AAM Reports Third Quarter 2025 Financial Results

PR Newswire

DETROIT, Nov. 7, 2025

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
	(in millions, except per share data)

Net sales	$ 1,505.3	$ 1,504.9	$ 4,452.8	$ 4,744.1

Cost of goods sold	1,316.3	1,333.6	3,889.2	4,157.0

Gross profit	189.0	171.3	563.6	587.1

Selling, general and administrative expenses	98.8	94.6	290.5	298.1

Amortization of intangible assets	20.4	20.8	61.4	62.1

Impairment charge	—	12.0	8.0	12.0

Restructuring and acquisition-related costs	21.4	2.2	57.6	9.7

Operating income	48.4	41.7	146.1	205.2

Interest expense	(42.7)	(45.2)	(128.7)	(142.1)

Interest income	7.0	7.1	18.2	21.5

Other income (expense):
Debt refinancing and redemption costs	—	(0.2)	(3.3)	(0.5)
Gain (loss) on Business Combination Derivative	(16.0)	—	52.2	—
Loss on equity securities	—	—	—	(0.1)
Other income (expense), net	1.6	(5.5)	2.3	(14.3)

Income (loss) before income taxes	(1.7)	(2.1)	86.8	69.7

Income tax expense (benefit)	(10.9)	(12.1)	31.2	21.0

Net income	$ 9.2	$ 10.0	$ 55.6	$ 48.7

Diluted earnings per share	$ 0.07	$ 0.08	$ 0.45	$ 0.40

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2025	December 31, 2024
	(Unaudited)
ASSETS	(in millions)
Current assets
Cash and cash equivalents	$ 714.1	$ 552.9
Accounts receivable, net	857.2	709.1
Inventories, net	442.4	442.5
Prepaid expenses and other	238.3	152.2
Current assets held-for-sale	—	58.1
Total current assets	2,252.0	1,914.8

Property, plant and equipment, net	1,608.3	1,622.8
Deferred income taxes	223.0	199.5
Goodwill	174.5	172.0
Other intangible assets, net	395.5	456.7
GM postretirement cost sharing asset	112.6	111.7
Operating lease right-of-use assets	103.4	110.3
Other assets and deferred charges	473.9	472.1
Total assets	$ 5,343.2	$ 5,059.9

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt	$ 22.3	$ 47.9
Accounts payable	798.8	700.5
Accrued compensation and benefits	219.3	193.0
Deferred revenue	35.5	14.2
Current portion of operating lease liabilities	22.3	22.8
Accrued expenses and other	171.2	172.4
Current liabilities held-for-sale	—	24.4
Total current liabilities	1,269.4	1,175.2

Long-term debt, net	2,594.0	2,576.9
Deferred revenue	22.0	37.0
Deferred income taxes	19.2	11.8
Long-term portion of operating lease liabilities	83.5	89.9
Postretirement benefits and other long-term liabilities	636.7	606.3
Total liabilities	4,624.8	4,497.1

Total stockholders' equity	718.4	562.8
Total liabilities and stockholders' equity	$ 5,343.2	$ 5,059.9

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
	(in millions)
Operating activities
Net income	$ 9.2	$ 10.0	$ 55.6	$ 48.7
operating activities
Depreciation and amortization	116.3	116.9	342.0	354.3
Other	17.8	16.7	(106.5)	(98.8)
Net cash provided by operating activities	143.3	143.6	291.1	304.2

Investing activities
Purchases of property, plant and equipment	(64.1)	(73.2)	(190.7)	(170.0)
Proceeds from sale of property, plant and equipment	0.3	0.3	5.3	3.6
Acquisition of business, net of cash acquired	(0.6)	(5.4)	(1.9)	(6.7)
Proceeds from sale of business, net	58.1	—	58.1	—
Proceeds from disposition of affiliates	—	—	30.1	—
Proceeds from government grants	—	—	—	2.0
Other	(3.4)	(1.0)	(9.2)	(3.1)
Net cash used in investing activities	(9.7)	(79.3)	(108.3)	(174.2)

