Dauch swings to $45.3M net loss in Q3 2026
Adjusted free cash flow was $126.7 million, while adjusted earnings per share was $0.22 for the quarter.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Dauch Corporation (DCH) reported third-quarter 2026 sales of $2.91 billion, compared with $1.51 billion a year earlier; the company said the Dowlais acquisition was the primary driver of year-over-year changes. Dauch recorded a $45.3 million net loss attributable to Dauch, versus $9.2 million net income, and diluted loss per share of $0.19 versus earnings of $0.07. Adjusted EBITDA was $358.5 million, or 12.3% of sales, versus $195.7 million, or 13.0%; adjusted earnings per share were $0.22 versus $0.30.
Net cash from operating activities was $150.1 million versus $143.3 million, and adjusted free cash flow was $126.7 million versus $98.1 million. Full-year 2026 targets are sales of $10.8 billion to $10.875 billion (previously $10.6 billion to $10.8 billion), adjusted EBITDA of $1.35 billion to $1.375 billion (previously $1.36 billion to $1.425 billion), and adjusted free cash flow of $270 million to $310 million (previously $260 million to $325 million). Targets include a partial year contribution from Dowlais (as of February 3, 2026 close); adjusted EBITDA includes $70 million to $75 million in synergy benefits, equating to a run rate greater than $100 million by the end of year one.
3 points · 0 major0 major · 3 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointSales were $2.91 billion, with Dowlais the primary year-over-year driver.
- Moderate pointAdjusted EBITDA was $358.5 million, versus $195.7 million.
- Moderate pointAdjusted free cash flow was $126.7 million, versus $98.1 million.
Negative
- Moderate pointDauch reported a $45.3 million net loss, versus $9.2 million net income.
- Moderate pointAdjusted earnings per share was $0.22, versus $0.30.
- Minor pointAdjusted EBITDA was 12.3% of sales, versus 13.0%.
Filing Explained
The reconciliation reports third-quarter free cash flow versus adjusted free cash flow of
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Third-quarter sales: $2.91 billion
Net loss attributable to Dauch: $45.3 million loss
Adjusted EBITDA: $358.5 million
+5 more
8 metrics
Third-quarter sales
$2.91 billion
Three months ended September 30, 2026; $1.51 billion in the third quarter of 2025.
Net loss attributable to Dauch
$45.3 million loss
Three months ended September 30, 2026; $9.2 million net income in the third quarter of 2025.
Adjusted EBITDA
$358.5 million
Three months ended September 30, 2026; 12.3% of sales, versus $195.7 million and 13.0% in the third quarter of 2025.
Adjusted earnings per share
$0.22
Third quarter 2026; $0.30 in the third quarter of 2025.
Net cash provided by operating activities
$150.1 million
Three months ended September 30, 2026; $143.3 million in the third quarter of 2025.
Adjusted free cash flow
$126.7 million
Three months ended September 30, 2026; $98.1 million in the third quarter of 2025.
Full-year 2026 sales target
$10.8 billion to $10.875 billion
Updated target; previously $10.6 billion to $10.8 billion.
Full-year 2026 adjusted EBITDA target
$1.35 billion to $1.375 billion
Updated target; previously $1.36 billion to $1.425 billion.
Key Terms
Adjusted EBITDA, Adjusted free cash flow, Business Combination Derivative, non-GAAP financial measures
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA was $358.5 million"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Adjusted free cash flow financial
"Adjusted free cash flow was $126.7 million"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
Business Combination Derivative financial
"Gain (loss) on Business Combination Derivative"
non-GAAP financial measures financial
"provided certain information, that includes non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
Sales: $2.91 billion · Guidance included
Third quarter 2026
Sales
$2.91 billion
Compared with $1.51 billion in the third quarter of 2025.
Net loss attributable to Dauch
$45.3 million loss
Compared with $9.2 million net income in the third quarter of 2025.
Adjusted EBITDA
$358.5 million, or 12.3% of sales
Compared with $195.7 million, or 13.0% of sales, in the third quarter of 2025.
