Dauch Reports Third Quarter 2026 Financial Results
Dauch Corp (DCH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Dauch Reports Third Quarter 2026 Financial Results Delivers Strong Operating Cash Flow DETROIT, November 6, 2026 -- Dauch Corporation ("Dauch") (NYSE: DCH; LSE: DCH) today reported its financial results for the third quarter 2026. Third Quarter 2026 Results • Sales of $2.91 billi
How this was made
The 30-second read
Why it matters
The updated guidance provides fresh data for traders to reassess valuation and positioning in Dauch.
Market read
The earnings release introduces new financial guidance that could move DCH shares in the near term.
What to watch
Synergy cash payments and restructuring costs may mask underlying profitability trends.
Dauch Reports Third Quarter 2026 Financial Results Delivers Strong Operating Cash Flow
Sales, Adjusted EBITDA and adjusted free cash flow increased year over year, supported primarily by the Dowlais acquisition, but the company reported a net loss attributable to Dauch, lower Adjusted EBITDA margin, lower adjusted EPS and reduced its Adjusted EBITDA outlook range.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $2.91B | – | – |
| Cost of goods sold, three months ended September 30, 2026GAAP | $2.63B | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $282.2M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $140.4M | – | – |
| Amortization of intangible assets, three months ended September 30, 2026GAAP | $22.6M | – | – |
| Restructuring and acquisition-related costs, three months ended September 30, 2026GAAP | $47.4M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $71.8M | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$86.6M | – | – |
| Income (loss) from equity-method affiliates, three months ended September 30, 2026GAAP | $15.1M | – | – |
| Income (loss) before income taxes, three months ended September 30, 2026GAAP | −$30.7M | – | – |
| Income tax expense (benefit), three months ended September 30, 2026GAAP | $13.9M | – | – |
| Net income (loss), three months ended September 30, 2026GAAP | −$44.6M | – | – |
| Net income (loss) attributable to Dauch, three months ended September 30, 2026GAAP | −$45.3M | – | – |
| Diluted earnings (loss) per share, three months ended September 30, 2026GAAP | $(0.19) | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $268.7M | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $358.5 million, or 12.3% of sales | – | – |
| Adjusted earnings per share, three months ended September 30, 2026non-GAAP | $0.22 | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $150.1M | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $55.4M | – | – |
| Adjusted free cash flow, three months ended September 30, 2026non-GAAP | $126.7M | – | – |
| Net sales, nine months ended September 30, 2026GAAP | $8.24B | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $845.8M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $137.8M | – | – |
| Net income (loss) attributable to Dauch, nine months ended September 30, 2026GAAP | −$144.6M | – | – |
| Diluted earnings (loss) per share, nine months ended September 30, 2026GAAP | $(0.65) | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $1.06B | – | – |
| Adjusted earnings per share, nine months ended September 30, 2026non-GAAP | $0.86 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $193.2M | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | −$95.9M | – | – |
| Adjusted free cash flow, nine months ended September 30, 2026non-GAAP | $234.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Driveline, three months ended September 30, 2026Dowlais results were consolidated in the Driveline segment beginning February 3, 2026. | $2.17B | – | – |
| Metal Forming, three months ended September 30, 2026Dowlais results were consolidated in the Metal Forming segment beginning February 3, 2026. | $870.5M | – | – |
| Driveline, nine months ended September 30, 2026Dowlais results were consolidated in the Driveline segment beginning February 3, 2026. | $6.16B | – | – |
| Metal Forming, nine months ended September 30, 2026Dowlais results were consolidated in the Metal Forming segment beginning February 3, 2026. | $2.46B | – | – |
Full year 2026 outlook
- Revenue$10.8 - $10.875 billion
- NoteAdjusted EBITDA of $1.35 - $1.375 billion
- NoteAdjusted EBITDA includes synergy benefits of $70 - $75 million, equating to a run rate of greater than $100 million by the end of year one
- NoteEquity income from our China JV of $70 - $80 million
- NoteAdjusted free cash flow of $270 - $310 million
- NoteRestructuring cash payments of $135 - $150 million
- NoteSynergy implementation cash payments of $85 - $100 million
- NoteProduction outlook: North America ~15.0 million; Europe ~17.2 million; China ~31.0 million; Global ~91.6 million
- NoteNo changes to USMCA and mitigation of a majority of incremental tariff costs
What drove it
- The acquisition of Dowlais Group plc, subsequently renamed Dowlais Group Limited, was the primary driver of year-over-year changes in financial results.
- Dauch completed the Business Combination on February 3, 2026 and began consolidating Dowlais results on that date.
- Third-quarter Driveline Segment Adjusted EBITDA was $263.9 million and Metal Forming Segment Adjusted EBITDA was $94.6 million.
- The company moved certain plant locations from Metal Forming to Driveline in the first quarter of 2026; 2025 segment information was recast to reflect the reorganization.
- The company cited support for new program launches and progress on synergy realization.
Concerns
- Net loss attributable to Dauch was $(45.3) million, compared with net income attributable to Dauch of $9.2 million in the prior-year quarter.
- Adjusted EBITDA margin was 12.3% of sales, compared with 13.0% of sales in the prior-year quarter.
- Adjusted earnings per share was $0.22, compared with $0.30 in the prior-year quarter.
