American Axle & Manufacturing Reports Decline in Q2 2025 Financial Performance

American Axle & Manufacturing Holdings, Inc. (AAM) reported a decline in financial performance for the second quarter of 2025, with net sales of $1.54 billion, down 5.9% from $1.63 billion in the same period last year. For the first half of 2025, total revenue reached $2.95 billion, a decrease of 9% compared to $3.24 billion in the first half of 2024. The company's gross profit also fell to $200.7 million, down 7.6% year-over-year, resulting in a gross margin of 13.1%, slightly lower than the previous year's 13.3%. Operating income for the quarter was $55 million, down from $86.5 million, reflecting a decrease in operating margin from 5.3% to 3.6%.

The decline in revenue and profitability was attributed to lower production volumes on certain vehicle programs supported by AAM, as well as the impact of metal market pass-throughs and foreign exchange translation adjustments. The company recorded an impairment charge of $8 million related to the sale of its India manufacturing operations, which was completed in July 2025 for approximately $65 million. Additionally, restructuring and acquisition-related costs surged to $16.5 million in the second quarter, compared to $5 million in the same period last year, primarily due to costs associated with the pending acquisition of Dowlais Group plc.

AAM's operational metrics showed a mixed performance. The company reported an increase in accounts receivable, which rose to $844.5 million from $709.1 million at the end of 2024, indicating a potential increase in sales volume or extended payment terms. The company also maintained a strong liquidity position, with cash and cash equivalents totaling $586.5 million and available borrowings under its revolving credit facility amounting to $897 million as of June 30, 2025. The total employee headcount remained stable, supporting ongoing operations across its 75 facilities in 15 countries.

Looking ahead, AAM anticipates continued challenges due to global economic conditions, including inflation and potential recessionary impacts on customer demand, particularly from major clients like General Motors, Stellantis, and Ford. The company is also navigating uncertainties related to tariffs and trade relations, which have already incurred costs of approximately $10 million in the first half of 2025. Despite these challenges, AAM remains focused on its strategic initiatives, including the integration of the Dowlais acquisition, which is expected to close in the fourth quarter of 2025, pending regulatory approvals. The company projects that the acquisition will enhance its product offerings and market position in the automotive sector.