American Axle Lifts Outlook After Margin Gains

American Axle & Manufacturing Holdings, Inc. AXL shares are trading higher on Friday.

The company reported second-quarter adjusted earnings per share of 21 cents, beating the analyst consensus estimate of 15 cents.

Quarterly sales of $1.536 billion (down 5.9% year over year) slightly missed the Street view of $1.537 billion. Sales for the second quarter of 2025 were impacted by lower volume and mix.

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Gross profit in the quarter under review totaled $200.7 million, down from $217.3 million a year ago.

Adjusted EBITDA stood at $202.2 million, down from $208.4 million a year earlier. The adjusted EBITDA margin improved to 13.2% up from 12.8% in the year-ago period.

“AAM posted year-over-year adjusted EBITDA margin growth in the second quarter driven by productivity and cost controls,” said Chief Executive Officer David C. Dauch.

“In addition, we are very excited about our upcoming combination with Dowlais as we passed a critical milestone with the approval from both sets of shareholders,” Dauch added. 

The company exited the quarter with cash and equivalents worth $586.5 million.

Outlook

American Axle & Manufacturing Holdings raised its fiscal year 2025 sales guidance from $5.65 billion–$5.95 billion to $5.75 billion–$5.95 billion, compared with the $5.77 billion consensus estimate.

The company now expects 2025 adjusted EBITDA of $695 million–$745 million, up from the prior range of $665 million–$745 million.

It also forecasts adjusted free cash flow of $175 million–$215 million (versus $165 million–$215 million before), assuming capital expenditures of roughly 5% of sales and mitigation of most incremental tariff costs.

Price Action: AXL shares are trading higher by 13.8% to $5.22 at last check Friday.

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