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American Axle Q2 Earnings Beat Estimates, Revenues Decline Y/Y
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Key Takeaways
{\"0\":\"American Axle Q2 EPS of 21 cents beat estimates, up from 19 cents last year despite lower revenues.\",\"1\":\"Q2 sales fell 5.5% year over year to $1.54B, with Driveline and Metal Forming both declining.\",\"2\":\"AXL raised 2025 revenue, EBITDA and free cash flow outlooks within updated guided ranges.\"}
American Axle & Manufacturing Holdings (AXL - Free Report) reported second-quarter 2025 adjusted earnings of 21 cents per share, beating the Zacks Consensus Estimate of 13 cents. The company recorded earnings of 19 cents per share in the year-ago quarter. AXL generated quarterly revenues of $1.54 billion, which beat the Zacks Consensus Estimate of $1.51 billion. Revenues declined 5.5% on a year-over-year basis.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
In the reported quarter, the Driveline segment recorded sales of $1.08 billion, down 3.7% year over year. The figure, however, topped our estimate of $1.05 billion. The segment registered adjusted EBITDA of $148.9 million, which fell 2% on a year-over-year basis but surpassed our estimate of $139.4 million.
The company’s Metal Forming business generated revenues of $598.4 million, which was down 8.4% from the year-ago quarter’s figure and missed our estimate of $609.9 million. The segment registered an adjusted EBITDA of $53.3 million, which fell 5.8% year over year but beat our estimate of $41.1 million.
AXL’s Financial Position
American Axle’s second-quarter SG&A expenses totaled $100.8 million, down from the year-ago quarter’s reported figure of $105.2 million.
Net cash provided by operating activities was $91.9 million, down from $142.8 million in the year-ago period.
Capital spending in the quarter was $52.9 million, up from $46.6 million reported in the year-ago period.
In the three months ended June 30, 2025, the company posted free cash flow of $39 million compared with $96.2 million recorded in the year-ago period.
As of June 30, 2025, American Axle had cash and cash equivalents of $586.5 million, up from $552.9 million as of Dec. 31, 2024.
Its net long-term debt was $2.60 billion, up from $2.58 billion as of Dec. 31, 2024.
AXL’s Revised Outlook for 2025
American Axle revises 2025 revenues in the band of $5.75-$5.95 billion compared with the prior estimated range of $5.65-$5.95 billion. Adjusted EBITDA is estimated to be in the band of $695-$745 million compared with the previous guidance of $665-$745 million.
Adjusted free cash flow is anticipated between $175 million and $215 million, revised from the prior target of $165-$215 million.
AXL’s Zacks Rank & Key Picks
American Axle currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for RACE’s 2025 sales and earnings indicates year-over-year growth of 13.48% and 12.1%, respectively. EPS estimates for 2025 and 2026 have improved 5 cents and 9 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 0.58% and 13.99%, respectively. EPS estimates for 2025 and 2026 have improved by 23 cents and 19 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings indicates year-over-year growth of 11.31% and 14.32%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 5 cents and 9 cents, respectively, in the past seven days.
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American Axle Q2 Earnings Beat Estimates, Revenues Decline Y/Y
Key Takeaways
American Axle & Manufacturing Holdings (AXL - Free Report) reported second-quarter 2025 adjusted earnings of 21 cents per share, beating the Zacks Consensus Estimate of 13 cents. The company recorded earnings of 19 cents per share in the year-ago quarter. AXL generated quarterly revenues of $1.54 billion, which beat the Zacks Consensus Estimate of $1.51 billion. Revenues declined 5.5% on a year-over-year basis.
American Axle & Manufacturing Holdings, Inc. Price, Consensus and EPS Surprise
American Axle & Manufacturing Holdings, Inc. price-consensus-eps-surprise-chart | American Axle & Manufacturing Holdings, Inc. Quote
Segmental Performance of AXL
In the reported quarter, the Driveline segment recorded sales of $1.08 billion, down 3.7% year over year. The figure, however, topped our estimate of $1.05 billion. The segment registered adjusted EBITDA of $148.9 million, which fell 2% on a year-over-year basis but surpassed our estimate of $139.4 million.
The company’s Metal Forming business generated revenues of $598.4 million, which was down 8.4% from the year-ago quarter’s figure and missed our estimate of $609.9 million. The segment registered an adjusted EBITDA of $53.3 million, which fell 5.8% year over year but beat our estimate of $41.1 million.
AXL’s Financial Position
American Axle’s second-quarter SG&A expenses totaled $100.8 million, down from the year-ago quarter’s reported figure of $105.2 million.
Net cash provided by operating activities was $91.9 million, down from $142.8 million in the year-ago period.
Capital spending in the quarter was $52.9 million, up from $46.6 million reported in the year-ago period.
In the three months ended June 30, 2025, the company posted free cash flow of $39 million compared with $96.2 million recorded in the year-ago period.
As of June 30, 2025, American Axle had cash and cash equivalents of $586.5 million, up from $552.9 million as of Dec. 31, 2024.
Its net long-term debt was $2.60 billion, up from $2.58 billion as of Dec. 31, 2024.
AXL’s Revised Outlook for 2025
American Axle revises 2025 revenues in the band of $5.75-$5.95 billion compared with the prior estimated range of $5.65-$5.95 billion. Adjusted EBITDA is estimated to be in the band of $695-$745 million compared with the previous guidance of $665-$745 million.
Adjusted free cash flow is anticipated between $175 million and $215 million, revised from the prior target of $165-$215 million.
AXL’s Zacks Rank & Key Picks
American Axle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Ferrari N.V. (RACE - Free Report) , PHINIA Inc. (PHIN - Free Report) and Modine Manufacturing Company (MOD - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RACE’s 2025 sales and earnings indicates year-over-year growth of 13.48% and 12.1%, respectively. EPS estimates for 2025 and 2026 have improved 5 cents and 9 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 0.58% and 13.99%, respectively. EPS estimates for 2025 and 2026 have improved by 23 cents and 19 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings indicates year-over-year growth of 11.31% and 14.32%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 5 cents and 9 cents, respectively, in the past seven days.