AXL - Earnings call transcript Q2 2024 | American Axle & Manufacturing Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Gary, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the American Axle & Manufacturing Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded. I would now like to turn the call over to Mr. Investor of Head Lim, Relations. David Mr. Please go ahead, Lim.

David Lim

second like Thank who everyone earnings Earlier released I'd earnings AAM's you, and good call. our we morning, Gary, to this of is quarter XXXX announcement. welcome second morning. quarter joining on us

access the Investor this website, of Relations services. Newswire on the through and PR announcement can page our You www.aam.com,

replay you as You Investor page the dial can call well. listen XXX-XXXX, code conference To on replay also call, through find will (XXX-XXXX). this supplemental XX. of to (XXX) X This a our can be slides website this August for access of available replay

uncertainties, Now before or quantified cannot which matters contain discussed. the call differ be may we that and may and those activities from cause to I'd and begin, comments operations and remind subject results which everyone in materially statements of this to predicted discussed forward-looking future like risks to

of information, and measures. filings these you we non-GAAP financial measures and a GAAP me website. And refer things Information For well during let that may to financial AAM's our that we reconciliation available as Dauch. on Commission. Also call, as Exchange non-GAAP to measures our non-GAAP information with to over ask refer turn CEO, additional Securities regarding said, these David Chairman is the to with this

David Dauch

discuss today Thank for you, quarter David, and joining XXXX. Thank AAM's financial to results you good us morning, everyone. second of for the

Chris the second the May, our Officer. President is highlights Executive review call begin financial Chief on I'll To today performance. quarter Joining comments, me Financial AAM's and my Vice of

the open questions have. you the the financial commentary we'll call for industry. business may some on details development up I'll Next, and news all results, about After our covers of any that Chris touch

in our free from were So let's continued results EBITDA was highlights. volume and share cash sales, per and approximately $XXX and $XX XX.X% was XXXX begin positive $X.XX our solid second billion, adjusted million. performance. share. sales mix AAM's Adjusted contributions second million financial or the quarter of These earnings of adjusted $X.XX operational per was quarter with flow reflect

me sequentially forecasters. Let the volumes higher according some a industry key and to were about Overall, performance. our number provide year-over-year, for of platforms third-party and you our for perspectives

As second consistency for we quarter. second stated, stability quarter experienced is you did production higher-than-anticipated the all flow-through. of quarter continued we know, Production important the the EBITDA of end. very near experience in the beginning that downtime periods into first That

high this the also XXXX. positive our year. are related in commercial this here standards closely progress of cases, AAM's but our the rearview customers second continues we adjustments. From remaining, minor good trend and who driving advanced to operational generally, do discussions concluded results. We standpoint, that make us in have on have shutdown we seen work as notices, AAM necessary delivering happy year. discussions operational giving some the We will providing for half to an to positive some for cost overall team open performance The are I'm is the making a excellence. operational share in diligently of mirror to most in of more note, monitor inflation by On time

and good, a overall, positive for AAM. solid quarter So Team

you Let can our Slide me some updates, business about which presentation of talk deck. see X on

in ] with luxury components to of highlighting our both a systems, win components products of supply supply gears business respective comprehensive AAM electric drive that positions approach for our components is propulsion for of AAM powertrain OEMs optionality certain systems strategy European support a vehicle and of choice. electric for believe OEM's their needs. EV announce nice will vehicle We that pleased We a will are has full incremental EV with powertrain future internal for our combustion modular and well awarded helical for European and a [ are plays to platform providing supplier agnostic to drives providing our the global AAM that derivatives, This been be hybrid strong applications. Furthermore, very business program. including OEM to a and strategy to multitude

illustrating was provide launch thesis. addition, awarded for This AAM scheduled In to program a recently axles for next-generation great longer later program. the to is decade. full-size This business a traditional is van ICE example in an

work in safe Newsweek's diverse, We're it a Greatest and as pleased of very inclusive AAM this AAM's and was Finally, Workplaces is goal Women award promote with XXXX. named environment. support one for to

