American Axle & Manufacturing Beats On Q2 Earnings, Plans Strong Technological Base Of Electric Product Portfolio

American Axle & Manufacturing Holdings, Inc. AXL reported second-quarter FY23 sales growth of 9.2% year-on-year to $1.571 billion, marginally beating the consensus of $1.565 billion.

Adjusted EPS of $0.12 beat the analyst consensus of $0.08.

Sales for the second quarter of 2023 were favorably impacted by volume, mix, and the Tekfor acquisition.  

Gross profit rose 2.7% Y/Y to $178.2 million, with the margin contracting 76 basis points to 11.3%.

In Q2, Adjusted EBITDA was down by 1.8% Y/Y to $191.6 million, with a margin of 12.2% of sales.

The company exited the quarter with cash and equivalents worth  $511.1 million. 

Chairman and CEO David C. Dauch said, "As we manage through these near term challenges, our focus remains on establishing a strong technological foundation in our electric product portfolio and positioning AAM for profitable future growth."

Outlook: American Axle reiterated its FY23 sales guidance of $5.95 billion - $6.25 billion versus the consensus of $6.13 billion.

The company expects FY23 adjusted EBITDA of $725 million - $800 million.

Price Action: AXL shares are trading lower by 8.8% at $8.37 on the last check Friday.