American Axle Q3 Earnings Surpass Estimates, Decrease Y/Y

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]