Core Insights - The conference features American Axle Manufacturing, a leading driveline supplier in the U.S. that is significantly expanding its global presence through transformative mergers and acquisitions [1]. Company Overview - American Axle Manufacturing is represented by its CEO and Chairman David Dauch, along with CFO Chris May, indicating strong leadership presence at the conference [2].

Core Insights - Siemens Healthineers is presenting its strategy and financial plans at a conference organized by Jefferies, indicating strong interest and attendance from stakeholders [1]. Group 1: Company Strategy - The presentation will begin with an overview of the company's strategy, led by Bernd [1]. - Following the strategy presentation, Jochen will discuss the financials and the midterm plan, highlighting the company's financial outlook [1]. Group 2: Diagnostics Segment - Sharon Bracken will present on the Diagnostics segment, followed by a Q&A session to address any inquiries regarding this area [2].

Summary of American Axle & Manufacturing (NYSE: AXL) FY Conference Call Company Overview - **Company**: American Axle & Manufacturing (AAM) - **Industry**: Automotive parts manufacturing, specifically driveline systems - **Event**: Barclays Global Autos and Mobility Conference - **Date**: November 19, 2025 Key Financial Performance - **Sales Guidance**: Expected sales for the full year between $5.8 billion and $5.9 billion [2] - **EBITDA Guidance**: Projected EBITDA in the range of $710 million to $745 million [2] - **Adjusted Free Cash Flow**: Anticipated to be between $180 million and $210 million [2] Strategic Developments - **Acquisition**: AAM announced the acquisition of Dowlais Group (GKN Automotive and GKN Powder Metallurgy) in January 2025, with significant integration progress [3][4] - **Regulatory Approvals**: Received approvals from eight out of ten jurisdictions, with Mexico and China pending [4] - **Synergy Opportunities**: Expected to generate over $300 million in synergies from the acquisition [4][5] Market Dynamics - **Global Automotive Market**: Anticipated global production of 88-90 million units, with China contributing 29-30 million units [14] - **North American Market**: Steady demand for trucks and SUVs, with expectations of continued strength in GM truck franchises [15][16] - **European Market**: Concerns about competition and market share loss to Chinese OEMs, with a decline in market size from 22 million to 17 million units [15][19] Electrification and Product Strategy - **Electrification Outlook**: AAM believes in a slower adoption rate of electrification in the U.S., projecting only 20% market share by 2030, compared to earlier forecasts of 50% [20] - **Investment in Electrification**: AAM has been investing in electrification since 2010 and aims to strengthen its capabilities through the Dowlais acquisition [21][22] - **Product Portfolio**: Plans to expand product offerings to include ICE, hybrid, and electric vehicles, with a focus on being agnostic to market demands [5][38] Operational Efficiency and Margin Performance - **Margin Recovery**: Positive performance in EBITDA over the last eight quarters, with a focus on operational efficiency to offset inflation [28][29] - **Metal Forming Segment**: Aiming to recover margins to mid-teens levels through efficiency improvements [34] - **Capacity Utilization**: Emphasis on optimizing fixed costs and capacity utilization across all business segments [45][47] Synergy and Integration Plans - **Synergy Targets**: Committed to achieving $300 million in synergies, with 60% expected by the end of year two and full run rate by year three [54][57] - **Operational Integration**: Focus on consolidating offices and manufacturing plants to drive efficiency and cost savings [55][56] Financial Strategy and Capital Allocation - **Leverage Goals**: Targeting net leverage of under three times net debt to EBITDA, with a long-term goal of two times [67][68] - **CapEx Profile**: Aiming to maintain capital expenditures at 4-5% of sales, consistent with historical levels [70] - **Free Cash Flow**: Expected to generate positive free cash flow post-acquisition, despite initial restructuring costs [72] Conclusion - **Market Positioning**: AAM is strategically positioned to leverage its expanded global footprint and product portfolio, focusing on operational efficiency and synergy realization from the Dowlais acquisition [60][62] - **Future Outlook**: The company remains optimistic about its growth prospects, particularly in the context of evolving market dynamics and customer demands [19][20]

