Second Quarter 2025 Earnings Teleconference August 5th, 2025 CONTENTS Q2 2025 Summary Q2 2025 Supplemental Information Appendix 2 Disclosure Regarding Forward-Looking Statements Selected Financial Data - Quarter All values in $ millions (except where noted) Please refer to the appendix for adjustment reconciliations Information provided in this presentation that is not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including state ...

Financial Performance & Guidance - Q2 2025 sales for continuing operations were $2.047 billion, compared to $1.935 billion in Q2 2024[25] - Q2 2025 adjusted EBITDA for continuing operations was $145 million, up from $110 million in Q2 2024, with a margin of 7.5%[25] - The company increased its full-year 2025 profit guidance by $35 million and free cash flow guidance by $50 million for continuing operations[12] - Full-year 2025 sales guidance for continuing operations is approximately $7.4 billion[21] - Full-year 2025 adjusted EBITDA guidance for continuing operations is approximately $575 million[21] - Full-year 2025 adjusted free cash flow guidance is approximately $275 million[21] Strategic Initiatives - The company announced a definitive agreement to sell its off-highway business[8] - The sale of the off-highway business is expected to close late in the fourth quarter of 2025, with net cash proceeds of $2.4 billion from a $2.7 billion purchase price[11] - The company announced a $1 billion capital return authorization and a $2 billion debt reduction plan[8] - The company repurchased 14.6 million shares in Q2, representing 10% of shares outstanding, returning $257 million to shareholders[11] - The company anticipates a $100 million to $150 million share repurchase in Q3[11]

Acquisition of Dana Off-Highway Business June 11, 2025 Dave Graziosi, Chair & CEO Fred Bohley, COO Scott Mell, CFO & Treasurer 1 Safe Harbor Statement The following information contains, or may be deemed to contain, "forward-looking statements" (as defined in the U.S. Private Securities Litigation Reform Act of 1995). The words "believe," "expect," "anticipate," "intend," "estimate," "will" and other expressions that are predictions of or indicate future events and trends and that do not relate to historica ...

Financial Data and Key Metrics Changes - AAM's Q1 2025 sales were $1.41 billion, down from $1.61 billion in Q1 2024 [20] - Adjusted EBITDA for Q1 2025 was $177.3 million, with an adjusted EBITDA margin of 12.6%, compared to $205.6 million and 12.8% in the previous year [22] - GAAP net income was $7.1 million or $0.06 per share in Q1 2025, down from $20.5 million or $0.17 per share in Q1 2024 [26] - Adjusted free cash flow was a use of $3.9 million in Q1 2025, an improvement from the prior year [26][27] Business Line Data and Key Metrics Changes - North American production decreased approximately 5% year-over-year [8] - The Metal Form business unit showed improved EBITDA margins, increasing by 150 basis points year-over-year [22] Market Data and Key Metrics Changes - AAM's sales were impacted by a lower volume mix, resulting in a decrease of $166 million primarily due to lower overall volumes in North America [21] - Foreign exchange fluctuations, particularly from a weaker Brazilian real, contributed to a sales reduction of approximately $28 million [21] Company Strategy and Development Direction - AAM exited its joint ventures in China, collecting approximately $30 million in cash, as part of a strategy to focus on core businesses and capital allocation [9] - The company is on track to close the transformational transaction with Dali by Q4 2025, which is expected to yield significant synergies of approximately $300 million [11][12] - AAM aims to enhance its EV portfolio and maintain a balanced capital allocation policy post-acquisition [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro uncertainties due to new trade policies but emphasized a strategy of local sourcing, with 90% of products produced in North America being USMCA compliant [13] - The company updated its 2025 guidance, targeting sales between $5.65 billion and $5.95 billion, with adjusted EBITDA expected to be between $665 million and $745 million [17][32] - Management expressed confidence in navigating tariff impacts and leveraging opportunities presented by onshoring trends [34] Other Important Information - AAM's net debt stood at $2.1 billion with a net leverage ratio of 2.9x as of March 31, 2025 [27] - The company maintained a strong cash position of over $500 million due to operational performance and proceeds from joint venture sales [27] Q&A Session Summary Question: Thoughts on future contingencies and utilization of excess capacity - Management indicated that they have open capacity in several facilities and are willing to make adjustments based on customer needs [40][41] Question: Tariff exposure for Dali - Management noted that Dali has a similar production footprint and is managing tariff exposure similarly to AAM [44] Question: GM's volume outlook and its impact on guidance - Management confirmed that the guidance incorporates GM's strong demand for full-size trucks, expecting production in the range of 1.3 million to 1.4 million units [47][48] Question: Impact of macro volatility on the Dali transaction - Management stated that macro volatility has not complicated the process and both companies are focused on local sourcing [50] Question: Near-term production schedules - Management acknowledged some volatility in customer schedules but noted strong performance in core platforms [56][58] Question: Tariff policies and their impact - Management confirmed that under current USMCA policies, tariff impacts are limited, and they are working to ensure compliance [64][65] Question: Long-term implications of ICE and EV market changes - Management expressed that continued ICE production is beneficial for cash flow, while EV growth will be slower than previously projected [102][104]