Diluted earnings (loss) per share
$(0.19)
Compared with $0.07 in the third quarter of 2025.
Adjusted earnings per share
$0.22
Compared with $0.30 in the third quarter of 2025.
Net cash provided by operating activities
$150.1 million
Compared with $143.3 million in the third quarter of 2025.
Adjusted free cash flow
$126.7 million
Compared with $98.1 million in the third quarter of 2025.
Guidance
Full-year 2026 targets are sales of $10.8 billion to $10.875 billion, adjusted EBITDA of $1.35 billion to $1.375 billion, and adjusted free cash flow of $270 million to $310 million. The targets include a partial year contribution from Dowlais (as of February 3, 2026 close).
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What production assumptions underpin DCH's 2026 outlook?
Dauch's 2026 targets assume production outlook estimates of approximately 15.0 million for North America, 17.2 million for Europe, 31.0 million for China and 91.6 million globally. Other assumptions include no changes to USMCA and mitigation of a majority of incremental tariff costs.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 6, 2026
(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation)
| (Commission File Number) | (IRS Employer Identification No.) | ||||
| (Address of Principal Executive Offices) | (Zip Code) | ||||
| | |||||
| (Registrant's Telephone Number, Including Area Code) | |||||
| (Former Name or Former Address, if Changed Since Last Report) | |||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
SECTION 2 - FINANCIAL INFORMATION
Item 2.02 Results of Operations and Financial Condition
On November 6, 2026, Dauch Corporation, (“Dauch”) issued a press release regarding Dauch's financial results for the third quarter 2026. A copy of this press release is furnished as Exhibit 99.1.
SECTION 7 - REGULATION FD
Item 7.01 Regulation FD Disclosure
See Item 2.02 Result of Operations and Financial Condition.
SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS
Item 9.01 Financial Statements and Exhibits
| Exhibit No. | Description | ||||||||||
99.1 | Press release dated | November 6, 2026 | |||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
| DAUCH CORPORATION | |||||||||||||||||
| Date: | November 6, 2026 | By: | /s/ Christopher J. May | ||||||||||||||
| Christopher J. May | |||||||||||||||||
| Executive Vice President & Chief Financial Officer | |||||||||||||||||
Dauch Reports Third Quarter 2026 Financial Results
Delivers Strong Operating Cash Flow
DETROIT, November 6, 2026 -- Dauch Corporation ("Dauch") (NYSE: DCH; LSE: DCH) today reported its financial results for the third quarter 2026.
Third Quarter 2026 Results
•Sales of $2.91 billion
•Net loss attributable to Dauch of $(45.3) million, or (1.6)% of sales
•Adjusted EBITDA of $358.5 million, or 12.3% of sales
•Diluted loss per share of $(0.19); Adjusted earnings per share of $0.22
•Net cash provided by operating activities of $150.1 million; Adjusted free cash flow of $126.7 million
"We generated strong cash flow in the quarter while supporting new program launches,” said Chairman and Chief Executive Officer David C. Dauch. "At the same time, we are making excellent progress on synergy realization, and we remain focused on delivering long-term value for our stakeholders."
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 third quarter of 2026 were $2.91 billion as compared to $1.51 billion in the third quarter of 2025.
The company's net loss attributable to Dauch in the third quarter of 2026 was $(45.3) million, or $(0.19) per share and (1.6)% of sales, as compared to net income of $9.2 million, or $0.07 per share and 0.6% of sales, in the third quarter of 2025.
Adjusted earnings per share in the third quarter of 2026 was $0.22 compared to Adjusted earnings per share of $0.30 in the third quarter of 2025.
In the third quarter of 2026, Adjusted EBITDA was $358.5 million, or 12.3% of sales, as compared to $195.7 million, or 13.0% of sales, in the third quarter of 2025.
The company's net cash provided by operating activities for the third quarter of 2026 was $150.1 million as compared to $143.3 million for the third quarter of 2025.
