Dauch (DCH) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results include Dowlais acquisition, with integration synergies and operational strengths already being realized.

• Sales reached $2.4 billion, adjusted EBITDA was $308.5 million (13% margin), and adjusted EPS was $0.34.

• Adjusted free cash flow was a use of $41 million in Q1 2026.

• Completed the sale of a former Dowlais subsidiary, generating $21 million in proceeds.

• Positive customer feedback on acquisition and ongoing constructive discussions with major OEMs.

Financial highlights

• Q1 2026 sales: $2.38 billion, up from $1.41 billion in Q1 2025, driven by Dowlais contribution.

• Adjusted EBITDA: $308.5 million (13% margin), up from $177.7 million (12.6%) year-over-year.

• Adjusted EPS: $0.34 vs. $0.22 in Q1 2025.

• Net cash used in operating activities: $64.4 million; adjusted free cash flow: -$40.8 million.

• Net debt: $4.1 billion; net leverage ratio: 2.7x at March 31, 2026.

• Total available liquidity: $2.6 billion; cash and cash equivalents: $1.01 billion at quarter-end.

Outlook and guidance

• Full-year 2026 sales guidance: $10.3–$10.8 billion; adjusted EBITDA: $1.3–$1.425 billion.

• Adjusted free cash flow guidance: $235–$325 million.

• Production assumptions: North America 15M units, Europe 16.7M, China 32.3M, global 91.4M units.

• CapEx expected at 4.5–5% of sales; focus on major truck program launches.

• Guidance reflects strong Q1, synergy realization, and macro risks (energy/fuel costs, geopolitical events).