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AAM Reports Third Quarter 2024 Financial Results

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American Axle & Manufacturing (NYSE: AXL) reported Q3 2024 financial results with sales of $1.50 billion, down from $1.55 billion in Q3 2023. The company posted a net income of $10.0 million ($0.08 per share), compared to a net loss of $(17.4) million in Q3 2023. Adjusted EBITDA improved to $174.4 million (11.6% of sales) from $156.8 million last year. The company updated its 2024 guidance, targeting sales of $6.1-$6.15 billion, Adjusted EBITDA of $715-$745 million, and Adjusted free cash flow of $200-$220 million.

American Axle & Manufacturing (NYSE: AXL) ha riportato i risultati finanziari del terzo trimestre 2024 con vendite di 1,50 miliardi di dollari, in calo rispetto a 1,55 miliardi di dollari nel terzo trimestre 2023. L'azienda ha registrato un utile netto di 10,0 milioni di dollari (0,08 dollari per azione), rispetto a una perdita netta di (17,4) milioni di dollari nel terzo trimestre 2023. L'EBITDA rettificato è migliorato a 174,4 milioni di dollari (11,6% delle vendite), rispetto ai 156,8 milioni di dollari dell'anno scorso. L'azienda ha aggiornato le proprie previsioni per il 2024, puntando a vendite di 6,1-6,15 miliardi di dollari, EBITDA rettificato di 715-745 milioni di dollari e flusso di cassa libero rettificato di 200-220 milioni di dollari.

American Axle & Manufacturing (NYSE: AXL) reportó los resultados financieros del tercer trimestre de 2024 con ventas de 1.50 mil millones de dólares, en comparación con 1.55 mil millones de dólares en el tercer trimestre de 2023. La compañía registró una ganancia neta de 10.0 millones de dólares (0.08 dólares por acción), en comparación con una pérdida neta de (17.4) millones de dólares en el tercer trimestre de 2023. El EBITDA ajustado mejoró a 174.4 millones de dólares (11.6% de las ventas) desde los 156.8 millones de dólares del año pasado. La empresa actualizó su guía para 2024, apuntando a ventas de 6.1-6.15 mil millones de dólares, EBITDA ajustado de 715-745 millones de dólares y flujo de caja libre ajustado de 200-220 millones de dólares.

아메리칸 액슬 & 제조 (NYSE: AXL)는 2024년 3분기 재무 결과를 보고하며 매출이 15억 달러로, 2023년 3분기 15억 5천만 달러에서 감소했다고 발표했습니다. 회사는 순이익이 1천만 달러 (주당 0.08달러)에 달하며, 2023년 3분기의 순손실(1천7백40만 달러)과 비교했습니다. 조정된 EBITDA는 작년 1억 5천6백80만 달러에서 1억 7천4백40만 달러(매출의 11.6%)로 개선되었습니다. 회사는 2024년 예측을 업데이트하며, 61억~61억 5천만 달러의 매출, 7억 1천5백만~7억 4천5백만 달러의 조정된 EBITDA, 수익 순현금 흐름 2억~2억 2천만 달러를 목표로 하고 있습니다.

American Axle & Manufacturing (NYSE: AXL) a publié les résultats financiers du troisième trimestre 2024, avec des ventes de 1,50 milliard de dollars, en baisse par rapport à 1,55 milliard de dollars au troisième trimestre 2023. L'entreprise a enregistré un revenu net de 10,0 millions de dollars (0,08 dollar par action), contre une perte nette de (17,4) millions de dollars au troisième trimestre 2023. Le EBITDA ajusté a augmenté à 174,4 millions de dollars (11,6 % des ventes), contre 156,8 millions de dollars l'année dernière. L'entreprise a mis à jour ses prévisions pour 2024, visant des ventes de 6,1 à 6,15 milliards de dollars, un EBITDA ajusté de 715 à 745 millions de dollars et un flux de trésorerie libre ajusté de 200 à 220 millions de dollars.

