American Axle & Manufacturing Holdings AXL reported third-quarter 2025 adjusted earnings of 16 cents per share, beating the Zacks Consensus Estimate of 12 cents. The company recorded earnings of 20 cents per share in the year-ago quarter. AXL generated quarterly revenues of $1.51 billion, which beat the Zacks Consensus Estimate of $1.49 billion. Revenues remained flat 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 $1.05 billion, nearly flat year over year. The figure, however, topped our estimate of $1.02 billion. The segment registered adjusted EBITDA of $156.8 million, which rose 15.5% on a year-over-year basis and surpassed our estimate of $136 million.
The company’s Metal Forming business generated revenues of $595 million, which remained flat year over year but missed our estimate of $600 million. The segment registered an adjusted EBITDA of $37.9 million, which fell 2% year over year and missed our estimate of $40.7 million.
AXL’s Financial Position
American Axle’s third-quarter SG&A expenses totaled $98.8 million, up from the year-ago quarter’s reported figure of $94.6 million.
Net cash provided by operating activities was $143.3 million, down from $143.6 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 Sept. 30, 2025, the company posted free cash flow of $79.5 million compared with $70.7 million recorded in the year-ago period.
As of Sept. 30, 2025, American Axle had cash and cash equivalents of $714.1 million, up from $552.9 million as of Dec. 31, 2024.
Its net long-term debt was $2.59 billion, up from $2.58 billion as of Dec. 31, 2024.
AXL’s Revised Outlook for 2025
American Axle revised 2025 revenues in the band of $5.8-$5.9 billion compared with the prior estimated range of $5.75-$5.95 billion. Adjusted EBITDA is estimated to be in the band of $710-$745 million compared with the previous guidance of $695-$745 million.
Adjusted free cash flow is anticipated between $180 million and $210 million compared with the prior guidance of $175-$215 million.
American Axle’s Zacks Rank & Key Picks
AXL carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, 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 GM’s 2025 and 2026 EPS has improved 8 cents and 6 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents and 11 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 12 cents and 22 cents, respectively, in the past 30 days.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
