Dauch Raises Full-Year Outlook Following Dowlais Acquisition
The company increased its full-year sales guidance to a range of $10.6 billion to $10.8 billion
Dauch (DCH), the automotive components manufacturer, reported second-quarter sales of $2.96 billion. The result followed the acquisition of Dowlais Group plc, which contributed to a significant increase from the $1.54 billion recorded in the same period last year.
Quarterly performance reflected a scaling of operations despite pressure on the bottom line. Net income attributable to Dauch fell to $1.0 million from $39.3 million in the prior-year quarter, representing a compression in net margin from 2.6% of sales to a nominal amount. Adjusted earnings per share decreased slightly to $0.32 from $0.34.
Revenue growth was distributed across primary business lines. Driveline segment sales rose to $2.23 billion from $1.11 billion in the second quarter of 2024. Metal Forming sales increased to $861.7 million from $545.0 million over the same period.
Operational efficiency remained stable as the company integrated new assets. Adjusted EBITDA increased to $389.6 million from $202.1 million in the prior-year quarter, while the Adjusted EBITDA margin held steady at 13.2%. On a sequential basis, Adjusted EBITDA grew from $308.5 million in the first quarter of 2025, with margins expanding from 13.0% to 13.2%.
Cash generation improved as adjusted free cash flow grew to $148.4 million from $48.7 million in the prior-year quarter.
Dauch raised its full-year 2025 guidance across several key metrics. The company now expects sales between $10.6 billion and $10.8 billion, up from a previous range of $10.3 billion to $10.8 billion. Full-year Adjusted EBITDA guidance was raised to a range of $1.36 billion to $1.425 billion from $1.30 billion to $1.425 billion.
Additional outlook adjustments included an increase in targeted synergy benefits to a range of $60 million to $75 million from $50 million to $75 million. The company also raised its guidance for equity income from its China joint venture to $70 million to $80 million from $65 million to $75 million. Full-year adjusted free cash flow guidance now ranges from $260 million to $325 million, up from a previous floor of $235 million.