American Axle & Manufacturing (NYSE: AXL) berichtete über die Finanzergebnisse des dritten Quartals 2024 mit einem Umsatz von 1,50 Milliarden US-Dollar, gegenüber 1,55 Milliarden US-Dollar im dritten Quartal 2023. Das Unternehmen verzeichnete einen Nettoertrag von 10,0 Millionen US-Dollar (0,08 US-Dollar pro Aktie) im Vergleich zu einem Nettoverlust von (17,4) Millionen US-Dollar im dritten Quartal 2023. Das bereinigte EBITDA verbesserte sich auf 174,4 Millionen US-Dollar (11,6 % des Umsatzes) im Vergleich zu 156,8 Millionen US-Dollar im Vorjahr. Das Unternehmen aktualisierte seine Prognose für 2024 und visiert Umsätze von 6,1 bis 6,15 Milliarden US-Dollar, bereinigtes EBITDA von 715 bis 745 Millionen US-Dollar und bereinigten freien Cashflow von 200 bis 220 Millionen US-Dollar an.

Positive
  • Net income improved to $10.0 million from a loss of $17.4 million YoY
  • Adjusted EBITDA margin increased to 11.6% from 10.1% YoY
  • Adjusted EBITDA grew to $174.4 million from $156.8 million YoY
  • Adjusted earnings per share improved to $0.20 from $(0.11) YoY
Negative
  • Sales declined to $1.50 billion from $1.55 billion YoY
  • Adjusted free cash flow decreased to $74.6 million from $135.8 million YoY
  • Narrowed full-year sales guidance to $6.1-$6.15 billion from $6.1-$6.3 billion

Insights

The Q3 2024 results show mixed performance for AAM. While sales declined slightly to $1.50 billion from $1.55 billion year-over-year, profitability metrics improved significantly. The company swung to a net profit of $10.0 million from a loss of $17.4 million in Q3 2023. Adjusted EBITDA margin expanded to 11.6% from 10.1%, demonstrating improved operational efficiency.

The narrowed full-year guidance suggests some caution, with sales targets tightened to $6.1-6.15 billion from $6.1-6.3 billion. Free cash flow projection was also trimmed at the high end to $200-220 million. While the company is showing resilience through productivity gains, lower volumes on certain platforms and a potentially softening auto market could present headwinds. The 4% capital spending target indicates continued investment in growth initiatives.

AAM Delivers Positive Year-Over-Year Performance

DETROIT, Nov. 8, 2024 /PRNewswire/ -- American Axle & Manufacturing Holdings, Inc. (AAM), (NYSE: AXL) today reported its financial results for the third quarter 2024. 

Third Quarter 2024 Results

  • Sales of $1.50 billion
  • Net income of $10.0 million, or 0.7% of sales
  • Adjusted EBITDA of $174.4 million, or 11.6% of sales
  • Diluted earnings per share of $0.08; Adjusted earnings per share of $0.20
  • Net cash provided by operating activities of $143.6 million; Adjusted free cash flow of $74.6 million

"AAM delivered solid third quarter financial performance driven by productivity and operating efficiencies," said AAM's Chairman and Chief Executive Officer, David C. Dauch. "AAM will continue to focus on factors that we can control, while remaining agile to changing propulsion trends with our comprehensive product portfolio."

AAM's sales in the third quarter of 2024 were $1.50 billion as compared to $1.55 billion in the third quarter of 2023. Sales for the third quarter of 2024 were negatively impacted by lower volumes on certain platforms.    

AAM's net income in the third quarter of 2024 was $10.0 million, or $0.08 per share and 0.7% of sales, as compared to a net loss of $(17.4) million, or $(0.15) per share and (1.1)% of sales in the third quarter of 2023.

Adjusted earnings per share in the third quarter of 2024 was $0.20 compared to Adjusted loss per share of $(0.11) in the third quarter of 2023.   

In the third quarter of 2024, Adjusted EBITDA was $174.4 million, or 11.6% of sales, as compared to $156.8 million, or 10.1% of sales, in the third quarter of 2023. 

