A drive axle assembly comprises a carrier member having a trunnion outwardly extending from the carrier member, an output shaft axially outwardly extending from the carrier member, a differential assembly including a differential case supported for rotation within the carrier member and a side gear rotatably mounted about the output shaft, a clutch collar non-rotatably coupled thereto and configured to selectively drivingly engage the side gear, and an annular clutch actuator for axially moving the clutch collar between a first position and a second position. The clutch collar drivingly engages the side gear in power transmitting relationship in the first position, while the clutch collar is disengaged from the side gear in the second position.