American Axle & Manufacturing Holdings, Inc. (AXL) Bundle
A Brief History of AXL
American Axle & Manufacturing Holdings, Inc. (AAM) has undergone significant changes and developments leading up to 2024. The company's financial performance in 2024 reflects a strategic adaptation to market demands and operational efficiencies.
Financial Performance Overview
For the nine months ended September 30, 2024, AAM reported a net income of $48.7 million, a substantial recovery compared to a net loss of $14.5 million in the same period of 2023. The diluted earnings per share (EPS) increased to $0.40 from a diluted loss per share of $0.12 in 2023.
| Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income | $48.7 million | $(14.5 million) |
| Diluted EPS | $0.40 | $(0.12) |
| Net Sales | $4,744.1 million | $4,616.5 million |
| Gross Profit | $587.1 million | $469.4 million |
| Operating Income | $205.2 million | $117.8 million |
Segment Performance
AAM's business is organized into two primary segments: Driveline and Metal Forming. For the three months ended September 30, 2024, net sales from the Driveline segment were $1,042.8 million, while Metal Forming segment sales were $596.5 million.
| Segment | Q3 2024 Sales | Q3 2023 Sales |
|---|---|---|
| Driveline | $1,042.8 million | $1,061.2 million |
| Metal Forming | $596.5 million | $624.8 million |
Cost Management
The cost of goods sold (COGS) for the nine months ended September 30, 2024, was $4,157.0 million, representing a slight increase of 0.2% from $4,147.1 million in 2023. The gross margin improved to 12.4% from 10.2% year-over-year, reflecting improved operational efficiency.
Debt and Liquidity Position
As of September 30, 2024, AAM had total assets of $5,328.3 million and total liabilities of $4,712.0 million, resulting in stockholders' equity of $616.3 million. The company had $892.2 million available under its Revolving Credit Facility, demonstrating a solid liquidity position.
| Metric | September 30, 2024 |
|---|---|
| Total Assets | $5,328.3 million |
| Total Liabilities | $4,712.0 million |
| Stockholders' Equity | $616.3 million |
| Available Credit | $892.2 million |
Research and Development Investments
In the first nine months of 2024, AAM invested approximately $121.3 million in research and development (R&D), an increase from $115.7 million in 2023. This investment is critical for advancing AAM's electrification product portfolio.
Outlook
Looking forward, AAM is poised to leverage its operational improvements and strategic investments in R&D to enhance its competitive position in the automotive components market. The company anticipates continued growth and profitability as it adapts to evolving market conditions and customer demands.
A Who Owns American Axle & Manufacturing Holdings, Inc. (AXL)
Institutional Ownership
As of 2024, American Axle & Manufacturing Holdings, Inc. (AXL) has significant institutional ownership. The following table summarizes the major institutional shareholders and their respective ownership percentages:
| Institution | Shares Owned (millions) | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 11.8 | 10.1% |
| The Vanguard Group, Inc. | 11.5 | 9.8% |
| State Street Corporation | 8.4 | 7.2% |
| Dimensional Fund Advisors LP | 5.7 | 4.9% |
| Invesco Ltd. | 4.2 | 3.6% |
Insider Ownership
Insider ownership also plays a critical role in the company's equity structure. The following table presents the key insiders and their ownership levels:
| Insider | Position | Shares Owned (millions) | Ownership Percentage |
|---|---|---|---|
| David C. Dauch | Chairman & CEO | 2.3 | 1.9% |
| Michael J. Mangan | Executive Vice President | 0.9 | 0.8% |
| Other Executives | Various | 1.5 | 1.3% |
Stock Performance
As of September 30, 2024, the stock price of American Axle & Manufacturing Holdings, Inc. (AXL) has shown the following performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $8.20 |
| Market Capitalization | $1.02 billion |
| 52-Week High | $12.50 |
| 52-Week Low | $5.50 |
| Dividend Yield | 0% |
Recent Financial Highlights
For the first nine months of 2024, American Axle & Manufacturing reported the following financial results:
| Financial Metric | Value (in millions) |
|---|---|
| Net Sales | $4,744.1 |
| Gross Profit | $587.1 |
| Operating Income | $205.2 |
| Net Income | $48.7 |
| Earnings Per Share (EPS) | $0.40 |
Debt and Financial Obligations
As of September 30, 2024, American Axle & Manufacturing Holdings has the following debt profile:
| Debt Instrument | Amount (in millions) | Maturity Date |
|---|---|---|
| Term Loan A Facility | $484.3 | 2027 |
| Term Loan B Facility | $648.0 | 2029 |
| 6.875% Notes due 2028 | $400.0 | 2028 |
| 6.50% Notes due 2027 | $500.0 | 2027 |
| 6.25% Notes due 2026 | $45.9 | 2026 |
| 5.00% Notes due 2029 | $600.0 | 2029 |
Conclusion
American Axle & Manufacturing Holdings, Inc. (AXL) continues to demonstrate a robust ownership structure with a mix of institutional and insider ownership, alongside a solid financial performance as of 2024.
