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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American Axle & Manufacturing Holdings, Inc. (AXL): Free Stock Analysis Report General Motors Company (GM): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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