Financing activities
Net debt activity	(1.0)	(44.5)	(17.6)	(93.9)
Other	(4.5)	(3.0)	(17.9)	(12.1)
Net cash used in financing activities	(5.5)	(47.5)	(35.5)	(106.0)

Effect of exchange rate changes on cash	(0.5)	5.8	13.9	(1.4)

Net increase in cash and cash equivalents	127.6	22.6	161.2	22.6

Cash and cash equivalents at beginning of period	586.5	519.9	552.9	519.9

Cash and cash equivalents at end of period	$ 714.1	$ 542.5	$ 714.1	$ 542.5

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. SUPPLEMENTAL DATA (Unaudited)

The supplemental data presented below is a reconciliation of certain financial measures which is intended to facilitate analysis of American Axle & Manufacturing Holdings, Inc.'s business and operating performance.

Earnings before interest expense, income taxes and depreciation and amortization (EBITDA) and Adjusted EBITDA^(a)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
	(in millions)

Net income	$ 9.2	$ 10.0	$ 55.6	$ 48.7
Interest expense	42.7	45.2	128.7	142.1
Income tax expense (benefit)	(10.9)	(12.1)	31.2	21.0
Depreciation and amortization	116.3	116.9	342.0	354.3
EBITDA	157.3	160.0	557.5	566.1
Restructuring and acquisition-related costs	21.4	2.2	57.6	9.7
Debt refinancing and redemption costs	—	0.2	3.3	0.5
Loss (gain) on Business Combination Derivative	16.0	—	(52.2)	—
Impairment charges	—	12.0	8.0	12.0
Loss on equity securities	—	—	—	0.1
Adjusted EBITDA	$ 194.7	$ 174.4	$ 574.2	$ 588.4

Adjusted earnings per share^(b)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
Diluted earnings per share	$ 0.07	$ 0.08	$ 0.45	$ 0.40
Restructuring and acquisition-related costs	0.18	0.02	0.47	0.08
Debt refinancing and redemption costs	—	—	0.03	—
Impairment charges	—	0.10	0.06	0.10
Loss (gain) on Business Combination Derivative	0.13	—	(0.42)	—
Non-recurring items:
Discrete tax impact from enactment of tax law	(0.18)	—	(0.18)	—
Tax effect of adjustments	(0.04)	—	0.05	(0.01)
Adjusted earnings per share	$ 0.16	$ 0.20	$ 0.46	$ 0.57

Adjusted earnings per share are based on weighted average diluted shares outstanding of 124.3 million and 122.2 million for the three months ended September 30, 2025 and 2024 respectively, and 123.7 million and 121.7 million for the nine months ended September 30, 2025 and 2024 respectively.

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC. SUPPLEMENTAL DATA (Unaudited)

The supplemental data presented below is a reconciliation of certain financial measures which is intended to facilitate analysis of American Axle & Manufacturing Holdings, Inc.'s business and operating performance.

Free cash flow and Adjusted free cash flow^(c)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
	(in millions)
Net cash provided by operating activities	$ 143.3	$ 143.6	$ 291.1	$ 304.2
property, plant and equipment and from government grants	(63.8)	(72.9)	(185.4)	(164.4)
Free cash flow	$ 79.5	$ 70.7	$ 105.7	$ 139.8
Cash payments for restructuring and acquisition-related costs	18.6	3.9	37.2	11.3
Adjusted free cash flow	$ 98.1	$ 74.6	$ 142.9	$ 151.1

Segment Financial Information

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2025	2024	2025	2024
	(in millions)
Segment Sales
Driveline	$ 1,051.1	$ 1,042.8	$ 3,091.0	$ 3,273.7
Metal Forming	595.0	596.5	1,769.2	1,893.7
Total Sales	1,646.1	1,639.3	4,860.2	5,167.4
Intersegment Sales	(140.8)	(134.4)	(407.4)	(423.3)
Net External Sales	$ 1,505.3	$ 1,504.9	$ 4,452.8	$ 4,744.1

Segment Adjusted EBITDA^(a)
Driveline	$ 156.8	$ 135.7	$ 431.0	$ 444.9
Metal Forming	37.9	38.7	143.2	143.5
Total Segment Adjusted EBITDA	$ 194.7	$ 174.4	$ 574.2	$ 588.4

Full Year 2025 Financial Outlook

The supplemental data presented below is a reconciliation of certain financial measures which is intended to facilitate analysis of American Axle & Manufacturing Holdings, Inc.'s business and operating performance.