The about let's ICE, long hybrid will mentioned that coexist EV powertrains and I wins reinforces a just that time. Now the industry. talk AAM view for

the technology is compelling, time, and our Although continue us will facilitate evaluating control is technology term, performance policy to the within and affordability, appears making especially by near systems, Meanwhile, electrification OEMs we clarity AAM [ propulsion driven product infrastructure. and This take strategies and drive more will manage charging investments adoption consumer monitoring closely to profitable transition which acceptance come. to are believe factors under to that growth. shifts. In it planning selective the includes likely ] this still future range in

guidance. our sales been the deep has for pipeline view our previously sales targeting $X.X develop guided sales region to cases, some billion As such, powertrain will the to What delayed billion versus and $X.XX and capacity now full to range market. environment. and to trends this to guidance. emerging EVs is the EV billion and quarters of EBITDA by current in being our to materially. On support direction and We the a is of differ $X.X billion. bidding be place clear now in current we're With is product X adoption put by believe agnostic rescoped, that year maintain AAM and AAM's or, reflects canceled. $X.XX segment completed, diverse raising is in portfolio

cash unchanged million. at the than million communicated flow which $XXX EBITDA higher Our million million to to $XXX free adjusted remain will $XXX previously is to approximately $XXX will adjusted approximately $XXX our million. be million, $XXX And

Our includes the Duty including the program. multiple year half second significant next-generation of Heavy launches, Ram

primary AAM spending monitor continue securing our have continue inventories, quarter our business, future, to and transaction all advancing interest industry previously, to substantially debt remarks, which in our will [ every we free conclude In my and as legacy and drive rates. To pay the our ] efforts communicated strong on prices, profitable towards sheet, strengthening [indiscernible] we flow, we incentive down is portfolio addition, growth. and cash electrification our position for generating continue I and aim and complete, balance to overall

Vice Chris? call Financial Officer, May. turn now me our President let Chris Chief So the over and Executive to

Chris May

slide and cover XXXX as our my financial I morning, with will I good to David, details you, everyone. refer today. comments. Thank prepared of of the earnings you the also part second deck will quarter

both in Cherry $XX in the let's sales lower to million, Metal midsize ahead FX key $X.XX our in So $X.XX pass-throughs sales. Positive were second other billion quarter sales truck China. XXXX. driven shows billion the sales sales. and quarter. quarter volume, including and by and a second decreased Slide begin In America go in mix was XXXX number second with compared of XXXX a platform X backlog quarter AAM of XXXX, the market and $XX and platform were the a in SUV of second quarter, to programs quarter walk by approximately million, North of GM and

$XXX.X $XXX.X quarter profit versus in to second compared quarter the let's XXXX million as second second of was in the quarter profitability. last Now of Gross to million on in XXXX. Adjusted XXXX move second was the million of EBITDA million year. $XXX.X quarter the of $XXX.X in

down of as other conversion walk and million, rate of and inflation, in the versus R&D lumpy EBITDA timing see operational spend can year-over-year of by quarter, XX%. driven higher and You production of a offsets. adjusted Slide combination prior from $XX be improvements, EBITDA year, volatility was benefits the was X. In a $XX million approximately less year-over-year and favorable of a can other volume, performance of net inflation added a mix resulting quarter-to-quarter, R&D on net adjusted by

the of in XXXX. me million expense, compares second XXXX The second cover million X.X% supporting. of of sales. $X million year-over-year SG&A. spend of driven was of the of expense by our in are timing XXXX SG&A was quarter spending in AAM's increase including of was to engineering ] currently R&D, R&D Let R&D $XXX.X we million. $X.X approximately X.X% [ or quarter and that now second sales or quarter programs the $XX.X This

from expect We with it estimates R&D in our line for our quarter-to-quarter. year, spend initial the vary can to but be

powertrain we of platform will spending R&D anticipate we should spending current years to technologies needs area the moderate the coming in our trends. levels. industry mitigate That the finish R&D this in appropriate support match to developing our business We continue said, spend electric and as with

