Dauch (DCH) UBS Auto and Auto Tech Conference 2026 summary

Opening remarks and business update

• Acquisition of Dowlais completed in early February, with strong Q1 operational and margin performance; leverage started at 2.7x, better than expected.

• Base business remains solid, with new awards and expanded relationships in China and Brazil; sideshaft product wins align with strategic goals.

• Integration of Dowlais is progressing well, with $5 million in Q1 synergy flow-through and a $35 million annualized run rate; targets are $100 million by year-end, $180 million by end of year two, and $300 million by year three.

Labor and operational challenges

• Three Rivers facility, the largest U.S. driveline plant with about 1,000 unionized workers, is experiencing a work stoppage; negotiations are ongoing.

• Facility generates $20–$25 million in weekly revenue, supplying key GM truck and van platforms; limited ability to shift production to other sites.

• Most Dowlais-acquired U.S. plants are non-unionized; union contracts are negotiated plant-by-plant, with expirations staggered annually.

Market outlook and production trends

• S&P forecasts show slight regional adjustments, but current volumes and demand, especially for GM full-size trucks, remain strong.

• No changes to production guidance; May sales were solid, supporting continued production strength.

• Inventory levels and production schedules are being monitored, with robust demand expected to persist despite labor disruptions.