American Axle & Manufacturing (NYSE:AXL) raised its 2025 financial guidance after posting strong second-quarter results, sending shares up more than 15% on Friday.
The company now expects annual sales of $5.75 billion to $5.95 billion, up from a prior low-end forecast of $5.65 billion. Adjusted EBITDA is projected at $695 million to $745 million, compared with the previous $665 million to $745 million range. Adjusted free cash flow guidance was lifted to $175 million–$215 million from $165 million–$215 million.
Capital spending remains targeted at about 5% of sales. The outlook assumes North American light vehicle production of 14.6 million to 15.1 million units and reflects AAM’s program production forecasts, excluding costs tied to its planned merger with Dowlais.
For the year, the company expects net income of $5 million to $15 million, interest expense of $170 million to $180 million, and income tax expense of $10 million to $40 million. Depreciation and amortization are projected at $460 million.
