American Axle’s adjusted free cash flow for the fourth quarter rose 127 percent to $99 million, while its adjusted free cash flow for the full year fell 25 percent to $313 million. The company used its free cash flow throughout the year to “strengthen the balance sheet” by reducing debt, CFO Chris May said.
To manage ongoing challenges, Dauch said the company has been continuing its strategy of securing its “legacy core business” while further investing in electrification.
“We are actively positioning to be the electric propulsion supplier of choice,” May added.
This transition was reflected in the supplier’s new business backlog of $725 million in future annual sales, 40 percent of which is electrification mix, up from 35 percent in the previous backlog.
The company also announced plans to supply Jupiter Electric Mobility its first e-beam axle for the 2.2-ton battery electric light commercial vehicle.
Executives offered a 2023 revenue target range of $5.95 billion to $6.25 billion and an earnings before interest, taxes, depreciation and amortization range of $725 million to $800 million.
Shares in American Axle slipped 8 percent to close at $9.25 on Friday.
American Axle ranks No. 43 on the Automotive News list of the top 100 global suppliers, with worldwide parts sales to automakers of $5.16 billion in 2021.