Dauch (DCH) Q3 2026 earnings summary

Executive summary

• Q3 sales were $2,908.6M, adjusted EBITDA was $358.5M, and adjusted free cash flow was $126.7M; the Dowlais acquisition was the primary driver of year-over-year sales growth.

• Net loss attributable was $45.3M versus net income of $9.2M a year earlier; adjusted EPS was $0.22.

• Run-rate synergies reached $100M by Nov. 6, ahead of schedule; the year-one target is above $100M and the total annual run-rate target is ~$300M.

Financial highlights

• Q3 sales were $2,908.6M versus $1,505.3M in Q3 2025; adjusted EBITDA was $358.5M versus $195.7M.

• Adjusted EBITDA margin was 12.3% versus 13.0%; gross profit was $282.2M versus $189.0M, and operating income was $71.8M versus $48.4M.

• Operating cash flow was $150.1M versus $143.3M; adjusted free cash flow was $126.7M versus $98.1M.

• Nine-month sales were $8,243.1M and adjusted EBITDA was $1,056.6M, with a 12.8% margin.

Outlook and guidance

• FY2026 sales guidance rose to $10.8B–$10.875B from $10.6B–$10.8B; adjusted EBITDA guidance fell to $1.35B–$1.375B from $1.36B–$1.425B.

• Adjusted free cash flow guidance narrowed to $270M–$310M from $260M–$325M; China JV equity income is expected at $70M–$80M.

• Forecast restructuring cash payments are $135M–$150M and synergy implementation cash payments are $85M–$100M; capital spending is expected at ~4% of sales.

• Guidance assumes global production of ~91.6M vehicles, no USMCA changes, and mitigation of most incremental tariff costs.

• Adjusted effective tax rate is expected at 25%–30%; 2026 cash taxes are expected at $165M–$175M.