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AAM Reports Second Quarter 2025 Financial Results
Prnewswireยท2025-08-08 12:00

Core Insights - American Axle & Manufacturing Holdings, Inc. (AAM) reported a year-over-year increase in Adjusted EBITDA margin for Q2 2025, attributed to productivity improvements and cost controls [2][4] - AAM's sales for Q2 2025 were $1.54 billion, a decrease from $1.63 billion in Q2 2024, primarily due to lower volume and mix [2][4] - The company is progressing towards a combination with Dowlais, having received approval from both sets of shareholders, which is expected to enhance its position as a global auto supplier [2][3] Financial Performance - AAM's net income for Q2 2025 was $39.3 million, or $0.32 per share, compared to $18.2 million, or $0.15 per share in Q2 2024, representing an increase in net income margin from 1.1% to 2.6% [3][4] - Adjusted EBITDA for Q2 2025 was $202.2 million, or 13.2% of sales, down from $208.4 million, or 12.8% of sales in Q2 2024 [4][29] - Net cash provided by operating activities decreased to $91.9 million in Q2 2025 from $142.8 million in Q2 2024, while Adjusted free cash flow also fell to $48.7 million from $97.9 million [4][33] Updated Financial Outlook - AAM has updated its full-year 2025 financial targets, now projecting sales between $5.75 billion and $5.95 billion, and Adjusted EBITDA between $695 million and $745 million [7][35] - The company anticipates Adjusted free cash flow to be in the range of $175 million to $215 million, assuming capital spending of approximately 5% of sales [7][35] - AAM's production estimates for North American light vehicles are approximately 14.6 to 15.1 million units for 2025 [7]