- Interest expense was $(86.6) million, compared with $(42.7) million in the prior-year quarter.
- Third-quarter restructuring and acquisition-related costs were $47.4 million, compared with $21.4 million in the prior-year quarter.
- Nine-month free cash flow was $(95.9) million, compared with $105.7 million in the prior-year period.
- The updated Adjusted EBITDA target of $1.35 - $1.375 billion compares with $1.36 - $1.425 billion previously.
What to watch
- Delivery of $70 - $75 million of 2026 Adjusted EBITDA synergy benefits and a run rate of greater than $100 million by the end of year one.
- Achievement of full-year sales of $10.8 - $10.875 billion and Adjusted EBITDA of $1.35 - $1.375 billion.
- Adjusted free cash flow delivery of $270 - $310 million alongside restructuring cash payments of $135 - $150 million and synergy implementation cash payments of $85 - $100 million.
- Performance of equity income from the China JV against the $70 - $80 million full-year target.
- The stated assumptions of no changes to USMCA and mitigation of a majority of incremental tariff costs.
Balance sheet and cash flow
- Cash and cash equivalents were $800.2 million as of September 30, 2026, compared with $708.9 million as of December 31, 2025.
- Long-term debt, net was $4,895.0 million as of September 30, 2026, compared with $4,039.1 million as of December 31, 2025.
- Current portion of long-term debt was $5.7 million as of September 30, 2026, compared with $10.4 million as of December 31, 2025.
- Total assets were $10,918.8 million as of September 30, 2026, compared with $6,670.2 million as of December 31, 2025.
- Purchases of property, plant and equipment were $(95.4) million in the third quarter of 2026 and $(297.3) million in the nine months ended September 30, 2026.
- Net cash used in financing activities was $(137.1) million in the third quarter of 2026 and $(1,056.0) million in the nine months ended September 30, 2026.
Analysis
Dauch reported third-quarter sales of $2,908.6 million, compared with $1,505.3 million in the prior-year quarter. The company states that the Dowlais acquisition was the primary driver of year-over-year changes, and Dowlais was consolidated beginning February 3, 2026. Driveline generated $2,165.8 million of segment sales and Metal Forming generated $870.5 million. Intersegment sales were $(127.7) million.
Profitability was mixed. Gross profit was $282.2 million and operating income was $71.8 million, compared with $189.0 million and $48.4 million, respectively, in the prior-year quarter. However, net loss attributable to Dauch was $(45.3) million, compared with net income attributable to Dauch of $9.2 million. Interest expense increased to $(86.6) million from $(42.7) million, while restructuring and acquisition-related costs increased to $47.4 million from $21.4 million. Adjusted EBITDA increased to $358.5 million from $195.7 million, but its margin declined to 12.3% of sales from 13.0% of sales. Adjusted EPS declined to $0.22 from $0.30.
Cash flow was a relative strength in the quarter. Net cash provided by operating activities was $150.1 million, compared with $143.3 million, and adjusted free cash flow was $126.7 million, compared with $98.1 million. GAAP free cash flow was $55.4 million, compared with $79.5 million, after $94.7 million of capital expenditures net of proceeds from the sale of property, plant and equipment. At September 30, 2026, cash and cash equivalents were $800.2 million and long-term debt, net was $4,895.0 million.
For full-year 2026, Dauch raised its sales range to $10.8 - $10.875 billion from $10.6 - $10.8 billion previously, while lowering the Adjusted EBITDA range to $1.35 - $1.375 billion from $1.36 - $1.425 billion previously. The Adjusted free cash flow range was revised to $270 - $310 million from $260 - $325 million. The outlook incorporates $70 - $75 million of synergy benefits, $135 - $150 million of restructuring cash payments, $85 - $100 million of synergy implementation cash payments, and assumptions including no changes to USMCA and mitigation of a majority of incremental tariff costs.
Management, verbatim
We generated strong cash flow in the quarter while supporting new program launches,
David C. Dauch, Chairman and Chief Executive Officer
At the same time, we are making excellent progress on synergy realization, and we remain focused on delivering long-term value for our stakeholders.
David C. Dauch, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Prior-quarter comparisons were not reported for the presented metrics.
- No dividend or share repurchase activity was reported.
- No full-year 2026 guidance was reported for gross margin, operating expenses or tax rate.
- A separate previous earnings release outlook was not provided; therefore, no actual-versus-prior-guidance comparison is included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Dauch Corp released its Q3 2026 earnings via an SEC Form 8‑K, including detailed financial metrics and a revised full‑year outlook.
Ticker impact
Dauch Corp filed an 8‑K reporting Q3 2026 results and updated 2026 financial outlook with updated sales guidance and revised EBITDA targets.
likely modest pressure as investors weigh a net loss against stronger cash flow and updated sales guidance
The quarter shows a $45.3 M net loss but operating cash flow improves; the outlook raises sales range while slightly lowering EBITDA, creating mixed signals for the stock.
Market effects
The aerospace and defense sector may see increased attention as Dauch's higher sales guidance signals demand growth.
U.S. investors may adjust exposure to industrial stocks following the earnings release.
Limited to markets tracking U.S. industrial equities.
Counterpoint
Despite the net loss, the strong cash flow and higher sales guidance could support a short‑term rally.
Key entities
- companyDauch Corp
U.S. industrial manufacturer listed on NYSE (ticker DCH).
