Dauch (NYSE:DCH), the newly rebranded automotive supplier formerly known as American Axle & Manufacturing, signaled a massive scale-up for 2026 after closing its transformational acquisition of Dowlais Group.
The Detroit-based manufacturer reported fourth-quarter sales of $1.38 billion, contributing to full-year 2025 revenue of $5.84 billion.
While the company swung to a net loss of $19.7 million for the year—impacted by a $75.3 million loss in the final quarter—underlying operational performance remained resilient.
Full-year adjusted EBITDA landed at $743.2 million, representing a 12.7% margin, as the company navigated a shifting production landscape for internal combustion and electric vehicle platforms.
The 2025 results, however, serve as a footnote to a much larger expansion. With the acquisition of Dowlais (including GKN Automotive and GKN Powder Metallurgy) finalized in early February 2026, Dauch is projecting its 2026 revenue to skyrocket to a range of $10.3 billion to $10.7 billion.
Management’s 2026 targets reflect the immediate impact of the merger, with adjusted EBITDA expected to nearly double to between $1.3 billion and $1.4 billion.
This outlook includes an initial synergy benefit of $50 million to $75 million, with a projected run-rate exceeding $100 million by the end of the first year.
Despite significant integration and restructuring cash outflows, the company expects to generate adjusted free cash flow of $235 million to $325 million in 2026.
Meanwhile, the "New Dauch" now operates over 175 locations across 24 countries.