Adjusted EBITDA Margin Improvement
Full-year adjusted EBITDA of $743.2M, representing a 12.7% margin, up 50 basis points from 12.2% a year ago. Fourth-quarter adjusted EBITDA was $169M (12.2% of sales), a year-over-year increase versus the quarter prior (Q4 adjusted EBITDA up ~$5M, ~3.2%).
Strong Adjusted Free Cash Flow Generation
Adjusted free cash flow of $213M for FY2025 and $70.1M in the quarter. Management highlighted 'over $200M' in adjusted free cash flow for 2025 as evidence of cash generation capability (FY adjusted FCF down modestly ~7.4% from $230M in 2024).
Transformational Acquisition Closed
Acquisition of Dauch Group plc (including GKN Automotive and GKN Powder Metallurgy) closed on 02/03/2026, creating a larger global driveline and metal forming supplier with a diversified product portfolio and geographic footprint.
Material Synergy Opportunity Identified
Approximately $300M of identified synergies across SG&A, purchasing and operations, with management expecting ~60% annual run rate by end of the second full year and >$100M run-rate savings by the end of year one. Synergy P&L flow-through expected to contribute $50M–$75M to adjusted EBITDA in 2026.
2026 Financial Guidance (Combined Company)
Management provided combined 2026 targets: sales $10.3B–$10.7B, adjusted EBITDA $1.3B–$1.4B, and adjusted free cash flow $235M–$325M — implying meaningful scale-up and margin expansion versus standalone 2025 results.
Net Leverage Improvement
Net debt at December 31 was $1.8B with LTM adjusted EBITDA $743M, producing a net leverage ratio of 2.5x, down from 2.8x a year earlier (improvement of 0.3x). Management expects to manage leverage while funding the acquisition.
Commercial Wins and Quality Recognition
New product award/win: supply of SmartBar product to Scout Motors (in addition to announced electric drive products). Received Cherry Automotive's Best Supplier Award (Asia) and multiple GM supplier quality excellence awards, underscoring product/quality credentials.
Adjusted EPS Slightly Improved
Full-year adjusted EPS was $0.53 in 2025 versus $0.51 in 2024 (increase of ~3.9%). Fourth-quarter adjusted EPS was $0.07 (versus a loss in the prior-year quarter).