Dauch Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Dauch (NYSE: DCH) reported Q1 2026 results on May 8, 2026 after completing the Dowlais acquisition. Q1 sales were $2.38 billion; net loss attributable to Dauch was $(100.3) million; Adjusted EBITDA was $308.5 million (13.0% of sales). Updated full-year 2026 targets: sales $10.3–$10.8B, Adjusted EBITDA $1.3–$1.425B, and adjusted free cash flow $235–$325M. Synergy run-rate expected >$100M by end of year one.
Positive
- Sales $2.38B in Q1 2026 (vs $1.41B Q1 2025)
- Adjusted EBITDA $308.5M (13.0% of sales) in Q1 2026
- Full-year sales target raised to $10.3–$10.8B for 2026
- Synergy benefits of $50–$75M included; >$100M run rate year one
Negative
- Net loss $(100.3M) attributable to Dauch in Q1 2026
- Operating cash use $(64.4M) in Q1 2026
- Adjusted free cash flow use $(40.8M) in Q1 2026
- Planned restructuring cash payments of $110–$150M in 2026
Key Figures
Market Reality Check
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 13 | Earnings results | Neutral | -14.0% | Reported Q4 and full-year 2025 results and initial 2026 financial targets. |
Limited earnings history; the prior earnings release coincided with a double‑digit share price decline.
Over the past months, Dauch has focused on integrating Dowlais and communicating its financial trajectory. The prior earnings release on Feb 13, 2026 detailed Q4 sales of $1.38B, full‑year 2025 sales of $5.84B, a full‑year net loss of $19.7M, and full‑year Adjusted EBITDA of $743.2M (12.7% of sales), alongside initial 2026 targets. Today’s first‑quarter 2026 results and updated outlook build directly on those earlier targets and the Dowlais acquisition.
Historical Comparison
In the last earnings release on Feb 13, 2026, Dauch’s shares moved -14% after Q4 and full-year 2025 results with 2026 targets. Today’s Q1 report and updated 2026 outlook follow that same earnings pattern.
Earnings communication has progressed from full‑year 2025 results with initial 2026 targets to Q1 2026 performance and a refined 2026 outlook that incorporates the Dowlais acquisition and related synergies.
Regulatory & Risk Context
An effective S-3ASR shelf filed on May 1, 2026 allows Dauch to offer debt, warrants, common stock, and preferred stock from time to time. Terms and amounts will be detailed in future prospectus supplements or term sheets, with proceeds intended for general corporate purposes including working capital, refinancing indebtedness, or acquisitions.
Market Pulse Summary
This announcement combines higher scale from the Dowlais acquisition with mixed profitability, including Q1 2026 sales of $2.38B, Adjusted EBITDA of $308.5M, and a net loss of $100.3M. The company also refined its 2026 targets, guiding sales to $10.3–$10.8B and Adjusted EBITDA to $1.3–$1.425B. Investors may watch execution on synergy plans, cash flow improvement, and any use of the effective S-3ASR shelf registration.
Key Terms
adjusted ebitda financial
adjusted free cash flow financial
non-gaap financial measures financial
ebitda financial
mark-to-market financial
foreign exchange derivatives financial
usmca regulatory
AI-generated analysis. Not financial advice.
Positive Momentum With The Dowlais Acquisition
First Quarter 2026 Results
- Sales of
$2.38 billion - Net loss attributable to Dauch of
$(100.3) million - Adjusted EBITDA* of
$308.5 million 13.0% of sales - Diluted loss per share of
$(0.52) $0.34 - Net cash provided by (used in) operating activities of
$(64.4) million ; Adjusted free cash flow use of$(40.8) million
"The company's first quarter results highlighted a strong start for the new Dauch Corporation," said Chairman and Chief Executive Officer, David C. Dauch. "As we begin to capture integration synergies and leverage our combined operational strengths, we are excited about the compelling value and long‑term strategic benefits of this transformational acquisition."
The acquisition of Dowlais Group plc (subsequently renamed Dowlais Group Limited) ("Dowlais") was the primary driver of year-over-year changes in financial results.
