Dauch (DCH) Q4 2025 earnings summary

Executive summary

• Completed transformational acquisition of Dowlais, creating a leading global driveline and metal forming supplier with a diversified product portfolio and customer base.

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

• Adjusted EPS for 2025 was $0.53, up from $0.51 in 2024; net loss for 2025 was $19.7 million, impacted by restructuring and acquisition costs.

• Rebranded as Dauch Corporation, signaling a new era of operational excellence and global reach.

• Recognized for supplier excellence by Chery Auto and GM, and secured new business with Scout Motors for key EV components.

Financial highlights

• Q4 2025 adjusted EBITDA was $169 million (12.2% margin); full year adjusted EBITDA was $743 million (12.7% margin).

• Adjusted free cash flow for 2025 was $213 million; Q4 2025 adjusted free cash flow was $70 million.

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

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

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

• Guidance includes partial year contribution from Dowlais and $50–$75 million in synergy benefits for 2026.

• CapEx expected at 4.5–5% of sales in 2026; restructuring and synergy integration cash outflows projected at $210–$275 million.

• Adjusted EBITDA includes $65–$75 million equity income from China JV.

• Production outlook for 2026: North America ~15M, Europe ~16.9M–17M, China ~32.7M–33M, global ~92.6M–93M units.