Dauch Corp on Friday reported a wider fourth quarter loss and a decline in annual profit, stemming from costs related to its buy of Dowlais.
The producer of driveline products and systems bought automotive engineering firm Dowlais, which had been spun out of Melrose Industries PLC back in 2023. Dauch, formerly known as American Axle & Manufacturing Holdings, acquired Dowlais for £1.16 billion in a deal sealed earlier this month.
‘With the exciting close of the transformational acquisition, we warmly welcome the Dowlais team, and together, we will focus on generating robust value as a premier global Driveline and Metal Form supplier,’ Dauch Chair & Chief Executive Officer David Dauch said.
Dauch’s pretax loss in the final quarter of 2025 stretched to $85.3 million from $6.9 million, as it booked $55.8 million of restructuring and acquisition-related costs, up from $8.3 million a year prior.
Net sales in the fourth quarter were largely flat on-year at $1.38 billion.
For the whole of 2025, pretax profit plunged 98% to $1.5 million from $62.8 million. Net sales were 4.7% lower at $5.84 billion from $6.12 billion. Restructuring and acquisition-related costs for the full year totalled $113.4 million, jumping from $18.0 million.
Adjusted earnings before interest, tax, depreciation and amortisation rose to $169.0 million in the fourth quarter from $160.8 million a year earlier. For the whole year, it slipped to $743 million from $749.2 million.
Looking to 2025, it expects an adjusted Ebitda of $1.3 billion to $1.4 billion, amid the ‘partial year contribution from Dowlais’. Sales in the range of $10.3 billion and $10.7 billion are expected.
Shares in Dauch closed 20% lower at 484.00 pence on Friday in London.
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