American Axle & Manufacturing (NYSE:DCH) Posts Earnings Results, Beats Expectations By $0.18 EPS

American Axle & Manufacturing (NYSE:DCH – Get Free Report) issued its quarterly earnings results on Friday. The company reported $0.32 EPS for the quarter, beating the consensus estimate of $0.14 by $0.18, FiscalAI reports. American Axle & Manufacturing had a negative net margin of 1.87% and a positive return on equity of 13.65%. The business had revenue of $2.96 billion during the quarter.

Here are the key takeaways from American Axle & Manufacturing’s conference call:

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• Second-quarter sales reached $2.96 billion and adjusted EBITDA was $389.6 million, with a 13.2% margin. Adjusted free cash flow rose to $148.4 million from $48.7 million a year earlier, supported by favorable mix, operational improvements, and the Dowlais contribution.
• Integration is progressing ahead of schedule, with approximately $70 million of run-rate synergies achieved after five months and more than $100 million targeted by year-end. Management reaffirmed its longer-term goals of $180 million by the end of year two and $300 million by the end of year three.
• The company raised the low end of its 2026 guidance, now targeting sales of $10.6 billion-$10.8 billion, adjusted EBITDA of $1.36 billion-$1.425 billion, and adjusted free cash flow of $260 million-$325 million. Management cited strong first-half execution, productivity gains, and continued integration progress.
• Dauch is actively quoting more than $2 billion of new and incremental business, with roughly 85% focused on ICE and hybrid programs rather than EVs. Management expects cross-selling between the legacy Dauch and Dowlais businesses, as well as potential benefits from regional localization and reshoring demand.
• Second-half results face seasonal production declines in North America and Europe, temporary downtime associated with GM’s next-generation full-size pickup launch, and elevated energy costs. Net interest expense increased to $82.6 million year over year, while net debt remained approximately $4.1 billion; debt reduction will take priority over shareholder returns until leverage reaches roughly 2.5 times or lower.

American Axle & Manufacturing Stock Up 12.0%

Shares of American Axle & Manufacturing stock traded up $0.68 on Friday, hitting $6.35. 9,083,985 shares of the company traded hands, compared to its average volume of 5,247,453. The stock’s 50-day moving average is $5.77. The company has a debt-to-equity ratio of 3.43, a quick ratio of 1.04 and a current ratio of 1.40. American Axle & Manufacturing has a 12-month low of $4.47 and a 12-month high of $9.25. The company has a market cap of $1.51 billion, a P/E ratio of -8.36, a PEG ratio of 0.26 and a beta of 1.60.

Analyst Upgrades and Downgrades

DCH has been the topic of several recent analyst reports. BWS Financial reissued a “buy” rating and set a $17.00 target price on shares of American Axle & Manufacturing in a research note on Thursday, June 25th. Royal Bank Of Canada lifted their price target on American Axle & Manufacturing from $10.00 to $11.00 and gave the company an “outperform” rating in a report on Monday, July 13th. JPMorgan Chase & Co. initiated coverage on American Axle & Manufacturing in a research report on Tuesday, July 7th. They set a “neutral” rating and a $8.00 price target on the stock. UBS Group reduced their price objective on American Axle & Manufacturing from $9.50 to $9.00 and set a “buy” rating for the company in a research note on Thursday, July 9th. Finally, Wall Street Zen lowered American Axle & Manufacturing from a “buy” rating to a “hold” rating in a research report on Sunday, May 17th. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, American Axle & Manufacturing presently has a consensus rating of “Hold” and a consensus target price of $9.43.

View Our Latest Stock Report on DCH

About American Axle & Manufacturing

(Get Free Report)

American Axle & Manufacturing is a U.S.-based designer, engineer and manufacturer of driveline and drivetrain systems and components for the automotive and light- and heavy-vehicle markets. The company produces a range of mechanical and electromechanical products including axles, driveshafts, differential systems, halfshafts, transmission components, and related sealing and suspension parts. Its product portfolio serves passenger cars, light trucks, commercial vehicles and off-highway applications.

Beyond component manufacturing, the company provides integrated engineering services such as product development, testing and system integration to help vehicle manufacturers meet performance, weight and fuel-economy targets.

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