Detroit’s American Axle Reports $747M in Adjusted EBITDA in 2022

American Axle & Manufacturing Holdings Inc. in Detroit reported its financial results for the fourth quarter (Q4) and full year 2022, showing sales of $1.39 billion and $5.8 billion, respectively.
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American Axle & Manufacturing reported increases in its fourth quarter and full year sales results. // Courtesy of AAM
American Axle & Manufacturing reported increases in its fourth quarter and full year sales results. // Courtesy of AAM

American Axle & Manufacturing Holdings Inc. in Detroit reported its financial results for the fourth quarter (Q4) and full year 2022, showing sales of $1.39 billion and $5.8 billion, respectively.

“AAM delivered strong cash flow performance in 2022 while navigating customer production schedule volatility and ongoing supply chain challenges,” says David C. Dauch, chairman and CEO of AAM. “In the pivot to electrification, AAM continues to bring the future faster with sophisticated industry-leading electric drive technology resulting in an expanding electrification business mix within our $725 million new business backlog.”

For Q4 it also reported a net income attributable to AAM of $13.9 million, or 1.0 percent of sales; an adjusted EBITDA of $157.7 million, or 11.3 percent of sales; net cash provided by operating activities of $148.5 million; and adjusted free cash flow of $99 million. Its total sales were up from 1.24 billion in Q4 2021.

For the full year, it reported a net income attributable to AAM of $64.3 million, or 1.1 percent of sales; an adjusted EBITDA of $747.3 million, or 12.9 percent of sales; net cash provided by operating activities of $448.9 million; and adjusted free cash flow of $313 million. Its total sales were up from $5.16 billion in 2021.

Ford 2023, AAM is targeting sales in the range of $5.95 to $6.25 billion and an adjusted EBITDA in the range of $725 to $800 million. It is also targeting adjusted free cash flow in the range of $225 to $300 million assuming capital spending of approximately 3.5 to 4 percent of sales.

These targets are based on the following assumptions for 2023:

  • North American light vehicle production of approximately 14.5 – 15.1 million units.
  • Current customer production and launch schedules and operating environment.
  • AAM’s 2023-2025 New Business Backlog with an estimated $725 million in future annual sales. AAM expects the launch cadence of the three-year backlog to be approximately $350 million in 2023, $225 million in 2024 and $150 million in 2025. Electrification mix approximates 40 percent of AAM’s new business backlog versus 35 percent in the prior backlog of 2022 to 2024.