Dauch (DCH) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $2.96 billion, up 92% year-over-year, driven by the Dowlais acquisition and organic growth.

• Adjusted EBITDA for Q2 2026 was $389.6 million (13.2% margin), up from $202 million in Q2 2025.

• Net income attributable to shareholders was $1 million, down from $39.3 million in Q2 2025, reflecting higher costs and integration expenses.

• Integration of Dowlais is progressing well, with $70 million in run-rate synergies realized and a target of $100 million+ by year-end.

• Actively quoting over $2 billion in new and incremental business, primarily in ICE and hybrid segments.

Financial highlights

• Adjusted free cash flow for Q2 2026 was $148.4 million, up from $48.7 million year-over-year.

• Net debt at quarter-end was $4.15 billion, with a net leverage ratio of 2.6x.

• Cash and cash equivalents at quarter-end were $880.8 million, with total liquidity at $2.5 billion.

• Adjusted earnings per share for Q2 2026 was $0.32, compared to $0.34 in Q2 2025.

• Voluntary redemption of $250 million in 6.875% notes due 2028, eliminating major maturities until 2029.

Outlook and guidance

• Full-year 2026 sales guidance raised to $10.6–$10.8 billion, with adjusted EBITDA of $1.36–$1.425 billion and adjusted free cash flow of $260–$325 million.

• Guidance reflects strong H1 performance, Dowlais contribution, and expectations for key program launches.

• Equity income from China JV projected at $70–$80 million for the year.

• Capital expenditures expected at 4.5–5% of sales, with restructuring and synergy implementation cash payments of $210–$260 million for 2026.

• Interest expense for 2026 expected at $340–$360 million.