American Axle beats Q4 estimates, shares surge on upbeat outlook

Published 14/02/2025, 14:10
American Axle beats Q4 estimates, shares surge on upbeat outlook

Investing.com - American Axle & Manufacturing (NYSE:AXL) Holdings Inc reported better-than-expected fourth-quarter results on Friday and provided a positive outlook for 2025, sending its shares soaring 7.37% in pre-market trading.

The auto parts manufacturer posted an adjusted loss per share of -$0.06 for the fourth quarter, beating analyst estimates of -$0.12. Revenue came in at $1.38 billion, slightly below the consensus estimate of $1.39 billion and down from $1.46 billion in the same quarter last year.

For the full year 2024, American Axle reported sales of $6.12 billion, up from $6.08 billion in 2023. The company's adjusted EBITDA rose to $749.2 million, or 12.2% of sales, compared to $693.3 million, or 11.4% of sales, in the previous year.

Looking ahead, American Axle provided an optimistic outlook for 2025, targeting sales between $5.8 billion and $6.05 billion, in line with analyst expectations of $5.92 billion. The company also aims for adjusted EBITDA in the range of $700 million to $760 million.

"AAM delivered strong full year Adjusted EBITDA growth driven in large part by operational performance," said David C. Dauch, AAM's Chairman and Chief Executive Officer.

"As we look to 2025, AAM will remain focused on optimization of our core business while closing on our announced combination with the Dowlais Group," Dauch added.

American Axle's fourth-quarter net cash provided by operating activities improved to $151.2 million, compared to $52.9 million in the same period last year. Adjusted free cash flow for the quarter was $79.2 million, up from $4.5 million YoY.

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