move quarter taxes. expense of to in to in balances. $XX.X second XXXX of XXXX So lower quarter was part interest million second let's to interest million debt and $XX.X on compared due the in the Net

addition, to second over million an balances income the paid with the yet in elevated interest allowances, our was related $X.X driven in another deduction our to tax here expense the million compared down of continue higher senior valuation expense notes and of tax limitations of effective second senior profitability second notes XXXX. million income for tax we of in the debt expense reported $XX in quarter, In and $XX down of to in This August. In lower quarter $XX.X by we pay increase million U.S. rate primarily quarter expense we

to our adjusted allowance is a book be rate tax the effective function XX% to XX%. of tax approximately described. valuation rate We I just elevated expect This

press of $XX.X approximately XXXX $X.XX second of share second the the the to share and share, quarter XXXX. second per into per the $X.XX to cost share was We second or year. Taking which $XX million in $X.XX share of XXXX. per of net all these items the also in per this excludes GAAP was million income taxes earnings earnings cash compared quarter our compared account, XXXX expect $X of impact drivers quarter release, noted our for quarter Adjusted $X.XX in million in of or sales per

perspective, were LTM AAM's at million, the of net second quarter million. cash ratio and provided to of for acquisition-related grants expenditures, the the government the second equipment quarter plant a on restructuring and leverage these the leverage of Net of a adjusted cash June second move of for activities, X.Xx impact billion of XXXX million quarter payments for debt and and $XXX of sheet. $X.X cash million. with quarter activity adjusted EBITDA XXXX. From in Reflecting the was of for million. $X.X the debt property, now flow activities was free and $XX.X second $XX.X Let's net XXXX Capital XXXX sale operating the were calculating flow from by ended Cash of $XXX.X net balance proceeds we of quarter XX.

to sheet on focus credit balance to approximately facilities. AAM with total consisting the global available of ended Our AAM's continue strengthen liquidity reducing is borrowing quarter billion, the available cash debt. of by capacity $X.X and

for X, the revenue outlook. full on are Slide we adjusting year and As EBITDA outlook our

at upon a billion This sales, is target billion For the North American million approximately our to based sale XX.X for units. range XXXX. is of $X.X target $X.X production

you certain are sales key all the From million. know, just programs versus perspective, to overall EBITDA of our results performance $XXX the new sensitive $XXX million an to As range more is to industry changes our production. macro

$XXX Our at adjusted X% free approximately million, target to million remains $XXX CapEx sales. anticipate and cash we of flow at

X.X GMTXXX midpoint seasonality, of of adjustments platform process in range. with the Delta vehicle we The first weighted of Ram program systems of for future builds. are According important, the on next-generation see currently units is continues towards based guidance AAM's X.X next-generation and are in our of full to in units approximately this the third-party our next-generation to year. launches what largest to the launching the GM Our include production million guidance heavy-duty for half second forecasted the half the programs medium These and normal in represent Equally the year. the year, some trucks. production driveline crossover we estimates, million to addition

which can As and with you of unpredictable. ramp-up volatility, there launch, be any volume costs are know, some

launches is have new the together, from win year. Putting year for you tracking continue many completed to of good perspective, that many, have serve position good foundational of this margin to discussions course, business, performance and for with are pillars by XXXX of our have improvement, deliver in. most come, making closed significant will key all a outstanding very with be have this sales are and progress the stuff. debt, good Of shared year, we product initiatives to And as our Furthermore, all important really we'll full we and next-generation the year-over-year reduced launches. end our commercial to these the part is years we a

going participation back So today. thank we the here can so on time to I'm to David? the for start you call stop call David and your the over turn and Q&A.

David Lim

Thank you, Chris David. and

some than X. We questions. take [Operator Instructions] have that more to I would you reserved no limit your please to time ask questions

at time, have. any So with questions free this proceed you please to feel may

Operator

[Operator with first is today Instructions] from The Spak question UBS. Joe

Joseph Spak

just sort of some and million performance, issues Net year-to-date. just don't know second pretty mentioned seemingly should inflation might Chris, you had a could talk But basis, about thinking repeat if gotten a performance better, bit what recovery that think, I you indicated on we because weigh could half underway. of also just sort give launch the to here. on schedule, expect have which EBITDA the which that are you other think $XX the about hand, but a year-over-year think there. some of But half, little about also the then year I last you second negotiations how it's shouldn't we inefficiencies, want bit. indications I that on a us heavy driving in warranty little I

you embedding I back for are the what guess, guys performance in So half?

