American Axle & Mfg Holdings Inc (AXL) Reports Q3 2023 Financial Results
AXL reports Q3 2023 sales of $1.55 billion, a slight increase from $1.54 billion in Q3 2022.
The company posted a net loss of $(17.4) million, or (1.1)% of sales.
Adjusted EBITDA of $156.8 million, or 10.1% of sales, was reported.
AXL generated a net cash provided by operating activities of $178.3 million.
On November 3, 2023, American Axle & Mfg Holdings Inc (NYSE:AXL) released its financial results for the third quarter of 2023. Despite facing operational inefficiencies and a UAW work stoppage, the company managed to generate strong free cash flow during the quarter.
Financial Performance
AXL reported Q3 2023 sales of $1.55 billion, a slight increase from $1.54 billion in the same quarter of the previous year. The sales were favorably impacted by volume and mix, despite a $15 million impact from the UAW work stoppage. However, the company posted a net loss of $(17.4) million, or $(0.15) per share, compared to a net income of $26.5 million, or $0.22 per share in Q3 2022. The adjusted loss per share in Q3 2023 was $(0.11) compared to adjusted earnings per share of $0.27 in Q3 2022.
Income Statement Highlights
AXL's gross profit for Q3 2023 was $130.6 million, down from $177.4 million in Q3 2022. The company's operating income also decreased to $23.9 million from $62.3 million over the same period. The higher product warranty expense impacted adjusted EPS by approximately $0.09 in the third quarter of 2023.
Balance Sheet Overview
As of September 30, 2023, AXL had total assets of $5.475 billion, slightly up from $5.469 billion at the end of 2022. The company's total liabilities stood at $4.861 billion, while total AXL stockholders' equity was $613.7 million.
Cash Flow Statement Summary
AXL's net cash provided by operating activities for Q3 2023 was $178.3 million, a significant increase from $85.2 million for Q3 2022. The company's adjusted free cash flow for Q3 2023 was $135.8 million, compared to $45.8 million for Q3 2022.
Looking Ahead
For the full year 2023, AXL is targeting sales in the range of $6.0 - $6.1 billion and adjusted EBITDA in the range of $660 - $685 million. The company is also targeting adjusted free cash flow in the range of $200 - $215 million.
Despite the challenges faced in Q3 2023, AXL continues to focus on cementing its leadership in electric propulsion technology for future profitable growth.
Explore the complete 8-K earnings release (here) from American Axle & Mfg Holdings Inc for further details.
This article first appeared on GuruFocus.
