Doug Carson's questions to AMERICAN AXLE & MANUFACTURING HOLDINGS (AXL) leadership • Q2 2025
Question
Doug Carson of Bank of America asked for a refresh on the company's vision for the post-acquisition balance sheet, specifically inquiring about the expected leverage upon closing and the strategy for capital allocation and deleveraging in the coming years.
Answer
EVP & CFO Christopher May stated that AAM is striving for the transaction to be approximately leverage-neutral at close, around the current 2.8x level. Chairman & CEO David Dauch reiterated that the primary goal post-close is to use the combined entity's strong cash flow to deleverage, targeting an intermediate step of 2.5x leverage, at which point they would reevaluate broader capital allocation, including shareholder-friendly activities.