AAM's net cash provided by operating activities for the third quarter of 2024 was $143.6 million as compared to $178.3 million for the third quarter of 2023. 

AAM's Adjusted free cash flow for the third quarter of 2024 was $74.6 million as compared to $135.8 million for the third quarter of 2023. 

AAM's 2024 Updated Financial Outlook
AAM's full year 2024 financial targets are as follows:    

  • AAM is targeting sales in the range of $6.1 - $6.15 billion vs. $6.1 - $6.3 billion prior.
  • AAM is targeting Adjusted EBITDA in the range of $715 - $745 million vs. $705 - $755 million prior.
  • AAM is targeting Adjusted free cash flow in the range of $200 - $220 million vs. $200 - $240 million prior; this target assumes capital spending of approximately 4% of sales.

These targets are based on the following assumptions for 2024:

  • North American light vehicle production of approximately 15.5 million units.
  • AAM's production estimates of key programs that we support.
  • Current customer launch schedules and operating environment.

Third Quarter 2024 Conference Call Information
A conference call to review AAM's third quarter results is scheduled for today at 10:00 a.m. ET. Interested participants may listen to the live conference call by logging onto AAM's investor web site at http://investor.aam.com or calling (877) 883-0383 from the United States or (412) 902-6506 from outside the United States with access code 3156544. A replay will be available one hour after the call is complete until November 15, 2024 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 1531572.

Non-GAAP Financial 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.

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.

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

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 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 government grants. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs, and cash payments related to the Malvern fire, including payments for capital expenditures, net of recoveries.

Company Description
As a leading global Tier 1 Automotive and Mobility Supplier, AAM (NYSE: AXL) designs, engineers and manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. Headquartered in Detroit, with over 80 facilities in 18 countries, AAM is bringing the future faster for a safer and more sustainable tomorrow. To learn more, visit aam.com.

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); 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 such as COVID-19, 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 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 consummate strategic initiatives and successfully integrate acquisitions and joint ventures; 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.

For more information:
Investor Contact
David H. Lim
Head of Investor Relations
(313) 758-2006
david.lim@aam.com

Media Contact
Christopher M. Son
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com

Or visit the AAM website at www.aam.com.

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



Three Months Ended


Nine Months Ended


September 30,


September 30,


2024


2023


2024


2023


(in millions, except per share data)









Net sales

$         1,504.9


$         1,551.9


$         4,744.1


$         4,616.5









Cost of goods sold

1,333.6


1,421.3


4,157.0


4,147.1









Gross profit

171.3


130.6


587.1


469.4









Selling, general and administrative expenses

94.6


81.8


298.1


271.2









Amortization of intangible assets

20.8


21.4


62.1


64.2









Impairment charge

12.0



12.0










Restructuring and acquisition-related costs

2.2


3.5


9.7


16.2









Operating income

41.7


23.9


205.2


117.8









Interest expense

(45.2)


(50.8)


(142.1)


(151.5)









Interest income

7.1


7.1


21.5


18.9









Other income (expense):








Debt refinancing and redemption costs

(0.2)


(0.3)


(0.5)


(0.3)

Loss on equity securities


(1.2)


(0.1)


(1.2)

Other income (expense), net

(5.5)


1.9


(14.3)


5.1









Income (loss) before income taxes

(2.1)


(19.4)


69.7


(11.2)









Income tax expense (benefit)

(12.1)


(2.0)


21.0


3.3









Net income (loss)

$               10.0


$             (17.4)


$               48.7


$             (14.5)









Diluted earnings (loss) per share

$               0.08


$             (0.15)


$               0.40


$             (0.12)

 

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS



September 30, 2024


December 31, 2023


(Unaudited)



ASSETS

(in millions)

