Loading...
•
Jun 30, 2025
American Axle Q2 2025 Earnings Report
Reported Q2 2025 results with improved net income and Adjusted EBITDA margin despite lower sales.
Key Takeaways
American Axle & Manufacturing posted Q2 2025 sales of $1.54B, down from $1.63B last year due to lower volume and mix. Net income more than doubled to $39.3M and Adjusted EBITDA margin rose to 13.2%. Adjusted free cash flow was $48.7M, and both Driveline and Metal Forming segments delivered solid profitability.
Sales declined 5.9% year-over-year to $1.54B, impacted by lower volume and mix.
Net income increased to $39.3M from $18.2M last year, with EPS of $0.32.
Adjusted EBITDA margin improved to 13.2%, driven by productivity and cost controls.
Adjusted free cash flow was $48.7M, down from $97.9M a year ago.
Revenue by Segment
Forward Guidance
AAM raised its full-year 2025 sales, Adjusted EBITDA, and Adjusted free cash flow targets, reflecting ongoing productivity gains and cost management.
Positive Outlook
- Raised sales target range to $5.75B–$5.95B from $5.65B–$5.95B.
- Increased Adjusted EBITDA target range to $695M–$745M from $665M–$745M.
- Raised Adjusted free cash flow target range to $175M–$215M from $165M–$215M.
- Assumes stable North American light vehicle production between 14.6M–15.1M units.
- Expects to mitigate most incremental tariff costs.
Challenges Ahead
- Full-year targets exclude costs related to Dowlais combination.
- Lower Q2 revenue driven by volume and mix pressure may persist.
- Free cash flow performance in Q2 was significantly below prior year.
- Capital spending expected at approximately 5% of sales.
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
Loading earnings performance data...
Loading earnings reaction data...