American Axle & Manufacturing Holdings, Inc. (AXL) Mission Statement
Overview of Mission Statement
American Axle & Manufacturing Holdings, Inc. (AAM) aims to be a leading global Tier 1 automotive supplier, focusing on the design, engineering, and manufacturing of Driveline and Metal Forming technologies to support electric, hybrid, and internal combustion vehicles. The company emphasizes its commitment to innovation, sustainability, and customer satisfaction.
Core Values and Strategic Goals
- Innovation: AAM strives to deliver advanced engineering solutions that enhance vehicle performance and efficiency.
- Sustainability: The company is dedicated to reducing environmental impacts through sustainable practices and products.
- Customer Focus: AAM aims to meet and exceed customer expectations through quality products and services.
- Global Reach: With over 80 facilities in 18 countries, AAM is committed to serving a diverse global customer base.
Financial Performance Metrics
As of September 30, 2024, AAM reported a net income of $48.7 million, compared to a net loss of $14.5 million in the same period of 2023. The diluted earnings per share (EPS) for the first nine months of 2024 was $0.40, while the diluted loss per share in 2023 was $0.12.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change |
|---|---|---|---|
| Net Income (Loss) | $48.7 million | $(14.5 million) | $63.2 million increase |
| Diluted EPS | $0.40 | $(0.12) | $0.52 increase |
| Net Sales | $4,744.1 million | $4,616.5 million | $127.6 million increase |
| Gross Profit | $587.1 million | $469.4 million | $117.7 million increase |
| Gross Margin | 12.4% | 10.2% | 2.2% increase |
Segment Performance
AAM's business is divided into two primary segments: Driveline and Metal Forming. For the nine months ended September 30, 2024, the following sales were reported by segment:
| Segment | Sales (in millions) | 2024 | 2023 |
|---|---|---|---|
| Driveline | $3,273.7 | $3,161.5 | Increase of $112.2 million |
| Metal Forming | $1,893.7 | $1,878.1 | Increase of $15.6 million |
| Total Net Sales | $4,744.1 | $4,616.5 | Increase of $127.6 million |
Operating Expenses
For the nine months ended September 30, 2024, AAM reported the following operating expenses:
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Goods Sold | $4,157.0 |
| Selling, General & Administrative Expenses | $298.1 |
| Research and Development Expenses | $121.3 |
Debt and Financing Activities
As of September 30, 2024, AAM had total debt of $2,718.4 million, down from $2,811.7 million at the end of 2023. The company has made significant repayments on its Term Loan A and Term Loan B Facilities.
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan A Facility | $484.3 |
| Term Loan B Facility | $648.0 |
| 6.25% Notes due 2026 | $45.9 |
| 6.50% Notes due 2027 | $500.0 |
| 6.875% Notes due 2028 | $400.0 |
| 5.00% Notes due 2029 | $600.0 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, AAM reported net cash provided by operating activities of $304.2 million, while cash used in investing activities was $174.2 million. The total cash and cash equivalents at the end of the period stood at $542.5 million.
| Cash Flow Activity | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $304.2 |
| Net Cash Used in Investing Activities | $(174.2) |
| Net Cash Used in Financing Activities | $(106.0) |
| Cash and Cash Equivalents at Period End | $542.5 |
How American Axle & Manufacturing Holdings, Inc. (AXL) Works
Company Overview
American Axle & Manufacturing Holdings, Inc. (AAM) is a global automotive supplier specializing in driveline and metal forming technologies. The company operates through two primary segments: Driveline and Metal Forming.
Financial Performance
For the nine months ended September 30, 2024, AAM reported net sales of $4,744.1 million, a 2.8% increase from $4,616.5 million in the same period of 2023. The following table summarizes the sales by segment for the three and nine months ended September 30, 2024 and 2023:
| Segment | Three Months Ended September 30, 2024 (in millions) | Three Months Ended September 30, 2023 (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Driveline | $1,042.8 | $1,061.2 | $3,273.7 | $3,161.5 |
| Metal Forming | $596.5 | $624.8 | $1,893.7 | $1,878.1 |
| Eliminations | ($134.4) | ($134.1) | ($423.3) | ($423.1) |
| Net Sales | $1,504.9 | $1,551.9 | $4,744.1 | $4,616.5 |
Cost of Goods Sold and Gross Profit
For the nine months ended September 30, 2024, AAM's cost of goods sold was $4,157.0 million, compared to $4,147.1 million in the same period of 2023, reflecting a slight increase of 0.2%. The gross profit for the same period was $587.1 million, up 25.1% from $469.4 million in 2023. The gross margin improved to 12.4% in 2024 from 10.2% in 2023.
Operating Expenses
In the first nine months of 2024, selling, general and administrative expenses (SG&A) were $298.1 million, compared to $271.2 million in 2023, a 9.9% increase. Research and development (R&D) expenses totaled approximately $121.3 million in 2024, compared to $115.7 million in 2023.
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, AAM reported a net income of $48.7 million, significantly improved from a net loss of $14.5 million in the same period of 2023. The diluted earnings per share were $0.40 in 2024, compared to a diluted loss per share of $0.12 in 2023.