The company's Adjusted free cash flow for the third quarter of 2026 was $126.7 million as compared to $98.1 million for the third quarter of 2025.
1
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 $10.8 - $10.875 billion vs. $10.6 - $10.8 billion previously.
•Adjusted EBITDA in the range of $1.35 - $1.375 billion vs. $1.36 - $1.425 billion previously.
•Adjusted EBITDA includes synergy benefits of $70 - $75 million (vs $60 - $75 million previously), equating to a run rate of greater than $100 million by the end of year one.
•Equity income from our China JV (which is included in Adjusted EBITDA) in the range of $70 - $80 million remains unchanged.
•Adjusted free cash flow in the range of $270 - $310 million vs. $260 - $325 million previously.
•Restructuring cash payments of $135 - $150 million.
•Synergy implementation cash payments of $85 - $100 million.
These targets are based on the following assumptions for 2026:
•Production outlook:
| North America | Europe | China | Global | ||||||||
| ~15.0 million | ~17.2 million | ~31.0 million | ~91.6 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.
Third Quarter 2026 Conference Call Information
A conference call to review Dauch's third 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 the United States or (412) 902-6506 from outside the United States with access code 811-1394. A replay will be available one hour after the call is completed until November 13, 2026 by dialing (855) 669-9658 from the United States or (412) 317-0088 from outside the United States. When prompted, callers should enter replay access code 462-2689.
Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles generally accepted in the United States of America (GAAP) included within this press release, Dauch has provided certain information, that includes non-GAAP financial measures such as Adjusted EBITDA, Adjusted earnings per share and Adjusted free cash flow. Such information is reconciled to its most directly comparable GAAP measure in accordance with Securities and Exchange Commission rules and is included in the attached supplemental data.
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.
2
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 U.S. Private Placement Notes, mark-to-market on nondesignated derivatives assumed as part of the Business Combination with Dowlais, gains and losses on the disposal of property, plant and equipment, amortization of the acquisition intangible asset attributable to our investment in SDS, net of tax, amortization of intangible assets from acquisitions, and non-recurring items, including the tax effect thereon.
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 U.S. Private Placement Notes, mark-to-market on nondesignated derivatives assumed as part of the Business Combination with Dowlais, gains and losses on the disposal of property, plant and equipment, amortization of the acquisition intangible asset attributable to our investment in SDS, net of tax, and non-recurring items.
Dauch defines free cash flow to be net cash provided by 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, including net interest 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 Detroit, MI, with operations that span 24 countries and more than 175 locations. Formed through the acquisition of Dowlais and its subsidiaries - GKN Automotive and GKN Powder Metallurgy, Dauch unites deep engineering roots with global manufacturing capabilities and an entrepreneurial spirit to move mobility forward. Visit www.dauch.com to learn more.
