Dowlais Group PLC

Latest Results (06.03.2026):

Dowlais Group PLC – results for the six months ended 30 June 2024 (Q2 2024 / H1 2024): adjusted revenue was £2,571m (down 5.1% at constant currency), adjusted operating profit £151m (down 9.0% at constant currency) and adjusted basic EPS 4.9p; the Group reported statutory loss per share (7.3)p, adjusted free cash flow of £10m and net debt of £915m. Driveline, the China JV and Powder Metallurgy outperformed their markets while the ePowertrain product line was materially impacted by BEV production volatility. Management has started a strategic review of Powder Metallurgy and completed the disposal of the Hydrogen business.

Key financials

Adjusted revenue £2,571m (-5.1% cc), adjusted operating profit £151m (margin 5.9%, -30bps cc). Statutory revenue £2,289m and statutory operating loss £57m. Adjusted basic EPS 4.9p (H1 2023: 7.2p); statutory basic EPS (7.3)p. Adjusted free cash flow £10m (H1 2023: £33m).

Segment performance — Automotive

Automotive adjusted revenue £2,044m (-6.3% cc). Driveline outperformed (-1.4% cc) while ePowertrain fell sharply (538m vs 714m; -20% cc) due to BEV production schedule volatility. Automotive adjusted operating profit £122m (-13% cc); margin 6.0% (-50bps cc). New bookings >£2.4bn lifetime revenue.

Segment performance — Powder Metallurgy

Powder Metallurgy adjusted revenue £527m (+0.2% cc), adjusted operating profit £50m (margin 9.5%, +50bps cc). Order book up 10% with 53% of new wins propulsion‑agnostic or EV-related; strategic review of options (including potential sale) has been commenced.

Hydrogen disposal

GKN Hydrogen was sold in July 2024 for nominal consideration; the Group expects an ~£18m loss on disposal (≈£10m recognised in H1), and disposal removes ongoing cash losses from the business (Hydrogen had previously contributed operating losses and cash outflows).

Cash, debt and capital returns

Adjusted free cash flow £10m; net debt £915m (leverage 1.6x vs 1.4x at year end). Interim dividend maintained at 1.4p per share. Share buyback programme (up to £50m) commenced April 2024 — ~12m shares purchased to 30 June for ~£9m.

Costs, restructuring and interest

Adjusted net finance costs £56m (H1 2023: £38m) reflecting full half‑year of post‑demerger capital structure; interest rate on bank borrowings ~6.5%. Restructuring cash outflows £51m in H1; expected restructuring cash outflows for 2024 now £105–115m.

Outlook

Market guidance: S&P now expects a 2% decline in global light vehicle production for 2024 and ongoing BEV volatility. Dowlais expects a mid‑to‑high single‑digit adjusted revenue decline for 2024 and an adjusted operating margin of 6.0–7.0% at constant currency, with lower adjusted free cash flow versus prior year.

Operational & sustainability highlights

Operationally: 79 new programme launches, excellent quality (3 PPM), AFR 0.15 (above target) and ongoing footprint optimisation (e.g., Roxboro closure). Sustainability: VPPA signed for Automotive renewable supply and Powder Metallurgy reached validated SBTi net‑zero targets for its business.

Going concern & risks

Directors support going concern for 12 months; liquidity headroom ~£0.7–0.8bn and covenants comfortably met in base and downside scenarios. Principal risks remain market volatility (notably BEV adoption), execution of restructuring and customer programme timing.