	Adjusted EBITDA
	Low End	High End
	(in millions)
Net income	$ —	$ 10
Interest expense	205	205
Income tax expense	—	25
Depreciation and amortization	460	460
Full year 2025 targeted EBITDA	665	700
Restructuring-related costs	45	45
Dowlais acquisition-related costs	55	55
Other, principally Business Combination Derivative	(55)	(55)
Full year 2025 targeted Adjusted EBITDA	$ 710	$ 745

	Adjusted Free Cash Flow
	Low End	High End
	(in millions)
Net cash provided by operating activities	$ 395	$ 425
plant and equipment	(280)	(280)
Full year 2025 targeted Free Cash Flow	115	145
Cash payments for restructuring-related costs	20	20
Cash payments for Dowlais acquisition-related costs	45	45
Full year 2025 targeted Adjusted Free Cash Flow	$ 180	$ 210



(a)	We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our business combination with Dowlais, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges and non-recurring items. We believe that EBITDA and Adjusted EBITDA are meaningful measures of performance as they are commonly utilized by management and investors to analyze operating performance and entity valuation. Our management, the investment community and banking institutions routinely use EBITDA and Adjusted EBITDA, together with other measures, to measure our operating performance relative to other Tier 1 automotive suppliers. We also use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. EBITDA and Adjusted EBITDA are also key metrics used in our calculation of incentive compensation. EBITDA and Adjusted EBITDA should not be construed as income from operations, net income or cash flow from operating activities as determined under GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently.

(b)	We define Adjusted earnings per share to be diluted earnings per share excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our business combination with Dowlais, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges and non-recurring items, including the tax effect thereon. We believe Adjusted earnings per share is a meaningful measure as it is commonly utilized by management and investors in assessing ongoing financial performance that provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of core operating performance and which may obscure underlying business results and trends. Other companies may calculate Adjusted earnings per share differently.

(c)	We define free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment and from government grants. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs. We believe free cash flow and Adjusted free cash flow are meaningful measures as they are commonly utilized by management and investors to assess our ability to generate cash flow from business operations to repay debt and return capital to our stockholders. Free cash flow and Adjusted free cash flow are also key metrics used in our calculation of incentive compensation. Other companies may calculate free cash flow and Adjusted free cash flow differently.

Strong Year-Over-Year Margin Growth

/PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today reported its financial results for the third quarter 2025. DETROITNov. 7, 2025

Third Quarter 2025 Results

"AAM delivered strong year-over-year margin growth driven by performance," said AAM's Chairman and Chief Executive Officer, David C. Dauch. "Furthermore, we continue to make great progress to close our combination with Dowlais, positioning us well for a bright future as a premier global driveline and metal forming supplier with significant size, scale, and value creation potential."

AAM's sales in the third quarter of 2025 were $1.51 billion as compared to $1.50 billion in the third quarter of 2024.

AAM's net income in the third quarter of 2025 was $9.2 million, or $0.07 per share and 0.6% of sales, as compared to net income of $10.0 million, or $0.08 per share and 0.7% of sales in the third quarter of 2024.

Adjusted earnings per share in the third quarter of 2025 was $0.16 compared to Adjusted earnings per share of $0.20 in the third quarter of 2024.

In the third quarter of 2025, Adjusted EBITDA was $194.7 million, or 12.9% of sales, as compared to $174.4 million, or 11.6% of sales, in the third quarter of 2024.

AAM's net cash provided by operating activities for the third quarter of 2025 was $143.3 million as compared to $143.6 million for the third quarter of 2024.

AAM's Adjusted free cash flow for the third quarter of 2025 was $98.1 million as compared to $74.6 million for the third quarter of 2024.