Debt and Liquidity
As of September 30, 2024, AAM had total debt of $2,718.4 million, down from $2,811.7 million at the end of 2023. The company had $892.2 million available under its Revolving Credit Facility. AAM also made significant repayments on its Term Loan A and B Facilities, totaling $21.7 million during the nine months ended September 30, 2024.
Balance Sheet Highlights
The following table summarizes key balance sheet figures as of September 30, 2024, compared to December 31, 2023:
| Financial Item | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Cash and Cash Equivalents | $542.5 | $519.9 |
| Accounts Receivable, Net | $900.1 | $818.5 |
| Inventories, Net | $465.6 | $482.9 |
| Total Assets | $5,328.3 | $5,356.3 |
| Total Liabilities | $3,932.5 | $3,954.1 |
Segment Performance
The adjusted EBITDA for the nine months ended September 30, 2024, was $588.4 million, compared to $523.8 million in 2023. The following table summarizes the segment adjusted EBITDA:
| Segment | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Driveline | $444.9 | $403.5 |
| Metal Forming | $143.5 | $120.3 |
| Total Adjusted EBITDA | $588.4 | $523.8 |
Market Conditions and Strategic Initiatives
AAM continues to adapt to the cyclical nature of the automotive industry, which is impacted by economic conditions and production schedules. The company is advancing its electrification product portfolio and investing in R&D to support these initiatives.
How American Axle & Manufacturing Holdings, Inc. (AXL) Makes Money
Revenue Generation
American Axle & Manufacturing Holdings, Inc. (AAM) generates revenue primarily through two segments: Driveline and Metal Forming. As of September 30, 2024, the company reported net sales of $4,744.1 million, representing a 2.8% increase from $4,616.5 million in the same period of 2023.
| Segment | Net Sales (in millions) | Change (in millions) | Percent Change |
|---|---|---|---|
| Driveline | $3,273.7 | $112.2 | 3.5% |
| Metal Forming | $1,893.7 | $15.6 | 0.8% |
| Total Net Sales | $4,744.1 | $127.6 | 2.8% |
Cost of Goods Sold
The cost of goods sold (COGS) for the first nine months of 2024 was $4,157.0 million, a marginal increase of 0.2% compared to $4,147.1 million in 2023. Material costs accounted for approximately 57% of the total COGS.
Gross Profit and Margin
For the nine months ended September 30, 2024, AAM reported a gross profit of $587.1 million, reflecting a 25.1% increase from $469.4 million in the same period of 2023. The gross margin improved to 12.4% in 2024 from 10.2% in 2023.
Operating Expenses
Selling, general, and administrative expenses (SG&A) totaled $298.1 million for the nine months ended September 30, 2024, up from $271.2 million in 2023, representing a 9.9% increase. SG&A as a percentage of net sales was 6.3% in 2024 compared to 5.9% in 2023.
Net Income and Earnings Per Share
AAM's net income for the first nine months of 2024 was $48.7 million, compared to a net loss of $14.5 million in 2023. The diluted earnings per share (EPS) was $0.40 in 2024, compared to a diluted loss per share of $0.12 in 2023.
Segment Performance
The company utilizes Segment Adjusted EBITDA to evaluate performance. For the nine months ended September 30, 2024, the total segment adjusted EBITDA was $588.4 million, an increase from $523.8 million in the prior year.
| Segment | Segment Adjusted EBITDA (in millions) | Change (in millions) |
|---|---|---|
| Driveline | $444.9 | $41.4 |
| Metal Forming | $143.5 | $23.2 |
| Total Segment Adjusted EBITDA | $588.4 | $64.6 |
Geographical Revenue Breakdown
Revenue from different geographical locations shows significant contributions from North America, Asia, Europe, and South America:
| Region | Net Sales (in millions) |
|---|---|
| North America | $3,465.8 |
| Asia | $455.2 |
| Europe | $698.1 |
| South America | $125.0 |
Liquidity and Capital Resources
AAM reported over $1.5 billion in liquidity as of September 30, 2024, including approximately $543 million in cash and cash equivalents, and $892 million available under its Revolving Credit Facility.
Debt Management
As of September 30, 2024, AAM had long-term debt of $2,638.3 million, down from $2,751.9 million at the end of 2023. The company has been actively managing its debt, including voluntary redemptions of notes and repayments on term loans.
Research and Development
Research and development expenses were approximately $121.3 million for the nine months ended September 30, 2024, slightly up from $115.7 million in the previous year. This investment is focused on advancing AAM's electrification product portfolio.
Tax Considerations
The effective income tax rate for the first nine months of 2024 was 30.1%, significantly higher than (29.5)% in the same period of 2023, primarily due to disallowed interest expense deductions and GILTI tax implications.
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Resources:
- American Axle & Manufacturing Holdings, Inc. (AXL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of American Axle & Manufacturing Holdings, Inc. (AXL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View American Axle & Manufacturing Holdings, Inc. (AXL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.