Dowlais Group PLC

Latest Results (08.12.2025):

Dowlais Group PLC — Full Year 2024 (year ended 31 December 2024): the Group reported FY2024 results broadly in line with guidance, with adjusted revenue of £4,937m (down 6.4% at constant currency), adjusted EBITDA £600m (-2%), adjusted operating profit £324m (-4.2%) and an adjusted operating margin of 6.6% (up 10bps). Results were driven by lower ePowertrain volumes and a ~£199m FX translation headwind, partially offset by commercial recoveries and cost actions; adjusted free cash flow fell to £15m and leverage rose to 1.7x.

Key financials (FY2024)

Adjusted revenue £4,937m (-6.4% cc), adjusted EBITDA £600m, adjusted operating profit £324m, adjusted operating margin 6.6% (up 10bps), adjusted basic EPS 11.4p (down 17%). Dividend maintained at 4.2p per share.

Performance drivers

Main headwinds were volume weakness in the ePowertrain product line and a £199m FX translation hit (GBP strength). Commercial recoveries, restructuring and other cost mitigation offset much of the volume impact and delivered the modest margin improvement.

Cash flow and working capital

Adjusted free cash flow was £15m (2023: £93m) due to lower earnings, higher interest paid (annualised post-demerger capital structure), and increased restructuring cash outflows. Capex reduced to £191m (from £295m) as spend was aligned to lower volumes.

Debt, liquidity and leverage

Net debt £968m (cash £323m) with leverage at 1.7x. Management completed a USD 500m USPP refinancing and diversified its debt maturities; effective interest rate on bank borrowing around 6.3%.

Earnings composition and charges

Adjusted net finance costs increased to £109m, adjusted profit after tax £161m, and statutory/basic EPS negative reflecting adjusting items (impairment/amortisation/other). Adjusted tax rate ~25%.

Strategic actions

Notable corporate moves include the disposal of GKN Hydrogen (removing a loss-making element) and the recommended combination with American Axle Manufacturing to create a larger driveline/metal-forming group; GKN Powder Metallurgy to be integrated into AAM post-transaction.

Operational actions

Management reduced engineering spend on eDrive systems by £35m in 2024 with an expected £10m net benefit in 2025, and continued footprint rationalisation and restructuring to rightsize the business for lower BEV-related volumes.

2025 outlook (guidance)

For 2025 the Group expects adjusted revenue to be flat to a mid-single-digit decline and an adjusted operating margin of 6.5–7.0% (constant currency). Adjusted free cash flow projected to be slightly higher than 2024, with significant improvement expected in 2026. Key modelling assumptions: P&L net finance costs £110–120m, cash capex £90–100m, restructuring cash £120–130m, tax ~25% and ~£40m translational FX impact at Feb 2025 spot rates.