Dowlais Group PLC on Thursday said it is on track to offset tariff-related headwinds in the second half of the year, ahead of its expected takeover by American Axle & Manufacturing Holding Inc.
The London-based automotive engineering firm said pretax loss narrowed to £6 million in the first half of 2025, from £123 million a year ago.
Adjusted pretax profit climbed 9.5% to £104 million from £95 million.
Revenue fell 4.7% to £2.18 billion from £2.29 billion.
Cost of sales reduced 4.0% to £1.87 billion from £1.94 billion.
Looking ahead, Chief Executive Officer Liam Butterworth said the company is on track to offset tariff-related headwinds in the second half, with full-year performance expected towards the lower end of its guidance range.
Dowlais expects performance at the lower end of its previously stated range of flat to mid-single-digit decline in adjusted revenue, and an adjusted operating margin of between 6.5% and 7.0% on a constant currency basis.
The firm added: ‘As previously communicated, we do not expect our full-year performance to be materially impacted by the direct financial effect of the current tariffs. Drawing on our strong track record, we remain confident in our ability to offset these additional costs through a combination of commercial recoveries and operational performance initiatives over the balance of the year.’
Back in July, Dowlais said it received shareholder approval for its takeover by American Axle & Manufacturing Holding, a Detroit, Michigan-based automotive and mobility supplier.
The takeover is expected to come into effect in the final quarter of 2025.
Dowlais CEO Butterworth said Thursday: ‘The transaction will significantly enhance our global scale, broaden our technology capabilities, and create a stronger, more resilient business. Combined with the expected $300 million in run-rate synergies, the combination has the potential to unlock substantial long-term value for shareholders.’
Dowlais shares were up 0.5% at 71.00 pence each on Thursday morning in London.
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