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Jun 30, 2023
American Axle Q2 2023 Earnings Report
AAM reported positive financial results driven by volume, mix, and the Tekfor acquisition, while navigating production volatility and inflation.
Key Takeaways
American Axle & Manufacturing (AAM) reported sales of $1.57 billion and a net income of $8.0 million for Q2 2023. The company's performance was driven by volume, mix, and the Tekfor acquisition, despite facing production volatility and inflation headwinds. AAM is maintaining its full-year 2023 financial targets.
Sales reached $1.57 billion.
Net income was $8.0 million, representing 0.5% of sales.
Adjusted EBITDA totaled $191.6 million, or 12.2% of sales.
Diluted earnings per share were $0.07, while adjusted earnings per share were $0.12.
Revenue by Segment
Forward Guidance
AAM's full year 2023 financial targets remain unchanged. AAM is targeting sales in the range of $5.95 - $6.25 billion. AAM is targeting Adjusted EBITDA in the range of $725 - $800 million. AAM is targeting Adjusted free cash flow in the range of $225 - $300 million; this target assumes capital spending of approximately 3.5% - 4.0% of sales.
Positive Outlook
- Targeting sales in the range of $5.95 - $6.25 billion.
- Targeting Adjusted EBITDA in the range of $725 - $800 million.
- Targeting Adjusted free cash flow in the range of $225 - $300 million.
- Production estimates of key programs.
- North American light vehicle production of approximately 15.5 million units.
Challenges Ahead
- Reflects the impact of increased R&D spending to support new programs and electrification growth opportunities.
- Assumes capital spending of approximately 3.5% - 4.0% of sales.
- Global economic conditions, including the impact of inflation, recession or recessionary concerns, or slower growth in the markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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