Dauch Cuts 2026 Adjusted EBITDA Target as It Forecasts Third-Quarter Loss

The Tip Desk · November 10, 2026 · 3 min read

The driveline supplier expects third-quarter Adjusted EBITDA of $355 million to $360 million and a net loss of $42 million to $47 million.

Dauch Corporation (DCH), a driveline and metal-forming supplier to the global automotive industry, said third-quarter net loss attributable to the company is expected to be $42 million to $47 million, a reversal from second-quarter net income of $1.0 million.

Adjusted EBITDA for the three months ended September 30, 2026 is expected at $355 million to $360 million, below the $389.6 million reported in the second quarter. The preliminary figures, issued under London Stock Exchange secondary-listing requirements, remain subject to change as closing and internal-control work is completed. Full results are scheduled before the market opens on November 6, 2026, with a conference call at 10:00 a.m. ET.

The company is adjusting its full-year 2026 Adjusted EBITDA target to $1.350 billion to $1.375 billion, from the previously announced $1.360 billion to $1.425 billion. It cited macro headwinds into the fourth quarter, including select customer production volatility, rising inflation, and increasing energy costs.

Sales guidance moved the other way. Full-year 2026 sales are now expected at $10.8 billion to $10.875 billion, including metal market pass-throughs, versus the prior $10.6 billion to $10.8 billion target. The previously announced Adjusted free cash flow range is expected to be narrowed closer to that range’s prior midpoint.

Updated production assumptions sit at about 15.0 million units in North America, 17.2 million in Europe, 31.0 million in China, and 91.6 million globally, versus the prior outlook of about 15.1 million, 16.9 million, 31.6 million, and 91.1 million.

The second-quarter print had already shown the Dowlais combination lifting the top line. Sales were $2.96 billion, compared with $1.54 billion a year earlier, with the February 3, 2026 close of the Dowlais Group plc acquisition cited as the primary driver of year-over-year changes. Adjusted EBITDA was $389.6 million, or 13.2% of sales, versus $202.1 million a year earlier. Adjusted free cash flow was $148.4 million.

In the first quarter, sales were $2.38 billion and Adjusted EBITDA was $308.5 million, or 13.0% of sales. Adjusted free cash flow was a use of $40.8 million.

The third-quarter Adjusted EBITDA reconciliation adds back $47 million of restructuring and acquisition-related costs, $31 million of mark-to-market on nondesignated derivatives assumed with Dowlais, $14 million of income tax expense, $87 million of interest expense, and $213 million of depreciation and amortization.

The full-year 2026 Adjusted EBITDA bridge includes $100 million of restructuring costs, $110 million of synergy integration costs, $60 million of acquisition-related costs, a $38 million acquisition-related fair-value inventory adjustment, and $50 million of mark-to-market on Dowlais nondesignated derivatives.

Dauch said it is headquartered in Detroit, with operations in 24 countries and more than 175 locations, and a powertrain-agnostic portfolio covering electric, hybrid, and internal combustion vehicles.