Financial Data and Key Metrics Changes - In Q2 2025, the company's sales were $1.54 billion, a decrease from $1.63 billion in Q2 2024 [17] - Adjusted EBITDA was $202.2 million with a margin of 13.2%, compared to $208.4 million and 12.8% in the previous year [19] - GAAP net income was $39.3 million or $0.32 per share, up from $18.2 million or $0.15 per share in Q2 2024 [23] - Adjusted earnings per share increased to $0.21 from $0.19 year-over-year [23] - Operating cash flow was $91.9 million, down from $142.8 million in Q2 2024 [24] Business Line Data and Key Metrics Changes - The driveline unit experienced a margin increase of approximately 30 basis points to 13.8%, while the metal forming margins increased by approximately 20 basis points to 8.9% [20] - R&D spending was reduced by $8 million year-over-year, reflecting optimization efforts [19] Market Data and Key Metrics Changes - The company anticipates North American production volumes to be between 14.6 million and 15.1 million units for 2025 [15] - The company noted that while overall industry volumes declined, key truck and SUV programs outperformed the industry [11] Company Strategy and Development Direction - The company is focused on operational excellence, cost control, and enhancing productivity, with a goal of continuous improvement [11] - The acquisition of Dolly is expected to create a leading global driveline and metal forming supplier, generating an estimated $300 million in cost synergies [8] - The company is preparing for electrification while also leveraging its existing internal combustion engine (ICE) capabilities [12][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for ICE and hybrid vehicles, citing consumer preferences and government policy changes [11][58] - The company is well-positioned to handle trade and tariff volatility, with 90% of products produced in North America being USMCA compliant [12][25] - Management updated the 2025 financial guidance, targeting sales of $5.75 billion to $5.95 billion and adjusted EBITDA of approximately $695 million to $745 million [15][30] Other Important Information - The company closed the divestiture of its India commercial axle business for approximately $65 million [10] - The company incurred incremental tariff costs of approximately $10 million in Q2 2025, with an expected full-year net impact of $10 million to $15 million after mitigation [28][29] Q&A Session Summary Question: Thoughts on T1 production levels for the year - Management confirmed a production range of 1.3 million to 1.4 million units, with a strong first half performance [36][37] Question: Impact of GM's onshoring production - Management indicated flexibility and capacity to support GM's production shifts, expecting content gains from the Dolly acquisition [40][42] Question: Status of additional plant due diligence for Dolly - Management is currently assessing manufacturing synergies and sees potential upside but cannot quantify it yet [46][47] Question: Specifics on tariff costs - The $10 million in Q2 primarily comes from rest of the world scenarios, with minimal exposure from USMCA compliant imports [49] Question: Changes in emissions regulations impact - Management noted a balanced approach to ICE, hybrid, and electrification, preparing for multiple propulsion systems [58][60] Question: Free cash flow generation in the second half - Management explained that working capital dynamics typically lead to stronger cash flow in the fourth quarter [84] Question: Balance sheet outlook post-acquisition - Management aims for leverage neutrality at close and plans to strengthen the balance sheet while generating strong cash flow [100][101]

Core Viewpoint - American Axle & Manufacturing reported quarterly earnings of $0.21 per share, exceeding the Zacks Consensus Estimate of $0.13 per share, and showing an increase from $0.19 per share a year ago, indicating a strong earnings surprise of +61.54% [1] Financial Performance - The company achieved revenues of $1.54 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.07%, although this represents a decline from year-ago revenues of $1.63 billion [2] - Over the last four quarters, American Axle has exceeded consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance - American Axle shares have declined approximately 21.