The company's sales in the first quarter of 2026 were
The company's net loss attributable to Dauch in the first quarter of 2026 was
Adjusted earnings per share in the first quarter of 2026 was
In the first quarter of 2026, Adjusted EBITDA was
The company's net cash provided by (used in) operating activities for the first quarter of 2026 was use of
The company's Adjusted free cash flow for the first quarter of 2026 was a use of
* For the three months ended March 31, 2026, based in part on our recent Business Combination and to more effectively measure our global business profile, we revised our definition of Adjusted EBITDA and Adjusted EPS to exclude the impact of unrealized foreign exchange gains and losses on acquired
Dauch's Updated 2026 Financial Outlook
Dauch's full year 2026 financial targets which include a partial year contribution from Dowlais (as of February 3, 2026 close) are as follows:
- Sales in the range of
$10.3 $10.8 billion $10.3 $10.7 billion - Adjusted EBITDA in the range of
$1.3 $1.425 billion $1.3 $1.4 billion - Adjusted EBITDA includes synergy benefits of
$50 $75 million $100 million - Equity income from our China JV (which is included in Adjusted EBITDA) in the range of
$65 $75 million - Adjusted free cash flow in the range of
$235 $325 million - Capital expenditures in the range of
4.5% to5% of sales. - Restructuring cash payments of
$110 $150 million - Synergy implementation cash payments of
$100 $125 million
These targets are based on the following assumptions for 2026:
- Production outlook:
Global | |||
~15.0 million | ~16.7 million | ~32.3 million | ~91.4 million |
- Production estimates of key programs that we support and the current operating environment.
- No changes to USMCA and mitigation of a majority of incremental tariff costs.
First Quarter 2026 Conference Call Information
A conference call to review Dauch's first quarter results is scheduled for today at 10:00 a.m. ET. Interested participants may listen to the live conference call by logging onto Dauch's investor web site at www.dauch.com or calling (877) 883-0383 from
Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles generally accepted in
Certain of the forward-looking financial measures included in this earnings release are provided on a non-GAAP basis. A reconciliation of non-GAAP forward-looking financial measures to the most directly comparable forward-looking financial measures calculated and presented in accordance with GAAP has been provided. The amounts in these reconciliations are based on our current estimates and actual results may differ materially from these forward-looking estimates for many reasons, including potential event driven transactional and other non-core operating items and their related effects in any future period, the magnitude of which may be significant.
Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of Dauch's business and operating performance. Management also uses this information for operational planning and decision-making purposes.
Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, non-GAAP financial measures as presented by Dauch may not be comparable to similarly titled measures reported by other companies.
Definition of Non-GAAP Financial Measures
Dauch defines Adjusted earnings per share to be diluted earnings (loss) per share excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our Business Combination with Dowlais, net interest on debt held in escrow, gains or losses on equity securities, impairment charges, unrealized foreign exchange gains and losses on acquired
Dauch defines EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. As revised, Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our Business Combination with Dowlais, interest income on debt held in escrow, gains or losses on equity securities, impairment charges, unrealized foreign exchange gains and losses on acquired
Dauch defines free cash flow to be net cash provided by (used in) operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs and interest income on debt held in escrow.
Company Description
Dauch Corporation is a premier Driveline and Metal Forming supplier serving the global automotive industry with a powertrain-agnostic product portfolio that supports electric, hybrid, and internal combustion vehicles. The company is headquartered in
Forward-Looking Statements
In this earnings release, we make statements concerning our expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and relate to trends and events that may affect our future financial position and operating results. The terms such as "will," "may," "could," "would," "plan," "believe," "expect," "anticipate," "intend," "project," "target," and similar words or expressions, as well as statements in future tense, are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and may differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: global economic conditions, including the impact of inflation, recession or recessionary concerns, or slower growth in the markets in which we operate; reduced purchases of our products by General Motors Company (GM), Stellantis N.V. (Stellantis) and Ford Motor Company (Ford) or other customers; reduced demand for our customers' products (particularly light trucks and sport utility vehicles (SUVs) produced by GM, Stellantis and Ford); our ability to consummate strategic initiatives and successfully integrate acquisitions and joint ventures; risks related to disruptions to ongoing business operations as a result of the business combination with Dowlais, including disruptions to management time; potential liabilities or litigation relating to, or assumed in, the business combination with Dowlais; our ability to respond to changes in technology, increased competition, including as a result of the ongoing proliferation of Chinese original equipment manufacturers in certain regions in which we operate, or pricing pressures; our ability to develop and produce new products that reflect market demand; lower-than-anticipated market acceptance of new or existing products; our ability to attract new customers and programs for new products; risks inherent in our global operations (including tariffs and the potential consequences thereof to us, our suppliers, and our customers and their suppliers, adverse changes in trade agreements, such as
For more information:
Investor Contact
David H. Lim
Head of Investor Relations
(313) 758-2006
david.lim@aam.com
Media Contact
Christopher M. Son
Vice President, Marketing & Communications
(313) 758-4814
chris.son@aam.com
Or visit the Dauch website at www.dauch.com.
DAUCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
| |||
Three Months Ended | |||
March 31, | |||
2026 | 2025 | ||
(in millions, except per share data) | |||
Net sales | $ 2,378.9 | $ 1,411.3 | |
Cost of goods sold | 2,153.5 | 1,237.4 | |
Gross profit | 225.4 | 173.9 | |
Selling, general and administrative expenses | 137.3 | 90.9 | |
Amortization of intangible assets | 22.9 | 20.6 | |
Restructuring and acquisition-related costs | 98.9 | 19.7 | |
Operating income (loss) | (33.7) | 42.7 | |
Interest expense | (89.6) | (42.9) | |
Interest income | 12.1 | 5.6 | |
Other income (expense): | |||
Debt refinancing and redemption costs | (3.0) | (3.3) | |
Gain on Business Combination Derivative | 12.9 | 21.9 | |
Income from equity-method affiliates | 10.3 | 0.1 | |
Other expense, net | (28.6) | (3.0) | |
Income (loss) before income taxes | (119.6) | 21.1 | |
Income tax expense (benefit) | (19.6) | 14.0 | |
Net income (loss) | $ (100.0) | $ 7.1 | |
Net income attributable to noncontrolling interests | (0.3) | — | |
Net income (loss) attributable to Dauch | $ (100.3) | $ 7.1 | |
Diluted earnings (loss) per share | $ (0.52) | $ 0.06 | |
DAUCH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
| |||
March 31, 2026 | December 31, 2025 | ||
(Unaudited) | |||
ASSETS | (in millions) | ||
Current assets | |||
Cash and cash equivalents | $ 1,008.2 | $ 708.9 | |
Restricted cash | — | 1,496.6 | |
Accounts receivable, net | 1,535.1 | 733.0 | |
Inventories, net | 1,004.1 | 466.4 | |
Prepaid expenses and other | 344.3 | 230.1 | |
Total current assets | 3,891.7 | 3,635.0 | |
Property, plant and equipment, net | 4,209.3 | 1,591.5 | |
Deferred income taxes | 320.1 | 235.9 | |
Goodwill | 648.8 | 174.4 | |
Other intangible assets, net | 370.4 | 375.2 | |
GM postretirement cost sharing asset | 117.7 | 116.0 | |
Operating lease right-of-use assets | 183.5 | 122.3 | |
Investments in equity-method affiliates | 911.3 | 12.1 | |
Other assets and deferred charges | 619.3 | 407.8 | |
Total assets | $ 11,272.1 | $ 6,670.2 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities | |||
Current portion of long-term debt | $ — | $ 10.4 | |
Accounts payable | 1,641.9 | 718.3 | |
Accrued compensation and benefits | 548.7 | 254.9 | |
Deferred revenue | 32.8 | 38.5 | |
Current portion of operating lease liabilities | 39.7 | 24.7 | |
Accrued expenses and other | 524.5 | 187.2 | |
Total current liabilities | 2,787.6 | 1,234.0 | |
Long-term debt, net | 5,156.7 | 4,039.1 | |
Deferred revenue | 42.1 | 33.9 | |
Deferred income taxes | 224.5 | 9.1 | |
Long-term portion of operating lease liabilities | 145.5 | 100.1 | |
Postretirement benefits and other long-term liabilities | 1,412.1 | 614.0 | |
Total liabilities | 9,768.5 | 6,030.2 | |
Total Dauch stockholders' equity | 1,498.3 | 640.0 | |
Noncontrolling interest in subsidiaries | 5.3 | — | |
Total stockholders' equity | 1,503.6 | 640.0 | |
Total liabilities and stockholders' equity | $ 11,272.1 | $ 6,670.2 | |
DAUCH CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
| |||
Three Months Ended | |||
March 31, | |||
2026 | 2025 | ||
(in millions) | |||
Operating activities | |||
Net income (loss) | $ (100.0) | $ 7.1 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 181.8 | 112.2 | |
Other | (146.2) | (63.4) | |
Net cash provided by (used in) operating activities | (64.4) | 55.9 | |
Investing activities | |||
Purchases of property, plant and equipment | (103.6) | (69.3) | |
Proceeds from sale of property, plant and equipment | 0.9 | 0.6 | |
Acquisition of business, net of cash acquired | (331.6) | (0.6) | |
Proceeds from sale of business, net | 20.8 | — | |
Proceeds from disposition of affiliates | — | 30.1 | |
