13th Feb 2026 21:02
(Alliance News) - Dauch Corp on Friday reported a wider fourth quarter loss and a decline in annual profit, stemming from costs related to its buy of Dowlais.
The producer of driveline products and systems bought automotive engineering firm Dowlais, which had been spun out of Melrose Industries PLC back in 2023. Dauch, formerly known as American Axle & Manufacturing Holdings, acquired Dowlais for GBP1.16 billion in a deal sealed earlier this month.
"With the exciting close of the transformational acquisition, we warmly welcome the Dowlais team, and together, we will focus on generating robust value as a premier global Driveline and Metal Form supplier," Dauch Chair & Chief Executive Officer David Dauch said.
Dauch's pretax loss in the final quarter of 2025 stretched to USD85.3 million from USD6.9 million, as it booked USD55.8 million of restructuring and acquisition-related costs, up from USD8.3 million a year prior.
Net sales in the fourth quarter were largely flat on-year at USD1.38 billion.
For the whole of 2025, pretax profit plunged 98% to USD1.5 million from USD62.8 million. Net sales were 4.7% lower at USD5.84 billion from USD6.12 billion. Restructuring and acquisition-related costs for the full year totalled USD113.4 million, jumping from USD18.0 million.
Adjusted earnings before interest, tax, depreciation and amortisation rose to USD169.0 million in the fourth quarter from USD160.8 million a year earlier. For the whole year, it slipped to USD743 million from USD749.2 million.
Looking to 2025, it expects an adjusted Ebitda of USD1.3 billion to USD1.4 billion, amid the "partial year contribution from Dowlais". Sales in the range of USD10.3 billion and USD10.7 billion are expected.
Shares in Dauch closed 20% lower at 484.00 pence on Friday in London.
By Eric Cunha, Alliance News news editor
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