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American Axle & Manufacturing Holdings AXL reported first-quarter 2025 adjusted earnings of 9 cents per share, beating the Zacks Consensus Estimate of 2 cents. The company recorded earnings of 18 cents per share in the year-ago quarter. AXL generated quarterly revenues of $1.41 billion, which missed the Zacks Consensus Estimate of $1.42 billion. Revenues declined 12.2% on a year-over-year basis.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
American Axle & Manufacturing Holdings, Inc. price-consensus-eps-surprise-chart | American Axle & Manufacturing Holdings, Inc. Quote
Segmental Performance of AXL
In the reported quarter, the Driveline segment recorded sales of $957.8 million, down 13.4% year over year. The figure also lagged our estimate of $991 million. The segment registered adjusted EBITDA of $125.3 million, which fell 20.4% on a year-over-year basis and missed our estimate of $134.7 million.
The company’s Metal Forming business generated revenues of $575.8 million, which fell 10.6% from the year-ago quarter’s figure but outpaced our estimate of $574.3 million. The segment registered an adjusted EBITDA of $52 million, which grew 8% year-over-year and beat our estimate of $23.4 million.
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AXL’s Financial Position
American Axle’s first-quarter SG&A expenses totaled $90.9 million, down from the year-ago quarter’s reported figure of $98.3 million.
Net cash provided by operating activities was $55.9 million, up from $17.8 million in the year-ago period.
Capital spending in the quarter was $68.7 million, up from $44.9 million reported in the year-ago period.
In the three months ended March 31, 2025, the company posted free cash outflow of $12.8 million compared with $27.1 million recorded in the year-ago period.
As of March 31, 2025, American Axle had cash and cash equivalents of $549.2 million, down from $552.9 million as of Dec. 31, 2024.
Its net long-term debt was $2.61 billion, down from $2.58 billion as of Dec. 31, 2024.
AXL’s Revised Outlook for 2025
American Axle revises 2025 revenues in the band of $5.65-$5.95 billion compared with the prior estimated range of $5.8-$6.05 billion. Adjusted EBITDA is estimated to be in the band of $665-$745 million compared with the previous guidance of $700-$760 million.
Adjusted free cash flow is anticipated between $165 million and $215 million, revised from the prior target of $200-$230 million. Capital expenditures are expected to be 5% of sales.
AXL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.