Current assets


Cash and cash equivalents

$                        542.5


$                        519.9

Accounts receivable, net

900.1


818.5

Inventories, net

465.6


482.9

Prepaid expenses and other

169.2


185.3

Current assets held-for-sale

58.1


Total current assets

2,135.5


2,006.6





Property, plant and equipment, net

1,657.0


1,760.9

Deferred income taxes

188.3


169.4

Goodwill

174.1


182.1

Other intangible assets, net

477.5


532.8

GM postretirement cost sharing asset

109.3


111.9

Operating lease right-of-use assets

112.6


115.6

Other assets and deferred charges

474.0


477.0

Total assets

$                     5,328.3


$                     5,356.3





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities




Current portion of long-term debt

$                           42.7


$                           17.0

Accounts payable

805.7


773.9

Accrued compensation and benefits

205.4


200.1

Deferred revenue

17.1


16.6

Current portion of operating lease liabilities

23.6


21.9

Accrued expenses and other

175.3


172.1

Current liabilities held-for-sale

24.4


Total current liabilities

1,294.2


1,201.6





Long-term debt, net

2,638.3


2,751.9

Deferred revenue

42.1


70.4

Deferred income taxes

15.9


16.5

Long-term portion of operating lease liabilities

91.2


95.5

Postretirement benefits and other long-term liabilities

630.3


615.5

Total liabilities

4,712.0


4,751.4





Total AAM stockholders' equity

616.3


604.9

Total liabilities and stockholders' equity

$                     5,328.3


$                     5,356.3

 

AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Three Months Ended


Nine Months Ended


September 30,


September 30,


2024


2023


2024


2023


(in millions)

Operating activities








Net income (loss)

$               10.0


$             (17.4)


$               48.7


$             (14.5)

Adjustments to reconcile net income (loss) to net cash provided by operating activities








Depreciation and amortization

116.9


120.4


354.3


365.8

Other

16.7


75.3


(98.8)


(8.1)

Net cash provided by operating activities

143.6


178.3


304.2


343.2









Investing activities








Purchases of property, plant and equipment

(73.2)


(47.9)


(170.0)


(138.6)

Proceeds from sale of property, plant and equipment

0.3


0.4


3.6


0.8

Acquisition of business, net of cash acquired

(5.4)


(0.6)


(6.7)


(1.9)

Proceeds from government grants



2.0


Other

(1.0)


(0.7)


(3.1)


13.0

Net cash used in investing activities

(79.3)


(48.8)


(174.2)


(126.7)









Financing activities








Net debt activity

(44.5)


(17.5)


(93.9)


(82.9)

Other

(3.0)


(3.3)


(12.1)


(25.3)

Net cash used in financing activities

(47.5)


(20.8)


(106.0)


(108.2)









Effect of exchange rate changes on cash

5.8


(4.2)


(1.4)


(4.2)









Net increase in cash and cash equivalents

22.6


104.5


22.6


104.1









Cash and cash equivalents at beginning of period

519.9


511.1


519.9


511.5









Cash and cash equivalents at end of period

$             542.5


$             615.6


$             542.5


$             615.6

 

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. 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,


2024


2023


2024


2023


(in millions)









Net income (loss)

$               10.0


$             (17.4)


$               48.7


$             (14.5)

Interest expense

45.2


50.8


142.1


151.5

Income tax expense (benefit)

(12.1)


(2.0)


21.0


3.3

Depreciation and amortization

116.9


120.4


354.3


365.8

EBITDA

160.0


151.8


566.1


506.1

Restructuring and acquisition-related costs

2.2


3.5


9.7


16.2

Debt refinancing and redemption costs

0.2


0.3


0.5


0.3

Impairment charge

12.0



12.0


Loss on equity securities


1.2


0.1


1.2

Adjusted EBITDA

$             174.4


$             156.8


$             588.4


$             523.8

 

Adjusted earnings (loss) per share(b)



Three Months Ended


Nine Months Ended


September 30,


September 30,


2024


2023


2024


2023

Diluted earnings (loss) per share

$               0.08


$             (0.15)


$               0.40


$             (0.12)

Restructuring and acquisition-related costs

0.02


0.04


0.08


0.14

Impairment charge

0.10



0.10


Loss on equity securities


0.01



0.01

Tax effect of adjustments


(0.01)


(0.01)


(0.03)

Adjusted earnings (loss) per share

$               0.20


$             (0.11)


$               0.57


$                  —

Adjusted earnings (loss) per share are based on weighted average diluted shares outstanding of 122.2 million and 117.1 million for the three months ended September 30, 2024 and 2023 respectively, and 121.7 million and 116.5 million for the nine months ended September 30, 2024 and 2023 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. business and operating performance.