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.8% [3] - The current Zacks Rank for American Axle is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $1.48 billion, and for the current fiscal year, it is $0.41 on revenues of $5.82 billion [7] - The estimate revisions trend for American Axle was mixed ahead of the earnings release, and future changes in estimates will be closely monitored [6][7] Industry Context - The Automotive - Original Equipment industry, to which American Axle belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Q2 2025 - Net sales for the quarter were $1.54 billion[5], a decrease of $96.1 million compared to the same period in 2024[15] - Adjusted EBITDA was $202.2 million, representing 13.2% of sales[5] - Adjusted Free Cash Flow for the quarter was $48.7 million[5] - Net income was $39.3 million, or $0.32 diluted EPS[15] Financial Outlook - 2025 - Full year sales are projected to be between $5.75 billion and $5.95 billion[13] - Adjusted EBITDA is targeted between $695 million and $745 million[13] - Adjusted Free Cash Flow is expected to be between $175 million and $215 million[13] Business Updates - AAM and Dowlais stockholders approved the proposed combination on July 15 and 22, 2025, respectively[9] - AAM completed the divestiture of its commercial vehicle business in India to Bharat Forge Limited (BFL) for approximately $65 million[11] - AAM will supply front electric drive units (EDUs) and rear e-Beam axles for Scout Motors' new SUV and pickup truck[10] Liquidity and Debt - Net debt stood at $2.0 billion[22] - The net leverage ratio was 2.8x[22] - The company maintains strong liquidity of over $1.5 billion[22]

Core Insights - American Axle & Manufacturing (AAM) has appointed David B. Walker to its Board of Directors, enhancing the board's expertise in financing, strategy, acquisitions, and investment opportunities [1][2]. Company Overview - AAM is a leading global Tier 1 Automotive and Mobility Supplier, specializing in designing, engineering, and manufacturing Driveline and Metal Forming technologies for electric, hybrid, and internal combustion vehicles [4]. - The company is headquartered in Detroit and operates over 75 facilities across 15 countries, focusing on creating a safer and more sustainable future [4]. Leadership Background - David B. Walker has 35 years of experience in advising global companies and recently served as Vice Chairman of Investment Banking at J.P. Morgan until June 2025 [2]. - His previous roles at J.P. Morgan included Head of the Automotive Group and Global Co-Head of the Diversified Industries Group, indicating a strong background in the automotive sector [2].

[Executive Summary](index=1&type=section&id=Executive%20Summary) AAM reported strong Q2 2025 results with significant net income and Adjusted EBITDA margin growth, updating full-year targets [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) American Axle & Manufacturing (AAM) reported Q2 2025 financial results, showing year-over-year growth in net income and Adjusted EBITDA margin despite decreased sales | Metric | Q2 2025 ($ million) | Q2 2024 ($ million) | YoY Change | YoY % Change | | :-------------------------------- | :------------------ | :------------------ | :--------- | :----------- | | Sales | $1,540 | $1,630 | -$90 | -5.5% | | Net Income | $39.3 | $18.2 | +$21.1 | +115.9% | | Net Income (% of sales) | 2.6% | 1.1% | +1.5 pp | - | | Adjusted EBITDA | $202.2 | $208.4 | -$6.2 | -3.0% | | Adjusted EBITDA (% of sales) | 13.2% | 12.8% | +0.4 pp | - | | Diluted EPS | $0.32 | $0.15 | +$0.17 | +113.3% | | Adjusted EPS | $0.21 | $0.19 | +$0.02 | +10.5% | | Net Cash Provided by Operating Activities | $91.9 | $142.8 | -$50.9 | -35.6% | | Adjusted Free Cash Flow | $48.7 | $97.9 | -$49.2 | -50.3% | - AAM posted year-over-year **Adjusted EBITDA margin growth** in the second quarter driven by productivity and cost controls[4](index=4&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) David C Dauch, AAM's Chairman and CEO, highlighted Q2 2025 Adjusted EBITDA margin growth and excitement for the Dowlais combination - AAM's Chairman and CEO, David C Dauch, stated that the company posted year-over-year **Adjusted EBITDA margin growth** in Q2 2025, driven by productivity and cost controls[4](index=4&type=chunk) - The company is excited about its **upcoming combination with Dowlais**, having passed a critical milestone with **shareholder approval**, moving closer to