DETROIT, March 17, 2025 /PRNewswire/ -- American Axle & Manufacturing (NYSE: AXL) has named Terry Grayson-Caprio to its Board of Directors. Grayson-Caprio is a retired Managing Partner of KPMG LLP. "I am pleased to welcome Terry as the latest addition to the AAM Board of Directors," said David C. Dauch, AAM's Chairman and CEO. "Her financial expertise, together with her experience partnering with global companies on transformational change, large-scale growth, and integration further strengthens the backgro ...

Core Insights - Arrow Exploration Corp. reported a significant increase in reserves across all categories for the year-end 2024, with Proved Developed Producing (PDP) reserves rising by 92% compared to 2023 [1][5][6] - The company achieved a reserves replacement ratio of 134% for Proved (1P) reserves and 231% for Proved plus Probable (2P) reserves, indicating strong sustainability and growth potential [5][6] Reserves Summary - PDP reserves increased to 2.38 million barrels of oil equivalent (MMboe), with a net present value before tax (NPV-10) of $71.3 million [5][11] - Proved (1P) reserves rose by 10% to 5.80 MMboe, with an NPV-10 of $114.57 million [5][11] - Proved plus Probable (2P) reserves increased by 15% to 13.62 MMboe, with an NPV-10 of $284.9 million [5][11] - Proved plus Probable plus Possible (3P) reserves grew by 25% to 22.28 MMboe, with an NPV-10 of $524.1 million [5][11] Performance Metrics - The company reported strong well performance, leading to higher reserves volumes compared to year-end 2023 [5][6] - Reserves Recycle Ratios were reported at 2.7 for 1P, 4.6 for 2P, and 8.7 for 3P, indicating efficient use of capital [5] - The NPV-10 per share for 1P, 2P, and 3P reserves were $0.40, $1.00, and $1.83 respectively [5] Future Outlook - Arrow plans to continue its growth trajectory through a fully funded $50 million capital budget for drilling in 2025, balancing development and low-risk exploratory wells [8][6] - The company is optimistic about further increases in reserves due to ongoing drilling activities in the Alberta Llanos and Carrizales Norte fields [6][7]

Core Points - The expiration of the waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act is a positive development for the proposed combination of Dowlais and AAM [1][2] - The combination is expected to close in the fourth quarter of 2025, pending the satisfaction of remaining conditions [2] Company and Industry Summary - AAM and Dowlais are progressing with their proposed combination, having met a significant regulatory milestone with the expiration of the HSR waiting period [1][2] - Legal advisors for AAM include Allen Overy Shearman Sterling LLP, while Dowlais is advised by Slaughter and May, Cravath, Swaine & Moore LLP, and others [4][6][8][9] - The combination will be subject to the applicable requirements of English law and the Code, with further details to be provided in the Scheme Document [14][12] - The combination is structured as a scheme of arrangement under English company law, which differs from U.S. tender offer rules [21][27] - Dowlais will prepare the Scheme Document to be distributed to its shareholders, urging them to read it in full for important information regarding the combination [12][27]

Did you analyze how American Axle & Manufacturing (AXL) fared in its international operations for the quarter ending December 2024? Given the widespread global presence of this maker of auto parts, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journ ...

Core Viewpoint - American Axle & Manufacturing Holdings, Inc. (AXL) faces significant challenges due to expected declines in North American light vehicle production, high capital expenditures, and elevated debt levels, suggesting a potential sell recommendation for investors [1][2]. Group 1: Sales and Production Outlook - AXL anticipates sales between $5 billion and $6.05 billion for 2025, a decrease from $6.12 billion in 2024, primarily due to expected declines in North American light vehicle production [2]. - The company heavily relies on major automakers, with GM accounting for 42% of its 2024 sales, and Stellantis and Ford each contributing 13%, indicating that any decline in sales to these manufacturers could significantly impact financial performance [5]. Group 2: Capital Expenditures and Financial Health - AXL plans to increase capital expenditures to $300 million in 2025 from $242 million in 2024 to develop technologically advanced products, which may affect cash flow [3]. - As of December 31, 2024, AXL's net long-term debt was $2.58 billion, with cash and cash equivalents at $552.9 million, resulting in a total debt-to-capital ratio of 0.81, significantly higher than the industry average of 0.25, limiting financial flexibility [4]. Group 3: Growth Strategies - AXL is pursuing growth through electrification strategies, including a partnership with Inovance and recent product launches in electric propulsion, while also targeting $1.5 billion in new opportunities [6]. - The company is optimizing its portfolio through acquisitions, such as the Metaldyne acquisition, and plans to divest its India commercial axle unit, which is expected to enhance focus and financial strength [6].

