American Axle & Manufacturing (AXL) - 2025 Q1 - Quarterly Results

Financial Performance - AAM's sales for Q1 2025 were $1.41 billion, down from$1.61 billion in Q1 2024, reflecting a decrease in overall volumes [4]. - Net income for Q1 2025 was $7.1 million, or 0.5$20.5 million, or 1.3% of sales in Q1 2024 [5]. - Adjusted EBITDA for Q1 2025 was $177.3 million, or 12.6$205.6 million, or 12.8% of sales in Q1 2024 [6]. - Net sales for Q1 2025 were $1,411.3 million, a decrease of 12.1$1,606.9 million in Q1 2024 [28]. - Gross profit for Q1 2025 was $173.9 million, down from$198.5 million in Q1 2024, reflecting a gross margin of 12.3% [28]. - Operating income decreased to $42.7 million in Q1 2025 from$77.0 million in Q1 2024, representing a decline of 44.5% [28]. - Net income for Q1 2025 was $7.1 million, significantly lower than$20.5 million in Q1 2024, resulting in diluted earnings per share of $0.06 compared to$0.17 [28][36]. - Adjusted EBITDA for Q1 2025 was $177.3 million, down from$205.6 million in Q1 2024, indicating a decrease of 13.7% [34]. - Free cash flow for Q1 2025 was negative at $(12.8) million, an improvement from$(27.1) million in Q1 2024 [40]. Cash Flow and Outlook - AAM's net cash provided by operating activities for Q1 2025 was $55.9 million, significantly higher than$17.8 million in Q1 2024 [6]. - Adjusted free cash flow for Q1 2025 was $(3.9) million, an improvement from$(21.4) million in Q1 2024 [7]. - AAM's updated financial outlook for 2025 targets sales between $5.65 billion and$5.95 billion, down from a previous range of $5.8 billion to$6.05 billion [17]. - The company is targeting Adjusted EBITDA in the range of $665 million to$745 million for 2025, revised from $700 million to$760 million [17]. - AAM anticipates Adjusted free cash flow for 2025 to be between $165 million and$215 million, down from a prior target of $200 million to$230 million [17]. - Net cash provided by operating activities is estimated to be between $375 million and$425 million [45]. - Full year 2025 targeted Free Cash Flow is expected to be between $75 million and$125 million [45]. - Full year 2025 targeted Adjusted Free Cash Flow is anticipated to range from $165 million to$215 million [45]. Assets and Liabilities - Total assets increased to $5,139.4 million as of March 31, 2025, compared to$5,059.9 million at the end of 2024 [30]. - Total liabilities rose to $4,543.1 million as of March 31, 2025, up from$4,497.1 million at the end of 2024 [30]. Costs and Expenses - The company reported a restructuring and acquisition-related cost of $19.7 million in Q1 2025, compared to$2.5 million in Q1 2024 [28]. - Interest expense for the period is projected to be between $170 million and$180 million [45]. - Depreciation and amortization costs are expected to remain constant at $455 million [45]. - Restructuring-related costs are estimated at$25 million for the year [45]. - Dowlais acquisition-related costs are projected to be $65 million [45]. - Income tax expense is expected to be between$35 million and $50 million [45]. Production and Sales Segments - North American light vehicle production is estimated to be approximately 14.0 to 15.1 million units for 2025 [17]. - Segment sales for Driveline were$957.8 million in Q1 2025, down from $1,106.4 million in Q1 2024, while Metal Forming sales decreased to$575.8 million from $644.1 million [42].