Dauch (DCH) J.P. Morgan Automotive Conference summary

Business transformation and growth

• Recent acquisition doubled annual sales to $11–12 billion, diversifying both geography and customer base.

• North America now represents 60% of sales, down from 75%, and General Motors exposure reduced to 25–30%.

• Product portfolio now spans ICE, hybrid, and EV, supporting market-agnostic growth.

• Synergy realization is ahead of plan, with $70 million annualized already achieved toward a $100 million target.

• Integration focus is on SG&A, engineering efficiencies, and purchasing, with longer-term gains expected from operations and insourcing.

Financial performance and outlook

• Strong quarterly sales driven by GM light-duty trucks and legacy Dowlais products for BMW and others.

• $15 million in quarterly synergies contributed to margin improvement.

• One-time costs included $8 million from a UAW work stoppage and some energy inflation.

• Seasonal production impacts expected in Q3 and Q4, especially from GM truck downtime and European seasonality.

• No specific 2027 guidance, but new GM truck launches and ongoing productivity initiatives are expected to support growth.

Market and customer dynamics

• Onshoring and reshoring opportunities are increasing, with some already converted to booked business.

• Quoting pipeline is $2 billion, with a recent shift back toward ICE and hybrid platforms.

• Win rates for new business remain around 30%, with a balanced geographic mix in the pipeline.

• Market share in side shafts exceeds 40%, and the company is positioned as a top supplier globally.

• Chinese joint venture (SDS) provides a competitive edge in China and globally.