3
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 actual results 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 Group Limited (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 the United States-Mexico-Canada Agreement (USMCA), compliance with customs and trade regulations, immigration policies, political stability or geopolitical conflicts, taxes and other law changes, potential disruptions of production and supply, and currency rate fluctuations); supply shortages and the availability of natural gas or other fuel and utility sources in certain regions, labor shortages, including increased labor costs, or price increases in raw material and/or freight, utilities or other operating supplies for us or our customers as a result of pandemic or epidemic illness, geopolitical conflicts, including the current instability in the Middle East, natural disasters or otherwise; a significant disruption in operations at one or more of our key manufacturing facilities; risks inherent in transitioning our business from internal combustion engine vehicle products to hybrid and electric vehicle products; our ability to realize the expected revenues from our new and incremental business backlog; negative or unexpected tax consequences, including those resulting from tax litigation; risks related to a failure of our information technology systems and networks, including cloud-based applications, and risks associated with current and emerging technology threats, and damage from computer viruses, unauthorized access, cyber attacks, including increasingly sophisticated cyber attacks incorporating use of artificial intelligence, and other similar disruptions; our ability to maintain satisfactory labor relations and avoid work stoppages; our suppliers', our customers' and their suppliers' ability to maintain satisfactory labor relations and avoid or minimize work stoppages; price volatility in, or reduced availability of, fuel; cost or availability of financing for working capital, capital expenditures, research and development (R&D) or other general corporate purposes including acquisitions, as well as our ability to comply with financial covenants; our customers' and suppliers' availability of financing for working capital, capital expenditures, R&D or other general corporate purposes; an impairment of our goodwill, other intangible assets, or long-lived assets if our business or market conditions indicate that the carrying values of those assets exceed their fair values; liabilities arising from warranty claims, product recall or field actions, product liability and legal proceedings to which we are or may become a party, or the impact of product recall or field actions on our customers; our ability or our customers' and suppliers' ability to successfully launch new product programs on a timely basis; risks of environmental issues, including impacts of climate-related events, that could result in unforeseen issues or costs at our facilities, or risks of noncompliance with environmental laws and regulations, including reputational damage; our ability to achieve the level of cost reductions required to sustain global cost competitiveness or our ability to recover certain cost increases from our customers; our ability to protect our intellectual property and successfully defend against assertions made against us; adverse changes in laws, government regulations or market conditions affecting our products or our customers' products; our ability or our customers' and suppliers' ability to comply with regulatory requirements and the potential costs of such compliance; changes in liabilities arising from pension and other postretirement benefit obligations; our ability to attract and retain qualified personnel in key positions and functions; and other unanticipated events and conditions that may hinder our ability to compete. It is not possible to foresee or identify all such factors and we make no commitment to update any forward-looking statement or to disclose any facts, events or circumstances after the date hereof that may affect the accuracy of any forward-looking statement.
# # #
4