Chris May

the half the think bit about a as truck Joe, half, But of really platforms. from talk -- half, you the -- whether clearly into second Yes, in midpoint, here half, back production, nice stepping full-size about standpoint, the we overweighted a into right? it's what first first the on strong production with starting obviously, are little year. First half, normal just a the into

our on normal operation production some then items towards key that of about half the back some half generation right, in the volatile a in bit bit weighted year, little of back of perspective. But it, programs. that you seasonality revenue next-generation will little well. just be these of as key transitions some half European large and are a landscape you And Our course, as these through the profit are they a back talking the is the having the we work as products we're only not weigh but from know, that. for support first we're -- let's year, And have, of the call can sort generation half

will we behind the 'XX, this would So continue And forming work that's a operations the key course that standpoint, we of performance piece in then through half of expect a as the obviously from exited continued to year. to be particular. improvement us. But second metal will show in our

continuing their through You can trend performance. and see their segment margin that disclosures

So I expect negotiations complete. are recovery continue. our to would substantially that a standpoint, From

So and already our in rate. embedded half half second that's first run

of additional half going to not first se the any the per get versus year back lift You're half there. in the

normal call to would a from period half. I back of, sort that's the again, it, So bit period. And little of level then, in seasonality

industry would sit trends. think about the overweight of the today, launches, of be But cetera et we costs here part to the trying expect to these measured but holiday how here an into back half, we with That's as stepping performance fixed business to continue. underlying we're You it. do of have some schedules, the with as the your I

Joseph Spak

quick That's helpful. follow-up there. One

changed at still I $X.X think you that all? or million indicated midpoint like on guide Is you're has going TX. your before the the assumption of -- that roughly sort assumes of the

Chris May

No, going that assumption. is still the

Joseph Spak

one there? that just you I was The negotiations And trying to canceled, get that more contract going? recoveries, were Okay. know for are one. how update quick some e-Beam any

David Dauch

David. is this Joe,

or negotiations we're customers, at that cancellation contract in still we've indicated in with to and and been them we before, to the canceled costs terminated has As time. our turned you

now. right announce to further nothing So

Operator

from with is The Narayan RBC. question next Tom

Gautam Narayan

The guidance. on XXXX the first is one

my So think million. at midpoint, by math $XX you're is $XX.X from EBITDA right, I cash going operations the raising, if million the is by the but down

Just is sense curious capital. driving what's probably My that. working

known these HX. about. some You've I were of already launches in would launches talked about new But maybe think those

has you what last the potentially this capital? guidance in trying I And changed I Just time then follow-up. understand working have on since to regard the a gave guess

Chris May

really it's X No, elements. Yes.

taxes up cash slightly. Our

guide balance. of terms a fall We of adjustment is then CapEx, a ] up a favorable timing. on and working piece our the terms it's bit to capital of [ to it So in timing cash And our bit had capital that's little also simply where a in down going little the previous was. tax of balance working

Gautam Narayan

to we've have look you're return one to depressed of Got saying, doing liquidity buybacks, it. their et about I lever they've one the some that shows some In appetite that OEMs this And $X.X what tier your share have market even as do matter of reduce the a then earnings the to curious, your cetera. that [ and for decided suppliers Xx you R&D my priorities the out slide is ] similar that thing where second on what know one, to capital investments debt. leverage is stock buybacks. given equity. pushing to increase is cases, in seen we've coming shareholders potentially season and But something noticed more form potentially down, values companies buyback? talked And up trading of share billion to just your at and you and

