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Sep 30, 2023
American Axle Q3 2023 Earnings Report
AAM's financial performance was impacted by downtime at key customers, operational inefficiencies, and a UAW work stoppage, but the company generated strong free cash flow.
Key Takeaways
American Axle & Manufacturing Holdings reported sales of $1.55 billion and a net loss of $(17.4) million for Q3 2023. The company's performance was impacted by customer downtime, operational inefficiencies, and the UAW work stoppage, but it generated strong free cash flow and is focusing on electric propulsion technology.
Sales reached $1.55 billion.
Net loss was $(17.4) million, representing (1.1)% of sales.
Adjusted EBITDA was $156.8 million, or 10.1% of sales.
Adjusted free cash flow was $135.8 million.
Revenue by Segment
Forward Guidance
AAM updated its full year 2023 financial targets, including sales in the range of $6.0 - $6.1 billion and Adjusted EBITDA in the range of $660 - $685 million.
Positive Outlook
- Targeting sales in the range of $6.0 - $6.1 billion.
- Targeting Adjusted EBITDA in the range of $660 - $685 million.
- Targeting Adjusted free cash flow in the range of $200 - $215 million.
- Outlook assumes production begins to resume during the first week of November from the UAW work stoppage.
- Assumes capital spending of approximately 3.0% - 3.5% of sales.
Challenges Ahead
- Outlook assumes an estimated work stoppage impact of $70 - $100 million in sales.
- Outlook assumes an estimated work stoppage impact of $25 - $40 million in adjusted EBITDA.
- The updated 2023 targets are based on the current macro operating environment.
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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