Dauch (DCH) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $2.96 billion, up 92% year-over-year, driven by the Dowlais acquisition and organic growth.

• Adjusted EBITDA for Q2 2026 was $389.6 million (13.2% margin), up from $202 million (13.2%) in Q2 2025.

• Net income attributable to shareholders was $1 million, compared to $39.3 million in Q2 2025, reflecting higher costs and integration expenses.

• Company recognized as Ford Supplier of the Year and won multiple new awards across regions, with active quoting for over $2 billion in new and incremental business.

• Completed the acquisition of Dowlais Group plc in early 2026, significantly expanding the global footprint and product portfolio.

Financial highlights

• Adjusted free cash flow for Q2 2026 was $148.4 million, up from $48.7 million in Q2 2025.

• Net debt at quarter-end was $4.15 billion, with a net leverage ratio of 2.6x.

• Net cash from operating activities was $107.5 million, up from $91.9 million year-over-year.

• Cash and cash equivalents at quarter-end were $880.8 million.

• Adjusted earnings per share for Q2 2026 was $0.32, nearly flat versus $0.34 in Q2 2025.

Outlook and guidance

• Full-year 2026 sales guidance raised to $10.6–$10.8 billion, with adjusted EBITDA of $1.36–$1.425 billion and adjusted free cash flow of $260–$325 million.

• Guidance reflects strong H1 performance, Dowlais integration, and expectations for key program launches in H2.

• Equity income from China JV projected at $70–$80 million.

• Capital expenditures expected at 4.5–5% of sales, with second-half spending weighted toward program launches.

• Significant restructuring and integration costs expected for the remainder of 2026.