What were the key takeaways from American Axle & Manufacturing Holdings’s earnings call?

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What factors drove the changes in American Axle & Manufacturing Holdings's revenue and profit?

What does American Axle & Manufacturing Holdings do and what are its main business segments?

What is the revenue and EPS growth rate for American Axle & Manufacturing Holdings year over year?

Did American Axle & Manufacturing Holdings beat or miss consensus estimates last quarter?

What is American Axle & Manufacturing Holdings's latest dividend and current dividend yield?

What were the key takeaways from American Axle & Manufacturing Holdings's earnings call?

- **Q3 EBITDA Margin Expansion**: 130 bps to 12.9%, driveline at 14.9% (highest since 2020).
- **Dowlais Deal Progress**: 8/10 approvals; China/Mexico pending, Q1 2026 close.
- **FY25 Guidance**: Sales $5.8-5.9B, EBITDA $710-745M, free cash $180-210M.
- **ICE Vehicle Strength**: Large trucks/SUVs healthy; EV tax credit expiration supports ICE tail.
- **Balance Sheet**: $1.9B net debt, 2.6x leverage; $700M+ cash, $1.7B liquidity.

**【CEO Summary Section】**
- Q3 2025 sales: $1.51 billion, adjusted EPS: $0.16, up 130 bps in EBITDA margin to 12.9%.
- Driveline EBITDA margin hits 14.9%, highest since 2020; metal forming needs further optimization.
- Dowlais acquisition: 8/10 regulatory approvals secured; China and Mexico pending, expected Q1 2026 close.
- Updated FY25 guidance: Sales $5.8-5.9B, EBITDA $710-745M, free cash flow $180-210M.
- ICE vehicles remain strong; EV tax credit expiration supports ICE tail demand.

**【CFO Financial Commentary】**
- Flat Q3 sales ($1.5B vs. 2024), EBITDA up 11.6% to 12.9% driven by Ram HD volume and mix.
- R&D spending down $20M YoY; SG&A 6.6% of sales, stable cash flow ($143M op cash, $98M free cash).
- Debt: $1.9B net, 2.6x leverage; $700M+ cash, $1.7B liquidity.
- FY25 CapEx: ~5% of sales; $20M restructuring payments.

**【Q&A Highlights】**
- **Onshoring & Dowlais**: Metal forming wins with OEMs; Dowlais deal expected to enhance scale and localization.
- **Regulatory Risks**: China SAMR review ongoing; no major remedies anticipated.
- **Production Volatility**: Q4 2025 North America auto production ~15.1M units; Ram HD launch driving Q4 project spend.
- **Tariffs & Mix**: Tariffs offset by mix gains; driveline margins stable at 25-35%.
- **Metal Forming Restructuring**: Europe plant closures; targeting double-digit margins post-2025.
- **Leverage Outlook**: Post-merger leverage neutral; focus on debt reduction before shareholder returns.

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