A
ANNUAL REPORT
2024
A
As a leading global tier 1 automotive and mobility supplier, AAM designs,
engineers and manufactures driveline and metal forming technologies to
support electric, hybrid and internal combustion vehicles. Headquartered in
Detroit with over 75 facilities in 16 countries, AAM is bringing the future faster
for a safer and more sustainable tomorrow.
To learn more, visit aam.com.
AAM DELIVERS POWER
THAT MOVES THE WORLD.
A
DEAR SHAREHOLDERS:
2024 was a year of progress for AAM as we achieved positive
operational momentum with a strong focus on managing
factors under our control while navigating in a dynamic industry
backdrop highlighted by shifts in propulsion trends. We view
these industry changes as an opportunity to demonstrate
our ability to meet customer needs and further cement our
commitment to delivering on our long-term heritage of quality,
operational excellence and technology leadership.
AAM ended 2024 with $6.1 billion in sales, $749 million in
adjusted EBITDA and generated operating cash flow of $455
million. To further solidify our financial footing, we also reduced
our outstanding senior debt by nearly $130 million, and we have
no significant debt maturities until 2027.
2024 FINANCIAL
HIGHLIGHTS
$6.1B
SALES
$455M
CASH PROVIDED BY
OPERATING ACTIVITIES
$749M
ADJUSTED EBITDA*
* Adjusted EBITDA is a non-GAAP measure. Refer to section entitled “Reconciliation of
Non-GAAP and GAAP Information” in our Form 10-K included in this Annual Report for the
definition and reconciliation.
A
Although the pace for electric vehicle adoption
faces near to medium-term volatility, AAM remains
dedicated to becoming a supplier of choice
for electric propulsion driven by the focused
development of our platform technology.
AAM has a comprehensive range of electric
products, including components, sub-systems,
gearboxes, fully assembled electric drive units
and electric beam axles. Our award-winning
3-in-1 electric drive platform technology delivers
significant power output to mass ratio by
incorporating a high-speed motor, unique gearbox
design and integrated form functioning power
electronics. As such, in 2024, we secured additional
electric vehicle business and successfully launched
several programs. New business wins include
our continued traction with electric beam axles
in Asia, a 3-in-1 electric drive unit for XPENG and
numerous electric vehicle component awards.
Furthermore, we experienced an active EV launch
schedule encompassing multiple electric drive
variant programs and components. With its solid
technology, AAM is optimally positioned to compete
and succeed in this new environment.
AAM’S COMPREHENSIVE PRODUCT PORTFOLIO
is well positioned to support the changing propulsion
landscape with significant content-per-vehicle opportunity.
Our longer-term view is multiple powertrain systems
(Internal Combustion Engines (ICE), Hybrids and Electric)
will co-exist for many years, especially in our core
segments and operating geographies. That stated,
we are very pleased to share that substantially all of
our key driveline legacy business has been secured
with production lasting beyond the 2030 time period,
driving solid cash-flow-generation opportunities.
In addition, with recent market developments,
especially in North America, we believe there will be life-
cycle extensions for a number of our current ICE programs.
The strategy is clear — secure and generate returns
from our legacy core business and invest for a powertrain
agnostic future, including electrification.
We continue to experience strong demand for our
traditional business, exemplified by our recent launches
and new business awards. During the second half of
2024, we began production of a notable program to
deliver power-transfer units and rear drive modules
for General Motors’ next-generation Chevrolet Equinox
and GMC Terrain. This was followed up with a significant program
launch to produce axles for the next-generation RAM Heavy Duty.
Both businesses are very important to AAM. In metal forming, we
launched multiple products in support of global OEMs’ ICE platforms
and announced several important new business wins, including a
contract to supply components for an international manufacturer’s
multi-propulsion vehicle platform.
New business wins include our continued
traction with electric beam axles in Asia.
2025 Chevrolet Equinox
A
To further position us for long-term value creation through size
and scale, we announced in early 2025 our transformational
combination with Dowlais Group plc (Dowlais), which will bring
together two complementary global tier one suppliers to create
a leading global driveline and metal forming company in the
world. The combination will create a more balanced and more
resilient company with revenues on a non-adjusted combined
basis of approximately $12 billion, combined adjusted EBITDA
margin, including $300 million of run rate synergies,
of approximately 14%, and we anticipate day one net leverage,
after the impact of transaction financing, of approximately 2.5x
(including full run rate synergies. We estimate the cash-flow-
generating potential is very strong, giving us more confidence
about quicker deleveraging and the strong consideration to
return capital to shareholders. In addition, this deal will result
in a complementary product portfolio with Dowlais’ strength
in sideshafts coupled with AAM’s strength in axles. From a
diversification standpoint, the combined business will benefit
greatly from a more balanced customer mix and geographic
presence. Our North American dependence will be reduced to
54% from 73% today, while our European and Asian exposure
will grow. This improved geographic balance will allow us
to better serve our customers, which positions us to grow
the business we have and, importantly, gain new customers.
