American Axle Reports $7.1 Million Net Income, Revenue Decline in Q1 2025

American Axle & Manufacturing Holdings, Inc. (AAM) reported a net income of $7.1 million for the first quarter of 2025, a significant decrease from $20.5 million in the same period of 2024. The company's revenue also declined, with net sales totaling $1.41 billion, down 12.2% from $1.61 billion year-over-year. This decline was attributed to lower production volumes on certain vehicle programs and the impact of foreign exchange translation adjustments. The cost of goods sold decreased to $1.24 billion, reflecting a similar percentage drop, primarily due to reduced material costs and improved operating performance.

In terms of operational metrics, AAM's gross profit fell to $173.9 million, resulting in a gross margin of 12.3%, slightly down from 12.4% in the previous year. Selling, general, and administrative expenses also decreased to $90.9 million, although they represented a higher percentage of net sales at 6.4% compared to 6.1% in the prior year. The company incurred restructuring and acquisition-related costs of $19.7 million, a notable increase from $2.5 million in the first quarter of 2024, primarily due to costs associated with the pending acquisition of Dowlais Group plc.

AAM is currently in the process of acquiring Dowlais Group plc, with the transaction expected to close by the end of 2025, pending shareholder and regulatory approvals. The acquisition is anticipated to enhance AAM's product portfolio and customer base. Additionally, the company has entered into a definitive agreement to sell its commercial vehicle axle business in India for $65 million, which is expected to close in the first half of 2025. This sale has resulted in the classification of $67.8 million in assets and $34.1 million in liabilities as held-for-sale on the balance sheet.

As of March 31, 2025, AAM reported total assets of $5.14 billion, with current assets increasing to $2.03 billion, driven by a rise in accounts receivable. The company’s long-term debt stood at $2.61 billion, with a weighted-average interest rate of 6.4%. AAM's liquidity position remains strong, with over $1.5 billion available, including cash and cash equivalents of $549.2 million and $897 million in available borrowings under its revolving credit facility. Looking ahead, AAM expects to incur significant costs related to the integration of Dowlais and anticipates restructuring charges of $20 million to $30 million throughout 2025.