David Dauch

David. same and more debt we our backlog are some to disciplined competitors to continuing our other inorganic at peers. of of the look At continue be continue priorities time, growth some capital the industry our Listen, of to levered than pay organic support obviously allocation to new This highly growth is business, to opportunities. are we're and down our

see X the at But same do So at or see looking the and look those. you had we business. from time, activities. deviating now, I the don't near-term that for there's major previous to say? those right at if where really capital, don't of and right a we're future is previous quarters discipline I I think else But know us the try the in we we what are want But allocations always anything shareholder-friendly we've don't buybacks to years. Chris, stock

Chris May

as Yes. caught some the debt paid second inside in million No, quarter. the debt I -- we down here of paid I we've know my capital another third $XX yet remarks, quarter. priority allocation you also in prepared Tom. in a down don't And if

as So accretive to our investors that should be positive very and well.

Operator

The next Dan Levy from question Barclays. with is

Dan Levy

the Tom. on And last just to from leverage follow-up question wanted I specifically on ratio. more that

So Xx, given which the a can business what the a and just unlocks then and is leverage, get of time you to down I profile, of, free believe maybe you're current opportunities. cash right dynamics greater reasonable allocation give you're us sense at now how current thinking of a Xx frame expect to set to EBITDA capital

Chris May

to Look, [ is if generation. you to of we couple volumes meaning Dan, backdrop, flow Yes, our continue continue EBITDA, strong, next strong if be and macro course, operational We performance. continue right? deliver years, production this increase of EBITDA the would over a our remain performance this cash Chris. ] decent can improve to We at perform -- good

ZIP You're that enter going code. to to start

can just the math, I over years. mean do -- right, You you couple the next of

Dan Levy

And -- down CapEx of is the working side? this or opportunities there flex additional opportunities capital on any to is

Chris May

think an we've the pretty flow from the one I then will the out because lowest I we're perspective, it company's not capital over squeeze think opportunity capital will to and will to over delivery year it's appropriate a look flow the receivables [ payables, on tight and that perspective, our X, but working cognizant critical been operational which the success. We're which Look, ebb continues we a And past business, fund there's next that with or history continued of if inventory of next of it's though cash do thrift the flow the new our couple years. continue we good maintenance couple of years. our CapEx to been benchmarks the best ] the ongoing of you at programs cash to solid some inside support of spend, levels there, in business over launch. From at very

Dan Levy

what in are where aspirations some for down there say, maybe certainly core and were expand beyond And has David, exposure. Understandably, now, you to of Or you Great. shifting right been right exposure the strategic maybe a follow-up. your And to of exposure, opportunity given the a shifted. that's question. bidding portfolio America to was just truck the remarks pipeline a on were is diversify pipeline a the bidding? as we this and we're and is bidding we're Question happy North your which -- and has are with, noted are more large opportunities. now. And is changed, your forward bit we happy consistently is to very trying where of then what core you the Axle an spend the flex stay strategy okay, like obviously,

David Dauch

Yes.

been consumer mean, being I in focus as responsibility customers we ] was were But as lot [ path protect said, some originally some the plans that business, suppliers sheet. in meanwhile, evaluating contemplated. A like to that to quoting your to EV years to looking the I And accept driving regards that's strengthen regards the an business that going. through us go the point, which on continue beyond industry of I substantially air other the had the the whole now. impacting there's doing to the We're of control are side. the all complete and said, kind the and industry even has clarity in is opportunities, at contract to product back. And what canceled. well ICE Dan, hybrid is, we're balance on we're was And a I or and to the as So of and pocket our readily more overall OEMs to to is throttle extensions especially We're of the hopeful as company. and forward electrification, next-generation with going clearly, of But we market discussions And number everyone's on business. our and commented, on get here. mean, in we're retimed, health rescoped, long-range side we not we right going ICE delayed performance EV don't securing operational their as both the that

that's And placing trying where in selective peers. So propulsion the but meanwhile, it systems. AAM, but to to we're regards investments impacting only our we're those between the industry being where understand different not just is, and we're powertrain

Now truck us. has for been us. decades. to to a It's be with point solid that. strong going think for strong We're position a respect to a point in We continue for