Simply, this strategic transaction, upon closure, will be a game-
changer for AAM.
Operating excellence and strategic planning for the future
are important at AAM, but we understand our success hinges
on having a well-run organization that is connected with the
environment and our associates’ needs.
DAVID C. DAUCH
Chairman & Chief Executive Officer
As a result, environmental responsibility and an inclusive culture
are important to us. Our goal of net-zero emissions by 2040 is
supported by 100% carbon-free and renewable energy globally
by 2035. In addition, we achieved our 2025 goal of 100%
carbon-free and renewable energy in the U.S. ahead of schedule.
Advancing inclusiveness aligns with our cultural values and
strategic principles and is reinforced by our related 2030 global
goals. AAM builds a sense of belonging for our associates and
promotes community engagement. We look forward to sharing
additional information with you when we publish our 2024
Sustainability Report in spring 2025.
In conclusion, as we enter 2025, we remain dedicated to
building long-term shareholder value by manufacturing
quality products with class-leading efficiency and developing
new mobility technologies while remaining financially
disciplined. AAM’s plan is to continue to invest in establishing a
comprehensive powertrain agnostic product portfolio spanning
from components to full systems while leveraging our legacy
business. With our solid foundation, we are optimistic about our
future and look forward to bringing the future faster.
AS ALWAYS, THANK YOU FOR YOUR CONTINUED SUPPORT.
2025 Ram 2500 Heavy Duty Laramie
A
CHRISTOPHER J. MAY
Executive Vice President &
Chief Financial Officer
LEADERSHIP
As of March 6, 2025
OFFICERS
BOARD OF DIRECTORS
DAVID C. DAUCH
Chairman of the Board &
Chief Executive Officer
MICHAEL J. LYNCH
President &
Chief Operating Officer
TOLGA I. OAL
President – Driveline
TERRI M. KEMP
Senior Vice President –
Human Resources & Sustainability
MATTHEW K. PAROLY
Vice President &
General Counsel
Audit Committee
Nominating/Corporate Governance Committee
Compensation Committee
Executive Committee
Technology Committee
A
E
G
C
T
DAVID C. DAUCH
Chairman of the Board &
Chief Executive Officer
ELIZABETH A. CHAPPELL
Former President & Chief Executive
Officer, Detroit Economic Club
WILLIAM L. KOZYRA
Chairman & Chief Executive
Officer, Wilko Plastics, Inc.
PETER D. LYONS
Counsel
Freshfields Bruckhaus Deringer U.S. LLP
JAMES A. MCCASLIN
Retired President & Chief Operating Officer
Harley Davidson Motor Company
WILLIAM P. MILLER II
Senior Managing Director: Capital Markets,
Investments and Governance Financial
Markets International, Inc.
SANDRA E. PIERCE
Corporate Board Executive, CEO Advisor
& Community Strategist
JOHN F. SMITH
Principal of Eagle Advisors
Retired Group Vice President,
General Motors
SAMUEL VALENTI III
Chairman & Chief Executive Officer
Valenti Capital LLC
HERBERT K. PARKER
Retired Executive Vice President
of Operational Excellence & Chief
Financial Officer, Harman International
ALEKSANDRA A. MIZIOLEK
Retired Chief Transformational Officer,
Cooper-Standard Holdings, Inc.
A
AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.
One Dauch Drive
Detroit, MI 48211-1198
Telephone: (313) 758-2000
www.aam.com
CORPORATE NEWS RELEASES
Corporate news releases are available on
our website at aam.com
ANNUAL MEETING OF STOCKHOLDERS
The 2024 Annual Meeting of Stockholders will be held on
May 1, 2025, at 8:00 a.m. ET.
FORM 10-K ANNUAL REPORT
AAM’s Form 10-K Annual Report for 2024, filed with the Securities
and Exchange Commission, is available on our website or from:
American Axle & Manufacturing Holdings, Inc.
Investors Relations
One Dauch Drive
Detroit, MI 48211-1198
Telephone: (313) 758-2000
EQUITY SECURITIES
Inquiries related to shareholder records; change of name,
address, ownership of stock and lost or stolen stock
certificates should be directed to the transfer agent and registrar.
Computershare
C/O: Shareholder Services
P.O. Box 43078
Providence, RI 02940-3078
Internet: www.computershare.com/investor
STOCK LISTING
The New York Stock Exchange is the principal market for AAM
common stock. Ticker Symbol: AXL
STOCKHOLDERS
As of March 6, 2025, there were 139 stockholders of record.
STOCK PERFORMANCE
Comparison of cumulative total return of AAM with the cumulative
return of our 2024 competitor peer group (Adient plc, Autoliv Inc.,
BorgWarner Inc., Cooper-Standard Holdings Inc., Dana Incorporated,
Garrett Motion Inc., Lear Corporation and Magna International Inc.)
and the Standard & Poor’s 500 Composite Index assuming $100
invested on December 31, 2019, through December 31, 2024.
