As previously announced, the combined company will be headquartered in Detroit, MI and will be led by David C. Dauch as Chairman and CEO. Dauch's Board of Directors will be expanded to include two independent directors of Dowlais, Simon Mackenzie Smith and Fiona MacAulay effective February 5, 2026. Reporting to Mr. Dauch are the following executives: Business Operations Driveline Operations will have the following executives reporting to Mr. Lynch: Metal Forming Operations will have the following executives ...

Core Insights - American Axle & Manufacturing (AXL) reported $1.51 billion in revenue for Q3 2025, showing no year-over-year change, with an EPS of $0.16 compared to $0.20 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.49 billion by +0.82%, while the EPS surprised by +33.33% against a consensus estimate of $0.12 [1] Financial Performance Metrics - Net Sales in Metal Forming were reported at $595 million, slightly below the two-analyst average estimate of $604.5 million, reflecting a year-over-year decline of -0.3% [4] - Net Sales in Driveline reached $1.05 billion, surpassing the $1.04 billion average estimate, indicating a year-over-year increase of +0.8% [4] - Adjusted EBITDA for Metal Forming was $37.9 million, lower than the average estimate of $45.57 million [4] - Adjusted EBITDA for Driveline was reported at $156.8 million, exceeding the average estimate of $137.49 million [4] Stock Performance - Shares of American Axle have returned +8.4% over the past month, contrasting with a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - American Axle & Manufacturing Holdings, Inc. (AAM) reported strong year-over-year margin growth in Q3 2025, with sales of $1.51 billion, slightly up from $1.50 billion in Q3 2024 [1][12] - The company’s net income for Q3 2025 was $9.2 million, or $0.07 per share, down from $10.0 million, or $0.08 per share, in the same quarter last year [1][12] - AAM is making significant progress towards its combination with Dowlais, aiming to enhance its position as a global supplier in driveline and metal forming technologies [1] Financial Performance - Adjusted earnings per share for Q3 2025 was $0.16, compared to $0.20 in Q3 2024 [2] - Adjusted EBITDA for Q3 2025 was $194.7 million, representing 12.9% of sales, an increase from $174.4 million, or 11.6% of sales, in Q3 2024 [2][12] - Net cash provided by operating activities was $143.3 million in Q3 2025, slightly down from $143.6 million in Q3 2024 [2][12] - Adjusted free cash flow for Q3 2025 was $98.1 million, up from $74.6 million in Q3 2024 [2][12] 2025 Financial Outlook - AAM is targeting full-year sales in the range of $5.8 billion to $5.9 billion, an increase from the previous target of $5.75 billion to $5.95 billion [3][13] - The company aims for Adjusted EBITDA between $710 million and $745 million, up from the prior range of $695 million to $745 million [3][13] - Adjusted free cash flow is targeted between $180 million and $210 million, compared to the previous estimate of $175 million to $215 million [3][13] - AAM anticipates North American light vehicle production of approximately 15.1 million units for 2025 [13]

Summary of American Axle & Manufacturing (AXL) Conference Call Company Overview - **Company**: American Axle & Manufacturing (AAM) - **Event**: 2025 Conference on August 12, 2025 - **Key Speakers**: Chris May (CFO), David Lim (Head of Investor Relations) Key Points Industry and Market Dynamics - AAM is experiencing strong operational performance, particularly in its Driveline and Metal Forming business units, with sequential and year-over-year margin growth [5][6] - The company is focused on the North American truck industry, particularly in electric vehicle (EV) products, showcasing strength in electric beam axles and electric drive units [7] - AAM is navigating the impact of tariffs by leveraging its USMCA compliance, with over 90% of finished goods compliant, which aids in mitigating tariff impacts [12][13] Acquisition of Dallet - The acquisition of Dallet is seen as transformative, with both companies' shareholders approving the transaction, expected to close in Q4 2025 [5][6] - Post-acquisition, AAM's revenue is projected to double, enhancing its competitive position in the global market [26][27] - The acquisition will diversify AAM's product offerings, particularly in sideshafts, which are agnostic to vehicle type (ICE, hybrid, EV) [28][29] Financial Performance and Projections - AAM reported strong free cash flow generation and is targeting $300 million in cost synergies from the Dallet acquisition, with half of this from purchasing efficiencies [31][33] - The company aims to maintain a leverage neutral position post-acquisition, with current leverage around 2.9x, targeting a reduction to approximately 2.5x [40][42] - AAM has paid down over $1.6 billion in debt since acquiring MPG and plans to continue prioritizing debt reduction while considering capital allocation for shareholder returns [45][47] Electric Vehicle (EV) Market Outlook - AAM has been selective in its EV investments, anticipating a slower adoption rate in North America due to regulatory changes and market dynamics [15][16] - The company views the current EV slowdown as a potential net positive, allowing for reduced R&D spending and solidifying its position in the ICE market, which is expected to remain strong for a longer period [57][59] Competitive Landscape - AAM is focused on maintaining commercial discipline while expanding its relationships with domestic Chinese automakers, which are seen as a growth opportunity [20][21] - The competitive environment remains robust, with AAM confident in its ability to compete effectively against peers like Dana, despite their recent strategic shifts [64] Operational Strategy - AAM is investing in automation to address labor availability challenges while continuing to prioritize its workforce as a key asset [83][84] - The company is evaluating its product portfolio continuously, with potential for divestitures if they align with strategic goals post-Dallet acquisition [72][75] Conclusion - AAM is positioned for growth through strategic acquisitions, operational efficiencies, and a focus on both traditional and electric vehicle markets, while navigating challenges such as tariffs and market dynamics. The company is committed to maintaining a strong financial profile and delivering shareholder value through disciplined capital allocation.

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]