Penske, Lear, and American Axle Release Q1 Financial Results

Lear Corp. in Southfield, American Axle & Manufacturing Inc. (AAM) in Detroit, and Penske Automotive Group in Bloomfield Township have each reported profits for Q1 of 2024.

Auto supplier AAM saw the biggest improvement, with the company reporting Q1 net income of $20.5 million in 2024 compared to a net loss of $5.1 million from the same quarter the previous year.

AAM’s first quarter of 2024, adjusted EBITDA was $205.6 million, or 12.8 percent of sales, as compared to $175.4 million, or 11.7 percent of sales, in the first quarter of 2023.

“AAM is off to a good start in 2024, posting solid first quarter financial performance driven by better-than-expected volume and mix and sequential improvement in AAM’s overall performance,” says David C. Dauch, CEO of AAM.

“With just one quarter completed, we are keeping our outlook unchanged for now, but these results certainly give us added confidence in our full-year guidance. Longer term, as the industry reassesses propulsion solutions, AAM will continue to develop a strong and agnostic product portfolio for both our driveline and metal forming businesses to support the industry’s powertrain needs.”

Penske reported its Q1 net income attributable to common stockholders was $215.2 million compared to $298.3 million during the same period a year ago.

Penske’s lower equity earnings from Penske Transportation Solutions were primarily due to lower commercial rental utilization, lower consumer rental revenue, higher interest rates, and average debt balances, and lower gains from the sale of revenue earning vehicles partially offset by improved operating results in full-service leasing and distribution center management when compared to the same period in 2023.

“Our retail automotive service and parts revenue grew 9 percent to a quarterly record of $746 million,” says Roger Penske, CEO of Penske Automotive Group. “During the quarter, we experienced a recovery across our used vehicle retail automotive operations with profitability improving sequentially by $428 per unit retailed.

“Further, I was pleased with our focus on controlling costs as selling, general, and administrative expenses as a percentage of gross profit improved by 30 basis points sequentially to 70.7 percent.”

Lear reported slightly lower Q1 net income of $110 million and adjusted net income of $183 million, compared to $144 million and $166 million in 2023, respectively.

According to Lear, the company’s financial results for the first quarter of 2024 were driven by “a resilient performance in the retail automotive and retail commercial truck segments.” Income before income taxes, net income, and income per share, however, were hurt by higher interest costs of $17.4 million.

Lear reported increased sales year over year. Its 2024 sales were $5.9 billion compared to $5.8 billion 2023. The company reported its sales outperformed global industry production, driven by growth in the market in e-systems of 10 percent. Earnings per share were $1.90.

Operational restructuring charges and other special items totaled $74 million, primarily reflecting future plant closures in Europe to improve Lear’s manufacturing cost structure considering the lower production environment and impairment charges related to Fisker.

“Lear started 2024 strong, delivering record first quarter total company revenue and improved year-over-year margins in E-Systems for the seventh consecutive quarter,” says Ray Scott, president and CEO of Lear. “We have made substantial progress on our thermal comfort strategy, and during the quarter, initiated the validation of our first complete seat module scheduled to launch in 2026 with a global automotive manufacturer.