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American Axle & Manufacturing Holdings, Inc. Reports Q1 2025 Financial Results

American Axle & Manufacturing Holdings, Inc. (AAM), listed on NYSE under the ticker AXL, has published its financial outcomes for the first quarter of 2025, indicating notable changes compared to the previous year. The company's sales reached $1.41 billion, a decline from $1.61 billion reported in the first quarter of 2024. This downturn in sales can be attributed to overall lower volumes in the market, reflecting ongoing challenges in the automotive industry.

The net income for this quarter stood at $7.1 million, translating to $0.06 per share, which is a significant decrease from the previous year's profit of $20.5 million, or $0.17 per share. This drop represents only 0.5% of total sales compared to 1.3% in the same period last year. Furthermore, adjusted earnings per share also saw a reduction, falling to $0.09 from $0.18.

Adjusted EBITDA for the quarter was reported as $177.3 million, accounting for 12.6% of sales, which is slightly down from the adjusted EBITDA of $205.6 million, or 12.8% of sales, in Q1 2024. Despite these decreases, AAM managed to generate $55.9 million from operating activities, a notable increase from $17.8 million in the first quarter of 2024. However, the adjusted free cash flow for Q1 2025 was $(3.9) million compared to $(21.4) million in the prior year.

David C. Dauch, AAM's Chairman and CEO, commented on the results, stating, "AAM delivered positive year-over-year operating cash flow performance driven by a combination of cost control and productivity. We will remain focused on managing the factors under our control in this uncertain geopolitical trade policy environment."

Financial Outlook for Full Year 2025

Looking ahead, AAM has updated its financial targets for the full year 2025. The company is now projecting sales to range between $5.65 billion to $5.95 billion, a slight adjustment down from a previous forecast of $5.8 to $6.05 billion. Adjusted EBITDA is expected to be in the range of $665 million to $745 million, adjusted from an earlier target of $700 to $760 million. Additionally, the adjusted free cash flow forecast has been updated to $165 million to $215 million, previously estimated at $200 million to $230 million.

The revised targets are based on certain assumptions regarding North American light vehicle production, which is anticipated to be around 14.0 - 15.1 million units. AAM’s projections also reflect the anticipation that the sale of its commercial vehicle axle business in India will be completed by July 1, 2025. The company further clarified that the forecast does not reflect any potential costs related to the announced combination with Dowlais, which could influence the actual results.

Conference Call Details

To discuss the first quarter results, AAM will host a conference call today at 10:00 AM ET. Participants can access the call through AAM's investor website or by phone, with options for both domestic and international listeners. A replay of the call will be available for those unable to attend live.

As a global Tier 1 Automotive supplier, AAM continues to design, engineer, and manufacture advanced driveline and metal forming technologies to support the evolving landscape of electric, hybrid, and internal combustion vehicles. With headquarters in Detroit and over 75 facilities across 16 countries, AAM is committed to advancing towards a sustainable future in mobility.

Conclusion

In summary, AAM's first quarter financial statements reflect a challenging environment affected by reduced sales volumes and overall market pressures. As the company focuses on operational improvements and strategic initiatives, stakeholders will be keenly watching how these efforts translate into performance throughout the remainder of 2025.