American Axle & Manufacturing Holdings, Inc. (AAM) reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period.

For Q3 2024, net sales totaled $1,504.9 million, a decrease of 3.0% from $1,551.9 million in Q3 2023. The decline was attributed to approximately $19 million from metal market pass-throughs and foreign exchange impacts, alongside lower production volumes on certain vehicle programs. However, for the nine months ended September 30, 2024, net sales increased by 2.8% to $4,744.1 million, up from $4,616.5 million in the same period of 2023, driven by increased production volumes and a new business backlog.

Gross profit for Q3 2024 rose significantly to $171.3 million, compared to $130.6 million in Q3 2023, marking a 31.2% increase. The gross margin improved to 11.4% from 8.4% year-over-year. For the nine-month period, gross profit also increased to $587.1 million from $469.4 million, reflecting a 25.1% rise. Operating income for Q3 2024 was $41.7 million, up from $23.9 million in Q3 2023, while for the nine months, it reached $205.2 million, significantly higher than $117.8 million in the prior year.

Net income for Q3 2024 was $10.0 million, a turnaround from a loss of $17.4 million in Q3 2023. For the nine months, net income was $48.7 million, compared to a net loss of $14.5 million in the same period of 2023. Basic and diluted earnings per share for Q3 2024 were both $0.08, compared to a loss of $0.15 per share in Q3 2023.

Strategically, AAM announced the sale of its commercial vehicle axle business in India to Bharat Forge Limited for $65 million, expected to close in Q4 2024. An impairment charge of $12 million was recorded in Q3 2024 due to this reclassification. The company also incurred total severance charges of approximately $6.1 million for the nine months ended September 30, 2024, compared to $1.5 million in the same period in 2023, reflecting ongoing restructuring efforts.

As of September 30, 2024, AAM had cash and cash equivalents of $542.5 million, an increase from $519.9 million at the end of 2023. Total debt decreased to $2,718.4 million from $2,811.7 million at year-end 2023, with a weighted-average interest rate of 6.8%. The company reported $892.2 million available under its Revolving Credit Facility, reflecting a reduction primarily due to standby letters of credit.

Overall, AAM's financial results indicate a recovery in profitability and strategic repositioning, despite challenges in sales and market conditions.