UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 1-14303 | --- | --- | |--------------------------------------------------------------------------------------- ...

American Axle & Manufacturing (AXL) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to loss of $0.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1,900%. A quarter ago, it was expected that this maker of auto parts would post earnings of $0.10 per share when it actually produced earnings of $0.19, delivering a surprise of 90%.Over the last four quar ...

[Third Quarter 2024 Financial Results](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Results) AAM's **Q3 2024** financial performance, key metrics, and management commentary are presented [Key Financial Highlights (Q3 2024 vs Q3 2023)](index=1&type=section&id=1.1.%20Key%20Financial%20Highlights%20(Q3%202024%20vs%20Q3%202023)) AAM reported solid **Q3 2024** financial performance, achieving positive net income and **Adjusted EBITDA** despite a slight sales decrease | Metric | Q3 2024 (Millions USD) | Q3 2023 (Millions USD) | Change (YoY) | Change (%) | | :-------------------------- | :--------------------- | :--------------------- | :----------- | :--------- | | **Sales** | **$1,504.9** | **$1,551.9** | **$(47.0)** | -3.0% | | **Net Income (Loss)** | **$10.0** | **$(17.4)** | **$27.4** | N/A | | **Adjusted EBITDA** | **$174.4** | **$156.8** | **$17.6** | 11.2% | | **Diluted EPS** | **$0.08** | **$(0.15)** | **$0.23** | N/A | | **Adjusted EPS** | **$0.20** | **$(0.11)** | **$0.31** | N/A | | Net Cash from Operations | **$143.6** | **$178.3** | **$(34.7)** | -19.5% | | **Adjusted Free Cash Flow** | **$74.6** | **$135.8** | **$(61.2)** | -45.1% | - **Sales** for **Q3 2024** were negatively impacted by **lower volumes** on certain platforms[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=1.2.%20Management%20Commentary) AAM's CEO highlighted solid **Q3** performance driven by **productivity and operating efficiencies** - AAM's Chairman and CEO, David C. Dauch, stated that the solid **Q3 financial performance** was driven by **productivity and operating efficiencies**[2](index=2&type=chunk) - Management will continue to focus on **controllable factors** and remain agile to changing propulsion trends with their **comprehensive product portfolio**[2](index=2&type=chunk) [2024 Updated Financial Outlook](index=1&type=section&id=2024%20Updated%20Financial%20Outlook) AAM's updated full-year **2024** financial targets and underlying assumptions are detailed [Full Year 2024 Targets](index=1&type=section&id=2.1.%20Full%20Year%202024%20Targets) AAM updated its **full-year 2024** financial targets, adjusting **Sales** and **Adjusted Free Cash Flow** ranges | Metric | Prior Target (Billions USD) | Updated Target (Billions USD) | Change | | :------------------------ | :-------------------------- | :---------------------------- | :----- | | **Sales** | **$6.1** - **$6.3** | **$6.1** - **$6.15** | Lowered | | **Adjusted EBITDA** | **$705** - **$755 million** | **$715** - **$745 million** | Narrowed | | **Adjusted Free Cash Flow** | **$200** - **$240 million** | **$200** - **$220 million** | Lowered | | **Capital Spending** (as % of sales) | N/A | **~4%** | N/A | [Underlying Assumptions](index=2&type=section&id=2.2.%20Underlying%20Assumptions) Updated **2024** financial targets are based on assumptions for **North American light vehicle production** and **AAM's production estimates** - **North American light vehicle production** is assumed to be **approximately 15.5 million units** for **2024**[6](index=6&type=chunk) - Targets are based on **AAM's production estimates** of key programs and current customer launch schedules and operating environment[6](index=6&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) AAM's company description, conference call details, forward-looking statements, and contacts are provided [Company Description](index=2&type=section&id=3.1.%20Company%20Description) AAM is a **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**[15](index=15&type=chunk) - The company designs, engineers, and manufactures **Driveline and Metal Forming technologies** for **electric, hybrid, and internal combustion vehicles**[15](index=15&type=chunk) - **AAM** is headquartered in Detroit with **over 80 facilities in 18 countries**[15](index=15&type=chunk) [Conference Call Details](index=2&type=section&id=3.2.