Dauch (DCH) Q4 2023 earnings summary

Executive summary

• FY 2023 sales rose to $6,079.5M from $5,802.4M; Adjusted EBITDA declined to $693.3M from $747.3M, and net results swung to a $33.6M loss from $64.3M income.

• Q4 sales were $1,463.0M versus $1,392.7M; Adjusted EBITDA was $169.5M and net loss was $19.1M.

Financial highlights

• Q4 gross profit was $154.9M versus $167.2M, with gross margin of 10.6% versus 12.0%; Adjusted EBITDA margin was 11.6% versus 11.3%.

• FY gross profit was $624.3M versus $704.9M, with gross margin of 10.3% versus 12.1%; Adjusted EBITDA margin was 11.4% versus 12.9%.

• FY diluted loss per share was $0.29 versus EPS of $0.53; adjusted loss per share was $0.09 versus adjusted EPS of $0.60.

• Q4 adjusted loss per share was $0.09 versus adjusted EPS of $0.07.

• FY adjusted free cash flow was $219.0M versus $313.0M; Q4 adjusted free cash flow was $4.5M versus $99.0M.

Outlook and guidance

• 2024 targets: sales of $6.05B–$6.35B, Adjusted EBITDA of $685M–$750M, and Adjusted Free Cash Flow of $200M–$240M.

• Guidance assumes North American light vehicle production of 15.8M units, current customer production and launch schedules, and prevailing operating conditions.

• Adjusted Free Cash Flow guidance assumes capital spending of 4.0%–4.5% of sales; restructuring and acquisition-related cash payments are expected at $15M–$25M.

• Sales walk cites $300M new backlog, $220M attrition, $20M pricing, and $60M midpoint volume, mix and other contribution.