAM website at www.aam.com.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in millions, except per share data) | |||||||
Net sales | $ 1,536.2 | $ 1,632.3 | $ 2,947.5 | $ 3,239.2 | |||
Cost of goods sold | 1,335.5 | 1,415.0 | 2,572.9 | 2,823.4 | |||
Gross profit | 200.7 | 217.3 | 374.6 | 415.8 | |||
Selling, general and administrative expenses | 100.8 | 105.2 | 191.7 | 203.5 | |||
Amortization of intangible assets | 20.4 | 20.6 | 41.0 | 41.3 | |||
Impairment charge | 8.0 | — | 8.0 | — | |||
Restructuring and acquisition-related costs | 16.5 | 5.0 | 36.2 | 7.5 | |||
Operating income | 55.0 | 86.5 | 97.7 | 163.5 | |||
Interest expense | (43.1) | (47.9) | (86.0) | (96.9) | |||
Interest income | 5.6 | 6.1 | 11.2 | 14.4 | |||
Other income (expense): | |||||||
Debt refinancing and redemption costs | — | (0.3) | (3.3) | (0.3) | |||
Gain on Business Combination Derivative | 46.3 | — | 68.2 | — | |||
Loss on equity securities | — | (0.2) | — | (0.1) | |||
Other income (expense), net | 3.6 | (8.8) | 0.7 | (8.8) | |||
Income before income taxes | 67.4 | 35.4 | 88.5 | 71.8 | |||
Income tax expense | 28.1 | 17.2 | 42.1 | 33.1 | |||
Net income | $ 39.3 | $ 18.2 | $ 46.4 | $ 38.7 | |||
Diluted earnings per share | $ 0.32 | $ 0.15 | $ 0.38 | $ 0.32 | |||
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS | |||
June 30, 2025 | December 31, 2024 | ||
(Unaudited) | |||
ASSETS | (in millions) | ||
Current assets | |||
Cash and cash equivalents | $ 586.5 | $ 552.9 | |
Accounts receivable, net | 844.5 | 709.1 | |
Inventories, net | 449.1 | 442.5 | |
Prepaid expenses and other | 230.8 | 152.2 | |
Current assets held-for-sale | 61.0 | 58.1 | |
Total current assets | 2,171.9 | 1,914.8 | |
Property, plant and equipment, net | 1,624.0 | 1,622.8 | |
Deferred income taxes | 190.6 | 199.5 | |
Goodwill | 174.8 | 172.0 | |
Other intangible assets, net | 415.9 | 456.7 | |
GM postretirement cost sharing asset | 114.4 | 111.7 | |
Operating lease right-of-use assets | 106.4 | 110.3 | |
Other assets and deferred charges | 475.6 | 472.1 | |
Total assets | $ 5,273.6 | $ 5,059.9 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Current portion of long-term debt | $ 21.9 | $ 47.9 | |
Accounts payable | 771.8 | 700.5 | |
Accrued compensation and benefits | 185.3 | 193.0 | |
Deferred revenue | 27.4 | 14.2 | |
Current portion of operating lease liabilities | 23.0 | 22.8 | |
Accrued expenses and other | 167.6 | 172.4 | |
Current liabilities held-for-sale | 30.4 | 24.4 | |
Total current liabilities | 1,227.4 | 1,175.2 | |
Long-term debt, net | 2,599.8 | 2,576.9 | |
Deferred revenue | 38.4 | 37.0 | |
Deferred income taxes | 13.5 | 11.8 | |
Long-term portion of operating lease liabilities | 85.8 | 89.9 | |
Postretirement benefits and other long-term liabilities | 635.7 | 606.3 | |
Total liabilities | 4,600.6 | 4,497.1 | |
Total stockholders' equity | 673.0 | 562.8 | |
Total liabilities and stockholders' equity | $ 5,273.6 | $ 5,059.9 | |
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in millions) | |||||||
Operating activities | |||||||
Net income | $ 39.3 | $ 18.2 | $ 46.4 | $ 38.7 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 113.5 | 119.6 | 225.7 | 237.4 | |||