AAM's full year 2025 financial targets are as follows: AAM's 2025 Updated Financial Outlook

These targets are based on the following assumptions for 2025:

or calling (877) 883-0383 from the United States or (412) 902-6506 from outside the United States with access code 8314756. A replay will be available one hour after the call is completed until November 14, 2025 by dialing (877) 344-7529 from the United States or (412) 317-0088 from outside the United States. When prompted, callers should enter replay access code 4346240.http://investor.aam.comThird Quarter2025 Conference Call Information

In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this press release, AAM has provided certain information, which includes non-GAAP financial measures such as Adjusted EBITDA, Adjusted earnings per share and Adjusted free cash flow. Such information is reconciled to its most directly comparable GAAP measure in accordance with Securities and Exchange Commission rules and is included in the attached supplemental data.Non-GAAP Financial Information

Certain of the forward-looking financial measures included in this earnings release are provided on a non-GAAP basis. A reconciliation of non-GAAP forward-looking financial measures to the most directly comparable forward-looking financial measures calculated and presented in accordance with GAAP has been provided. The amounts in these reconciliations are based on our current estimates and actual results may differ materially from these forward-looking estimates for many reasons, including potential event driven transactional and other non-core operating items and their related effects in any future period, the magnitude of which may be significant.

Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of AAM's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, non-GAAP financial measures as presented by AAM may not be comparable to similarly titled measures reported by other companies.

AAM defines Adjusted earnings per share to be diluted earnings per share excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our business combination with Dowlais, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges, and non-recurring items, including the tax effect thereon. Definition of Non-GAAP Financial Measures

AAM defines EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our business combination with Dowlais, gains or losses on equity securities, pension curtailment and settlement charges, impairment charges and non-recurring items.

AAM defines free cash flow to be net cash provided by operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment and from government grants. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs.

for a safer and more sustainable tomorrow. To learn more, visit aam.com.Company Description

bringing the future faster

Forward-Looking Statements

In this earnings release, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and relate to trends and events that may affect our future financial position and operating results. The terms such as "will," "may," "could," "would," "plan," "believe," "expect," "anticipate," "intend," "project," "target," and similar words or expressions, as well as statements in future tense, are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and may differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: global economic conditions, including the impact of inflation, recession or recessionary concerns, or slower growth in the markets in which we operate; reduced purchases of our products by General Motors Company (GM), Stellantis N.V. (Stellantis), Ford Motor Company (Ford) or other customers; our ability to respond to changes in technology, increased competition or pricing pressures; our ability to develop and produce new products that reflect market demand; lower-than-anticipated market acceptance of new or existing products; our ability to attract new customers and programs for new products; reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM, Stellantis and Ford); our ability to consummate strategic initiatives and successfully integrate acquisitions and joint ventures; risks inherent in our global operations (including tariffs and the potential consequences thereof to us, our suppliers, and our customers and their suppliers, adverse changes in trade agreements, such as the United States-Mexico-Canada Agreement (USMCA), compliance with customs and trade regulations, immigration policies, political stability or geopolitical conflicts, taxes and other law changes, potential disruptions of production and supply, and currency rate fluctuations); supply shortages and the availability of natural gas or other fuel and utility sources in certain regions, labor shortages, including increased labor costs, or price increases in raw material and/or freight, utilities or other operating supplies for us or our customers as a result of pandemic or epidemic illness, geopolitical conflicts, natural disasters or otherwise; a significant disruption in operations at one or more of our key manufacturing facilities; risks inherent in transitioning our business from internal combustion engine vehicle products to hybrid and electric vehicle products; our ability to realize the expected revenues from our new and incremental business backlog; negative or unexpected tax consequences, including those resulting from tax litigation; risks related to a failure of our information technology systems and networks, including cloud-based applications, and risks associated with current and emerging technology threats and damage from computer viruses, unauthorized access, cyber attacks, including increasingly sophisticated cyber attacks incorporating use of artificial intelligence, and other similar disruptions; our suppliers', our customers' and their suppliers' ability to maintain satisfactory labor relations and avoid or minimize work stoppages; cost or availability of financing for working capital, capital expenditures, research and development (R&D) or other general corporate purposes including acquisitions, as well as our ability to comply with financial covenants; our customers' and suppliers' availability of financing for working capital, capital expenditures, R&D or other general corporate purposes; an impairment of our goodwill, other intangible assets, or long-lived assets if our business or market conditions indicate that the carrying values of those assets exceed their fair values; liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers; our ability or our customers' and suppliers' ability to successfully launch new product programs on a timely basis; risks of environmental issues, including impacts of climate-related events, that could result in unforeseen issues or costs at our facilities, or risks of noncompliance with environmental laws and regulations, including reputational damage; our ability to maintain satisfactory labor relations and avoid work stoppages; our ability to achieve the level of cost reductions required to sustain global cost competitiveness or our ability to recover certain cost increases from our customers; price volatility in, or reduced availability of, fuel; our ability to protect our intellectual property and successfully defend against assertions made against us; adverse changes in laws, government regulations or market conditions affecting our products or our customers' products; our ability or our customers' and suppliers' ability to comply with regulatory requirements and the potential costs of such compliance; changes in liabilities arising from pension and other postretirement benefit obligations; our ability to attract and retain qualified personnel in key positions and functions; and other unanticipated events and conditions that may hinder our ability to compete. It is not possible to foresee or identify all such factors and we make no commitment to update any forward-looking statement or to disclose any facts, events or circumstances after the date hereof that may affect the accuracy of any forward-looking statement.

