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Dowlais Expects 2025 Results to Beat Guidance on Higher Margins and Cash Flow

Story Highlights
  • Dowlais expects 2025 adjusted revenue of about £5 billion, with both Automotive and Powder Metallurgy driving growth despite currency headwinds.
  • Adjusted operating profit and free cash flow are set to surpass prior guidance, reflecting restructuring benefits, margin expansion and stronger cash generation for the group.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Dowlais Expects 2025 Results to Beat Guidance on Higher Margins and Cash Flow

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The latest update is out from Dowlais Group PLC ( (GB:DWL) ).

Dowlais Group plc reported that its 2025 trading performance exceeded earlier guidance, with unaudited figures indicating adjusted revenue of around £5 billion, representing 3.1% year-on-year growth at constant currency and 1.3% on a reported basis after foreign exchange headwinds. Adjusted operating profit is expected to be at least £370 million, up 14% year-on-year, driving an adjusted operating margin of no less than 7.4%, an improvement of at least 80 basis points, with both Automotive and Powder Metallurgy contributing to margin expansion. Management attributed the stronger profitability to global footprint restructuring, commercial recoveries from prior volume losses and ongoing performance improvement measures, which more than offset operational inefficiencies at two North American plants. Adjusted free cash flow is forecast to be no less than £100 million, ahead of the prior year, helped by higher operating profit, lower capital expenditure and one-off cash receipts from asset disposals and customer advances, underlining a strengthening cash and operational profile for stakeholders.

The most recent analyst rating on (GB:DWL) stock is a Hold with a £103.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Spark’s Take on GB:DWL Stock

According to Spark, TipRanks’ AI Analyst, GB:DWL is a Neutral.

Dowlais Group PLC’s overall stock score is primarily influenced by its financial challenges, including declining revenues and operational losses. However, the stock shows positive technical momentum and benefits from strategic corporate events, such as board appointments and potential mergers, which could improve its future outlook. The high dividend yield also provides some appeal to investors.

To see Spark’s full report on GB:DWL stock, click here.

More about Dowlais Group PLC

Dowlais Group plc is a specialist engineering group focused on the automotive sector, operating through its Automotive and Powder Metallurgy segments. The company supplies engineered components and systems to global vehicle manufacturers, with a strategy centred on operational efficiency, global footprint optimisation and margin improvement across its core automotive-related businesses.

Average Trading Volume: 4,217,886

Technical Sentiment Signal: Buy

Current Market Cap: £1.24B

For a thorough assessment of DWL stock, go to TipRanks’ Stock Analysis page.

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