#USA #Detroit #financial results #American Axle #Q2 2025

AAM's Second Quarter 2025 Financial Highlights

On August 8, 2025, American Axle & Manufacturing Holdings, Inc. (AAM), traded on the NYSE under the symbol AXL, shared its financial results for the second quarter of 2025, revealing both progress and challenges in the automotive sector.

During this quarter, AAM reported total sales of $1.54 billion. This figure reflects a decrease from $1.63 billion reported in the same period last year, predominantly influenced by reduced production volumes and a shift in product mix. However, this decline doesn't overshadow the positive trajectory noted in other financial metrics. The net income for Q2 2025 stood at $39.3 million, marking an increase from $18.2 million in Q2 2024, which translates to 2.6% of sales compared to the previous year's 1.1%.

AAM's Chairman and CEO, David C. Dauch, emphasized the company's commitment to enhancing productivity and maintaining strict cost controls, which contributed significantly to the improved adjusted EBITDA margin. The adjusted EBITDA for the quarter was $202.2 million, representing 13.2% of sales, a stable performance compared to 12.8% in the previous year despite slight fluctuations in absolute terms. This quarter's adjusted earnings per share reached $0.21, marking an uptick from $0.19 in Q2 2024.

In terms of cash flow, AAM generated $91.9 million from its operating activities, although down from $142.8 million in Q2 2024. The company’s adjusted free cash flow fell to $48.7 million, significantly below the $97.9 million achieved in the previous year. Despite these challenges, AAM has robust financial targets for the rest of the fiscal year.

2025 Financial Outlook

For the full year of 2025, AAM is setting its sales target between $5.75 billion and $5.95 billion, adjusting slightly upward from the previous prediction. The company is also optimistic about reaching an adjusted EBITDA in the range of $695 million to $745 million, reflecting ongoing operational improvements and strategic planning. The anticipated Adjusted free cash flow is projected to be between $175 million and $215 million, with a focus on controlled capital spending, estimated at about 5% of sales.

AAM’s management believes that assuming North American light vehicle production stabilizes between 14.6 and 15.1 million units will aid in achieving these targets. The firm also remains committed to mitigating costs related to new tariffs and navigating the implications of ongoing market changes.

Moreover, the approval from shareholders for the combination with Dowlais marks a significant step for AAM. Both companies are poised to enhance their market stature as leaders in driveline and metal forming solutions, aiming to yield substantial benefits post-merger. Dauch expressed excitement about the new opportunities that this partnership will facilitate, emphasizing the enhanced scale and potential for value creation in the competitive automotive landscape.

Conference Call Announcement

AAM will hold a conference call to discuss its second-quarter results today at 10:00 AM ET. Participants can access the live call via the AAM investor website or by calling the provided numbers for those inside and outside the United States. The replay of the call will be accessible for a limited time following its conclusion.

In conclusion, while AAM faces hurdles with fluctuating sales figures, the company's focus on strategic growth methods, alongside enthusiasm for upcoming partnerships, positions it for a strong performance in the latter half of 2025. Investors and stakeholders will be watching closely as AAM continues its efforts to establish a robust future in the evolving automotive sector.