So we'll with have doing strong with in our to geographically grow cash acquisitions generation there, Tech but allows to other It's we why ] also well like more customers. get recognize as business. that as part that tactical us we diversification need customers we're X [

longer comes indicated electrification battery China, in as to I that So but that's a is going everyone I and It's the in about to now. going what U.S. by about we vary know China. November be get strongly all also electric a ICE acceptance. the time time. And Asia, the of consumer and me, going we're a out until Europe vehicles. well, time, about it's it's pattern I excuse -- think ICE America, be see they're to more maybe region, in and hybrid feels fixed, affordability And bit in going on charging especially little holding are, of the why for going just about to obviously, strategies full election is North in infrastructure. and lag which and of are think it's hybrid, the behind it And a where period EV all time longer which lag anxiety those and until consumer right all for going in issues of making periods for you period range period issues impact of means to us,

So -- mean But to grow down, slowing but not then of both. manage organically grow organic And just growth I so or trying the side general. I inorganically, we're said, things is right? for as so in the AAM, you for industry and just you either

are there exercise. that out competencies also means our to addresses we're or within Hopefully, that's need that space, question. us to why other we so figure to both for markets meaning are to leverage there our And auto grow, current your trying adjacent

Operator

Michaeli from with question next is Itay Citi. The

Itay Michaeli

couple the you Just the from line a of launches talked half about? quantify maybe second Could follow-ups. impact just top you

Chris May

the weighted trucks that in click third will balance due step margin will you squeeze that to products feel quarters. the as of those specifically, inside terms you you the bit launch some Itay, on probably down comparing a for We embedded first of midpoint rate half conversion out example, second higher or little compared haven't rate of contribution you to a that quantified you're we'll but if guidance our -- reasonable of impact half of from -- obviously, second rate, sales, in clearly have first the of that versus can run to first half. The sort both rate the if if follow, -- see our half, and run fourth

Itay Michaeli

bit just SG&A. maybe how half of for cash That's for just second about can outlook you on XXXX, tax a helpful. rate give company? the thinking help think the also, should kind And of a maybe beyond effective we And then the us

Chris May

and in continue doesn't would very We've which of cash similar I we're expect not the for million going but can that range. rates X.X% half. a targeting reverse that near that R&D quarter, to back we're to SG&A, to sort X% expect is [ SG&A ]. be I $XX be Yes. would relatively going a flattish probably to years, recent our flex that as sales, forward. forward-looking you key contemplate tax-specific guidance SG&A so necessarily see that you tax that. given with well would piece of got

cash due than interest We've that to XX%. been XX% will you become the tax. more XX% you our in higher is Effective some pay as of limitations. deduction course, closer Of more rate U.S. to profitable, that, to

the to we So be sort probably now, meaning between start more of rate are get you U.S. right higher tax as off. currently that those it's profitable, rate going experiencing somewhere roll effective limitations and to

to So the between it's going X. somewhere be

Operator

is Jake The BNP. Shaw [ ] with next from question

Unknown Analyst

on in a want little to just bit I profitability. dig

XX.X% level, changeovers. that the first half, big Ram and a and in volumes fall So and know in well off dealing you're the half at obviously, has industry half. lower with second I And that there's the of a Delta pretty performed second combination the pretty

as that this operate So why ] year, business -- reasons the there beyond look [ range? XX.X% we XX% any is are there in can't to structural

Chris May

that single great encourage business, our over would different we with full And inside macro Yes. trend I'll what to associated or past forward-looking quarter that lot a Obviously, then year our it, guidance No, to take always whether continue a performance because dynamics launches a holistically would our go And the launches back a I I difficult subside. drive question. provide in right, year guess continues based call with the these, look it's you XX decent into a of positive. volume there's the of XXXX inside it's That's some to a expect also forward extrapolate months. to full at premium in start half to I years But be it's performance on today normal is quarter, backdrop. costs seasonality.

what next I think couple it, making a adjustments good is stepping those for So into about year way a described. just full I year to of think

Unknown Analyst

think that? you down as think addition a and know the to slows programs, EV about should the your EV EV we business? And should we how overall I also about how in profitability little the then market the of bit, have Mercedes-AMG

Chris May

Yes.

today. revenues hurdles future. we the and to percent business, electrification, our for go win that Our couple to current new and it we're relate business very a But current of and as are especially as that have that as business we focused source financial and only secure is instituted we have secure certain looking EV on of

and EV and ICE, with objective business a our to hybrid is our with top-performing to goal to with our have strive So continue our profile our business.