Core Viewpoint - American Axle & Manufacturing Holdings (AXL) reported a narrower adjusted loss in Q4 2024 compared to the previous year, but revenues declined year-over-year and missed consensus estimates [1] Financial Performance - The company reported an adjusted loss of 6 cents per share, better than the Zacks Consensus Estimate of a loss of 8 cents, and an improvement from a loss of 9 cents per share in the same quarter last year [1] - Quarterly revenues were $1.38 billion, a decline of 5.6% year-over-year, and below the Zacks Consensus Estimate of $1.39 billion [1] - The Driveline segment generated sales of $979.6 million, down 3.5% year-over-year, but exceeded the estimate of $955 million; adjusted EBITDA for this segment was $133.3 million, down 4.9% year-over-year, beating the estimate of $130 million [2] - The Metal Forming segment reported revenues of $520.6 million, a decrease of 9.7% from the previous year, missing the estimate of $558 million; adjusted EBITDA was $27.5 million, down 6.5% but surpassing the estimate of $11.7 million [3] Financial Position - SG&A expenses for Q4 totaled $89 million, down from $95.7 million in the prior year [4] - Net cash provided by operating activities was $151.2 million, an increase from $52.9 million in the year-ago period [4] - Capital spending in the quarter was $77.6 million, up from $55.9 million reported in the previous year [4] - Adjusted free cash flow for the quarter was $79.2 million, compared to $4.5 million in the same period last year [5] - As of December 31, 2024, cash and cash equivalents were $552.9 million, up from $519.9 million a year earlier; net long-term debt decreased to $2.58 billion from $2.75 billion [5] Outlook - For 2025, the company projects revenues between $5.8 billion and $6.05 billion, with adjusted EBITDA estimated between $700 million and $760 million [6] - Expected net cash provided by operating activities is between $475 million and $505 million, with capital expenditures anticipated at $300 million; adjusted free cash flow is expected to be in the range of $200 million to $230 million [6] Market Position - AXL currently holds a Zacks Rank 3 (Hold); better-ranked stocks in the auto sector include Dana (DAN) with a Zacks Rank 1 (Strong Buy), and Garrett Motion (GTX) and Custom Truck One Source (CTOS) both with a Zacks Rank 2 (Buy) [7]

Financial Data and Key Metrics Changes - AAM's Q4 2024 sales were $1.38 billion, down from $1.46 billion in Q4 2023, while full-year sales increased to approximately $6.12 billion from $6.08 billion in 2023 [20][21] - Adjusted EBITDA for Q4 2024 was $160.8 million, compared to $169.5 million in Q4 2023, with a full-year adjusted EBITDA of $749.2 million, reflecting a margin improvement of 80 basis points year-over-year [22][24] - Adjusted earnings per share for Q4 2024 was a loss of $0.06, an improvement from a loss of $0.09 in Q4 2023, while full-year adjusted EPS was $0.51 compared to a loss of $0.09 in 2023 [27] Business Line Data and Key Metrics Changes - AAM secured a contract extension to supply power transfer units for Ford Maverick and Bronco Sport vehicles, reinforcing its core legacy driveline business [14] - The company reported a decline in sales due to a 3% decrease in North American production and timing of new product launches, impacting Q4 sales by $61 million [20][21] Market Data and Key Metrics Changes - North American production is forecasted at approximately 15.1 million units for 2025, with various factors such as interest rates and tariffs being monitored [17][32] - AAM's 2025 sales target is set between $5.8 billion and $6.05 billion, based on anticipated production levels and key program assumptions [18][32] Company Strategy and Development Direction - AAM's strategy focuses on operational efficiency, EBITDA and free cash flow generation, and disciplined management of controllable factors [16] - The transformational combination with Dowlais aims to create a leading global driveline and metal-forming supplier, enhancing size, scale, and shareholder value [15][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial targets for 2025, despite industry uncertainties and production revisions [12][31] - The combination with Dowlais is expected to provide a more balanced and resilient company, with anticipated synergies and improved geographic presence [42][44] Other Important Information - AAM ended 2024 with a net debt of $2.1 billion and total available liquidity of approximately $1.5 billion [29][30] - The company plans to conduct investor meetings in New York and Boston for current and prospective shareholders [57] Q&A Session Summary Question: Insights on GM trucks and Ram HD expectations - Management indicated a revenue mix for GM full-size trucks between 1.3 million and 1.4 million units, with expectations for lower volumes in Q1 but a recovery in Q2 [62][63] Question: R&D and CapEx outlook for 2025 - The guidance reflects a standalone company perspective, with R&D and CapEx reductions being organic and not influenced by the Dowlais combination [67][69] Question: Customer reception outside of Detroit 3 - Positive feedback was received from customers globally, with excitement about the complementary nature of the combined businesses [71][73] Question: Top-line synergies from the Dowlais combination - Management highlighted opportunities for cross-selling and revenue growth due to the complementary product portfolios of AAM and Dowlais [80] Question: Free cash flow bridge and working capital benefits - Favorable cash flow is expected from lower interest expenses and continued opportunities in working capital management [86][88] Question: Supplier landscape and consolidation trends - Management believes the automotive market will continue to consolidate, emphasizing the need for size and scale to meet market demands [96][100] Question: Commodity risks and pass-through capabilities - AAM has a strategy to mitigate tariff risks by sourcing locally, and they pass through over 80% of commodity cost fluctuations to customers [121][124] Question: Backlog and bidding dynamics - Management noted a slight decrease in backlog for 2025 but emphasized active quoting of $1.5 billion in new business opportunities, with a shift towards ICE and hybrid applications [131][132]

