American Axle & Manufacturing Holdings, Inc. (AAM) reported a modest increase in net sales for the fiscal year ending December 31, 2024, reaching $6.124 billion, up from $6.080 billion in 2023, reflecting a 0.7% growth. The company achieved a net income of $35 million, a significant recovery from a net loss of $33.6 million in the previous year. This turnaround was attributed to increased production volumes on certain vehicle programs, which had been negatively impacted by a United Auto Workers (UAW) work stoppage in 2023. Gross profit rose to $741.4 million, representing an 18.8% increase from $624.3 million in 2023, with gross margins improving from 10.3% to 12.1%.
In terms of operational changes, AAM has been actively restructuring its business. The company announced a definitive agreement to sell its commercial vehicle axle business in India for $65 million, expected to close in the first half of 2025. Additionally, AAM is pursuing a strategic acquisition of Dowlais Group plc, valued at approximately $1.44 billion, which aims to enhance its product portfolio and customer base. This acquisition is anticipated to close by the end of 2025, subject to regulatory approvals and shareholder consent.
AAM's customer base remains concentrated, with General Motors (GM) accounting for approximately 42% of consolidated net sales in 2024, followed by Stellantis and Ford at 13% each. The company has emphasized diversifying its customer and geographic sales mix, launching 11 new programs in 2024 for various clients, including GM and Stellantis. AAM operates over 75 facilities across 16 countries, with a workforce of approximately 19,000 employees, of which 73% of hourly associates are represented by labor unions.
The company has also faced challenges, including the impact of fluctuating metal prices and foreign exchange rates, which affected its cost of goods sold. AAM's total debt at the end of 2024 was approximately $2.576 billion, down from $2.752 billion in 2023, reflecting ongoing debt reduction efforts. The company expects interest expenses to decrease in 2025, projecting between $170 million and $180 million. Looking ahead, AAM anticipates production volumes in North America to decline slightly to approximately 15.1 million units in 2025, indicating a cautious outlook amid ongoing market volatility and the transition towards electric vehicles.
About AMERICAN AXLE & MANUFACTURING HOLDINGS INC
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