AAM Reports Strong Cash Flow Performance in 2022

AAM Reports Strong Cash Flow Performance in 2022

AAM's sales for full year 2022 were $5.8 billion as compared to $5.16 billion for full year 2021.

American Axle & Manufacturing Holdings (AAM) has reported its financial results for the fourth quarter and full year 2022. 

Fourth Quarter 2022 Results

  • Sales of $1.39 billion
  • Net income attributable to AAM of $13.9 million, or 1.0% of sales, which includes Malvern fire recoveries, net
  • Adjusted EBITDA of $157.7 million, or 11.3% of sales
  • Diluted earnings per share of $0.11; Adjusted loss per share of $(0.07)
  • Net cash provided by operating activities of $148.5 million; Adjusted free cash flow of $99.0 million

Full Year 2022 Results

  • Sales of $5.80 billion
  • Net income attributable to AAM of $64.3 million, or 1.1% of sales
  • Adjusted EBITDA of $747.3 million, or 12.9% of sales
  • Diluted earnings per share of $0.53; Adjusted earnings per share of $0.60
  • Net cash provided by operating activities of $448.9 million; Adjusted free cash flow of $313 million

“AAM delivered strong cash flow performance in 2022 while navigating customer production schedule volatility and ongoing supply chain challenges,” said AAM’s Chairman and CEO David C. Dauch. “In the pivot to electrification, AAM continues to bring the future faster with sophisticated industry-leading electric drive technology resulting in an expanding electrification business mix within our $725 million new business backlog.”

AAM’s sales in the fourth quarter of 2022 were $1.39 billion as compared to $1.24 billion in the fourth quarter of 2021. The company said sales for the fourth quarter of 2022 were favorably impacted by the Tekfor acquisition and volume and mix.    

AAM’s sales for full year 2022 were $5.8 billion as compared to $5.16 billion for full year 2021. The increase is attributable to the Tekfor acquisition and production growth, although schedules remained volatile throughout the year.   

AAM’s net income in the fourth quarter of 2022 was $13.9 million, or $0.11 per share, as compared to a net loss of $(46.3) million, or $(0.41) per share in the fourth quarter of 2021.  AAM’s net income for full year 2022 was $64.3 million, or $0.53per share, as compared to net income of $5.9 million, or $0.05 per share, for full year 2021.

AAM’s net cash provided by operating activities for the fourth quarter of 2022 was $148.5 million as compared to $102.4 million for the fourth quarter of 2021.  AAM’s net cash provided by operating activities for full year 2022 was $448.9 million as compared to $538.4 million for full year 2021.

AAM’s 2023 Financial Outlook
AAM’s full year 2023 financial targets are as follows:   

  • AAM is targeting sales in the range of $5.95 – $6.25 billion.
  • AAM is targeting Adjusted EBITDA in the range of $725 – $800 million.

The company noted this outlook reflects the impact of increased R&D spending to support new programs and electrification growth opportunities.

AAM is targeting Adjusted free cash flow in the range of $225 million to $300 million; this target assumes capital spending of approximately 3.5% – 4% of sales.

These targets are based on the following assumptions for 2023:

North American light vehicle production of approximately 14.5 – 15.1 million units.

Current customer production and launch schedules and operating environment.

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