Settlement of Business Combination Derivative | 65.9 | — | |
Other | 0.1 | (1.0) | |
Net cash used in investing activities | (347.5) | (40.2) | |
Financing activities | |||
Net debt activity | (761.3) | (15.8) | |
Other | (14.2) | (8.2) | |
Net cash used in financing activities | (775.5) | (24.0) | |
Effect of exchange rate changes on cash | (9.9) | 4.6 | |
Net decrease in cash, cash equivalents and restricted cash | (1,197.3) | (3.7) | |
Cash, cash equivalents and restricted cash at beginning of period | 2,205.5 | 552.9 | |
Cash and cash equivalents at end of period | $ 1,008.2 | $ 549.2 | |
DAUCH CORPORATION SUPPLEMENTAL DATA (Unaudited) | |||
The supplemental data presented below is a reconciliation of certain financial measures which is intended to facilitate analysis of Dauch Corporation business and operating performance. | |||
Earnings before interest expense, income taxes and depreciation and amortization (EBITDA) and Adjusted EBITDA(a) | |||
Three Months Ended | |||
March 31, | |||
2026 | 2025(1) | ||
(in millions) | |||
Net income (loss) | $ (100.0) | $ 7.1 | |
Interest expense | 89.6 | 42.9 | |
Income tax expense (benefit) | (19.6) | 14.0 | |
Depreciation and amortization | 181.8 | 112.2 | |
EBITDA | 151.8 | 176.2 | |
Restructuring and acquisition-related costs | 98.9 | 19.7 | |
Debt refinancing and redemption costs | 3.0 | 3.3 | |
Gain on Business Combination Derivative | (12.9) | (21.9) | |
Unrealized foreign exchange loss on acquired | 10.9 | — | |
Mark-to-market on nondesignated foreign exchange derivatives assumed as part of the Business Combination with Dowlais | 15.6 | — | |
Loss on disposal of property, plant and equipment | 3.7 | 0.4 | |
Interest income on debt in escrow | (4.6) | — | |
Amortization of acquisition intangible asset attributable to SDS | 4.4 | — | |
Non-recurring items: | |||
Acquisition-related fair value inventory adjustment | 37.7 | — | |
Adjusted EBITDA | $ 308.5 | $ 177.7 | |
(1) The amounts in the table above are presented based upon our revised definition of Segment Adjusted EBITDA and amounts that were reported under the previous definition have been recast. Please refer to note (a) on page 12. |
In connection with the Business Combination with Dowlais, the Company acquired long-term debt in the form of Dowlais |
Adjusted earnings per share(b) | |||
Three Months Ended | |||
March 31, | |||
2026 | 2025(1) | ||
Diluted earnings (loss) per share | $ (0.52) | $ 0.06 | |
Restructuring and acquisition-related costs | 0.49 | 0.16 | |
Debt refinancing and redemption costs | 0.01 | 0.03 | |
Gain on Business Combination Derivative | (0.06) | (0.18) | |
Unrealized foreign exchange loss on acquired | 0.05 | — | |
Mark-to-market on nondesignated foreign exchange derivatives assumed as part of the Business Combination with Dowlais | 0.08 | — | |
Loss on disposal of property, plant and equipment | 0.02 | — | |
Net interest on debt held in escrow | 0.04 | — | |
Amortization of intangible assets from acquisitions | 0.11 | 0.17 | |
Amortization of acquisition intangible asset attributable to SDS | 0.02 | — | |
Non-recurring items: | |||
Acquisition-related fair value inventory adjustment | 0.19 | — | |
Tax effect of adjustments | (0.09) | (0.02) | |
Adjusted earnings per share | $ 0.34 | $ 0.22 | |
Adjusted earnings per share are based on weighted average diluted shares outstanding of 200.4 million and 122.6 million for the three months ended March 31, 2026 and 2025 respectively.
|
1) The amounts in the table above are presented based upon our revised definition of Adjusted earnings per share and amounts that were reported under the previous definition have been recast. Please refer to note (b) on page 12.
