American Axle Surges Premarket After Narrowing Losses, Beating EPS Estimates, Forecasts Strong 2025

American Axle & Manufacturing Holdings Inc AXL shares are surging premarket on Friday. The company reported fourth-quarter FY24 sales of $1.38 billion, which is in line with the analyst consensus estimate.  

Adjusted EPS loss of $(0.06) beat the analyst consensus of $(0.11).

Sales declined year over year (Y/Y) and were negatively impacted by volume and mix. Gross profit declined slightly to $154.3 million from $154.9 million a year ago.

Selling, general and administrative expenses fell to $89.0 million from $95.7 million a year ago. Adjusted EBITDA decreased to $160.8 million from $169.5 million in the prior year quarter.

Operating cash flow totaled $151.2 million in the fourth quarter versus $52.9 million in the prior year. Adjusted free cash flow stood at $79.2 million in the fourth quarter. 

The company held $552.9 million in cash and equivalents as of December 31.

FY25 Outlook: American Axle sales of $5.8 billion-$6.05 billion vs. consensus of $5.92 billion, adjusted EBITDA of $700 million – $760 million and adjusted free cash flow of $200 million – $230 million.

In January, American Axle entered into an agreement to purchase all outstanding shares of Dowlais Group plc (DWL) for about $1.44 billion.

The company expects the deal to deliver approximately $300 million in annual run rate cost synergies and high earnings accretion in the first full year following the transaction's close. Also, American Axle forecasts strong financial results following the merger, with annual revenues of about $12 billion on a non-adjusted combined basis. 

Price Action: AXL shares are up 8.00% at $5.13 premarket at the last check Friday.

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