Overview

* American Axle Q2 sales decline and miss analyst expectations, per LSEG data

* Adjusted EBITDA beats estimates, driven by productivity and cost controls

* Co progresses on Dowlais combination with shareholder approval

Outlook

* AAM targets 2025 sales of $5.75 - $5.95 bln, up from $5.65 - $5.95 bln

* AAM targets 2025 Adjusted EBITDA of $695 - $745 mln, up from $665 - $745 mln

* AAM targets 2025 Adjusted free cash flow of $175 - $215 mln, up from $165 - $215 mln

* Company assumes North American light vehicle production of 14.6 - 15.1 mln units

Result Drivers

* SALES DECLINE - Sales impacted by lower volume and mix, resulting in a decline compared to Q2 2024

* PRODUCTIVITY AND COST CONTROLS - Year-over-year growth in Adjusted EBITDA margin attributed to productivity and cost controls, per CEO David C. Dauch

* DOWLAIS COMBINATION - Progress on strategic combination with Dowlais, with shareholder approval enhancing global presence and value creation potential

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $1.54 $1.58

bln bln (7

Analysts

)

Q2 EPS $0.32

Q2 Net $39.30

Income mln

Q2 Beat $202.20 $192.50

Adjusted mln mln (7

EBITDA Analysts

)

Q2 $48.70

Adjusted mln

Free

Cash

Flow

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)