Overview

• US driveline and metal forming supplier's Q1 sales rose and beat analyst expectations

• Q1 adjusted EBITDA exceeded analyst expectations, driven by Dowlais acquisition synergies

• Company raised full-year sales and adjusted EBITDA guidance following Dowlais integration

Outlook

• Dauch sees 2026 sales of $10.3-$10.8 bln, up from $10.3-$10.7 bln prior

• Company expects 2026 Adjusted EBITDA of $1.3-$1.425 bln, up from $1.3-$1.4 bln prior

• Dauch targets 2026 adjusted free cash flow of $235-$325 mln

Result Drivers

• DOWLAIS ACQUISITION - Co said Dowlais acquisition was primary driver of year-over-year changes in sales and profitability

• INTEGRATION SYNERGIES - Co said it began to capture integration synergies and leverage combined operational strengths following Dowlais acquisition, per CEO David C. Dauch

• SEGMENT EXPANSION - Driveline and Metal Forming segment sales and Adjusted EBITDA rose due to expanded business profile after Dowlais integration

Company press release: ID:nRSH5460Da

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Beat	$2.38 bln	$2.29 bln (8 Analysts)
Q1 EPS		-$0.52
Q1 Net Income		-$100.3 mln
Q1 Adjusted EBITDA	Beat	$308.5 mln	$281.45 mln (8 Analysts)
Q1 Adjusted Free Cash Flow		-$40.8 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Dauch Corp is $9.00, about 55.7% above its May 7 closing price of $5.78

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago

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