Have you evaluated the performance of American Axle & Manufacturing's (AXL) international operations during the quarter that concluded in September 2025? Considering the extensive worldwide presence of this maker of auto parts, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial wel ...

Financial Performance - Net sales for Q3 2025 were $1,505.3 million, slightly up from $1,504.9 million in Q3 2024, while net sales for the nine months ended September 30, 2025, were $4,452.8 million, down from $4,744.1 million in the same period of 2024[14]. - Gross profit for Q3 2025 increased to $189.0 million, compared to $171.3 million in Q3 2024, while gross profit for the nine months ended September 30, 2025, was $563.6 million, down from $587.1 million in 2024[14]. - Operating income for Q3 2025 was $48.4 million, up from $41.7 million in Q3 2024, but down to $146.1 million for the nine months ended September 30, 2025, compared to $205.2 million in 2024[14]. - Net income for Q3 2025 was $9.2 million, a decrease from $10.0 million in Q3 2024, while net income for the nine months ended September 30, 2025, increased to $55.6 million from $48.7 million in 2024[14]. - Total revenue for the three months ended September 30, 2025, was $1,505.3 million, a slight increase from $1,504.9 million in the same period of 2024[79]. - The company reported a total of $4,452.8 million in revenue for the nine months ended September 30, 2025, down from $4,744.1 million in 2024, representing a decrease of 6.1%[79]. Assets and Liabilities - Total assets as of September 30, 2025, were $5,343.2 million, an increase from $5,059.9 million as of December 31, 2024[20]. - Cash and cash equivalents increased to $714.1 million as of September 30, 2025, compared to $552.9 million at the end of 2024[20]. - Total liabilities as of September 30, 2025, were $4,624.8 million, up from $4,497.1 million as of December 31, 2024[20]. - Total current liabilities rose to $1,269.4 million as of September 30, 2025, compared to $1,175.2 million as of December 31, 2024, indicating an increase of 8.0%[20]. - Long-term debt, net, was $2,594.0 million as of September 30, 2025, slightly up from $2,576.9 million as of December 31, 2024, an increase of 0.7%[20]. - The total stockholders' equity increased to $718.4 million as of September 30, 2025, compared to $562.8 million as of December 31, 2024, representing a growth of 27.7%[20]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $291.1 million, slightly down from $304.2 million in 2024, a decrease of 4.2%[22]. - The company reported a net cash used in investing activities of $108.3 million for the nine months ended September 30, 2025, an improvement from $174.2 million in 2024[22]. - Cash and cash equivalents at the end of the period increased to $714.1 million, compared to $542.5 million at the end of September 2024, reflecting a growth of 31.6%[22]. - The company completed the sale of AAM India Manufacturing Corporation Pvt., Ltd. for total cash proceeds of $64.4 million, with $58.1 million collected in July 2025 and $6.3 million in Q4 2025[37]. Earnings and Taxation - The company reported a basic earnings per share of $0.07 for Q3 2025, down from $0.08 in Q3 2024, while diluted earnings per share remained the same at $0.07[14]. - The effective income tax rate for the nine months ended September 30, 2025, was 35.9%, compared to 30.1% for the same period in 2024[88]. - The company recognized a discrete income tax benefit of $22.0 million during the three and nine months ended September 30, 2025, due to the enactment of new tax legislation[88]. Strategic Initiatives - The company is focusing on transitioning its business from internal combustion engine vehicle products to hybrid and electric vehicle products, amidst various market risks and competition challenges[11]. - AAM announced a pending business combination with Dowlais Group plc, indicating strategic expansion efforts in the automotive sector[35]. - The company expects to incur restructuring costs associated with the Tekfor acquisition into 2026, indicating ongoing integration efforts[82]. Segment Performance - Segment Adjusted EBITDA for the Driveline segment was $156.8 million for the three months ended September 30, 2025, compared to $135.7 million for the same period in 2024, reflecting a year-over-year increase of 15.8%[102]. - Total net external sales for the three months ended September 30, 2025, were $1,505.3 million, with Driveline contributing $1,050.6 million and Metal Forming contributing $454.7 million[102]. - Net external sales for the Metal Forming segment for the three months ended September 30, 2025, were $454.7 million, a decrease from $462.6 million in the same period of 2024[102]. Other Financial Metrics - The company recorded depreciation and amortization expenses of $342.0 million for the nine months ended September 30, 2025, compared to $354.3 million in 2024, a decrease of 3.2%[22]. - Stock-based compensation increased to $12.0 million in 2025 from $11.7 million in 2024, reflecting a growth of 2.6%[22]. - The company incurred restructuring and acquisition-related costs for Q3 2025 of $21.4 million, compared to $2.2 million in Q3 2024, indicating increased strategic initiatives[14]. - The company recorded a net change in accumulated other comprehensive income (loss) of $32.1 million for the three months ended September 30, 2025[68].

