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DETROIT - American Axle & Manufacturing (NYSE:AXL) Holdings, Inc. (AAM) has released its financial outlook for the year ending December 31, 2025, forecasting significant growth in sales and earnings. The automotive supplier anticipates full-year sales to be between $5.8 billion and $6.05 billion, with adjusted EBITDA expected to range from $700 million to $760 million. The company also projects an adjusted free cash flow of $200 million to $230 million for the same period.
This financial guidance is based on projected North American light vehicle production of approximately 15.1 million units and includes current customer production schedules and key program estimates. Capital spending is assumed to be around 5% of sales, and the company expects restructuring cash payments to approximate $20 million to $30 million.
The 2025 outlook does not take into account any potential changes in future policy, such as tariffs, tax, and other regulations, and assumes the completion of the sale of AAM's commercial vehicle axle business in India by July 1, 2025. The forecast also excludes any costs and expenses related to the announced combination with Dowlais, reflecting guidance for AAM on a stand-alone basis.
In terms of GAAP reconciliation, AAM estimates a net income of $25 million to $60 million and interest expenses between $170 million and $180 million. Income tax expenses are projected to be in the range of $15 million to $30 million, with depreciation and amortization expected to be around $465 million. The company anticipates full-year 2025 EBITDA to be between $675 million and $735 million, with an estimated $25 million for restructuring, acquisition, and related costs.
The AAM Directors have confirmed that the profit forecast for 2025 has been properly compiled on a consistent basis with the company's accounting policies, which are in accordance with U.S. GAAP.
The financial information and targets are part of AAM's latest earnings presentation and constitute a profit forecast under Rule 28.1(a) of the City Code on Takeovers and Mergers. The Panel has granted AAM a dispensation from including reports from reporting accountants and AAM's financial advisers in relation to the profit forecast due to it being an ordinary course profit forecast, and Dowlais has agreed to the dispensation.
This financial outlook is based on a press release statement and should be read in the context of the inherent uncertainties related to such forecasts.
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