Core Insights - American Axle & Manufacturing Holdings (AXL) reported third-quarter 2025 adjusted earnings of 16 cents per share, exceeding the Zacks Consensus Estimate of 12 cents, but down from 20 cents per share in the same quarter last year [1][8] - The company generated quarterly revenues of $1.51 billion, surpassing the Zacks Consensus Estimate of $1.49 billion, but remained flat year-over-year [1][8] Segmental Performance - The Driveline segment achieved sales of $1.05 billion, nearly flat year-over-year, but exceeded the estimate of $1.02 billion. Adjusted EBITDA for this segment was $156.8 million, a 15.5% increase year-over-year, surpassing the estimate of $136 million [2] - The Metal Forming business reported revenues of $595 million, flat year-over-year, but fell short of the estimate of $600 million. Adjusted EBITDA for this segment was $37.9 million, down 2% year-over-year, missing the estimate of $40.7 million [3] Financial Position - Third-quarter SG&A expenses totaled $98.8 million, an increase from $94.6 million in the year-ago quarter [4] - Net cash provided by operating activities was $143.3 million, slightly down from $143.6 million in the previous year [4] - Capital spending for the quarter was $52.9 million, up from $46.6 million reported in the year-ago period [4] - Free cash flow for the three months ended September 30, 2025, was $79.5 million, compared to $70.7 million in the same period last year [5] - As of September 30, 2025, cash and cash equivalents stood at $714.1 million, up from $552.9 million as of December 31, 2024. Net long-term debt was $2.59 billion, slightly up from $2.58 billion as of December 31, 2024 [5] Revised Outlook for 2025 - American Axle revised its 2025 revenue guidance to a range of $5.8-$5.9 billion, compared to the previous estimate of $5.75-$5.95 billion. Adjusted EBITDA is now estimated to be between $710 million and $745 million, up from the previous guidance of $695-$745 million [6] - Adjusted free cash flow is anticipated to be between $180 million and $210 million, compared to the prior guidance of $175-$215 million [6] Zacks Rank & Key Picks - AXL currently holds a Zacks Rank 3 (Hold). Other better-ranked stocks in the auto sector include General Motors Company (GM), OPENLANE, Inc. (KAR), and Garrett Motion Inc. (GTX), each with a Zacks Rank 1 (Strong Buy) [7]

Core Insights - American Axle & Manufacturing's international operations are crucial for understanding its financial resilience and growth potential [1][2][3] Revenue Performance - The company's total revenue for the recent quarter reached $1.51 billion, showing no growth compared to the prior-year quarter [4] - Asia contributed $129.2 million, accounting for 8.6% of total revenue, with a decline of 9.12% from the expected $142.16 million [5] - Europe generated $191.8 million, representing 12.7% of total revenue, falling short of the projected $210.27 million by 8.78% [6] - South America contributed $56.4 million, making up 3.8% of total revenue, exceeding the consensus estimate of $46.95 million by 20.13% [7] Future Projections - Analysts expect total revenue of $1.39 billion for the current fiscal quarter, indicating a 0.9% increase from the prior-year quarter [8] - For the full year, total revenue is projected at $5.83 billion, down 4.8% from the previous year, with expected contributions from Asia ($573.26 million), Europe ($806.78 million), and South America ($179.69 million) [9] Market Dependency - The company's reliance on global markets for revenue presents both opportunities and challenges, making the monitoring of international revenue trends essential for predicting future performance [10] - Analysts closely observe these trends, especially for companies with significant international exposure, to adjust earnings forecasts [10][11] Stock Performance - Over the past four weeks, the stock price increased by 23.1%, outperforming the S&P 500's 0.3% rise [13] - In the last three months, the stock has appreciated by 14.1%, compared to a 6.4% increase in the S&P 500 [13]

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]

Core Insights - American Axle & Manufacturing (AXL) reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, but down from $0.20 per share a year ago, representing an earnings surprise of +33.33% [1] - The company achieved revenues of $1.51 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.82% and showing a slight increase from $1.5 billion year-over-year [2] - American Axle has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance in earnings [2] Earnings Outlook - The future performance of American Axle's stock will largely depend on management's commentary during the earnings call and the sustainability of the recent price movements [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $1.39 billion, while for the current fiscal year, the estimate is $0.44 on revenues of $5.83 billion [7] Industry Context - The Automotive - Original Equipment industry, to which American Axle belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Interfor Investment Highlights - Interfor is a top three softwood lumber producer in North America with 28 strategically located facilities[6] - The company has high exposure to the US South and Eastern Canada with attractive log costs[6] - Interfor has top quartile EBITDA margins and returns on capital employed through the cycle[6] - As of October 1, 2025, Interfor had approximately $386 million of liquidity[6] Market and Operations - Softwood lumber accounted for 81% of Interfor's $3 billion in 2024 revenues[18] - Approximately 75% of Interfor's sales volumes are not exposed to lumber duties or tariffs[19] - Interfor has 47 billion board feet of lumber production capacity, with 50% in the US South, 23% in Eastern Canada, 16% in BC Interior and 12% in US Northwest[26] Lumber Market Fundamentals - Repair & Remodel accounts for 38%, New Home Construction 32%, and Industrial/Commercial/Other 30% of North American lumber demand[35] - Since 2016, nearly 54% of BC industry capacity has been curtailed due to declining log supply[45] - Approximately 25% of Interfor's shipments are exposed to duties[48]