Core Insights - American Axle & Manufacturing (AXL) reported $1.51 billion in revenue for Q3 2025, showing no year-over-year change, with an EPS of $0.16 compared to $0.20 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.49 billion by +0.82%, while the EPS surprised by +33.33% against a consensus estimate of $0.12 [1] Financial Performance Metrics - Net Sales in Metal Forming were reported at $595 million, slightly below the two-analyst average estimate of $604.5 million, reflecting a year-over-year decline of -0.3% [4] - Net Sales in Driveline reached $1.05 billion, surpassing the $1.04 billion average estimate, indicating a year-over-year increase of +0.8% [4] - Adjusted EBITDA for Metal Forming was $37.9 million, lower than the average estimate of $45.57 million [4] - Adjusted EBITDA for Driveline was reported at $156.8 million, exceeding the average estimate of $137.49 million [4] Stock Performance - Shares of American Axle have returned +8.4% over the past month, contrasting with a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - AAM's Q3 2025 sales were $1.51 billion, with adjusted earnings per share at $0.16, and operating cash flow of $143.3 million [4][12] - Adjusted EBITDA was $195 million, representing 12.9% of sales, a 130 basis point improvement year-over-year on flat sales [5][13] - GAAP net income was $9.2 million, or $0.07 per share, compared to $10 million, or $0.08 per share in Q3 2024 [17] Business Line Data and Key Metrics Changes - The driveline business unit achieved adjusted EBITDA margins of 14.9%, the highest since 2020, driven by operational efficiency and quality improvements [5][6] - Metal forming business still requires work to reach full margin potential, with ongoing assessments for optimization [5][6] Market Data and Key Metrics Changes - AAM is seeing onshoring opportunities within the metal forming group, with OEMs assessing long-range product plans due to changes in EV tax credits and emission regulations [6][8] - Demand for large trucks and SUVs remains healthy, which aligns with AAM's core products [6][7] Company Strategy and Development Direction - AAM aims for a propulsion-agnostic product portfolio to adapt to market demands, with a focus on electrification technologies [7][8] - The company completed financing for the Dauch acquisition, securing $850 million in senior secured notes and $1.25 billion in senior unsecured notes [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and policy uncertainties while focusing on operational efficiency [11][24] - The company updated its 2025 guidance, targeting sales of $5.8 billion to $5.9 billion and adjusted EBITDA of approximately $710 million to $745 million [10][19] Other Important Information - AAM's net debt stood at $1.9 billion with a net leverage ratio of 2.6 times as of September 30, 2025 [18] - The company anticipates restructuring-related cash payments of approximately $20 million for 2025 to optimize business and reduce fixed costs [20] Q&A Session Summary Question: What drove the $9 million volume mix in EBITDA? - The strong performance on the RAM platform and elevated sales from the full-size truck franchise contributed to the mix, while declines in passenger car and crossover vehicle sales affected the overall dynamics [27][28] Question: Update on reshoring activities and customer conversations? - AAM is seeing opportunities for localization in metal forming, but cannot discuss Dauch acquisition benefits with customers until the deal closes [29][30] Question: Confidence in regulatory antitrust clearing? - AAM is confident in obtaining all necessary approvals, with Brazil and Mexico expected soon, and discussions ongoing in China [33][34] Question: Production assumptions for North America? - The production assumption of 15.1 million units reflects calibration to customer schedules and anticipated downtime [35][36] Question: Growth potential from onshoring and recent business wins? - AAM expects to benefit from onshoring in metal forming and sees opportunities for insourcing post-Dauch acquisition [41][42] Question: Factors affecting Q4 EBITDA range? - The primary factors include revenue, contribution margin, project expenses, and production volatility [45][46] Question: Sustainability of driveline margins? - Driveline margins have shown consistent strength, with expectations for continued strong performance [51][52] Question: Impact of tariffs on heavy-duty trucks? - Currently, there has been no negative impact from the expansion of tariffs on medium and heavy-duty trucks [53] Question: Breakdown of strong performance in other markets? - Two-thirds of the performance improvement is attributed to the driveline business, with expectations for continued strong operating performance [55][56] Question: Future leverage framework post-Dauch acquisition? - AAM plans to prioritize deleveraging and expects to maintain a leverage neutral position post-acquisition [71][72] Question: Integration of Dauch executives? - AAM is adjusting its management team following the Dauch acquisition, focusing on blending teams at all levels [80][81]