Fourth Quarter 2024 Earnings Call Forward-Looking Statements In this presentation, American Axle & Manufacturing Holdings, Inc. ("AAM") makes statements concerning its and Dowlais' expectations, beliefs, plans, objectives, goals, strategies, and future events or performance, including, but not limited to, certain statements related to the ability of AAM and Dowlais to consummate AAM's business combination with Dowlais (the "Business Combination") in a timely manner or at all; future capital expenditures, ex ...

Sales Performance - Sales to General Motors accounted for approximately 42% of consolidated net sales in 2024, compared to 39% in 2023 and 40% in 2022[14]. - Sales to Stellantis represented about 13% of consolidated net sales in 2024, down from 16% in 2023 and 18% in 2022[15]. - Sales to Ford were approximately 13% of consolidated net sales in 2024, consistent with 12% in 2023 and 2022[16]. Business Development - AAM launched 11 programs across its business units in 2024, with expectations to launch new programs in 2025 for customers including Stellantis and Audi[21]. - AAM's Metal Forming segment is the largest automotive forging operation globally, awarded multiple internal combustion engine vehicle component programs in 2024[25]. - AAM entered into a definitive agreement to sell its commercial vehicle axle business in India for $65 million, expected to close in the first half of 2025[25]. - AAM announced new business awards in 2024 to supply Xpeng DiDi with electric drive units and e-Beam axles to Skywell, expected to launch in 2025[29]. - AAM is pursuing a cash and share offer to acquire Dowlais Group plc for approximately $1.44 billion, aimed at enhancing customer and geographic diversification[30]. Environmental Sustainability - AAM aims to achieve net-zero carbon emissions by 2040 and plans to source 100% of energy from renewable sources for U.S. operations by the end of 2025 and globally by 2035[38]. - AAM has committed to continuous improvement in environmental sustainability through its energy and environmental sustainability program, aiming to reduce energy consumption and greenhouse gas emissions[38]. - The company has not experienced any climate-related events in 2024, 2023, or 2022 that materially impacted its operations or financial condition[38]. Workforce and Diversity - AAM employs approximately 19,000 associates globally, with 6,000 in the U.S. and 13,000 in non-U.S. locations, of which about 73% of hourly associates are represented under collective bargaining agreements[39]. - The company has established a Global DEI 2+1 Program focusing on valuing differences and improving the representation of women in the workforce, with local initiatives supporting 2030 demographic goals[43]. - AAM's Associate Resource Groups (ARGs) include networks for U.S. Veterans, Black Associates, and Latin America Talent Inclusion, focusing on career and personal development[44]. - The company has established Regional DEI Steering Committees in Asia, Brazil, and Mexico to support local diversity initiatives[41]. - AAM's leadership emphasizes accountability in fostering an inclusive culture, with oversight from the Board of Directors[41]. Health and Safety - In 2024, AAM's total recordable incident rate (TRIR) was 0.7, representing a reduction of approximately 67% in recordable injuries since the S safety program began in 2015[50]. - AAM's health and wellness programs are designed to support associates and their families in achieving personal wellness goals[49]. - The company partners with local union representatives to improve safety conditions and personal development for hourly associates[47]. Community Engagement - AAM's commitment to community engagement includes support for local families, youth outreach, education, and social equality initiatives[51]. - The AAM360 program enhances associate experience through health and safety, professional development, competitive compensation, and community engagement[45].

Core Insights - American Axle & Manufacturing reported a quarterly loss of $0.06 per share, better than the Zacks Consensus Estimate of a loss of $0.08, and an improvement from a loss of $0.09 per share a year ago, indicating a 25% earnings surprise [1] - The company posted revenues of $1.38 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.30% and down from $1.46 billion year-over-year [2] - American Axle shares have declined approximately 18.5% since the beginning of the year, contrasting with a 4% gain in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.04 on revenues of $1.4 billion, and for the current fiscal year, it is $0.52 on revenues of $5.82 billion [7] - The estimate revisions trend for American Axle is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which American Axle belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The performance of American Axle may be influenced by the overall outlook for the industry, as empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5]