Dauch (DCH) Bank of America Global Automotive Summit summary

Financial outlook and restructuring

• Adjusted cash flow guidance for 2026 is $235M–$325M, before restructuring and synergy costs.

• Restructuring costs, mainly from U.S. to Mexico and Germany to Hungary moves, will drop by half in 2027.

• Synergy implementation costs for the Dowlais acquisition are front-loaded, with $300M annual run-rate savings targeted within three years.

• Acquisition and restructuring costs will fade, driving stronger cash flow in 2027 and 2028.

Dowlais acquisition rationale and integration

• Acquisition diversifies products, geography, and customers, reducing GM dependence from 40%+ to 25–27%.

• $300M in synergies expected: 30% SG&A, 50% purchasing, 20% operations, with 60% run-rate by year two and full by year three.

• Integration leverages vertical integration, especially in steel forging and powder metallurgy.

• Cross-selling opportunities with European and Asian OEMs are anticipated.

• No revenue synergies included in guidance; any realized will be upside.

Customer and platform diversification

• Top five customers now include GM, Stellantis, Toyota, Ford, and Volkswagen.

• Customer base expanded to thousands, with top 20 global OEMs as primary clients.

• Platform diversification includes new content on GM T1, Stellantis crossovers, BMW, and Toyota platforms.

• China JV (SDS) is a $1.5B business, with 65–70% domestic Chinese OEM exposure.