Dauch Corporation Q4 FY2025 earnings call

• David Dauch welcomed everyone to the first earnings call at the new Dauch Corporation, discussed 2025 financial results, achievements like supplying SmartBar to Scout Motors, receiving awards, and the completion of the Dauch acquisition. - David Lim talked about the acquisition closing on 02/03/2026, the benefits of the acquisition, and the 2026 financial outlook. - Chris May covered sales details for 2025, profitability, interest and taxes, cash flow and balance sheet, and 2026 financial outlook including sales, EBITDA, adjusted free cash flow, and key elements of the year-over-year EBITDA walk.

Fourth quarter 2025 sales were approximately $1,400,000,000. Full year 2025 sales were approximately $5,800,000,000. Adjusted EBITDA in the fourth quarter was $169,000,000 or 12.2% of sales. For the full year, adjusted EBITDA was $743,000,000 or 12.7% of sales, up from 12.2% last year. Adjusted earnings per share in 2025 was $0.07 per share. Full year adjusted earnings per share was $0.53 per share. Adjusted free cash flow was $70,000,000 in the quarter, and $213,000,000 for the full year in 2025.

• 2026 sales target: $10,300,000,000 to $10,700,000,000. - 2026 adjusted EBITDA outlook: $1,300,000,000 to $1,400,000,000. - 2026 adjusted free cash flow range: $235,000,000 to $325,000,000. - First quarter 2026 expected to be the weakest quarter due to January downtime at key customers and partial quarter sales contribution.

Q: Good morning, everyone. At a high level of what you sort of see going on at the individual businesses? And for Dauch, since they haven't published full year 2025 results, comment on sales assumptions.

A: Chris May said Dauch hasn't published full year 2025 results. North America production guidance is down slightly, European market relatively flat, T1 truck production for legacy Dauch slightly down year over year, sales relatively flat.

Q: Follow-up on free cash flow, clarification on restructuring and synergy integration costs.

A: Chris May said T1 assumption for 2026 is 1,300,000 to 1,400,000 units. Synergy integration costs expected to continue into 2027, core restructuring cost to drop significantly. Operations expected to generate cash flow after restructuring and synergy costs.

Q: Question on $300,000,000 synergies from Dauch combination, room for upside.

A: David Dauch said highly confident to deliver $300,000,000 synergies, can see potential to increase on a go-forward basis.

Q: Follow-up on 2026 adjusted EBITDA estimate and IFRS adjustments.

A: Chris May said IFRS adjustments are meaningful differences between Dauch's reporting and theirs, such as revenue from joint venture, pension, lease, R&D differences.

Q: Question on Dauch business directionally from 2025 to 2026 and China JV business.

A: Chris May said similar markets and demands, Dauch had heavy restructuring in 2025 stepping down, China JV revenues nearly $1,500,000,000, mirrors China market movements.

Q: Question on segments reporting going forward.

A: Chris May said will update on segment reporting in first quarter, currently driveline and metal forming.

Q: Question on cash restructuring of $110,000,000 to $150,000,000 this year.

A: Chris May said over two thirds relates to Dauch's ongoing restructuring, final piece of moving factories, benefits seen in 2025 and 2026, other third relates to closing facilities at American Axle.

Q: Follow-up on pro forma debt, net debt post closing.

A: Chris May said roughly in the ballpark range of about $4,200,000,000 at day of closing.