%20Conference%20Call%20Details) A conference call was held **November 8, 2024**, to discuss **AAM's** third-quarter results - A conference call to review **Q3** results was scheduled for **November 8, 2024, at 10:00 a.m. ET**[7](index=7&type=chunk) - Participants could listen via **AAM's investor website** or by phone, with a replay available until **November 15, 2024**[7](index=7&type=chunk) [Forward-Looking Statements](index=3&type=section&id=3.3.%20Forward-Looking%20Statements) The report contains **forward-looking statements** subject to various risks and uncertainties - Statements concerning future expectations and performance are considered '**forward-looking' statements**[17](index=17&type=chunk) - **Forward-looking statements** are **not guarantees of future performance** and are subject to **risks that may cause actual results to differ materially**[17](index=17&type=chunk) - Key factors causing differences include **global economic conditions**, **reduced purchases by major customers** (GM, Stellantis, Ford), **technological changes**, **competition**, **supply chain disruptions**, and **risks related to transitioning to hybrid/electric vehicle products**[17](index=17&type=chunk) [Investor & Media Contacts](index=3&type=section&id=3.4.%20Investor%20%26%20Media%20Contacts) Contact information for **AAM's investor relations** and media inquiries is provided - **Investor Contact**: David H. Lim, Head of Investor Relations, **(313) 758-2006**, **david.lim@aam.com**[18](index=18&type=chunk) - **Media Contact**: Christopher M. Son, Vice President, Marketing & Communications, **(313) 758-4814**, **chris.son@aam.com**[18](index=18&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) AAM's condensed consolidated financial statements, including operations, balance sheets, and cash flows, are presented [Statements of Operations](index=4&type=section&id=4.1.%20Statements%20of%20Operations) AAM's **Q3 2024** statements of operations show **net income** of **$10.0 million**, a significant improvement | Metric (in millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :----------------------------------- | :------------------------------ | :------------------------------ | | **Net Sales** | **$1,504.9** | **$1,551.9** | | Cost of Goods Sold | **$1,333.6** | **$1,421.3** | | Gross Profit | **$171.3** | **$130.6** | | Selling, General and Administrative | **$94.6** | **$81.8** | | Amortization of Intangible Assets | **$20.8** | **$21.4** | | Impairment Charge | **$12.0** | — | | Restructuring & Acquisition-related | **$2.2** | **$3.5** | | Operating Income | **$41.7** | **$23.9** | | Interest Expense | **$(45.2)** | **$(50.8)** | | Interest Income | **$7.1** | **$7.1** | | Income (Loss) Before Income Taxes | **$(2.1)** | **$(19.4)** | | Income Tax Expense (Benefit) | **$(12.1)** | **$(2.0)** | | **Net Income (Loss)** | **$10.0** | **$(17.4)** | | **Diluted Earnings (Loss) Per Share** | **$0.08** | **$(0.15)** | | Metric (in millions) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :----------------------------------- | :----------------------------- | :----------------------------- | | **Net Sales** | **$4,744.1** | **$4,616.5** | | Cost of Goods Sold | **$4,157.0** | **$4,147.1** | | Gross Profit | **$587.1** | **$469.4** | | Selling, General and Administrative | **$298.1** | **$271.2** | | Amortization of Intangible Assets | **$62.1** | **$64.2** | | Impairment Charge | **$12.0** | — | | Restructuring & Acquisition-related | **$9.7** | **$16.2** | | Operating Income | **$205.2** | **$117.8** | | Interest Expense | **$(142.1)** | **$(151.5)** | | Interest Income | **$21.5** | **$18.9** | | Income (Loss) Before Income Taxes | **$69.7** | **$(11.2)** | | Income Tax Expense (Benefit) | **$21.0** | **$3.3** | | **Net Income (Loss)** | **$48.7** | **$(14.5)** | | **Diluted Earnings (Loss) Per Share** | **$0.40** | **$(0.12)** | [Balance Sheets](index=5&type=section&id=4.2.