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Mar 31, 2025
American Axle Q1 2025 Earnings Report
American Axle reported a profit in Q1 2025 with improved operating cash flow despite a year-over-year revenue decline.
Key Takeaways
AAM delivered positive net income and operating cash flow in Q1 2025, though revenue declined due to lower volumes. Cost control and productivity efforts supported profitability.
Revenue decreased to $1.4113 billion from $1.6069 billion in Q1 2024.
Net income was $7.1 million, down from $20.5 million a year ago.
Adjusted EBITDA reached $177.3 million, representing 12.6% of sales.
Operating cash flow improved to $55.9 million, with adjusted free cash flow at -$3.9 million.
Revenue by Segment
Forward Guidance
AAM adjusted its 2025 outlook downward due to expected volume challenges, though it anticipates continued operational strength.
Positive Outlook
- Operating cash flow forecast increased to $375–425 million.
- Adjusted free cash flow target set at $165–215 million.
- Strong focus on cost discipline and productivity improvements.
- Capital spending forecasted at ~5% of sales.
- Incremental tariff costs expected to be passed to customers.
Challenges Ahead
- Sales outlook lowered to $5.65–5.95 billion from $5.8–6.05 billion.
- Adjusted EBITDA range reduced to $665–745 million from $700–760 million.
- Free cash flow guidance decreased from $200–230 million to $165–215 million.
- Outlook excludes potential Dowlais transaction costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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