forming a premier global driveline and metal forming auto supplier[4](index=4&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) AAM updated its full-year 2025 targets for sales, Adjusted EBITDA, and free cash flow, based on key production assumptions [Full Year 2025 Targets](index=2&type=section&id=Full%20Year%202025%20Targets) AAM updated its full-year 2025 financial targets, showing an increase in the lower end of ranges for sales, Adjusted EBITDA, and Adjusted free cash flow | Metric | Updated 2025 Target Range | Prior 2025 Target Range | Change (Lower End) | | :-------------------- | :------------------------ | :---------------------- | :----------------- | | Sales | $5.75 - $5.95 billion | $5.65 - $5.95 billion | +$0.10 billion | | Adjusted EBITDA | $695 - $745 million | $665 - $745 million | +$30 million | | Adjusted Free Cash Flow | $175 - $215 million | $165 - $215 million | +$10 million | - The Adjusted free cash flow target assumes capital spending of **approximately 5% of sales**[16](index=16&type=chunk) [Key Assumptions for 2025 Outlook](index=2&type=section&id=Key%20Assumptions%20for%202025%20Outlook) The 2025 financial targets are based on specific assumptions, including North American light vehicle production estimates and exclusions for the Dowlais combination - North American light vehicle production is estimated to be **14.6 - 15.1 million units**[16](index=16&type=chunk) - The outlook reflects AAM on a stand-alone pre-combination basis only, excluding costs and expenses associated with the announced combination with Dowlais[16](index=16&type=chunk) - Assumptions include no changes to USMCA and mitigation of a majority of incremental tariff costs[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains AAM's non-GAAP financial measures, including Adjusted EBITDA, EPS, and free cash flow [Explanation and Usefulness](index=2&type=section&id=Explanation%20and%20Usefulness) AAM provides non-GAAP financial measures to supplement GAAP results, useful for analyzing performance and decision-making - **Non-GAAP financial measures** are useful to management, investors, and banking institutions for analyzing AAM's business and operating performance, and for operational planning and decision-making[11](index=11&type=chunk) - **Non-GAAP financial measures** are not and should not be considered a substitute for any GAAP measure and may not be comparable to similarly titled measures reported by other companies[12](index=12&type=chunk) [Definitions of Key Non-GAAP Measures](index=2&type=section&id=Definitions%20of%20Key%20Non-GAAP%20Measures) The report defines key non-GAAP financial measures, outlining adjustments made to GAAP figures for Adjusted EPS, EBITDA, Adjusted EBITDA, and Adjusted free cash flow - **Adjusted earnings per share** excludes restructuring and acquisition-related costs, debt refinancing and redemption costs, gains/losses on the Dowlais business combination derivative, gains/losses on equity securities, pension charges, impairment charges, and non-recurring items, including tax effects[13](index=13&type=chunk) - **Adjusted EBITDA** is defined as EBITDA (earnings before interest, taxes, depreciation, and amortization) excluding similar items as Adjusted EPS, such as restructuring and acquisition-related costs, debt refinancing costs, and gains/losses on the Dowlais derivative[14](index=14&type=chunk) - **Adjusted free cash flow** is defined as free cash flow (net cash provided by operating activities less capital expenditures net of proceeds from asset sales and government grants) excluding cash payments for restructuring and acquisition-related costs[15](index=15&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) This section covers AAM's business, risk factors, profit forecasts, and investor and media contact information [Company Description](index=4&type=section&id=Company%20Description) American Axle & Manufacturing (AAM) is a leading global Tier 1 Automotive and Mobility Supplier, specializing in Driveline and Metal Forming technologies - AAM is a **leading global Tier 1 Automotive and Mobility Supplier**, designing, engineering, and manufacturing Driveline and Metal Forming technologies[17](index=17&type=chunk) - The company supports electric, hybrid, and internal combustion vehicles and has **over 75 facilities in 15 countries**, with its headquarters in