|
In connection with the Business Combination with Dowlais, the Company acquired long-term debt in the form of Dowlais |
DAUCH CORPORATION SUPPLEMENTAL DATA (Unaudited) | |||
The supplemental data presented below is a reconciliation of certain financial measures which is intended | |||
Free cash flow and Adjusted free cash flow(c) | |||
Three Months Ended | |||
March 31, | |||
2026 | 2025 | ||
(in millions) | |||
Net cash provided by (used in) operating activities | $ (64.4) | $ 55.9 | |
Less: Capital expenditures net of proceeds from the sale of property, plant and equipment | (102.7) | (68.7) | |
Free cash flow | $ (167.1) | $ (12.8) | |
Cash payments for restructuring costs | 35.8 | 2.6 | |
Cash payments for acquisition-related costs | 86.7 | 6.3 | |
Cash payments for synergy integration costs | 8.4 | — | |
Interest income on debt held in escrow | (4.6) | — | |
Adjusted free cash flow | $ (40.8) | $ (3.9) | |
Segment Financial Information(d)
| |||
Three Months Ended | |||
March 31, | |||
2026 | 2025 | ||
(in millions) | |||
Segment Sales | |||
Driveline | $ 1,769.1 | $ 987.0 | |
Metal Forming | 726.2 | 525.5 | |
Total Sales | 2,495.3 | 1,512.5 | |
Intersegment Sales | (116.4) | (101.2) | |
Net External Sales | $ 2,378.9 | $ 1,411.3 | |
Segment Adjusted EBITDA(a) | |||
Driveline | $ 238.8 | $ 132.7 | |
Metal Forming | 69.7 | 45.0 | |
Total Segment Adjusted EBITDA | $ 308.5 | $ 177.7 | |
Full Year 2026 Financial Outlook | |||
Adjusted EBITDA | |||
Low End | High End | ||
(in millions) | |||
Net loss | $ (335) | $ (180) | |
Interest expense | 350 | 350 | |
Income tax expense | 70 | 40 | |
Depreciation and amortization | 825 | 825 | |
Full year 2026 targeted EBITDA | 910 | 1,035 | |
Acquisition-related costs | 65 | 65 | |
Restructuring costs | 120 | 120 | |
Synergy integration costs | 115 | 115 | |
Acquisition-related fair value inventory adjustment | 38 | 38 | |
Amortization of acquisition intangible asset attributable to SDS | 25 | 25 | |
Unrealized foreign exchange loss on acquired | 11 | 11 | |
Market-to-market on nondesignated foreign exchange derivatives assumed as | 16 | 16 | |
Full year 2026 targeted Adjusted EBITDA | $ 1,300 | $ 1,425 | |
Adjusted Free Cash Flow | |||
Low End | High End | ||
(in millions) | |||
Net cash provided by operating activities | $ 385 | $ 410 | |
Capital expenditures net of proceeds from the sale of property, plant and | (500) | (500) | |
Full year 2026 targeted Free Cash Flow | (115) | (90) | |
Cash payments for acquisition-related costs | 140 | 140 | |
Subtotal | 25 | 50 | |
Cash payments for restructuring costs | 110 | 150 | |
Cash payments for synergy integration costs | 100 | 125 | |
Full year 2026 targeted Adjusted Free Cash Flow | $ 235 | $ 325 | |
___________ | |
(a) | We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. As revised, Adjusted EBITDA is defined as EBITDA excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our Business Combination with Dowlais, interest income on debt held in escrow, gains or losses on equity securities, impairment charges, unrealized foreign exchange gains and losses on acquired |
(b) | We define Adjusted earnings per share to be diluted earnings (loss) per share excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our Business Combination with Dowlais, net interest on debt held in escrow, gains or losses on equity securities, impairment charges, unrealized foreign exchange gains and losses on acquired |
(c) | We define free cash flow to be net cash provided by (used in) operating activities less capital expenditures net of proceeds from the sale of property, plant and equipment. Adjusted free cash flow is defined as free cash flow excluding the impact of cash payments for restructuring and acquisition-related costs and interest income on debt held in escrow. We believe free cash flow and Adjusted free cash flow are meaningful measures as they are commonly utilized by management and investors to assess our ability to generate cash flow from business operations to repay debt and return capital to our stockholders. Free cash flow and Adjusted free cash flow are also key metrics used in our calculation of incentive compensation. Other companies may calculate free cash flow and Adjusted free cash flow differently. |
(d) | On February 3, 2026, we completed the Business Combination and we began consolidating the results of Dowlais on that date, which are reported in our Driveline and Metal Forming segments for the three months ended March 31, 2026. Additionally, in the first quarter of 2026, we moved certain plant locations that were previously reported under our Metal Forming segment to our Driveline segment in order to better align our product and process technologies. The amounts in the Segment Financial Information tables for the three months ended March 31, 2025 have been recast to reflect this reorganization. |
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SOURCE Dauch Corporation