American Axle & Manufacturing Holdings, Inc.

Second quarter 2026 sales were $2.96 billion versus $1.54 billion in Q2 2025. Adjusted EBITDA was $389.6 million, or 13.2% of sales, versus $202 million and 13.2% last year. Adjusted EPS was $0.32 versus $0.34 last year. Adjusted free cash flow was $148.4 million versus $48.7 million a year ago. For the full year, management now expects sales of $10.6 billion to $10.8 billion, adjusted EBITDA of $1.36 billion to $1.425 billion, and adjusted free cash flow of $260 million to $325 million. Guidance is based on North American production of 15.1 million units, Europe at 16.9 million, China at 31.6 million, and global production of about 91.1 million units. Management also said GM's full-size pickup and SUV production is expected to be 1.35 million to 1.4 million units this year, and that the China JV share included in EBITDA guidance is expected to be $70 million to $80 million.

David Dauch framed the quarter as evidence that the combined company is executing well after the transformational acquisition, emphasizing value creation from scale, integration, and a broader global portfolio. He pointed to strong customer programs, a pipeline of more than $2 billion of quoted business, and synergy execution as proof the strategy is gaining traction. His tone was optimistic but disciplined, repeatedly stressing local-for-local manufacturing, operational flexibility, and a long-term focus on profitable growth rather than chasing volume.

Chris May focused on the mechanics of the quarter and the guidance bridge. He said sales were $2.96 billion, adjusted EBITDA was $389.6 million at a 13.2% margin, net interest expense was $82.6 million, the weighted average interest rate on long-term debt was about 7.1%, and net debt ended at about $4.1 billion with leverage at 2.6x. He also noted operating cash flow of $107.5 million, capex of $91.7 million, and that adjusted free cash flow reached $148.4 million. On capital allocation, he said the near-term priority is debt paydown until leverage is around 2.5x or lower, and he highlighted the redemption of $125 million of 6 7/8 notes in the quarter and the remaining notes in August.

Analysts pressed on cash restructuring costs, China JV earnings, synergy mix, labor inflation, USMCA exposure, and the timing of GM launch costs. Management said restructuring cash costs should fall meaningfully in 2027 as Dowlais and legacy Europe actions wind down, while China JV income should see an uptick in the back half partly because only five months are included in the first half. On synergies, Dauch said progress is strongest in SG&A so far, with procurement and operations taking longer, and reiterated confidence in the $300 million three-year target without raising it yet. On USMCA and tariffs, management said it is too early to quantify impacts but the company has flexibility across U.S. and Mexican assets and will adjust footprint as needed.