Operator

question with of John last comes America. Your from Murphy Bank

John Murphy

Through your commentary, were in I GMC decade, mean the van you have other program, mentioned you EV the program and there the comments. later some

time, over an you're indication also backlog your but I you or exiting -- ICE when to some look of programs kind backlog, the off that extended. over actually When time. going wound of may fairly being those or -- be net grow Just think programs, bidding down well at out it's seeing right? this roll that you'll we're the is But of extension

just potential it extended. How think start better a of like into potentially and potentially better programs the you as into be of these basis year we gross is get was So about will grind as than higher backlog the that and the do next end some ICE roll-off the a at the it year, backlog from from seems the net it get getting year? could significantly of

David Dauch

to given to you year, John, of a you're year. We normal That's is that what bit going our and I our further. business. part is programs I about our it's to This don't at backlog. our rate million going attrition little ICE going forward, hybrid $XXX extend mean are a higher know in base million $XXX core see mean, include

only But up. appropriately be how today, not that's us you at right going So to challenge to we forward core going that only business have way we the in incremental regards of just show our we but industry, other have. that new still backlog, through right time $XXX those But at our it. I a to and next backlog backlog we trying million our want air this going in But if and we'll pocket not backlog business factor but extensions in the it's healthy that to through update done historically to have issues then business obviously, now. today, think the suppliers certainly Because going on we're base year. manage would

As there I say? our is backlog. I and want business said, you to know, to incremental we anything Chris, only include don't else new

Chris May

our because [ programs, David be with also No, right, indicated, being about "slowdown" next extended or will before, our products John, see replaced -- it generation as thought we wouldn't additional well. of equipments obviously, into as we as going attrition you ] their

critical to a that's in factor So mind. keep

David Dauch

Yes.

John Murphy

that is in you clarity schedules that at kind actually of are the that next little -- point? a getting But changeovers? game seeing partners? a and of program directly this your conjunction on with Are actual Or guessing bit you current in in

David Dauch

are I obviously, going holding very there. today, on through strong core mean some business schedules Our our John, we're and launches.

a to a our balance is and our for same the certain in said, we be systems time. and of they And be business the BEVs think protecting we've of while And we the to but DX, to at has. we run, matter agnostic the investments need, where adopting ICE book certain earlier, in OEM long necessary want listen, as But of impacting we be periods don't on we that that to to to will have want business, [ to the their selective essentially be investing too, Ram certain the choice again, how that's little the in want OEMs to to on continue exactly we're we support it's customers whatever relevant development. which ICE more bit market, technology And listen, have are shelf on placing we're on something ]. especially them. long just programs still give are market, the OEMs on It's the a propulsion core going of we highlighted investments hybrid and strong. the doing very and volume, the pocket EV, deep the So an and and what their the time, and making want to hedging we and of need EV

Chris May

hybrid recent internal of OEMs, they And from John, you the some and business. grow some which, if our at of supports EV-related some base engine combustion of the certainly not and look were announcements of course,

John Murphy

Yes. Great. Okay.

allocation comment one Just the on cap stuff.

paying the be think very time. down to accretive equity over debt could I

So keep that up.

David Dauch

Appreciate it. Thanks, John.

Operator

concludes David closing Lim session. This our over conference question. remarks. back I final any our question-and-answer for would to turn was like That to the

David Lim

on have forward we of the in who you. call you thank your certainly look with all to Thank AAM. participated talking and this future. appreciate interest you in Thanks. We And

Operator

for has Thank today's conference attending concluded. The presentation. now you

You disconnect. now may

American Axle & Manufacturing (AXL) 9 Aug 242024 Q2 Earnings call transcript