American Axle Q2 Earnings Beat Estimates, Revenues Decline Y/Y

Core Insights - American Axle & Manufacturing Holdings (AXL) reported second-quarter 2025 adjusted earnings of 21 cents per share, exceeding the Zacks Consensus Estimate of 13 cents, and up from 19 cents in the same quarter last year [1][8] - The company generated quarterly revenues of $1.54 billion, surpassing the Zacks Consensus Estimate of $1.51 billion, although this represents a 5.5% decline year-over-year [1][8] Segment Performance - The Driveline segment recorded sales of $1.08 billion, down 3.7% year-over-year, but exceeded the estimate of $1.05 billion, with adjusted EBITDA of $148.9 million, a 2% decline year-over-year, yet above the estimate of $139.4 million [2] - The Metal Forming business generated revenues of $598.4 million, an 8.4% decrease from the previous year, missing the estimate of $609.9 million, with adjusted EBITDA of $53.3 million, down 5.8% year-over-year, but beating the estimate of $41.1 million [3] Financial Position - SG&A expenses for the second quarter totaled $100.8 million, down from $105.2 million in the prior year [4] - Net cash provided by operating activities was $91.9 million, a decrease from $142.8 million year-over-year [4] - Capital spending increased to $52.9 million from $46.6 million in the same quarter last year [4] - Free cash flow for the quarter was $39 million, down from $96.2 million in the year-ago period [5] - As of June 30, 2025, cash and cash equivalents stood at $586.5 million, up from $552.9 million at the end of 2024, while net long-term debt increased to $2.60 billion from $2.58 billion [5] Revised Outlook for 2025 - AXL revised its 2025 revenue guidance to a range of $5.75-$5.95 billion, up from the previous range of $5.65-$5.95 billion [6] - Adjusted EBITDA is now estimated to be between $695-$745 million, revised from the prior guidance of $665-$745 million [6] - Adjusted free cash flow is anticipated to be between $175 million and $215 million, up from the previous target of $165-$215 million [6] Zacks Rank & Comparisons - AXL currently holds a Zacks Rank 3 (Hold) [7] - Other better-ranked stocks in the auto sector include Ferrari N.V. (RACE), PHINIA Inc. (PHIN), and Modine Manufacturing Company (MOD), each with a Zacks Rank 1 (Strong Buy) [7]