A drive axle assembly is provided with a reduced part count and improved alignment. The assembly includes a drive axle housing with input and output shafts and an inter-axle differential that is driven by the input shaft. The inter-axle differential is drivingly coupled to the output shaft and divides power between first and second axles. The output shaft is a unitary member and defines a yoke at one end disposed outside of the drive axle housing and restrained against axial movement within the drive axle housing. A bearing set is disposed between the output shaft and the drive axle housing and includes first and second bearing cones and a unitary bearing cup. The bearing cup includes threads that engage corresponding threads in the drive axle housing.