The closing price of AXL on December 31, 2024, was $5.83.
STOCKHOLDER
INFORMATION
*$100 invested on 12/31/19 in stock or index, including reinvestment of dividends.
Fiscal year ending December 31.
Copyright© 2024 Standard & Poor’s, a division of S&P Global. All rights reserved
COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL RETURN*
Among American Axle & Manufacturing Holdings,
the S&P 500 Index and a Peer Group
American Axle & Manufacturing Holdings
S&P 500
Peer Group
A
DISCLOSURES
ADDITIONAL INFORMATION
This Annual Report may be deemed to be solicitation material in respect of the recommended offer by American Axle & Manufacturing Holdings,
Inc. (the “Company”) to acquire the entire issued and to be issued share capital (the “Business Combination”) of Dowlais Group plc (“Dowlais”),
a public limited company incorporated in England and Wales, including the issuance of shares of the Company’s common stock (“Company
Common Stock”) in respect of the Business Combination. In connection with the foregoing proposed issuance of Company Common Stock
(the “Share Issuance”), the Company expects to file a proxy statement on Schedule 14A, including any amendments and supplements thereto
(the “Proxy Statement”) with the United States Securities and Exchange Commission (the “SEC”). To the extent the Business Combination is
effected as a scheme of arrangement under English law, the Share Issuance would not be expected to require registration under the Securities
Act of 1933, as amended (the “Securities Act”), pursuant to an exemption provided by Section 3(a)(10) under the Securities Act. In the event that
the Company exercises its right to elect to implement the Business Combination by way of a takeover offer (as defined in the UK Companies Act
2006) or otherwise determines to conduct the Business Combination in a manner that is not exempt from the registration requirements of the
Securities Act, the Company expects to file a registration statement with the SEC containing a prospectus with respect to the Share Issuance.
INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT, THE SCHEME DOCUMENT, AND OTHER RELEVANT DOCUMENTS
FILED OR TO BE FILED BY THE COMPANY WITH THE SEC OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT (IF ANY) CAREFULLY
WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, THE BUSINESS COMBINATION
AND RELATED MATTERS. Investors and shareholders will be able to obtain free copies of the Proxy Statement, the scheme document,
and other documents filed by the Company with the SEC at the SEC’s website at http://www.sec.gov. In addition, investors and stockholders
will be able to obtain free copies of the Proxy Statement, the scheme document, and other documents filed by the Company with the SEC at
https://www.aam.com/investors.
PARTICIPANTS IN THE SOLICITATION
The Company and its directors, its directors, executive officers and certain other members of management and employees will be participants in
the solicitation of proxies from the Company’s stockholders in respect of the Business Combination, including the proposed issuance of Company
Common Stock in connection with the Business Combination. Information regarding the Company’s directors and executive officers is contained
in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 of the Company, which was filed with the SEC on February
14, 2025 and in the definitive proxy statement on Schedule 14A for the Company’s annual meeting of stockholders of the Company, which was
filed with the SEC on March 21, 2024 and the Current Report on Form 8-K of the Company, which was filed with the SEC on May 2, 2024.
Additional information regarding the identity of participants, and their direct or indirect interests, by security holdings or otherwise, will be set
forth in the Proxy Statement when it is filed with the SEC. To the extent holdings of the Company’s securities by its directors or executive officers
change from the amounts set forth in the Proxy Statement, such changes will be reflected on Initial Statements of Beneficial Ownership on Form
3 or Statements of Change in Ownership on Form 4 filed with the SEC by the Company. These documents may be obtained free of charge from
the SEC’s website at www.sec.gov and the Company’s website at https://www.aam.com/investors.
QUANTIFIED FINANCIAL BENEFITS STATEMENT
This Annual Report contains statements of estimated cost savings and synergies arising from the Business Combination with Dowlais
(the “Quantified Financial Benefits Statements”).
Statements of estimated cost savings and synergies relate to future actions and circumstances which, by their nature, involve risks, uncertainties
and contingencies. As a result, the cost savings and synergies referred to in the Quantified Financial Benefits Statement may not be achieved,
may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated. No statement in the
Quantified Financial Benefits Statement, or this Annual Report generally, should be construed as a profit forecast or interpreted to mean that the
combined company’s earnings in the first full year following the date on which the Business Combination becomes effective, or in any subsequent
period, would necessarily match or be greater than or be less than those of the Company or Dowlais for the relevant preceding financial period
or any other period. For the purposes of Rule 28 of the United Kingdom City Code on Takeovers and Mergers, the Quantified Financial Benefits
Statement contained in this presentation is the responsibility of the Company and the Company’s directors.
A copy of the Quantified Financial Benefits Statements, the bases of belief, principal assumptions and sources of information in respect of
any quantified financial benefits statement are set out in Appendix 6 of the Rule 2.7 announcement made by the Company and Dowlais on
January 29, 2025.
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