Dauch (DCH) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales were $1.51 billion, nearly flat year-over-year, with adjusted EBITDA of $194.7 million (12.9% margin) and net income of $9.2 million; adjusted free cash flow rose to $98.1 million.

• The planned acquisition of Dowlais Group plc is progressing, with regulatory clearance in 8 of 10 jurisdictions and closing expected in Q1 2026; permanent financing has been completed.

• Multiple new and replacement program wins, especially in heavy-duty trucks, support a propulsion-agnostic product portfolio.

• The company completed the sale of its India business, impacting year-over-year revenue and EBITDA.

Financial highlights

• Gross profit for Q3 2025 was $189 million, with gross margin improving to 12.6% from 11.4% year-over-year.

• Adjusted EBITDA was $194.7 million (12.9% margin), up from $174.4 million (11.6%) last year.

• Net income was $9.2 million ($0.07/share), down from $10 million ($0.08/share) last year; adjusted EPS was $0.16, down from $0.20.

• Adjusted free cash flow for Q3 2025 was $98.1 million, up from $74.6 million a year ago.

• Cash and cash equivalents at quarter-end were $714.1 million, with total liquidity of $1.7 billion.

Outlook and guidance

• Full-year 2025 sales guidance is $5.8–$5.9 billion, with adjusted EBITDA of $710–$745 million and adjusted free cash flow of $180–$210 million.

• Guidance assumes North American light vehicle production of 15.1 million units and excludes Dowlais-related costs.

• Capital expenditures for 2025 are expected to be about 5% of sales, with $20 million in restructuring cash payments.

• 2026 guidance will be provided early next year, with a focus on cost efficiency and synergy realization post-acquisition.

• Full-year 2025 restructuring charges are expected to be $40–50 million; acquisition-related costs for the Dowlais deal are projected at $50–60 million.