Dauch (DCH) Q4 2025 earnings summary

Executive summary

• Completed transformational acquisition of Dowlais, creating a leading global driveline and metal forming supplier and expanding global presence.

• Achieved Q4 2025 sales of $1.38–$1.4 billion and full year sales of $5.8–$5.84 billion, with strong adjusted EBITDA margins of 12.2% for Q4 and 12.7% for the year.

• Rebranded as Dauch Corporation, signaling a unified global presence and commitment to operational excellence.

• Announced significant new business wins, including supplying SmartBar to Scout Motors and receiving supplier awards from Chery and GM.

• Net loss for 2025 was $19.7 million, impacted by restructuring and acquisition-related costs.

Financial highlights

• Q4 2025 adjusted EBITDA was $169 million (12.2% margin); full year adjusted EBITDA was $743 million (12.7% margin, up 50 bps year-over-year).

• Q4 2025 adjusted free cash flow was $70 million; full year was $213 million, compared to $230 million in 2024.

• Q4 2025 adjusted EPS was $0.07; full year adjusted EPS was $0.53, up from $0.51 in 2024.

• Net debt at year-end 2025 was $1.8–$1.84 billion, with a net leverage ratio of 2.5x, down from 2.8x a year ago.

• Cash and cash equivalents at year-end 2025 were $708.9 million, up from $552.9 million in 2024.

Outlook and guidance

• 2026 sales guidance: $10.3–$10.7 billion, reflecting partial year Dowlais contribution.

• 2026 adjusted EBITDA guidance: $1.3–$1.4 billion; adjusted free cash flow: $235–$325 million.

• CapEx expected at 4.5–5% of sales; restructuring and synergy implementation cash payments expected to total $210–$275 million in 2026.

• Synergy realization from Dowlais deal expected to reach $300 million by year three, with $50–$75 million in 2026 EBITDA and $100 million run rate by year-end.

• 2026 production outlook: North America ~15 million, Europe ~16.9 million, China ~32.7 million, global ~92.6 million units.