American Axle & Manufacturing (AXL) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.2 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +33.33%. A quarter ago, it was expected that this maker of auto parts would post earnings of $0.13 per share when it actually produced earnings of $0.21, delivering a surprise of +61.54%.Over the last f ...

This presentation contains forward-looking information about Interfor Corporation's ("Interfor" or the "Company") business outlook, objectives, plans, strategic priorities and other information that is not historical fact. A statement contains forward-lookin g information when the Company uses what it knows and expects today, to make a statement about the future. Statements containing forward-looking information in this presentation, include but are not limited to, statements regarding production capacity, ...

While reporting financial results for the third quarter on Friday, American Axle & Manufacturing Holdings, Inc. or AAM (AXL) said it now expects sales for the full-year 2025 in a range of $5.80 billion to $5.90 billion, narrower than the prior guidance range of $5.75 billion to $5.95 billion.On average, eight analysts polled expect the company to report revenues of $5.86 billion for the year.The company said the guidance is based on assumption of North American light vehicle production of approximately 15. ...

Financial Performance - AAM's sales for Q3 2025 were $1.51 billion, a slight increase from $1.50 billion in Q3 2024[5] - Net income for Q3 2025 was $9.2 million, or 0.6% of sales, compared to $10.0 million, or 0.7% of sales in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was $194.7 million, representing 12.9% of sales, up from $174.4 million, or 11.6% of sales in Q3 2024[7] - Adjusted free cash flow for Q3 2025 was $98.1 million, an increase from $74.6 million in Q3 2024[8] - Net sales for Q3 2025 were $1,505.3 million, slightly up from $1,504.9 million in Q3 2024, while net sales for the nine months ended September 30, 2025, decreased to $4,452.8 million from $4,744.1 million in the same period of 2024[26] - Gross profit for Q3 2025 increased to $189.0 million, compared to $171.3 million in Q3 2024, while gross profit for the nine months ended September 30, 2025, decreased to $563.6 million from $587.1 million in 2024[26] - Operating income for Q3 2025 was $48.4 million, up from $41.7 million in Q3 2024, but down from $146.1 million for the nine months ended September 30, 2025, compared to $205.2 million in 2024[26] - Net income for Q3 2025 was $9.2 million, a slight decrease from $10.0 million in Q3 2024, while net income for the nine months ended September 30, 2025, increased to $55.6 million from $48.7 million in 2024[26] - Adjusted EBITDA for Q3 2025 was $194.7 million, compared to $174.4 million in Q3 2024, while for the nine months ended September 30, 2025, it decreased to $574.2 million from $588.4 million in 2024[32] - Free cash flow for Q3 2025 was $79.5 million, up from $70.7 million in Q3 2024, while for the nine months ended September 30, 2025, it decreased to $105.7 million from $139.8 million in 2024[37] Financial Outlook - AAM's updated financial outlook for FY 2025 targets sales between $5.8 billion and $5.9 billion, up from the previous range of $5.75 billion to $5.95 billion[18] - The company is targeting Adjusted EBITDA in the range of $710 million to $745 million for FY 2025, compared to the prior range of $695 million to $745 million[18] - AAM expects Adjusted free cash flow for FY 2025 to be between $180 million and $210 million, slightly adjusted from the previous range of $175 million to $215 million[18] - The company targets full year 2025 adjusted EBITDA in the range of $710 million to $745 million, indicating a focus on improving operational efficiency[42] - Full