For more information:
Investor Contact
David H. Lim
Head of Investor Relations
(313) 758-2006
david.lim@dauch.com
Media Contact
Christopher M. Son
Vice President, Marketing & Communications
(313) 758-4814
chris.son@dauch.com
Or visit the Dauch website at www.dauch.com.
5
DAUCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions, except per share data) | |||||||||||||||||||||||
| Net sales | $ | 2,908.6 | $ | 1,505.3 | $ | 8,243.1 | $ | 4,452.8 | |||||||||||||||
| Cost of goods sold | 2,626.4 | 1,316.3 | 7,397.3 | 3,889.2 | |||||||||||||||||||
| Gross profit | 282.2 | 189.0 | 845.8 | 563.6 | |||||||||||||||||||
| Selling, general and administrative expenses | 140.4 | 98.8 | 444.6 | 290.5 | |||||||||||||||||||
| Amortization of intangible assets | 22.6 | 20.4 | 67.3 | 61.4 | |||||||||||||||||||
| Impairment charge | — | — | — | 8.0 | |||||||||||||||||||
| Restructuring and acquisition-related costs | 47.4 | 21.4 | 196.1 | 57.6 | |||||||||||||||||||
| Operating income | 71.8 | 48.4 | 137.8 | 146.1 | |||||||||||||||||||
| Interest expense | (86.6) | (42.7) | (266.0) | (128.7) | |||||||||||||||||||
| Interest income | 5.7 | 7.0 | 25.0 | 18.2 | |||||||||||||||||||
| Other income (expense): | |||||||||||||||||||||||
| Debt refinancing and redemption costs | (0.8) | — | (4.7) | (3.3) | |||||||||||||||||||
| Gain (loss) on Business Combination Derivative | — | (16.0) | 12.9 | 52.2 | |||||||||||||||||||
| Income (loss) from equity-method affiliates | 15.1 | (0.4) | 42.8 | 0.1 | |||||||||||||||||||
| Other income (expense), net | (35.9) | 2.0 | (80.5) | 2.2 | |||||||||||||||||||
| Income (loss) before income taxes | (30.7) | (1.7) | (132.7) | 86.8 | |||||||||||||||||||
| Income tax expense (benefit) | 13.9 | (10.9) | 10.4 | 31.2 | |||||||||||||||||||
| Net income (loss) | $ | (44.6) | $ | 9.2 | $ | (143.1) | $ | 55.6 | |||||||||||||||
| Net income attributable to noncontrolling interests | (0.7) | — | (1.5) | — | |||||||||||||||||||
| Net income (loss) attributable to Dauch | (45.3) | 9.2 | $ | (144.6) | $ | 55.6 | |||||||||||||||||
| Diluted earnings (loss) per share | $ | (0.19) | $ | 0.07 | $ | (0.65) | $ | 0.45 | |||||||||||||||
6
DAUCH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, 2026 | December 31, 2025 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | (in millions) | ||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 800.2 | $ | 708.9 | |||||||
| Restricted cash | — | 1,496.6 | |||||||||
| Accounts receivable, net | 1,553.3 | 733.0 | |||||||||
| Inventories, net | 1,005.7 | 466.4 | |||||||||
| Prepaid expenses and other | 347.8 | 230.1 | |||||||||
| Total current assets | 3,707.0 | 3,635.0 | |||||||||
| Property, plant and equipment, net | 4,038.2 | 1,591.5 | |||||||||
| Deferred income taxes | 371.1 | 235.9 | |||||||||
| Goodwill | 682.9 | 174.4 | |||||||||
| Other intangible assets, net | 326.4 | 375.2 | |||||||||
| GM postretirement cost sharing asset | 116.9 | 116.0 | |||||||||
| Operating lease right-of-use assets | 158.1 | 122.3 | |||||||||
| Investments in equity-method affiliates | 865.1 | 12.1 | |||||||||
| Other assets and deferred charges | 653.1 | 407.8 | |||||||||
| Total assets | $ | 10,918.8 | $ | 6,670.2 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Current portion of long-term debt | $ | 5.7 | $ | 10.4 | |||||||
| Accounts payable | 1,663.9 | 718.3 | |||||||||
| Accrued compensation and benefits | 506.7 | 254.9 | |||||||||
| Deferred revenue | 17.1 | 38.5 | |||||||||
| Current portion of operating lease liabilities | 35.8 | 24.7 | |||||||||
| Accrued expenses and other | 439.2 | 187.2 | |||||||||
| Total current liabilities | 2,668.4 | 1,234.0 | |||||||||
| Long-term debt, net | 4,895.0 | 4,039.1 | |||||||||
| Deferred revenue | 41.2 | 33.9 | |||||||||
| Deferred income taxes | 289.6 | 9.1 | |||||||||
| Long-term portion of operating lease liabilities | 125.8 | 100.1 | |||||||||
| Postretirement benefits and other long-term liabilities | 1,388.4 | 614.0 | |||||||||
| Total liabilities | 9,408.4 | 6,030.2 | |||||||||
| Total Dauch stockholders' equity | 1,503.9 | 640.0 | |||||||||
| Noncontrolling interest in subsidiaries | 6.5 | — | |||||||||
