Aug 7, 2026, 8:00 AM ETConsumer Cyclical

Dauch Corporation — Second Quarter 2026 Earnings Summary

DCHDAUCH CORP

Financial Performance

Sales for the second quarter of 2026 were $2.96 billion, compared to $1.54 billion in the second quarter of 2025.
Net income attributable to Dauch was $1.0 million in the second quarter of 2026, compared to $39.3 million in the second quarter of 2025.
Diluted earnings per share were $0.00 in the second quarter of 2026, compared to $0.32 in the second quarter of 2025.
Adjusted earnings per share were $0.32 in the second quarter of 2026, compared to $0.34 in the second quarter of 2025.
Adjusted EBITDA was $389.6 million (13.2% of sales) in the second quarter of 2026, compared to $202.1 million (13.2% of sales) in the second quarter of 2025.
Net cash provided by operating activities was $107.5 million in the second quarter of 2026, compared to $91.9 million in the second quarter of 2025.
Adjusted free cash flow was $148.4 million in the second quarter of 2026, compared to $48.7 million in the second quarter of 2025.
For the six months ended June 30, 2026, net cash provided by operating activities was $43.1 million, compared to $147.8 million in the prior year period.
For the six months ended June 30, 2026, Adjusted free cash flow was $107.6 million, compared to $44.8 million in the prior year period.
Total assets were $11.05 billion as of June 30, 2026, compared to $6.67 billion as of December 31, 2025.
Long-term debt, net, was $5.03 billion as of June 30, 2026, compared to $4.04 billion as of December 31, 2025.

Full year 2026 sales are now projected in the range of $10.6 billion to $10.8 billion, revised up from the previous range of $10.3 billion to $10.8 billion.
Full year 2026 Adjusted EBITDA is projected in the range of $1.36 billion to $1.425 billion, revised up from the previous range of $1.30 billion to $1.425 billion.
Synergy benefits included in the 2026 Adjusted EBITDA guidance are $60 million to $75 million, revised up from $50 million to $75 million, with a run rate expected to exceed $100 million by the end of year one.
Equity income from the China JV is projected to be $70 million to $80 million, revised up from $65 million to $75 million.
Full year 2026 Adjusted free cash flow is projected in the range of $260 million to $325 million, revised up from the previous range of $235 million to $325 million.
Capital expenditures are expected to be 4.5% to 5% of sales.
Restructuring cash payments are projected to be $115 million to $150 million.
Synergy implementation cash payments are projected to be $95 million to $110 million.
Production outlook assumes approximately 15.1 million units in North America, 16.9 million in Europe, 31.6 million in China, and 91.1 million globally.
Guidance assumes no changes to USMCA and mitigation of a majority of incremental tariff costs.

Driveline segment sales were $2.225 billion for the second quarter of 2026, compared to $1.107 billion in the second quarter of 2025.
Metal Forming segment sales were $861.7 million for the second quarter of 2026, compared to $545.0 million in the second quarter of 2025.
Driveline segment Adjusted EBITDA was $289.7 million for the second quarter of 2026, compared to $155.4 million in the second quarter of 2025.
Metal Forming segment Adjusted EBITDA was $99.9 million for the second quarter of 2026, compared to $46.7 million in the second quarter of 2025.
The acquisition of Dowlais Group plc (renamed Dowlais Group Limited) was the primary driver of year-over-year financial changes, with results consolidated starting February 3, 2026.
In the first quarter of 2026, certain plant locations were moved from the Metal Forming segment to the Driveline segment to better align product and process technologies.
Dauch serves the global automotive industry with a powertrain-agnostic portfolio supporting electric, hybrid, and internal combustion vehicles.

The company operates in 24 countries with more than 175 locations.
Management notes ongoing competition, including the proliferation of Chinese original equipment manufacturers in certain regions.
The company supports key programs and operates in an environment where it expects to mitigate a majority of incremental tariff costs.

Risks include global economic conditions, inflation, recession concerns, and slower growth in operating markets.
Potential reductions in purchases by major customers (GM, Stellantis, Ford) or reduced demand for their products, particularly light trucks and SUVs.
Risks related to the integration of the Dowlais business combination, including management time disruption and potential liabilities.
Risks associated with technology changes, pricing pressures, and the transition from internal combustion engine products to hybrid and electric vehicle products.
Risks inherent in global operations, including tariffs, trade agreements (USMCA), currency fluctuations, and geopolitical conflicts.
Supply chain risks including shortages of natural gas, labor shortages, and raw material price increases.
Risks related to cyber attacks, information technology system failures, and data security.
Risks of product recalls, warranty claims, and environmental compliance issues.
Risks related to pension obligations, labor relations, and work stoppages.

Chairman and CEO David C. Dauch stated that the strong second-quarter results highlight the continued positive acceleration for the new Dauch Corporation.
Management emphasized a focus on unlocking the full strategic potential of the transformational acquisition completed earlier in the year.
Management views non-GAAP measures (Adjusted EBITDA, Adjusted EPS, Adjusted Free Cash Flow) as useful for analyzing business performance and operational planning.

The company completed the Business Combination with Dowlais Group plc on February 3, 2026.
The press release includes supplemental data reconciling non-GAAP financial measures to GAAP measures.
A conference call to review results was scheduled for August 7, 2026, at 10:00 a.m. ET.
The company is listed on the NYSE (DCH) and LSE (DCH).
For the six months ended June 30, 2026, the company reported a net loss of $98.5 million and a diluted loss per share of $0.46.
Cash and cash equivalents were $880.8 million as of June 30, 2026, compared to $708.9 million as of December 31, 2025.
Accounts receivable increased to $1.517 billion as of June 30, 2026, from $733.0 million as of December 31, 2025.
Inventories increased to $1.000 billion as of June 30, 2026, from $466.4 million as of December 31, 2025.
Goodwill increased to $684.7 million as of June 30, 2026, from $174.4 million as of December 31, 2025.
Investments in equity-method affiliates increased to $889.9 million as of June 30, 2026, from $12.1 million as of December 31, 2025.