Detroit[17](index=17&type=chunk) [Forward-Looking Statements and Risk Factors](index=5&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report includes forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially - Statements concerning expectations, beliefs, plans, objectives, goals, strategies, and future events or performance are forward-looking and **not guarantees of future results**[18](index=18&type=chunk) - Important factors that could cause differences include **global economic conditions (inflation, recession)**, **reduced purchases by major customers (GM, Stellantis, Ford)**, ability to respond to technology changes, increased competition, supply shortages, labor costs, and **risks related to the transition to hybrid and electric vehicles**[18](index=18&type=chunk) [Profit Forecasts and Directors' Confirmation](index=6&type=section&id=Profit%20Forecasts%20and%20Directors'%20Confirmation) The updated FY25 Adjusted EBITDA and Adjusted free cash flow targets constitute profit forecasts, confirmed by AAM's directors as valid and properly compiled - The FY25 Updated Profit Forecast for Adjusted EBITDA and Adjusted free cash flow is considered a profit forecast under **Rule 28.1(a) of the UK Takeover Code**[19](index=19&type=chunk) - AAM directors confirmed that the FY25 Updated Profit Forecast is **valid, properly compiled** based on stated assumptions, and consistent with AAM's accounting policies[21](index=21&type=chunk) [Investor and Media Contacts](index=7&type=section&id=Investor%20and%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for stakeholders seeking further information - **Investor Contact: David H. Lim, Head of Investor Relations, (313) 758-2006, david.lim@aam.com**[22](index=22&type=chunk) - **Media Contact: Christopher M. Son, Vice President, Marketing & Communications, (313) 758-4814, chris.son@aam.com**[22](index=22&type=chunk) [Condensed Consolidated Financial Statements](index=8&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents AAM's condensed statements of income, balance sheets, and cash flows for the reported periods [Statements of Income](index=8&type=section&id=Statements%20of%20Income) The condensed consolidated statements of income present AAM's financial performance for the three and six months ended June 30, 2025, and 2024 | Metric | Three Months Ended June 30, 2025 ($ million) | Three Months Ended June 30, 2024 ($ million) | Six Months Ended June 30, 2025 ($ million) | Six Months Ended June 30, 2024 ($ million) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net sales | $1,536.2 | $1,632.3 | $2,947.5 | $3,239.2 | | Gross profit | $200.7 | $217.3 | $374.6 | $415.8 | | Operating income | $55.0 | $86.5 | $97.7 | $163.5 | | Income before income taxes | $67.4 | $35.4 | $88.5 | $71.8 | | Net income | $39.3 | $18.2 | $46.4 | $38.7 | | Diluted earnings per share | $0.32 | $0.15 | $0.38 | $0.32 | [Balance Sheets](index=9&type=section&id=Balance%20Sheets) The condensed consolidated balance sheets provide a snapshot of AAM's financial position as of June 30, 2025, compared to December 31, 2024 | Metric | June 30, 2025 ($ million) | December 31, 2024 ($ million) | | :-------------------------------- | :------------------------ | :-------------------------- | | Total current assets | $2,171.9 | $1,914.8 | | Total assets | $5,273.6 | $5,059.9 | | Total current liabilities | $1,227.4 | $1,175.2 | | Long-term debt, net | $2,599.8 | $2,576.9 | | Total liabilities | $4,600.6 | $4,497.1 | | Total stockholders' equity | $673.0 | $562.8 | [Statements of Cash Flows](index=10&type=section&id=Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows illustrate the sources and uses of cash for operating, investing, and financing activities | Metric | Three Months Ended June 30, 2025 ($ million) | Three Months Ended June 30, 2024 ($ million) | Six Months Ended June 30, 2025 ($ million) | Six Months Ended June 30, 2024 ($ million) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $91.9 | $142.8 | $147.8 | $160.6 | | Net cash used in investing activities | ($58.4) | ($46.7) | ($98.6) | ($94.9) | | Net cash used in financing activities | ($6.0) | ($42.5) | ($30.0) | ($58.5) | | Net increase in cash and cash equivalents | $37.3 | $50.1 | $33.6 | $0.0 | | Cash and cash equivalents at end of period | $586.5 | $519.9 | $586.5 | $519.9 | [Supplemental Financial Data](index=11&type=section&id=Supplemental%20Financial%20Data) This