Other | (60.9) | 5.0 | (124.3) | (115.5) | |||
Net cash provided by operating activities | 91.9 | 142.8 | 147.8 | 160.6 | |||
Investing activities | |||||||
Purchases of property, plant and equipment | (57.3) | (48.8) | (126.6) | (96.8) | |||
Proceeds from sale of property, plant and equipment | 4.4 | 0.2 | 5.0 | 3.3 | |||
Acquisition of business, net of cash acquired | (0.7) | (0.7) | (1.3) | (1.3) | |||
Proceeds from disposition of affiliates | — | — | 30.1 | — | |||
Proceeds from government grants | — | 2.0 | — | 2.0 | |||
Other | (4.8) | 0.6 | (5.8) | (2.1) | |||
Net cash used in investing activities | (58.4) | (46.7) | (98.6) | (94.9) | |||
Financing activities | |||||||
Net debt activity | (0.8) | (39.3) | (16.6) | (49.4) | |||
Other | (5.2) | (3.2) | (13.4) | (9.1) | |||
Net cash used in financing activities | (6.0) | (42.5) | (30.0) | (58.5) | |||
Effect of exchange rate changes on cash | 9.8 | (3.5) | 14.4 | (7.2) | |||
Net increase in cash and cash equivalents | 37.3 | 50.1 | 33.6 | — | |||
Cash and cash equivalents at beginning of period | 549.2 | 469.8 | 552.9 | 519.9 | |||
Cash and cash equivalents at end of period | $ 586.5 | $ 519.9 | $ 586.5 | $ 519.9 | |||
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. SUPPLEMENTAL DATA (Unaudited) | |||||||
The supplemental data presented below is a reconciliation of certain financial measures which is intended to facilitate analysis of American Axle & Manufacturing Holdings, Inc.'s business and operating performance. | |||||||
Earnings before interest expense, income taxes and depreciation and amortization (EBITDA) and Adjusted EBITDA(a) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in millions) | |||||||
Net income | $ 39.3 | $ 18.2 | $ 46.4 | $ 38.7 | |||
Interest expense | 43.1 | 47.9 | 86.0 | 96.9 | |||
Income tax expense | 28.1 | 17.2 | 42.1 | 33.1 | |||
Depreciation and amortization | 113.5 | 119.6 | 225.7 | 237.4 | |||
EBITDA | 224.0 | 202.9 | 400.2 | 406.1 | |||
Restructuring and acquisition-related costs | 16.5 | 5.0 | 36.2 | 7.5 | |||
Debt refinancing and redemption costs | — | 0.3 | 3.3 | 0.3 | |||
Gain on Business Combination Derivative | (46.3) | — | (68.2) | — | |||
Impairment charge | 8.0 | — | 8.0 | — | |||
Loss on equity securities | — | 0.2 | — | 0.1 | |||
Adjusted EBITDA | $ 202.2 | $ 208.4 | $ 379.5 | $ 414.0 | |||
Adjusted earnings per share(b) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Diluted earnings per share | $ 0.32 | $ 0.15 | $ 0.38 | $ 0.32 | |||
Restructuring and acquisition-related costs | 0.13 | 0.04 | 0.29 | 0.06 | |||
Debt refinancing and redemption costs | — | — | 0.03 | — | |||
Impairment charge | 0.06 | — | 0.06 | — | |||
Gain on Business Combination Derivative | (0.37) | — | (0.55) | — | |||
Tax effect of adjustments | 0.07 | — | 0.09 | — | |||
Adjusted earnings per share | $ 0.21 | $ 0.19 | $ 0.30 | $ 0.38 | |||
Adjusted earnings per share are based on weighted average diluted shares outstanding of 124.1 million and 122.0 million for the three months ended June 30, 2025 and 2024 respectively, and 123.3 million and 121.5 million for the six months ended June 30, 2025 and 2024 respectively.
