American Axle & Manufacturing Holdings AXL reported fourth-quarter 2024 adjusted loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The company had incurred a loss of 9 cents per share in the year-ago quarter. The company generated quarterly revenues of $1.38 billion but missed the Zacks Consensus Estimate of $1.39 billion. Revenues declined 5.6% on a year-over-year basis.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Segmental Performance

In the reported quarter, the Driveline segment recorded sales of $979.6 million, down 3.5% year over year. The figure, however, surpassed our estimate of $955 million. The segment registered adjusted EBITDA of $133.3 million, which fell 4.9% on a year-over-year basis and beat our estimate of $130 million.

The company’s Metal Forming business generated revenues of $520.6 million, which fell 9.7% from the year-ago quarter’s figure and missed our estimate of $558 million. The segment registered an adjusted EBITDA of $27.5 million, which fell 6.5% but outpaced our estimate of $11.7 million.

Financial Position

American Axle’s fourth-quarter SG&A expenses totaled $89 million, down from the year-ago quarter’s reported figure of $95.7 million.

Net cash provided by operating activities was $151.2 million, up from $52.9 million in the year-ago period.

Capital spending in the quarter was $77.6 million, up from $55.9 million reported in the year-ago period.

In the three months ended Dec. 31, 2024, the company posted an adjusted free cash flow of $79.2 million compared with $4.5 million recorded in the year-ago period.

As of Dec. 31, 2024, American Axle had cash and cash equivalents of $552.9 million, up from $519.9 million as of Dec. 31, 2023.

Its net long-term debt was $2.58 billion, down from $2.75 billion as of Dec. 31, 2023.

Outlook for 2025

American Axle envisions 2025 revenues in the band of $5.8-$6.05 billion. Adjusted EBITDA is estimated in the band of $700-$760 million.

Net cash provided by operating activities is anticipated between $475 million and $505 million. Capital expenditures are expected to be $300 million. Adjusted free cash flow is expected in the range of $200-$230 million.

Zacks Rank & Key Picks

AXL currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the auto space are Dana DAN, Garrett Motion GTX and Custom Truck One Source CTOS. While DAN sports a Zacks Rank #1 (Strong Buy) at present, GTX and CTOS carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DAN’s 2025 earnings has moved north 15.4% over the past 30 days and suggests year-over-year growth of 79.17%. It is currently pegged at $1.50 per share.

The Zacks Consensus Estimate for GTX’s 2025 earnings has moved up by 1 cent over the past 30 days and suggests year-over-year growth of 17.92%. It is currently pegged at $1.25 per share.

The Zacks Consensus Estimate for CTOS’ 2025 loss has remained steady at 5 cents per share over the past 90 days and suggests year-over-year growth of 75.05%.

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