Free cash flow and Adjusted free cash flow(c)


Three Months Ended


Nine Months Ended


September 30,


September 30,


2024


2023


2024


2023


(in millions)

Net cash provided by operating activities

$             143.6


$             178.3


$             304.2


$             343.2

Less: Capital expenditures net of proceeds from the sale of
property, plant and equipment and from government grants

(72.9)


(47.5)


(164.4)


(137.8)

Free cash flow

$               70.7


$             130.8


$             139.8


$             205.4

Cash payments for restructuring and acquisition-related costs

3.9


5.0


11.3


16.1

Insurance proceeds related to Malvern fire, net




(7.0)

Adjusted free cash flow

$               74.6


$             135.8


$             151.1


$             214.5

 

Segment Financial Information



Three Months Ended


Nine Months Ended


September 30,


September 30,


2024


2023


2024


2023


(in millions)

Segment Sales








Driveline

$         1,042.8


$         1,061.2


$         3,273.7


$         3,161.5

Metal Forming

596.5


624.8


1,893.7


1,878.1

Total Sales

1,639.3


1,686.0


5,167.4


5,039.6

Intersegment Sales

(134.4)


(134.1)


(423.3)


(423.1)

Net External Sales

$         1,504.9


$         1,551.9


$         4,744.1


$         4,616.5









Segment Adjusted EBITDA(a)








Driveline

$             135.7


$             137.3


$             444.9


$             403.5

Metal Forming

38.7


19.5


143.5


120.3

Total Segment Adjusted EBITDA

$             174.4


$             156.8


$             588.4


$             523.8

 

Full Year 2024 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. business and operating performance.



Adjusted EBITDA


Low End


High End


(in millions)

Net income

$                      15


$                      35

Interest expense

190


190

Income tax expense

5


15

Depreciation and amortization

475


475

Full year 2024 targeted EBITDA

685


715

Restructuring and acquisition-related costs

15


15

Other, principally impairment charge

15


15

Full year 2024 targeted Adjusted EBITDA

$                    715


$                    745

 


Adjusted Free Cash Flow


Low End


High End


(in millions)

Net cash provided by operating activities

$                    435


$                  455

Capital expenditures net of proceeds from the sale of property,
plant and equipment and from government grants

(250)


(250)

Full year 2024 targeted Free Cash Flow

185


205

Cash payments for restructuring and acquisition-related costs

15


15

Full year 2024 targeted Adjusted Free Cash Flow

$                    200


$                  220

___________

(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 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 the 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 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 government grants.  Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs and cash payments related to the Malvern fire, including payments for capital expenditures, net of recoveries. 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.

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SOURCE American Axle & Manufacturing Holdings, Inc.

FAQ

What were AXL's Q3 2024 sales and how did they compare to Q3 2023?

AXL reported Q3 2024 sales of $1.50 billion, down from $1.55 billion in Q3 2023 due to lower volumes on certain platforms.

What is AXL's updated sales guidance for full-year 2024?

AXL narrowed its 2024 sales guidance to $6.1-$6.15 billion from the previous range of $6.1-$6.3 billion.

How much was AXL's Q3 2024 Adjusted EBITDA and margin?

AXL's Q3 2024 Adjusted EBITDA was $174.4 million, representing a margin of 11.6% of sales, compared to $156.8 million and 10.1% in Q3 2023.

American Axle & Manufacturing Holdings, Inc.

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