Dauch (DCH) Bank of America Securities 2024 Leveraged Finance Conference summary

Company overview and business segments

• Operates in 80 locations across 18 countries with over 19,000 associates, focusing on driveline and metalforming segments for ICE, hybrid, and EV platforms.

• Leads in full-size pickup/SUV driveline systems and is a top global automotive forger with strong EV propulsion capabilities.

Financial performance and outlook

• Q3 revenues reached $1.5 billion, with adjusted EBITDA of $174.4 million (11.6% margin) and free cash flow of $74.6 million.

• Paid down $50 million in senior debt in Q3 and announced the sale of the India commercial vehicle business for $65 million, expected to close by year-end.

• 2024 outlook: revenues of $6.1–$6.15 billion, adjusted EBITDA of $715–$745 million, and free cash flow of $200–$220 million.

• Ended Q3 with $1.5 billion in liquidity, exceeding the $1 billion target.

Capital allocation and deleveraging

• Repaid $1.5 billion in senior debt since 2017, with no significant maturities until 2027.

• Net leverage ratio at 2.8x, targeting 2x over the medium term; focus remains on organic investment, R&D, and strategic M&A.

• No current authorization for dividends or share repurchases; may reconsider as leverage target is approached.