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American Axle Reports Strong Margin Growth in Q3 2025

American Axle Reports Strong Margin Growth in Q3 2025

American Axle & Manufacturing ( (AXL) ) has released its Q3 earnings. Here is a breakdown of the information American Axle & Manufacturing presented to its investors.

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American Axle & Manufacturing Holdings, Inc. (AAM) is a leading global Tier 1 automotive and mobility supplier that designs, engineers, and manufactures driveline and metal forming technologies for electric, hybrid, and internal combustion vehicles, with headquarters in Detroit and operations in 15 countries.

In its third quarter of 2025 financial results, AAM reported a slight increase in sales to $1.51 billion and a net income of $9.2 million, reflecting a strong year-over-year margin growth. The company also highlighted its progress in its strategic combination with Dowlais, aiming to enhance its global presence and value creation potential.

Key financial metrics for the third quarter included an adjusted EBITDA of $194.7 million, representing 12.9% of sales, and an adjusted free cash flow of $98.1 million, showing improvement from the previous year. Despite a slight decrease in net income and adjusted earnings per share compared to the third quarter of 2024, AAM maintained stable cash flow from operating activities.

Looking ahead, AAM has updated its financial targets for the full year 2025, aiming for sales between $5.8 billion and $5.9 billion, and adjusted EBITDA ranging from $710 million to $745 million. The company remains focused on mitigating tariff costs and maintaining its production estimates, excluding costs related to its combination with Dowlais.

AAM’s management remains optimistic about the company’s future, emphasizing its strategic initiatives and operational efficiencies as key drivers for sustained growth and enhanced shareholder value in the coming years.

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