section provides detailed reconciliations for non-GAAP financial measures and segment performance data [EBITDA and Adjusted EBITDA Reconciliation](index=11&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) This section reconciles net income to EBITDA and Adjusted EBITDA, detailing adjustments for non-recurring and non-operating items | Metric | Three Months Ended June 30, 2025 ($ million) | Three Months Ended June 30, 2024 ($ million) | Six Months Ended June 30, 2025 ($ million) | Six Months Ended June 30, 2024 ($ million) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net income | $39.3 | $18.2 | $46.4 | $38.7 | | EBITDA | $224.0 | $202.9 | $400.2 | $406.1 | | Restructuring and acquisition-related costs | $16.5 | $5.0 | $36.2 | $7.5 | | Gain on Business Combination Derivative | ($46.3) | — | ($68.2) | — | | Impairment charge | $8.0 | — | $8.0 | — | | Adjusted EBITDA | $202.2 | $208.4 | $379.5 | $414.0 | [Adjusted Earnings Per Share Reconciliation](index=11&type=section&id=Adjusted%20Earnings%20Per%20Share%20Reconciliation) This reconciliation details adjustments from diluted earnings per share to Adjusted earnings per share, providing a clearer view of core operating performance | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 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 | | 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 | $0.38 | [Free Cash Flow and Adjusted Free Cash Flow Reconciliation](index=12&type=section&id=Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow%20Reconciliation) This section reconciles net cash provided by operating activities to free cash flow and Adjusted free cash flow, illustrating cash generated for debt repayment and capital returns | Metric | Three Months Ended June 30, 2025 ($ million) | Three Months Ended June 30, 2024 ($ million) | Six Months Ended June 30, 2025 ($ million) | Six Months Ended June 30, 2024 ($ million) | | :------------------------------------ | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Net cash provided by operating activities | $91.9 | $142.8 | $147.8 | $160.6 | | Less: Capital expenditures net of proceeds from asset sales and 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 | $76.5 | [Segment Financial Information](index=12&type=section&id=Segment%20Financial%20Information) AAM's segment financial information provides a breakdown of sales and Adjusted EBITDA for its Driveline and Metal Forming segments | Segment | Three Months Ended June 30, 2025 ($ million) | Three Months Ended June 30, 2024 ($ million) | Six Months Ended June 30, 2025 ($ million) | Six Months Ended June 30, 2024 ($ million) | | :-------------------- | :------------------------------------------ | :------------------------------------------ | :---------------------------------------- | :---------------------------------------- | | **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 | | Net External Sales | $1,536.2 | $1,632.3 | $2,947.5 | $3,239.2 | | **Segment Adjusted EBITDA:** | | | | | | 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 | $414.0 | [Full Year 2025 Targeted Adjusted EBITDA and Free Cash Flow Reconciliation](index=13&type=section&id=Full%20Year%202025%20Targeted%20Adjusted%20EBITDA%20and%20Free%20Cash%20Flow%20Reconciliation) This section reconciles AAM's full-year 2025 targeted net income to Adjusted EBITDA and net cash provided by operating activities to Adjusted free cash flow | Metric | Low End ($ million) | High End ($ million) | | :------------------------------------ | :----------------- | :------------------ | | **Targeted Adjusted EBITDA:** | | | | 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 | | **Targeted Adjusted Free Cash Flow:** | | | | Net cash provided by operating activities | $375 | $415 | | Capital expenditures net of proceeds from asset sales | ($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 |

Year-Over-Year Net Income and Adjusted EBITDA Margin GrowthDETROIT, Aug. 8, 2025 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today reported its financial results for the second quarter 2025. Second Quarter 2025 Results Sales of $1.54 billion Net income of $39.3 million, or 2.6% of sales Adjusted EBITDA of $202.2 million, or 13.2% of sales Diluted earnings per share of $0.32; Adjusted earnings per share of $0.21 Net cash provided by operating activities of $91.9 million; A ...

