7th Aug 2026 14:38
(Alliance News) - Dauch Corp on Friday upgraded the bottom end of some guidance as it announced a wider second quarter loss due to costs related to its acquisition of Dowlais.
The Detroit, Michigan-based producer of driveline products and systems, formerly known as American Axle & Manufacturing Holdings, in February sealed its acquisition of Dowlais for GBP1.16 billion.
Dowlais had been spun out of Melrose Industries PLC back in 2023.
Dauch noted that the acquisition of Dowlais was the primary driver of year-over-year-changes in financial results.
Dauch on Friday said net sales surged 92% to USD2.96 billion in the second quarter of 2026, from USD1.54 billion a year prior.
Net income dove 96% to USD1.5 million from USD39.3 million.
Adjusted earnings before interest, tax, depreciation and amortisation jumped 93% to USD389.6 million from USD202.1 million.
Cost of goods sold increased 96% to USD2.62 billion from USD1.34 billion. Costs regarding depreciation and amortisation increased 90% to USD215.4 million from USD113.5 million.
Looking ahead, Dauch expects sales in the range of USD10.6 billion to USD10.8 billion, with the bottom end revised up from a previous guidance of between USD10.3 billion and USD10.8 billion. It would be up sharply from USD5.84 billion in 2025.
Further, it anticipates adjusted Ebitda between USD1.36 billion and USD1.43 billion, up from its prior guidance of USD1.30 billion to USD1.43 billion. For 2025, Dauch had reported adjusted Ebitda of USD743.2 million.
Dauch shares were 3.6% higher at 456.00 pence each on Friday afternoon in London.
By Tom Budszus, Alliance News slot editor
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