The statements in this press release setting out targets for Adjusted EBITDA and Adjusted free cash flow of AAM for FY25 (together, the "FY25 Updated Profit Forecast") constitute profit forecasts of AAM for the purposes of Rule 28.1(a) of the UK Takeover Code ("Code"). The UK Takeover Panel has granted AAM a dispensation from the requirement to include reports from reporting accountants and AAM's financial advisers in relation to the FY25 Updated Profit Forecast because it is an ordinary course profit forecast and Dowlais has agreed to the dispensation.Profit Forecasts and Estimates

Other than the FY25 Updated Profit Forecast, nothing in this press release (including any statement of estimated cost savings or synergies) is intended, or is to be construed, as a profit forecast or profit estimate for any period or is to be interpreted to mean that earnings or earnings per share of AAM or Dowlais for the current or future financial years will necessarily match or exceed the published earnings or earnings per share of AAM or Dowlais, as appropriate.

In accordance with Rule 28.1(c)(i) of the Code, the AAM directors confirm that, as at the date of this press release, the FY25 Updated Profit Forecast is valid and has been properly compiled on the basis of the assumptions stated in AAM's UK RNS announcement on or around the date of this press release and that the basis of accounting used is consistent with AAM's accounting policies.AAM Directors' Confirmation

(313) 758-2006For more information:

Investor Contact

david.lim@aam.com

(313) 758-4814

Media Contact

chris.son@aam.com

Or visit the AAM website atwww.aam.com

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SOURCE American Axle & Manufacturing Holdings, Inc.

Sales of $1.51 billion
Net income of $9.2 million, or 0.6% of sales
Adjusted EBITDA of $194.7 million, or 12.9% of sales
Diluted earnings per share of $0.07; Adjusted earnings per share of $0.16
Net cash provided by operating activities of $143.3 million; Adjusted free cash flow of $98.1 million

AAM is targeting sales in the range of $5.8 - $5.9 billion vs. $5.75 - $5.95 billion prior.
AAM is targeting Adjusted EBITDA in the range of $710 - $745 million vs. $695 - $745 million prior.
AAM is targeting Adjusted free cash flow in the range of $180 - $210 million vs. $175 - $215 million prior; this target assumes capital spending of approximately 5% of sales.

North American light vehicle production of approximately 15.1 million units.
AAM's production estimates of key programs that we support.
Excludes costs and expenses associated with the announced combination with Dowlais. Reflects AAM on a stand-alone pre-combination basis only.
No changes to USMCA.
Mitigation of a majority of incremental tariff costs.