AAM Announces Third Quarter 2025 Financial Earnings Results

American Axle & Manufacturing Holdings, Inc. (AXL) today announced its financial results for the most recent quarter. The company reported earnings per share of $0.07, falling short of analysts’ expectations by $0.05184. Additionally, AXL’s revenue for the quarter totaled $1.51 billion, missing the estimated $1.53 billion by approximately $23.4 million.

Key Highlights:

• AAM reported third-quarter 2025 sales of $1.51 billion, slightly up from $1.50 billion in Q3 2024.
• Net income for Q3 2025 was $9.2 million, or 0.6% of sales, compared to $10.0 million (0.7% of sales) in Q3 2024.
• Adjusted EBITDA increased to $194.7 million (12.9% of sales) from $174.4 million (11.6% of sales) year-over-year.
• Adjusted free cash flow rose to $98.1 million, up from $74.6 million in Q3 2024.
• AAM updated its full-year 2025 financial targets, now expecting sales between $5.8 - $5.9 billion and Adjusted EBITDA of $710 - $745 million.
• CEO David C. Dauch emphasized strong margin growth and progress towards the combination with Dowlais, indicating a positive outlook for the future.

In the third quarter of 2025, American Axle & Manufacturing Holdings, Inc. (AAM) demonstrated solid financial performance with sales reaching $1.51 billion, a slight increase from the previous year. The company reported a net income of $9.2 million, reflecting a marginal decline in profitability compared to the same quarter in 2024. However, AAM achieved significant growth in adjusted EBITDA, which rose to $194.7 million, showcasing improved operational efficiency and margin growth. CEO David C. Dauch highlighted the company’s strong year-over-year margin growth, attributing it to effective performance and strategic initiatives.

Looking ahead, AAM has revised its financial outlook for the full year 2025, now targeting sales between $5.8 billion and $5.9 billion, along with an adjusted EBITDA range of $710 million to $745 million. The company also anticipates adjusted free cash flow to be between $180 million and $210 million. These projections are based on expectations of North American light vehicle production and the company’s production estimates for key programs. Dauch expressed confidence in AAM’s future, stating that the ongoing combination with Dowlais positions the company well for growth as a leading global supplier in driveline and metal forming technologies.

American Axle & Manufacturing Holdings, Inc. (AXL) has experienced a notable rollercoaster in its stock price, particularly over the last six months, where it surged by an impressive 48.67%. However, this upward momentum has been tempered by a recent decline of 3.74% over the past week, raising questions about the sustainability of its gains. The company’s price-to-earnings ratio stands at 16.71, suggesting that investors are willing to pay a premium for its earnings, despite a two-year compound annual growth rate (CAGR) in earnings per share (EPS) that has dipped by 3.58%. On a more positive note, revenue has shown a modest growth of 1.68% over the same period, indicating some resilience in its operations. Yet, the free cash flow has taken a hit, with a negative CAGR of 11.77%, which could be a red flag for potential investors. The net profit margin remains slim at just 0.66%, reflecting the challenges the company faces in converting revenue into profit. With a return on invested capital of 6.37%, AXL’s ability to generate returns is under scrutiny, especially as it navigates a volatile market landscape. Overall, while the stock has shown significant short-term gains, the underlying fundamentals suggest a cautious approach may be warranted.

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, and manufactures driveline and metal forming technologies that supports electric, hybrid, and internal combustion vehicles in the United States, Mexico, South America, China, other Asian countries, and Europe. It operates through Driveline and Metal Forming segments. The Driveline segment offers front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment provides axle and transmission shafts, ring and pinion gears, differential gears and assemblies, and connecting rods and variable valve timing products for original equipment manufacturers and tier 1 automotive suppliers. American Axle & Manufacturing Holdings, Inc. has technology development agreement with Suzhou Inovance Automotive Ltd. and REE Automotive Ltd. American Axle & Manufacturing Holdings, Inc. was founded in 1994 and is headquartered in Detroit, Michigan.