Dauch Corp Q2 Sales Nearly Double to $2.96B on Dowlais Acquisition; Raises Low End of Guidance

summarizeSummary

Dauch Corp reported Q2 2026 sales of $2.96 billion, nearly double the prior year, driven by the Dowlais acquisition. Adjusted EBITDA was $389.6 million with strong free cash flow, and the company raised the low end of its full-year guidance.

check_boxKey Events · Earnings and Guidance · DCH

• Q2 Sales Nearly Double

  Sales of $2.96 billion, up from $1.54 billion in Q2 2025, driven by the Dowlais acquisition completed in February 2026.

• Strong Adjusted Profitability

  Adjusted EBITDA of $389.6 million (13.2% margin) and adjusted EPS of $0.32, despite GAAP net income of only $1 million due to acquisition and restructuring costs.

• Cash Flow Turnaround

  Net cash from operations was $107.5 million; adjusted free cash flow was $148.4 million, a sharp improvement from negative free cash flow in Q1 2026.

• Full-Year Guidance Raised at Low End

  Sales guidance raised to $10.6-$10.8 billion (from $10.3-$10.8 billion); Adjusted EBITDA to $1.36-$1.425 billion (from $1.30-$1.425 billion); synergy benefits now seen at $60-$75 million.

auto_awesomeAnalysis · DCH · Manufacturing

The second quarter underscores the transformative impact of the Dowlais acquisition, with sales nearly doubling year-over-year to $2.96 billion. Adjusted EBITDA of $389.6 million and adjusted EPS of $0.32 highlight the combined entity's earnings power, while operating cash flow of $107.5 million and adjusted free cash flow of $148.4 million deliver a much-needed liquidity boost after a cash-burning first quarter. Confidence in integration and synergy realization is reflected in the raised low end of full-year sales and Adjusted EBITDA guidance. Still, GAAP net income was just $1 million, weighed down by heavy restructuring and acquisition costs, and the balance sheet carries over $5 billion in debt. These results serve as a critical checkpoint following the recent UAW strike resolution and the massive Dowlais integration.