Q1 2024 American Axle & Manufacturing Holdings Inc Earnings Call Transcript
Key Points
- American Axle & Mfg Holdings Inc (AXL) reported a strong first quarter with sales increasing to $1.61 billion from $1.49 billion in the previous year.
- Adjusted EBITDA for the quarter was $206 million, demonstrating a significant improvement in profitability due to production stability and volume increases.
- The company announced new contracts with multiple luxury European OEMs to supply electric vehicle components, indicating growth in the electric vehicle sector.
- American Axle & Mfg Holdings Inc (AXL) has achieved ISO 50001 certification at all manufacturing facilities and exceeded its US renewable and carbon-free energy goals, highlighting its commitment to sustainability.
- The company has a robust liquidity position with approximately $1.4 billion available, consisting of cash and borrowing capacity, which supports its financial stability and future growth initiatives.
- American Axle & Mfg Holdings Inc (AXL) reported an adjusted free cash flow use of $21 million, indicating cash burn during the quarter.
- Despite improvements, certain operational challenges persist, particularly in the metal forming operations, requiring ongoing attention and resources.
- The company faces increased income tax expenses, driven by higher profitability and valuation allowances related to interest expense deductions in the US.
- R&D expenses are expected to remain high, averaging around $35 million to $40 million per quarter, as the company continues to develop its electrification platform.
- The company's net leverage ratio stands at 3.2 times, reflecting a significant level of debt relative to EBITDA, which could pose financial risks if not managed effectively.
Good morning. My name is Jason, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the American Axle & Manufacturing first-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, today's call is being recorded.
I would now like to turn the call over to Mr. David Lim, Head of Investor Relations. Please go ahead, Mr. Lim.
Thank you, and good morning from Detroit. I'd like to welcome everyone who is joining us on AAM's first quarter earnings call. Earlier this morning, we released our first quarter of 2024 earnings announcement. You can access this announcement on the Investor Relations page of our website, www.aam.com, and through the PR Newswire services. You can also find supplemental slides for this conference call on the Investor page of our website as well. To listen to a replay of this call, you can dial 1-877-344-7529, replay access code
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
