Dauch Corporation · NYSE:DCH
Dauch — American Axle & Manufacturing Holdings — Q1 2025 Earnings Presentation
25 slides from Dauch's earnings presentation, May 2, 2025
Slide 1: First Quarter 2025 Earnings Call
First Quarter 2025 Earnings Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements In this presentation, American Axle & Manufacturing Holdings, Inc. (“AAM”) makes statements concerning its and Dowlais’ expectations, beliefs, plans, objectives, goals, strategies, and future events or performance, including, but not limited to, certain statements related
Slide 3: 1Q 2025 AAM Financial Highlights
1Q 2025 AAM Financial Highlights $1.41B $177.3M $(3.9)M Quarterly First Quarter Adjusted Free Net Sales Adjusted EBITDA Cash Flow Use (12.6% of Sales) AAM Delivered Solid Performance * For definitions of Adjusted EBITDA, Adjusted Free Cash Flow and non-GAAP reconciliations, please see the attached a
Slide 4: Business Update
Business Update Portfolio Positioning Component Wins AAM exited our 50% ownership of Multiple programs awarded to AAM both Hefei AAM and Liuzhou AAM by global customers for various in China. As a result, we collected products including axial housings, approximately $30 million actuators, shafts, and
Slide 5: Combination Update
Combination Update + Transaction Updates Strategic Combination • The bridge syndication successfully completed • Creates a leading global driveline and metal forming • Credit agreement amendment completed supplier with significant size and scale and upsized • Comprehensive powertrain agnostic produc
Slide 6: 2025 Financial Outlook
2025 Financial Outlook (as of May 2, 2025) Updated 2025 Financial Targets Full Year Sales $5.65 - $5.95 billion Adjusted EBITDA $665 - $745 million Adjusted Free Cash Flow $165 - $215 million These targets are based on the following assumptions for 2025: • North American light vehicle production of
Slide 7: 1Q Financial Results
1Q Financial Results Three Months Ended March 31, 2025 2024 (dollars in millions, except per share data) Difference Net sales $ 1,411.3 $ 1,606.9 $ (195.6) Gross profit $ 173.9 $ 198.5 $ (24.6) Gross margin 12.3% 12.4% -0.1% Selling, general and administrative expenses $ 90.9 $ 98.3 $ (7.4) SG&A as
Slide 8: 1Q 2025 Revenue Walk (Yr/Yr)
1Q 2025 Revenue Walk (Yr/Yr) $ in millions Note: Chart not to scale. 8
Slide 9: 1Q 2025 Adjusted EBITDA Walk
1Q 2025 Adjusted EBITDA Walk $ in millions Note: For definition of Adjusted EBITDA and Non-GAAP reconciliation, please see the attached appendix. Chart not to scale. 9
Slide 10: Adjusted Free Cash Flow and Credit Profile
Adjusted Free Cash Flow and Credit Profile Cash Flow and Debt Metrics 1Q 2025 Adjusted Free Cash Flow $(3.9) million Net Debt $2.1 billion Net Leverage Ratio 2.9x Liquidity ~$1.5 billion AAM Maintains Strong Liquidity Note: For definitions of Adjusted Free Cash Flow, Net Debt, Net Leverage Ratio, an
Slide 11: Appendix / Supplemental Data
Appendix / Supplemental Data
Slide 12: Additional Disclosures
Additional Disclosures Participants in the Solicitation AAM and its directors, executive officers and certain other members of management and employees will be participants in the solicitation of proxies from AAM’s shareholders in respect of the Business Combination, including the proposed issuance
Slide 13: Additional Disclosures
Additional Disclosures Quantified Financial Benefits Statement This presentation contains statements of estimated cost savings and synergies arising from the Business Combination (together, the “Quantified Financial Benefits Statements”). Statements of estimated cost savings and synergies relate to
Slide 14: Additional Disclosures
Additional Disclosures Profit forecasts and estimates The statements in this presentation setting out targets for Adjusted EBITDA and Adjusted free cash flow of AAM for FY25 (together, the “AAM FY25 Updated Profit Forecast”) constitute profit forecasts of AAM for the purposes of Rule 28.1(a) of the
Slide 15: Additional Disclosures
Additional Disclosures Principal assumptions a) Factors outside the influence or control of the AAM Directors: i. there will be no material change to macroeconomic, political, inflationary, regulatory or legal conditions in the markets or regions in which AAM operates; ii. there will be no material
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this presentation, we have provided certain information, which includes non-GAAP financial measures. Such informa
Slide 17: Supplemental Data
Supplemental Data* EBITDA and Adjusted EBITDA Reconciliation ($ in millions) Three Months Ended March 31, 2025 2024 Net income $ 7.1 $ 20.5 Interest expense 42.9 49.0 Income tax expense 14.0 15.9 Depreciation and amortization 112.2 117.8 EBITDA 176.2 203.2 Restructuring and acquisition-related costs
Slide 18: Supplemental Data
Supplemental Data* EBITDA and Adjusted EBITDA for the Last Twelve Months Ended March 31, 2025 ($ in millions) Last Twelve Quarter Ended Months Ended June 30, September 30, December 31, March 31, March 31, 2024 2024 2024 2025 2025 Net income (loss) $ 18.2 $ 10.0 $ (13.7) $ 7.1 $ 21.6 Interest expense
Slide 19: Supplemental Data
Supplemental Data* Adjusted Earnings Per Share Reconciliation Three Months Ended March 31, 2025 2024 Diluted earnings per share $ 0.06 $ 0.17 Restructuring and acquisition-related costs 0.16 0.02 Debt refinancing and redemption costs 0.03 - Gain on Business Combination Derivative (0.18) - Tax effect
Slide 20: Supplemental Data
Supplemental Data* Free Cash Flow and Adjusted Free Cash Flow Reconciliation ($ in millions) Three Months Ended March 31, 2025 2024 Net cash provided by operating activities $ 55.9 $ 17.8 Less: Capital expenditures net of proceeds from the sale of property, plant and equipment (68.7) (44.9) Free cas
Slide 21: Supplemental Data
Supplemental Data* Net Debt and Net Leverage Ratio ($ in millions) March 31, 2025 Current portion of long term debt $ 10.5 Long-term debt, net 2,609.0 Total debt, net 2,619.5 Less: Cash and cash equivalents 549.2 Net debt at end of period 2,070.3 Adjusted LTM EBITDA $ 720.9 Net Leverage Ratio 2.9x *
Slide 22: Supplemental Data
Supplemental Data* Segment Financial Information ($ in millions) Three Months Ended March 31, 2025 2024 Segment Sales Driveline $ 957.8 $ 1,106.4 Metal Forming 575.8 644.1 Total Sales 1,533.6 1,750.5 Intersegment Sales (122.3) (143.6) Net External Sales $ 1,411.3 $ 1,606.9 Segment Adjusted EBITDA Dr
Slide 23: Supplemental Data
Supplemental Data* Full Year 2025 Financial Outlook ($ in millions) Adjusted EBITDA Adjusted Free Cash Flow Low End High End Low End High End Net loss $ (65) $ (10) Net cash provided by operating activities $ 375 $ 425 Interest expense 170 180 Income tax expense 35 50 Capital expenditures net of pro
Slide 24: Definition of Non-GAAP Measures
Definition of Non-GAAP Measures EBITDA and Adjusted EBITDA We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption c
Slide 25: www.aam.com @&) QO
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