%20Balance%20Sheets) AAM's balance sheet as of Sep 30, **2024**, shows slight decreases in total assets and liabilities | Metric (in millions) | Sep 30, 2024 | Dec 31, 2023 | | :----------------------------------- | :----------- | :----------- | | **ASSETS** | | | | Cash and cash equivalents | **$542.5** | **$519.9** | | Accounts receivable, net | **$900.1** | **$818.5** | | Inventories, net | **$465.6** | **$482.9** | | Total current assets | **$2,135.5** | **$2,006.6** | | Property, plant and equipment, net | **$1,657.0** | **$1,760.9** | | Goodwill | **$174.1** | **$182.1** | | Other intangible assets, net | **$477.5** | **$532.8** | | Total assets | **$5,328.3** | **$5,356.3** | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Current portion of long-term debt | **$42.7** | **$17.0** | | Accounts payable | **$805.7** | **$773.9** | | Total current liabilities | **$1,294.2** | **$1,201.6** | | Long-term debt, net | **$2,638.3** | **$2,751.9** | | Total liabilities | **$4,712.0** | **$4,751.4** | | Total AAM stockholders' equity | **$616.3** | **$604.9** | | Total liabilities and stockholders' equity | **$5,328.3** | **$5,356.3** | [Statements of Cash Flows](index=6&type=section&id=4.3.%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased in **Q3 2024**, with increased cash used in investing activities | Metric (in millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :---------------------------------------- | :------------------------------ | :------------------------------ | | **Net income (loss)** | **$10.0** | **$(17.4)** | | Net cash provided by operating activities | **$143.6** | **$178.3** | | Net cash used in investing activities | **$(79.3)** | **$(48.8)** | | Net cash used in financing activities | **$(47.5)** | **$(20.8)** | | Net increase in cash and cash equivalents | **$22.6** | **$104.5** | | Cash and cash equivalents at end of period | **$542.5** | **$615.6** | | Metric (in millions) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | **Net income (loss)** | **$48.7** | **$(14.5)** | | Net cash provided by operating activities | **$304.2** | **$343.2** | | Net cash used in investing activities | **$(174.2)** | **$(126.7)** | | Net cash used in financing activities | **$(106.0)** | **$(108.2)** | | Net increase in cash and cash equivalents | **$22.6** | **$104.1** | | Cash and cash equivalents at end of period | **$542.5** | **$615.6** | [Supplemental Non-GAAP Financial Data](index=2&type=section&id=Supplemental%20Non-GAAP%20Financial%20Data) Supplemental **non-GAAP financial measures** and their GAAP reconciliations are provided [Non-GAAP Financial Measures Overview](index=2&type=section&id=5.1.%20Non-GAAP%20Financial%20Measures%20Overview) AAM provides **non-GAAP financial measures** for additional insights into business and operating performance - **AAM** provides **non-GAAP financial measures** including **Adjusted EBITDA**, **Adjusted earnings per share**, and **Adjusted free cash flow**[8](index=8&type=chunk) - These measures are **reconciled to GAAP** and are considered **useful for management, investors, and banking institutions** for analysis and operational planning[8](index=8&type=chunk)[10](index=10&type=chunk) - **Non-GAAP measures** should **not be considered a substitute for GAAP measures** and may **not be comparable to similarly titled measures** reported by other companies[11](index=11&type=chunk) [Reconciliation of EBITDA and Adjusted EBITDA](index=7&type=section&id=5.2.%20Reconciliation%20of%20EBITDA%20and%20Adjusted%20EBITDA) AAM reconciles **Net Income** to **EBITDA** and **Adjusted EBITDA**, excluding specific non-operating items | Metric (in millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :----------------------------------- | :------------------------------ | :------------------------------ | | **Net income (loss)** | **$10.0** | **$(17.4)** | | Interest expense | **$45.2** | **$50.8** | | Income tax expense (benefit) | **$(12.1)** | **$(2.0)** | | Depreciation and amortization | **$116.9** | **$120.4** | | **EBITDA** | **$160.0** | **$151.8** | | Restructuring and acquisition-related costs | **$2.2** | **$3.5** | | Debt refinancing and redemption costs | **$0.2** | **$0.3** | | Impairment charge | **$12.0** | — | | Loss on equity securities | — | **$1.2** | | **Adjusted EBITDA** | **$174.4** | **$156.8** | | Metric (in millions) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :----------------------------------- | :----------------------------- | :----------------------------- | | **Net income (loss)** | **$48.7** | **$(14.5)** | | Interest expense | **$142.1** | **$151.5** | | Income tax expense (benefit) | **$21.0** | **$3.3** | | Depreciation and amortization | **$354.3** | **$365.8** | | **EBITDA** | **$566.1** | **$506.1** | | Restructuring and acquisition-related costs | **$9.7** | **$16.2** | | Debt refinancing and redemption costs | **$0.5** | **$0.3** | | Impairment charge | **$12.0** | — | | Loss on equity securities | **$0.1** | **$1.2** | | **Adjusted EBITDA** | **$588.4** | **$523.8** | [Reconciliation of Adjusted Earnings Per Share](index=7&type=section&id=5.3.%20Reconciliation%20of%20Adjusted%20Earnings%20Per%20Share) **Adjusted EPS** for **Q3 2024** was **$0.20**, a significant improvement from **Q3 2023** | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :-------------------------------- | :------------------------------ | :------------------------------ | | **Diluted earnings (loss) per share** | **$0.08** | **$(0.15)** | | Restructuring and acquisition-related costs | **$0.02** | **$0.04** | | Impairment charge | **$0.10** | — | | Loss on equity securities | — | **$0.01** | | Tax effect of adjustments | — | **$(0.01)** | | **Adjusted earnings (loss) per share** | **$0.20** | **$(0.11)** | | Metric | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :-------------------------------- | :----------------------------- | :----------------------------- | | **Diluted earnings (loss) per share** | **$0.40** | **$(0.12)** | | Restructuring and acquisition-related costs | **$0.08** | **$0.14** | | Impairment charge | **$0.10** | — | | Loss on equity securities | — | **$0.01** | | Tax effect of adjustments | **$(0.01)** | **$(0.03)** | | **Adjusted earnings (loss) per share** | **$0.57** | — | - **Adjusted earnings (loss) per share** are based on weighted average diluted shares outstanding of **122.2 million** for **Q3 2024** and **117.1 million** for **Q3 2023**[28](index=28&type=chunk) [Reconciliation of Free Cash Flow and Adjusted Free Cash Flow](index=8&type=section&id=5.4.%20Reconciliation%20of%20Free%20Cash%20Flow%20and%20Adjusted%20Free%20Cash%20Flow) **AAM's Adjusted free cash flow** for **Q3 2024** was **$74.6 million**, a decrease from **Q3 2023** | Metric (in millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :---------------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | **$143.6** | **$178.3** | | Less: Capital expenditures net of proceeds | **$(72.9)** | **$(47.5)** | | **Free cash flow** | **$70.7** | **$130.8** | | Cash payments for restructuring and acquisition-related costs | **$3.9** | **$5.0** | | Insurance proceeds related to Malvern fire, net | — | — | | **Adjusted free cash flow** | **$74.6** | **$135.8** | | Metric (in millions) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :---------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | **$304.2** | **$343.2** | | Less: Capital expenditures net of proceeds | **$(164.4)** | **$(137.8)** | | **Free cash flow** | **$139.8** | **$205.4** | | Cash payments for restructuring and acquisition-related costs | **$11.3** | **$16.1** | | Insurance proceeds related to Malvern fire, net | — | **$(7.0)** | | **Adjusted free cash flow** | **$151.1** | **$214.5** | [Segment Financial Performance](index=8&type=section&id=5.5.