| Total stockholders’ equity | 1,510.4 | 640.0 | |||||||||
| Total liabilities and stockholders' equity | $ | 10,918.8 | $ | 6,670.2 | |||||||
7
DAUCH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Operating activities | |||||||||||||||||||||||
| Net income (loss) | $ | (44.6) | $ | 9.2 | $ | (143.1) | $ | 55.6 | |||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||||||||||||||||||||||
| Depreciation and amortization | 212.8 | 116.3 | 610.0 | 342.0 | |||||||||||||||||||
| Other | (18.1) | 17.8 | (273.7) | (106.5) | |||||||||||||||||||
| Net cash provided by operating activities | 150.1 | 143.3 | 193.2 | 291.1 | |||||||||||||||||||
| Investing activities | |||||||||||||||||||||||
| Purchases of property, plant and equipment | (95.4) | (64.1) | (297.3) | (190.7) | |||||||||||||||||||
| Proceeds from sale of property, plant and equipment | 0.7 | 0.3 | 8.2 | 5.3 | |||||||||||||||||||
| Acquisition of business, net of cash acquired | — | (0.6) | (331.6) | (1.9) | |||||||||||||||||||
| Proceeds from sale of business, net | — | 58.1 | 20.8 | 58.1 | |||||||||||||||||||
| Proceeds from disposition of affiliates | — | — | — | 30.1 | |||||||||||||||||||
| Settlement of Business Combination Derivative | — | — | 65.9 | — | |||||||||||||||||||
| Other | (1.0) | (3.4) | (1.8) | (9.2) | |||||||||||||||||||
| Net cash used in investing activities | (95.7) | (9.7) | (535.8) | (108.3) | |||||||||||||||||||
| Financing activities | |||||||||||||||||||||||
| Net debt activity | (125.1) | (1.0) | (1,018.4) | (17.6) | |||||||||||||||||||
| Other | (12.0) | (4.5) | (37.6) | (17.9) | |||||||||||||||||||
| Net cash used in financing activities | (137.1) | (5.5) | (1,056.0) | (35.5) | |||||||||||||||||||
| Effect of exchange rate changes on cash | 2.1 | (0.5) | (6.7) | 13.9 | |||||||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (80.6) | 127.6 | (1,405.3) | 161.2 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 880.8 | 586.5 | 2,205.5 | 552.9 | |||||||||||||||||||
| Cash and cash equivalents at end of period | $ | 800.2 | $ | 714.1 | $ | 800.2 | $ | 714.1 | |||||||||||||||
8
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's business and operating performance.
Earnings before interest expense, income taxes and depreciation and amortization (EBITDA) and Adjusted EBITDA(a)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025(1) | 2026 | 2025(1) | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net income (loss) | $ | (44.6) | $ | 9.2 | $ | (143.1) | $ | 55.6 | |||||||||||||||
| Interest expense | 86.6 | 42.7 | 266.0 | 128.7 | |||||||||||||||||||
| Income tax expense (benefit) | 13.9 | (10.9) | 10.4 | 31.2 | |||||||||||||||||||
| Depreciation and amortization | 212.8 | 116.3 | 610.0 | 342.0 | |||||||||||||||||||
| EBITDA | 268.7 | 157.3 | 743.3 | 557.5 | |||||||||||||||||||
| Restructuring and acquisition-related costs | 47.4 | 21.4 | 196.1 | 57.6 | |||||||||||||||||||
| Debt refinancing and redemption costs | 0.8 | — | 4.7 | 3.3 | |||||||||||||||||||
| Loss (gain) on Business Combination Derivative | — | 16.0 | (12.9) | (52.2) | |||||||||||||||||||
| Impairment charge | — | — | — | 8.0 | |||||||||||||||||||
| Unrealized foreign exchange loss on acquired U.S. Private Placement Notes | 2.5 | — | 16.9 | — | |||||||||||||||||||
| Mark-to-market on nondesignated derivatives assumed as part of the Business Combination with Dowlais | 32.2 | — | 52.3 | — | |||||||||||||||||||
| Loss on disposal of property, plant and equipment | 0.1 | 1.0 | 5.1 | 1.3 | |||||||||||||||||||
| Interest income on debt held in escrow | — | — | (4.6) | — | |||||||||||||||||||
| Amortization of acquisition intangible asset attributable to SDS | 6.8 | — | 18.0 | — | |||||||||||||||||||
| Non-recurring items: | |||||||||||||||||||||||
| Acquisition-related fair value inventory adjustment | — | — | 37.7 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 358.5 | $ | 195.7 | $ | 1,056.6 | $ | 575.5 | |||||||||||||||
(1) The amounts in the table above are presented based upon our revised definition of Adjusted EBITDA and amounts that were reported under the previous definition have been recast. Please refer to note (a) on page 12.