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. SUPPLEMENTAL DATA (Unaudited) | |||||||
The supplemental data presented below is a reconciliation of certain financial measures which is intended to facilitate analysis of American Axle & Manufacturing Holdings, Inc.'s business and operating performance. | |||||||
Free cash flow and Adjusted free cash flow(c) | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in millions) | |||||||
Net cash provided by operating activities | $ 91.9 | $ 142.8 | $ 147.8 | $ 160.6 | |||
Less: Capital expenditures net of proceeds from the sale of property, plant and equipment and from government grants | (52.9) | (46.6) | (121.6) | (91.5) | |||
Free cash flow | $ 39.0 | $ 96.2 | $ 26.2 | $ 69.1 | |||
Cash payments for restructuring and acquisition-related costs | 9.7 | 1.7 | 18.6 | 7.4 | |||
Adjusted free cash flow | $ 48.7 | $ 97.9 | $ 44.8 | $ 76.5 | |||
Segment Financial Information | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in millions) | |||||||
Segment Sales | |||||||
Driveline | $ 1,082.1 | $ 1,124.5 | $ 2,039.9 | $ 2,230.9 | |||
Metal Forming | 598.4 | 653.1 | 1,174.2 | 1,297.2 | |||
Total Sales | 1,680.5 | 1,777.6 | 3,214.1 | 3,528.1 | |||
Intersegment Sales | (144.3) | (145.3) | (266.6) | (288.9) | |||
Net External Sales | $ 1,536.2 | $ 1,632.3 | $ 2,947.5 | $ 3,239.2 | |||
Segment Adjusted EBITDA(a) | |||||||
Driveline | $ 148.9 | $ 151.8 | $ 274.2 | $ 309.2 | |||
Metal Forming | 53.3 | 56.6 | 105.3 | 104.8 | |||
Total Segment Adjusted EBITDA | $ 202.2 | $ 208.4 | $ 379.5 | $ 414.0 | |||
Full Year 2025 Financial Outlook | |||
The supplemental data presented below is a reconciliation of certain financial measures which is intended to facilitate analysis of American Axle & Manufacturing Holdings, Inc.'s business and operating performance. | |||
Adjusted EBITDA | |||
Low End | High End | ||
(in millions) | |||
Net income | $ 5 | $ 15 | |
Interest expense | 170 | 180 | |
Income tax expense | 10 | 40 | |
Depreciation and amortization | 460 | 460 | |
Full year 2025 targeted EBITDA | 645 | 695 | |
Restructuring-related costs | 35 | 35 | |
Dowlais acquisition-related costs | 65 | 65 | |
Other, principally Business Combination Derivative | (50) | (50) | |
Full year 2025 targeted Adjusted EBITDA | $ 695 | $ 745 | |
Adjusted Free Cash Flow | |||
Low End | High End | ||
(in millions) | |||
Net cash provided by operating activities | $ 375 | $ 415 | |
Capital expenditures net of proceeds from the sale of property, | (290) | (290) | |
Full year 2025 targeted Free Cash Flow | 85 | 125 | |
Cash payments for restructuring-related costs | 25 | 25 | |
Cash payments for Dowlais acquisition-related costs | 65 | 65 | |
Full year 2025 targeted Adjusted Free Cash Flow | $ 175 | $ 215 | |
___________ | |
(a) | We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our business combination with Dowlais, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges and non-recurring items. We believe that EBITDA and Adjusted EBITDA are meaningful measures of performance as they are commonly utilized by management and investors to analyze operating performance and entity valuation. Our management, the investment community and banking institutions routinely use EBITDA and Adjusted EBITDA, together with other measures, to measure our operating performance relative to other Tier 1 automotive suppliers. We also use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. EBITDA and Adjusted EBITDA are also key metrics used in our calculation of incentive compensation. EBITDA and Adjusted EBITDA should not be construed as income from operations, net income or cash flow from operating activities as determined under GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently. |
(b) | We define Adjusted earnings per share to be diluted earnings per share excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our business combination with Dowlais, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges and non-recurring items, including the tax effect thereon. We believe Adjusted earnings per share is a meaningful measure as it is commonly utilized by management and investors in assessing ongoing financial performance that provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of core operating performance and which may obscure underlying business results and trends. Other companies may calculate Adjusted earnings per share differently. |
(c) | We define free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment and from government grants. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs. We believe free cash flow and Adjusted free cash flow are meaningful measures as they are commonly utilized by management and investors to assess our ability to generate cash flow from business operations to repay debt and return capital to our stockholders. Free cash flow and Adjusted free cash flow are also key metrics used in our calculation of incentive compensation. Other companies may calculate free cash flow and Adjusted free cash flow differently. |
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SOURCE American Axle & Manufacturing Holdings, Inc.
FAQ
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