%20Segment%20Financial%20Performance) AAM operates in **Driveline** and **Metal Forming** segments, with **Metal Forming** showing **significant Adjusted EBITDA growth** | Segment (in millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :-------------------- | :------------------------------ | :------------------------------ | | **Segment Sales** | | | | **Driveline** | **$1,042.8** | **$1,061.2** | | **Metal Forming** | **$596.5** | **$624.8** | | Total Sales | **$1,639.3** | **$1,686.0** | | Intersegment Sales | **$(134.4)** | **$(134.1)** | | Net External Sales | **$1,504.9** | **$1,551.9** | | **Segment Adjusted EBITDA** | | | | **Driveline** | **$135.7** | **$137.3** | | **Metal Forming** | **$38.7** | **$19.5** | | Total Segment **Adjusted EBITDA** | **$174.4** | **$156.8** | | Segment (in millions) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :-------------------- | :----------------------------- | :----------------------------- | | **Segment Sales** | | | | **Driveline** | **$3,273.7** | **$3,161.5** | | **Metal Forming** | **$1,893.7** | **$1,878.1** | | Total Sales | **$5,167.4** | **$5,039.6** | | Intersegment Sales | **$(423.3)** | **$(423.1)** | | Net External Sales | **$4,744.1** | **$4,616.5** | | **Segment Adjusted EBITDA** | | | | **Driveline** | **$444.9** | **$403.5** | | **Metal Forming** | **$143.5** | **$120.3** | | Total Segment **Adjusted EBITDA** | **$588.4** | **$523.8** | [Full Year 2024 Financial Outlook Reconciliation](index=9&type=section&id=5.6.%20Full%20Year%202024%20Financial%20Outlook%20Reconciliation) AAM provides reconciliation of **full-year 2024** targeted **Adjusted EBITDA** and **Adjusted Free Cash Flow** | Metric (in millions) | Low End | High End | | :---------------------------------------- | :------ | :------- | | **Net income** | **$15** | **$35** | | Interest expense | **$190** | **$190** | | Income tax expense | **$5** | **$15** | | Depreciation and amortization | **$475** | **$475** | | **Full year 2024** targeted **EBITDA** | **$685** | **$715** | | Restructuring and acquisition-related costs | **$15** | **$15** | | Other, principally impairment charge | **$15** | **$15** | | **Full year 2024** targeted **Adjusted EBITDA** | **$715** | **$745** | | Metric (in millions) | Low End | High End | | :---------------------------------------- | :------ | :------- | | Net cash provided by operating activities | **$435** | **$455** | | Capital expenditures net of proceeds | **$(250)** | **$(250)** | | **Full year 2024** targeted **Free Cash Flow** | **$185** | **$205** | | Cash payments for restructuring and acquisition-related costs | **$15** | **$15** | | **Full year 2024** targeted **Adjusted Free Cash Flow** | **$200** | **$220** |

American Axle & Manufacturing (AXL) closed the last trading session at $6.11, gaining 0.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $7.75 indicates a 26.8% upside potential. The mean estimate comprises eight short-term price targets with a standard deviation of $1.58. While the lowest estimate of $6 indicates a 1.8% decline from the current price level, the most optimistic a ...

American Axle & Manufacturing (AXL) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering American Axle & Manufacturing (AXL) , which belongs to the Zacks Automotive - Original Equipment industry.This maker of auto parts has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 895%.For the last reported quarter, American Axle came out with earnings ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Here are three stocks with buy rank and strong income characteristics for investors to consider today, August 22:American Axle & Manufacturing Holdings, Inc. (AXL) : This automotive technology company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.6% the last 60 days.This Zacks Rank #1 company has a dividend yield of 8.1%, compared with the industry average of 4.5%.Qifu Technology, Inc. (QFIN) : This credit-tech platform provider has witnessed the Zacks Consensus Estim ...

Shares of American Axle & Manufacturing Holdings (AXL) have risen 2% since it reported second-quarter 2024 results. It reported adjusted earnings of 19 cents per share, which surpassed the Zacks Consensus Estimate of 10 cents. The company reported earnings per share of 12 cents in the year-ago quarter.The company generated quarterly revenues of $1.63 billion, outpacing the Zacks Consensus Estimate of $1.56 billion. Revenues increased 3.9% on a year-over-year basis.Segmental PerformanceIn the reported quarte ...

Have you evaluated the performance of American Axle & Manufacturing's (AXL) international operations during the quarter that concluded in June 2024? 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 well-bein ...