Nov 6, 2026, 8:00 AM ETConsumer Cyclical

Dauch Corporation — Third Quarter 2026 Earnings Summary

DCHDAUCH CORP

Financial Performance

Third quarter 2026 sales were $2.91 billion, compared to $1.51 billion in the third quarter of 2025.
Net loss attributable to Dauch was $(45.3) million, or $(0.19) per share, compared to net income of $9.2 million, or $0.07 per share, in the prior year period.
Adjusted EBITDA was $358.5 million (12.3% of sales), up from $195.7 million (13.0% of sales) in the third quarter of 2025.
Adjusted earnings per share was $0.22, down from $0.30 in the third quarter of 2025.
Net cash provided by operating activities was $150.1 million, compared to $143.3 million in the third quarter of 2025.
Adjusted free cash flow was $126.7 million, compared to $98.1 million in the third quarter of 2025.
Total assets as of September 30, 2026, were $10.92 billion, compared to $6.67 billion as of December 31, 2025.
Long-term debt, net, was $4.90 billion as of September 30, 2026, compared to $4.04 billion as of December 31, 2025.
Deferred revenue was $58.3 million total ($17.1 million current, $41.2 million long-term) as of September 30, 2026, compared to $72.4 million total ($38.5 million current, $33.9 million long-term) as of December 31, 2025.
Nine months ended September 30, 2026, net sales were $8.24 billion compared to $4.45 billion in the same period of 2025.
Nine months ended September 30, 2026, Adjusted EBITDA was $1.06 billion compared to $575.5 million in the same period of 2025.

Full year 2026 sales guidance is raised to $10.8 – $10.875 billion, previously $10.6 – $10.8 billion.
Full year 2026 Adjusted EBITDA guidance is lowered to $1.35 – $1.375 billion, previously $1.36 – $1.425 billion.
Synergy benefits included in the 2026 Adjusted EBITDA guidance are $70 – $75 million, previously $60 – $75 million, with a run rate expected to exceed $100 million by the end of year one.
Equity income from the China JV is maintained in the range of $70 – $80 million.
Full year 2026 Adjusted free cash flow guidance is lowered to $270 – $310 million, previously $260 – $325 million.
Restructuring cash payments for 2026 are projected at $135 – $150 million.
Synergy implementation cash payments for 2026 are projected at $85 – $100 million.
2026 production outlook assumes ~15.0 million units in North America, ~17.2 million in Europe, and ~31.0 million in China, totaling ~91.6 million globally.
Guidance assumes no changes to USMCA and mitigation of a majority of incremental tariff costs.

Driveline segment sales for Q3 2026 were $2.17 billion compared to $1.07 billion in Q3 2025; Adjusted EBITDA was $263.9 million compared to $163.3 million.
Metal Forming segment sales for Q3 2026 were $870.5 million compared to $543.3 million in Q3 2025; Adjusted EBITDA was $94.6 million compared to $32.4 million.
The acquisition of Dowlais Group plc (renamed Dowlais Group Limited) was the primary driver of year-over-year financial changes, with consolidation beginning February 3, 2026.
In Q1 2026, certain plant locations were moved from the Metal Forming segment to the Driveline segment to better align product and process technologies.
The company serves the global automotive industry with a powertrain-agnostic portfolio supporting electric, hybrid, and internal combustion vehicles.

The company operates in 24 countries with over 175 locations.
Management notes ongoing competition, including the proliferation of Chinese original equipment manufacturers in certain regions.
The company supports key customers including General Motors, Stellantis, and Ford.

Risks include global economic conditions, inflation, recession, and slower growth in operating markets.
Potential risks involve reduced purchases by major customers (GM, Stellantis, Ford) or reduced demand for their products, particularly light trucks and SUVs.
Integration risks related to the Dowlais business combination, including management time disruptions and potential liabilities.
Risks related to technology changes, pricing pressures, and the transition from internal combustion to hybrid and electric vehicle products.
Global operational risks include tariffs, trade agreement changes (USMCA), currency fluctuations, supply shortages, labor shortages, and geopolitical conflicts.
Cybersecurity risks, including sophisticated attacks incorporating artificial intelligence, and potential disruptions to IT systems.
Risks associated with pension obligations, environmental issues, and product liability or warranty claims.

Chairman and CEO David C. Dauch stated the company generated strong cash flow while supporting new program launches.
Management reported excellent progress on synergy realization and remains focused on delivering long-term value for stakeholders.
The tone reflects confidence in cash generation and integration progress despite the reported net loss.

The acquisition of Dowlais Group plc was completed on February 3, 2026.
The company is listed on the NYSE (DCH) and LSE (DCH).
A conference call was held on November 6, 2026, at 10:00 a.m. ET to review results.
Non-GAAP financial measures including Adjusted EBITDA, Adjusted EPS, and Adjusted Free Cash Flow are provided and reconciled to GAAP measures.
The company's business model unites engineering roots with global manufacturing capabilities following the combination of Dowlais, GKN Automotive, and GKN Powder Metallurgy.