American Axle Lifts 2025 Guidance After Strong Q2, Shares Jump 15%
American Axle & Manufacturing (NYSE:AXL) raised its 2025 financial guidance after posting strong second-quarter results, sending shares up more than 15% on Friday.
The company now expects annual sales of $5.75 billion to $5.95 billion, up from a prior low-end forecast of $5.65 billion. Adjusted EBITDA is projected at $695 million to $745 million, compared with the previous $665 million to $745 million range. Adjusted free cash flow guidance was lifted to $175 million–$215 million from $165 million–$215 million.
Capital spending remains targeted at about 5% of sales. The outlook assumes North American light vehicle production of 14.6 million to 15.1 million units and reflects AAM’s program production forecasts, excluding costs tied to its planned merger with Dowlais.
For the year, the company expects net income of $5 million to $15 million, interest expense of $170 million to $180 million, and income tax expense of $10 million to $40 million. Depreciation and amortization are projected at $460 million.
| Symbol | Price | %chg |
|---|---|---|
| ASII.JK | 5675 | 0.88 |
| MASA.JK | 6200 | 0 |
| 012330.KS | 313500 | -0.8 |
| AUTO.JK | 2330 | 0.43 |
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) Quarterly Earnings Preview
- Wall Street analysts estimate an earnings per share (EPS) of $0.02 and projected revenue of approximately $1.43 billion for the upcoming quarterly earnings.
- AXL's financial metrics reveal a price-to-earnings (P/E) ratio of 12.83 and a debt-to-equity ratio of 4.86, highlighting potential concerns and valuation insights.
- The company's earnings call and management discussion will be pivotal in assessing the sustainability of its stock price and future earnings expectations.
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is a key player in the automotive industry, specializing in the design, engineering, and manufacturing of driveline and drivetrain systems. As AXL prepares to release its quarterly earnings on May 2, 2025, Wall Street analysts estimate an earnings per share (EPS) of $0.02, with projected revenue of approximately $1.43 billion.
Analysts from Zacks Investment Research anticipate a decline in AXL's earnings for the quarter ending March 2025, attributing this to lower revenues. The consensus estimate suggests quarterly earnings of $0.05 per share. The actual results could significantly impact AXL's stock price, especially if they differ from these expectations. A better-than-expected report could drive the stock price higher, while a miss might lead to a decline.
AXL's financial metrics provide insight into its current valuation. The company has a price-to-earnings (P/E) ratio of 12.83, indicating how much investors are willing to pay per dollar of earnings. Its price-to-sales ratio is 0.074, suggesting the stock might be undervalued relative to its sales. The enterprise value to sales ratio is 0.43, and the enterprise value to operating cash flow ratio is 5.81, indicating a moderate valuation in terms of cash flow generation.
The company's earnings yield stands at 7.79%, offering insight into its earnings relative to its share price. AXL's debt-to-equity ratio is 4.86, indicating a higher level of debt compared to equity. This could be a concern for investors, as it reflects the company's reliance on borrowed funds. However, AXL's current ratio of 1.63 suggests it can cover its short-term liabilities with its short-term assets, providing some reassurance about its financial stability.
As AXL prepares to announce its first-quarter financial results, the management's discussion during the earnings call will be crucial. This discussion will help determine the sustainability of any immediate price changes and future earnings expectations. Investors and interested parties can participate in the call via phone or listen to a live audio webcast, with a replay available until May 9, 2025.
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) Quarterly Earnings Preview
- Wall Street analysts estimate an earnings per share (EPS) of $0.02 and projected revenue of approximately $1.43 billion for the upcoming quarterly earnings.
- AXL's financial metrics reveal a price-to-earnings (P/E) ratio of 12.83 and a debt-to-equity ratio of 4.86, highlighting potential concerns and valuation insights.
- The company's earnings call and management discussion will be pivotal in assessing the sustainability of its stock price and future earnings expectations.
American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) is a key player in the automotive industry, specializing in the design, engineering, and manufacturing of driveline and drivetrain systems. As AXL prepares to release its quarterly earnings on May 2, 2025, Wall Street analysts estimate an earnings per share (EPS) of $0.02, with projected revenue of approximately $1.43 billion.
Analysts from Zacks Investment Research anticipate a decline in AXL's earnings for the quarter ending March 2025, attributing this to lower revenues. The consensus estimate suggests quarterly earnings of $0.05 per share. The actual results could significantly impact AXL's stock price, especially if they differ from these expectations. A better-than-expected report could drive the stock price higher, while a miss might lead to a decline.
AXL's financial metrics provide insight into its current valuation. The company has a price-to-earnings (P/E) ratio of 12.83, indicating how much investors are willing to pay per dollar of earnings. Its price-to-sales ratio is 0.074, suggesting the stock might be undervalued relative to its sales. The enterprise value to sales ratio is 0.43, and the enterprise value to operating cash flow ratio is 5.81, indicating a moderate valuation in terms of cash flow generation.
The company's earnings yield stands at 7.79%, offering insight into its earnings relative to its share price. AXL's debt-to-equity ratio is 4.86, indicating a higher level of debt compared to equity. This could be a concern for investors, as it reflects the company's reliance on borrowed funds. However, AXL's current ratio of 1.63 suggests it can cover its short-term liabilities with its short-term assets, providing some reassurance about its financial stability.
As AXL prepares to announce its first-quarter financial results, the management's discussion during the earnings call will be crucial. This discussion will help determine the sustainability of any immediate price changes and future earnings expectations. Investors and interested parties can participate in the call via phone or listen to a live audio webcast, with a replay available until May 9, 2025.
