Financial Data and Key Metrics Changes - AAM's Q3 2025 sales were $1.51 billion, with adjusted earnings per share at $0.16, and operating cash flow of $143.3 million [4][12] - Adjusted EBITDA was $195 million, representing 12.9% of sales, a 130 basis point improvement year-over-year on flat sales [5][13] - GAAP net income was $9.2 million, or $0.07 per share, compared to $10 million, or $0.08 per share in Q3 2024 [17] Business Line Data and Key Metrics Changes - The driveline business unit achieved adjusted EBITDA margins of 14.9%, the highest since 2020, driven by operational efficiency and quality improvements [5][6] - Metal forming business still requires work to reach full margin potential, with ongoing assessments for optimization [5][6] Market Data and Key Metrics Changes - AAM is seeing onshoring opportunities within the metal forming group, with OEMs assessing long-range product plans due to changes in EV tax credits and emission regulations [6][8] - Demand for large trucks and SUVs remains healthy, which aligns with AAM's core products [6][7] Company Strategy and Development Direction - AAM aims for a propulsion-agnostic product portfolio to adapt to market demands, with a focus on electrification technologies [7][8] - The company completed financing for the Dauch acquisition, securing $850 million in senior secured notes and $1.25 billion in senior unsecured notes [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and policy uncertainties while focusing on operational efficiency [11][24] - The company updated its 2025 guidance, targeting sales of $5.8 billion to $5.9 billion and adjusted EBITDA of approximately $710 million to $745 million [10][19] Other Important Information - AAM's net debt stood at $1.9 billion with a net leverage ratio of 2.6 times as of September 30, 2025 [18] - The company anticipates restructuring-related cash payments of approximately $20 million for 2025 to optimize business and reduce fixed costs [20] Q&A Session Summary Question: What drove the $9 million volume mix in EBITDA? - The strong performance on the RAM platform and elevated sales from the full-size truck franchise contributed to the mix, while declines in passenger car and crossover vehicle sales affected the overall dynamics [27][28] Question: Update on reshoring activities and customer conversations? - AAM is seeing opportunities for localization in metal forming, but cannot discuss Dauch acquisition benefits with customers until the deal closes [29][30] Question: Confidence in regulatory antitrust clearing? - AAM is confident in obtaining all necessary approvals, with Brazil and Mexico expected soon, and discussions ongoing in China [33][34] Question: Production assumptions for North America? - The production assumption of 15.1 million units reflects calibration to customer schedules and anticipated downtime [35][36] Question: Growth potential from onshoring and recent business wins? - AAM expects to benefit from onshoring in metal forming and sees opportunities for insourcing post-Dauch acquisition [41][42] Question: Factors affecting Q4 EBITDA range? - The primary factors include revenue, contribution margin, project expenses, and production volatility [45][46] Question: Sustainability of driveline margins? - Driveline margins have shown consistent strength, with expectations for continued strong performance [51][52] Question: Impact of tariffs on heavy-duty trucks? - Currently, there has been no negative impact from the expansion of tariffs on medium and heavy-duty trucks [53] Question: Breakdown of strong performance in other markets? - Two-thirds of the performance improvement is attributed to the driveline business, with expectations for continued strong operating performance [55][56] Question: Future leverage framework post-Dauch acquisition? - AAM plans to prioritize deleveraging and expects to maintain a leverage neutral position post-acquisition [71][72] Question: Integration of Dauch executives? - AAM is adjusting its management team following the Dauch acquisition, focusing on blending teams at all levels [80][81]

February 2024 Investor Presentation Forward-Looking Statements In this presentation, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and relate to trends and events that may affect our future financial position and operating results. The terms such as "will," "may," "could," "would," "plan," "believe," "ex ...