9
Adjusted earnings per share(b)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025(1) | 2026 | 2025(1) | ||||||||||||||||||||
| Diluted earnings (loss) per share | $ | (0.19) | $ | 0.07 | $ | (0.65) | $ | 0.45 | |||||||||||||||
| Restructuring and acquisition-related costs | 0.19 | 0.18 | 0.85 | 0.47 | |||||||||||||||||||
| Debt refinancing and redemption costs | — | — | 0.02 | 0.03 | |||||||||||||||||||
| Impairment charges | — | — | — | 0.06 | |||||||||||||||||||
| Loss (gain) on Business Combination Derivative | — | 0.13 | (0.06) | (0.42) | |||||||||||||||||||
| Unrealized foreign exchange loss on acquired U.S. Private Placement Notes | 0.01 | — | 0.07 | — | |||||||||||||||||||
| Mark-to-market on nondesignated derivatives assumed as part of the Business Combination with Dowlais | 0.13 | — | 0.23 | — | |||||||||||||||||||
| Loss on disposal of property, plant and equipment | — | 0.01 | 0.02 | 0.01 | |||||||||||||||||||
| Net interest on debt held in escrow | — | — | 0.03 | — | |||||||||||||||||||
| Amortization of intangible assets from acquisitions | 0.09 | 0.16 | 0.29 | 0.50 | |||||||||||||||||||
| Amortization of acquisition intangible asset attributable to SDS | 0.03 | — | 0.08 | — | |||||||||||||||||||
| Non-recurring items: | |||||||||||||||||||||||
| Acquisition-related fair value inventory adjustment | — | — | 0.16 | — | |||||||||||||||||||
| Discrete tax impact from enactment of tax law | — | (0.18) | — | (0.18) | |||||||||||||||||||
| Tax effect of adjustments | (0.04) | (0.07) | (0.18) | (0.06) | |||||||||||||||||||
| Adjusted earnings per share | $ | 0.22 | $ | 0.30 | $ | 0.86 | $ | 0.86 | |||||||||||||||
Adjusted earnings per share are based on weighted average diluted shares outstanding of 245.3 million and 124.3 million for the three months ended September 30, 2026 and 2025 respectively, and 230.5 million and 123.7 million for the nine months ended September 30, 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.
10
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's business and operating performance.
Free cash flow and Adjusted free cash flow(c)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 150.1 | $ | 143.3 | $ | 193.2 | $ | 291.1 | |||||||||||||||
| Less: Capital expenditures net of proceeds from the sale of property, plant and equipment | (94.7) | (63.8) | (289.1) | (185.4) | |||||||||||||||||||
| Free cash flow | $ | 55.4 | $ | 79.5 | $ | (95.9) | $ | 105.7 | |||||||||||||||
| Cash payments for restructuring costs | 31.0 | 12.7 | 107.4 | 19.8 | |||||||||||||||||||
| Cash payments for acquisition-related costs | 21.5 | 5.9 | 168.0 | 17.4 | |||||||||||||||||||
| Cash payments for synergy integration costs | 18.8 | — | 54.8 | — | |||||||||||||||||||
| Adjusted free cash flow | $ | 126.7 | $ | 98.1 | $ | 234.3 | $ | 142.9 | |||||||||||||||
Segment Financial Information(d)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Segment Sales | |||||||||||||||||||||||
| Driveline | $ | 2,165.8 | $ | 1,073.8 | $ | 6,159.9 | $ | 3,168.0 | |||||||||||||||
| Metal Forming | 870.5 | 543.3 | 2,458.4 | 1,613.8 | |||||||||||||||||||
| Total Sales | 3,036.3 | 1,617.1 | 8,618.3 | 4,781.8 | |||||||||||||||||||
| Intersegment Sales | (127.7) | (111.8) | (375.2) | (329.0) | |||||||||||||||||||
| Net External Sales | $ | 2,908.6 | $ | 1,505.3 | $ | 8,243.1 | $ | 4,452.8 | |||||||||||||||
Segment Adjusted EBITDA(a) | |||||||||||||||||||||||
| Driveline | $ | 263.9 | $ | 163.3 | $ | 792.4 | $ | 451.4 | |||||||||||||||
| Metal Forming | 94.6 | 32.4 | 264.2 | 124.1 | |||||||||||||||||||
| Total Segment Adjusted EBITDA | $ | 358.5 | $ | 195.7 | $ | 1,056.6 | $ | 575.5 | |||||||||||||||
11
Full Year 2026 Financial Outlook
| Adjusted EBITDA | |||||||||||
| Low End | High End | ||||||||||
| (in millions) | |||||||||||
| Net loss | $ | (220) | $ | (195) | |||||||
| Interest expense | 355 | 355 | |||||||||