year 2025 targeted free cash flow is projected to be between $115 million and $145 million, highlighting the company's cash generation capabilities[42] - Adjusted free cash flow for 2025 is expected to be between $180 million and $210 million, reflecting the company's commitment to managing cash flow effectively[42] Asset and Liability Management - Total assets as of September 30, 2025, increased to $5,343.2 million from $5,059.9 million as of December 31, 2024[28] - Total liabilities as of September 30, 2025, rose to $4,624.8 million from $4,497.1 million as of December 31, 2024[28] - Cash and cash equivalents at the end of Q3 2025 were $714.1 million, an increase from $552.9 million at the end of 2024[28] Segment Performance - Driveline segment sales for Q3 2025 were $1,051.1 million, a slight increase from $1,042.8 million in Q3 2024, while Metal Forming segment sales decreased to $595.0 million from $596.5 million[39] - Segment adjusted EBITDA for the Driveline segment was $156.8 million in Q3 2025, up from $135.7 million in Q3 2024, indicating strong performance in this area[39] - Total segment adjusted EBITDA for Q3 2025 was $194.7 million, compared to $174.4 million in Q3 2024, representing an increase of about 11.8%[39] Strategic Initiatives - AAM continues to progress towards its combination with Dowlais, enhancing its position as a global supplier[5] - The company emphasizes the importance of non-GAAP financial measures for operational planning and decision-making[13] - The company is focused on strategic initiatives to enhance market position and operational performance, including ongoing investments in new technologies and market expansion efforts[42] Restructuring and Costs - The company reported restructuring-related costs of $45 million and acquisition-related costs of $55 million for the full year 2025, which will impact overall profitability[42] Sales Trends - The company experienced a decline in total sales for the nine months ended September 30, 2025, with total sales of $4,860.2 million compared to $5,167.4 million in 2024, a decrease of approximately 5.9%[39] - Total net external sales for the nine months ended September 30, 2025, were $4,452.8 million, down from $4,744.1 million in the same period of 2024, reflecting a decrease of approximately 6.1%[39]

Accessibility StatementSkip Navigation Third Quarter  2025 Results "AAM delivered strong year-over-year margin growth driven by performance," said AAM's Chairman and Chief Executive Officer, David C. Dauch. "Furthermore, we continue to make great progress to close our combination with Dowlais, positioning us well for a bright future as a premier global driveline and metal forming supplier with significant size, scale, and value creation potential." AAM's sales in the third quarter of 2025 were $1.51 billi ...

Earnings Report - American Axle & Manufacturing Holdings, Inc. is set to release its third-quarter earnings results on November 7, with analysts expecting earnings of 12 cents per share, a decrease from 20 cents per share in the same period last year [1] - The consensus estimate for quarterly revenue is $1.53 billion, slightly up from $1.50 billion a year earlier [1] Recent Developments - On October 27, American Axle and Dowlais announced that the European Commission has unconditionally cleared their combination [2] - Following this announcement, American Axle shares fell by 2.8%, closing at $6.17 [2] Analyst Ratings - Stifel analyst Nathan Jones maintained a Hold rating and raised the price target from $6 to $7 [4] - RBC Capital analyst Tom Narayan upgraded the stock from Sector Perform to Outperform and increased the price target from $6 to $8 [4] - Morgan Stanley analyst Armintas Sinkevicius maintained an Overweight rating but reduced the price target from $8 to $7.5 [4]