Auto parts maker American Axle's Q2 sales misses estimates on lower volume and mix
Overview
American Axle Q2 sales decline and miss analyst expectations, per LSEG data
Adjusted EBITDA beats estimates, driven by productivity and cost controls
Co progresses on Dowlais combination with shareholder approval
Outlook
AAM targets 2025 sales of $5.75 - $5.95 bln, up from $5.65 - $5.95 bln
AAM targets 2025 Adjusted EBITDA of $695 - $745 mln, up from $665 - $745 mln
AAM targets 2025 Adjusted free cash flow of $175 - $215 mln, up from $165 - $215 mln
Company assumes North American light vehicle production of 14.6 - 15.1 mln units
Result Drivers
SALES DECLINE - Sales impacted by lower volume and mix, resulting in a decline compared to Q2 2024
PRODUCTIVITY AND COST CONTROLS - Year-over-year growth in Adjusted EBITDA margin attributed to productivity and cost controls, per CEO David C. Dauch
DOWLAIS COMBINATION - Progress on strategic combination with Dowlais, with shareholder approval enhancing global presence and value creation potential
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Miss | $1.54 bln | $1.58 bln (7 Analysts) |
Q2 EPS |
| $0.32 |
|
Q2 Net Income |
| $39.30 mln |
|
Q2 Adjusted EBITDA | Beat | $202.20 mln | $192.50 mln (7 Analysts) |
Q2 Adjusted Free Cash Flow |
| $48.70 mln |
|
Press Release: ID:nPnnlGBXa
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