| Income tax expense | — | — | |||||||||
| Depreciation and amortization | 825 | 825 | |||||||||
| Full year 2026 targeted EBITDA | 960 | 985 | |||||||||
| Acquisition-related costs | 60 | 60 | |||||||||
| Restructuring costs | 100 | 100 | |||||||||
| Synergy integration costs | 110 | 110 | |||||||||
| Acquisition-related fair value inventory adjustment | 38 | 38 | |||||||||
| Amortization of acquisition intangible asset attributable to SDS | 25 | 25 | |||||||||
| Unrealized foreign exchange loss on acquired U.S. Private Placement Notes | 15 | 15 | |||||||||
| Mark-to-market on nondesignated derivatives assumed as part of the Business Combination with Dowlais | 50 | 50 | |||||||||
| Other | (8) | (8) | |||||||||
| Full year 2026 targeted Adjusted EBITDA | $ | 1,350 | $ | 1,375 | |||||||
| Adjusted Free Cash Flow | |||||||||||
| Low End | High End | ||||||||||
| (in millions) | |||||||||||
| Net cash provided by operating activities | $ | 330 | $ | 340 | |||||||
| Capital expenditures net of proceeds from the sale of property, plant and equipment | (450) | (450) | |||||||||
| Full year 2026 targeted Free Cash Flow | (120) | (110) | |||||||||
| Cash payments for acquisition-related costs | 170 | 170 | |||||||||
| Cash payments for restructuring costs | 135 | 150 | |||||||||
| Cash payments for synergy integration costs | 85 | 100 | |||||||||
| Full year 2026 targeted Adjusted Free Cash Flow | $ | 270 | $ | 310 | |||||||
___________
(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 U.S. Private Placement Notes, mark-to-market on nondesignated derivatives assumed as part of the Business Combination with Dowlais, gains and losses on the disposal of property, plant and equipment, amortization of the acquisition intangible asset attributable to our investment in SDS, net of tax, and non-recurring items. We believe that EBITDA and Adjusted EBITDA are meaningful measures of performance as they are commonly utilized by management and investors to analyze operating performance and entity valuation. Our management, the investment community and the banking institutions routinely use EBITDA and Adjusted EBITDA, together with other measures, to measure our operating performance relative to other Tier 1 automotive suppliers. We also use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. EBITDA and Adjusted EBITDA are also key metrics used in our calculation of incentive compensation. EBITDA and Adjusted EBITDA should not be construed as income from operations, net income or cash flow from operating activities as determined under GAAP. Other companies may calculate EBITDA and Adjusted EBITDA differently.
(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 U.S. Private Placement Notes, mark-to-market on nondesignated derivatives assumed as part of the Business Combination with Dowlais, gains and losses on the disposal of property, plant and equipment, amortization of the acquisition intangible asset attributable to our investment in SDS, net of tax, amortization of intangible assets from acquisitions, and non-recurring items, including the tax effect thereon. We believe Adjusted earnings per share is a meaningful measure as it is commonly utilized by management and investors in assessing ongoing financial performance that provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of core operating performance and which may obscure underlying business results and trends. Other companies may calculate Adjusted earnings per share differently.
(c) We define free cash flow to be net cash provided by 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, including net interest 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 and nine months ended September 30, 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 and nine months ended September 30, 2025 have been recast to reflect this reorganization.
12