Fri, May 2, 4:35 PM (11 days ago)
**American Axle & Manufacturing Holdings, Inc. (AXL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $1,411.3 million, down 12.2% YoY due to reduced production volumes and metal market pass-throughs. - **Gross Profit:** $173.9 million, a 12.4% decrease YoY, with a gross margin of 12.3%. - **Operating Income:** $42.7 million, down from $77.0 million YoY, with an operating margin of 3.0%. - **Net Income:** $7.1 million, significantly lower than $20.5 million in Q1 2024. - **Earnings per Share (EPS):** $0.06, down from $0.17 YoY. **Profit Margins:** - **Gross Margin:** 12.3%, slightly down from 12.4% in Q1 2024. - **Operating Margin:** 3.0%, down from 4.8% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $55.9 million, up from $17.8 million YoY. - **Investing Cash Flow:** -$40.2 million, improved from -$48.2 million YoY. - **Financing Cash Flow:** -$24.0 million, up from -$16.0 million YoY. **Earnings Changes:** - **Net Income:** Decreased by $13.4 million YoY. - **EPS:** Decreased by $0.11 YoY. **Segment Performance:** - **Driveline:** Sales down 14.1% YoY, Segment Adjusted EBITDA down 20.5% YoY. - **Metal Forming:** Sales down 11.7% YoY, Segment Adjusted EBITDA up 7.9% YoY. **Trends and Uncertainties:** - **Pending Business Combination:** Expected to close by end of 2025, subject to approvals. - **Tariffs and Trade Relations:** Uncertainty due to new tariffs and retaliatory actions. - **Commercial Matters:** Termination of purchase orders for e-Beam axles, with a $70 million asset impact. **Future Operations Impact:** - **Restructuring Costs:** Expected to be $20-$30 million in 2025. - **Acquisition-Related Costs:** Expected to be $60-$70 million in 2025. - **Liquidity:** Over $1.5 billion in liquidity, with no significant debt maturities before 2027. **Management's Discussion:** - **Revenue Decline:** Attributed to lower production volumes and metal market pass-throughs. - **Operating Income:** Impacted by higher restructuring and acquisition-related costs. - **Cash Flow:** Improved operating cash flow due to better accounts receivable management. **Conclusion:** AXL faced challenges in Q1 2025 with revenue and earnings declines, but maintained positive cash flow and liquidity. The company is navigating uncertainties related to tariffs and trade relations while pursuing strategic initiatives, including a pending business combination.