American Axle & Manufacturing (US:AXL)2025-05-02 16:34Financial Performance - Net sales for the three months ended March 31, 2025, were $1,411.3 million, a decrease of 12.1% compared to $1,606.9 million for the same period in 2024[14] - Gross profit for the same period was $173.9 million, down from $198.5 million, reflecting a gross margin of approximately 12.3%[14] - Operating income decreased to $42.7 million from $77.0 million, indicating a decline of 44.5% year-over-year[14] - Net income for the three months ended March 31, 2025, was $7.1 million, compared to $20.5 million in 2024, representing a 65.3% decrease[14] - Segment Adjusted EBITDA for the three months ended March 31, 2025, was $177.3 million, down from $205.6 million in 2024, reflecting a decline of 13.7%[98] - Basic and diluted earnings per share (EPS) for the three months ended March 31, 2025, were both $0.06, compared to $0.17 in 2024[91] - Net income attributable to common shareholders for the three months ended March 31, 2025, was $6.8 million, down from $19.9 million in 2024[91] - The company reported a net income of $7.1 million for the three months ended March 31, 2025, a significant decrease of 65.3% from $20.5 million in 2024[16] Assets and Liabilities - Total assets increased to $5,139.4 million as of March 31, 2025, up from $5,059.9 million at the end of 2024[21] - Current liabilities rose slightly to $1,184.1 million from $1,175.2 million, indicating a marginal increase in short-term obligations[21] - The company reported a total stockholders' equity of $596.3 million as of March 31, 2025, up from $562.8 million at the end of 2024, representing a growth of 5.95%[21] - Long-term debt increased to $2,609.0 million from $2,576.9 million, reflecting ongoing financing needs[21] - The total long-term debt, net, stood at $2,609.0 million as of March 31, 2025, compared to $2,576.9 million at the end of 2024, reflecting an increase of 1.24%[21] Cash Flow and Operating Activities - Net cash provided by operating activities increased to $55.9 million from $17.8 million year-over-year[23] - Cash and cash equivalents were reported at $549.2 million, a slight decrease from $552.9 million[21] - Total cash and cash equivalents at the end of the period were $549.2 million, up from $469.8 million at the end of March 2024[23] - Cash flow hedges for currency forward contracts had a fair value of $1.5 million as of March 31, 2025, up from $1.2 million as of December 31, 2024[64] Restructuring and Acquisition Costs - The company incurred restructuring and acquisition-related costs of $19.7 million during the quarter, significantly higher than $2.5 million in the prior year[14] - Total restructuring charges for the three months ended March 31, 2025, amounted to $19.7 million, compared to $2.5 million for the same period in 2024[79] - Acquisition-related costs for the three months ended March 31, 2025, totaled $16.3 million, significantly higher than $1.1 million in 2024[79] Inventory and Receivables - Inventories as of March 31, 2025, totaled $434.3 million, a slight decrease from $442.5 million at the end of December 2024[40] - The company reported a decrease in accounts receivable by $113.0 million compared to a decrease of $147.3 million in the previous year[23] - Contract receivables increased by $108.3 million from December 31, 2024, to March 31, 2025, reaching $817.4 million[74] Tax and Regulatory Matters - Income tax expense for the three months ended March 31, 2025, was $14.0 million, with an effective income tax rate of 66.4%, compared to $15.9 million and 43.7% in 2024[81] - The company recorded a liability for unrecognized income tax benefits of $34.9 million as of March 31, 2025, compared to $34.2 million as of December 31, 2024[88] - The IRS has issued additional Notices of Proposed Adjustments (NOPAs) for tax years 2016 through 2019, but this does not change the estimated potential income tax expense range of $315 million to $365 million for tax years 2015 through 2024[87] Business Combinations and Sales - AAM announced a pending business combination with Dowlais Group plc, offering Dowlais shareholders 0.0863 shares of new AAM common stock and 42 pence in cash per share, expected to close by the end of 2025[34][35] - AAM is in the process of selling its commercial vehicle axle business in India for $65 million, with the sale expected to close in the first half of 2025[36][37] - The company exited its 50% ownership in two joint ventures in China, resulting in cash proceeds of approximately $30.1 million[38] Pension and Other Liabilities - The net periodic benefit cost for pension benefits was $1.8 million for the three months ended March 31, 2025, compared to $0.6 million for the same period in 2024[68] - The total noncurrent pension liability was $78.4 million as of March 31, 2025, slightly up from $78.3 million as of December 31, 2024[68] - Cash payments for other postretirement benefit obligations in 2025 are projected to be approximately $11.6 million[69] Other Financial Metrics - The company reported depreciation and amortization expenses of $112.2 million for the three months ended March 31, 2025, compared to $117.8 million in the same period of 2024[23] - Capital expenditures for the three months ended March 31, 2025, totaled $69.3 million, an increase from $48.0 million in the same period of 2024[94] - The product warranty liability increased to $62.6 million as of March 31, 2025, from $60.6 million at the beginning of the period[71]