Industry Overview - The Auto-Tires-Trucks sector is currently in the second-quarter earnings season, with companies like Tesla, Ford, General Motors, Aptiv, and O'Reilly Automotive reporting quarterly numbers that exceeded earnings estimates [1] - The auto sector's earnings for Q2 2025 are projected to decline by 27.7% year-over-year, with revenues expected to decrease by 6% [2] Market Performance - U.S. vehicle sales showed modest year-over-year growth in Q2, driven by strong demand for gasoline-powered and hybrid vehicles, with a seasonally adjusted annual rate of 15.3 million units in June [4] - Retail vehicle inventory reached 2.16 million units in June, marking a 22.9% increase from June 2024, while average transaction prices rose to $46,233, up $1,400 from the previous year [4] Impact of Tariffs - Higher tariffs on imports initially increased demand among price-sensitive buyers, but as prices stabilized, this momentum began to wane [5] - Elevated operating costs, particularly in R&D for advanced technologies, are likely to have negatively impacted earnings [5] Potential Winners - Companies identified as well-positioned to exceed earnings estimates include Cummins Inc. (CMI), Rivian Automotive, Inc. (RIVN), Lucid Group, Inc. (LCID), and American Axle & Manufacturing Holdings, Inc. (AXL) [3] Company Highlights Cummins Inc. (CMI) - Cummins is the largest engine manufacturer globally, with a strong product lineup and a focus on electrification and clean energy technologies [8][9] - The company has an Earnings ESP of +2.79% and a Zacks Rank of 3, with Q2 earnings and revenues estimated at $4.99 per share and $8.47 billion, respectively [10][11] Rivian Automotive, Inc. (RIVN) - Rivian is targeting budget-conscious consumers with its upcoming R2 and R3 models, with the R2 expected to launch in H1 2026 at a starting price of around $45,000 [12] - The company has an Earnings ESP of +8.53% and a Zacks Rank of 3, with Q2 revenue estimated at $1.26 billion [14] Lucid Group, Inc. (LCID) - Lucid's vehicles are now compatible with Tesla's Supercharger network, enhancing convenience for owners and potentially boosting sales [15] - The company has an Earnings ESP of +3.08% and a Zacks Rank of 3, with Q2 revenue estimated at $253.4 million, reflecting year-over-year growth of 26.4% [17] American Axle & Manufacturing Holdings, Inc. (AXL) - American Axle is advancing in the electric drive space and has a strong electrification portfolio, with key launches driving growth [18] - The company has an Earnings ESP of +17.59% and a Zacks Rank of 3, with Q2 earnings and revenues estimated at 13 cents and $1.51 billion, respectively [20]

Core Viewpoint - The market anticipates a year-over-year decline in earnings for American Axle & Manufacturing (AXL) due to lower revenues, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - American Axle is expected to report quarterly earnings of $0.13 per share, reflecting a year-over-year decrease of 31.6% [3]. - Revenues are projected to be $1.51 billion, down 7.8% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 16.88% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for American Axle is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +17.59% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - American Axle currently holds a Zacks Rank of 3, suggesting a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, American Axle exceeded the expected earnings of $0.02 per share by delivering $0.09, resulting in a surprise of +350.00% [13]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14]. Industry Context - Another player in the automotive industry, Adient (ADNT), is expected to post earnings of $0.47 per share, indicating a year-over-year increase of 46.9% [18]. - Adient's revenues are anticipated to be $3.56 billion, down 4.2% from the previous year, with a revised EPS estimate up by 15.3% in the last 30 days [19].

Group 1 - American Axle & Manufacturing Holdings, Inc. (AAM) will hold a conference call to discuss second quarter financial results on August 8, 2025 [1] - A press release with the financial results will be issued before the market opens on the same day [1] - The conference call can be accessed via phone or live audio webcast, with a replay available for a limited time [2] Group 2 - AAM is a leading global Tier 1 Automotive and Mobility Supplier, focusing on driveline and metal forming technologies for various vehicle types [3] - The company is headquartered in Detroit, MI, and operates over 75 facilities across 16 countries [3] - AAM aims to support the transition to electric, hybrid, and internal combustion vehicles for a safer and more sustainable future [3]

Core Viewpoint - American Axle & Manufacturing Holdings, Inc. (AAM) has received approval from its stockholders for the proposed acquisition of Dowlais Group plc, marking a significant step towards creating a leading global automotive supplier [1][4] Group 1: Transaction Details - AAM stockholders approved all proposals related to the acquisition of Dowlais, which is expected to close in the fourth quarter of 2025, pending Dowlais shareholder approval and other regulatory conditions [1][3] - The combined entity is projected to generate annual revenues of approximately $12 billion on a non-adjusted basis, enhancing AAM's geographic presence across various automotive segments, including internal combustion engines, hybrids, and electric powertrains [2] Group 2: Leadership and Strategic Vision - David C. Dauch, Chairman and CEO of AAM, will continue to lead the combined company, emphasizing the value creation opportunity and the ability to navigate industry shifts and volatility [4] - AAM plans to seek a secondary listing on the London Stock Exchange for its common stock, including new shares issued in connection with the acquisition [2]