REG - Dowlais Group PLC - Trading Update

DowlaisAnnouncement

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RNS Number : 3294P  Dowlais Group PLC  19 January 2026

19 January 2026

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

Dowlais Group plc

Trading update

2025 Performance ahead of previous guidance

 

Dowlais Group plc ("Dowlais" or the "Group"), the specialist engineering group
focused on the Automotive sector, provides a trading update for the 12 month
period to 31 December 2025 ("the period").

Since its Q3 trading update on 11 November 2025, trading and cash flow were
better than expected based on unaudited financial accounts. The Group now
expects its full year adjusted revenue, operating profit margin and free cash
flow for the period to be ahead of its previously stated guidance.

Adjusted revenue(1) for the period is likely to be approximately £5 billion,
which would represent 3.1% year-on-year growth at constant currency(2), with
growth delivered by both Automotive and Powder Metallurgy segments.
Translational foreign exchange headwinds of approximately £90 million are
expected to reduce reported adjusted revenue growth to approximately 1.3%.

Adjusted operating profit for the period is likely to be no less than £370
million, which would represent an increase of 14% compared to prior year.
Adjusted operating margin would then be no less than 7.4%, representing a
year-on-year increase of at least 80bps, with both Automotive and Powder
Metallurgy positively contributing to margin expansion.

The Group's adjusted operating profit improvement reflects the impact of
global footprint restructuring initiatives, commercial recoveries from prior
volume losses and other ongoing performance improvement actions which are
expected to more than offset some operational inefficiencies in two of our
plants in North America.

Adjusted free cash flow for the period is likely to be no less than £100
million, ahead of the prior year.  This was driven by operating profit
growth, lower capital expenditures and certain one-off cash receipts,
including proceeds from the sale of surplus land and buildings and customer
advances.

 

Enquiries

Investor Relations:

Pier Falcione investor.relations@dowlais.com
(mailto:investor.relations@dowlais.com)
 

+44(0)7855185420

 

Media:

Neil Craven craven@montfort.london (mailto:craven@montfort.london)
 

+44 (0) 7876475419

 

Dowlais Group plc LEI Number: 213800XM8WOFLY6VPC92

 

The person responsible for arranging the release of this Announcement on
behalf of Dowlais is John Nicholson, General Counsel & Company Secretary.

 

Notes

1. All "adjusted" financial measures in this trading update are defined in the
Alternative Performance Measures section of Dowlais full year 2024 results
announcement, published on 05 March 2025

2. All year-on-year changes are stated at constant currency unless stated
otherwise

Profit Estimates

The following statements contained within this announcement constitute profit
estimates (the "Profit Estimates") for the purposes of Rule 28 of the City
Code on Takeovers and Mergers:

i.    "Adjusted revenue(1) for the period is likely to be approximately £5
billion, which would represent 3.1% year-on-year growth at constant
currency(2), with growth delivered by both Automotive and Powder Metallurgy
segments. Translational foreign exchange headwinds of approximately £90
million are expected to reduce reported adjusted revenue growth to
approximately 1.3%."

 

ii.    "Adjusted operating profit for the period is likely to be no less
than £370 million, which would represent an increase of 14% compared to prior
year. Adjusted operating margin would then be no less than 7.4%, representing
a year-on-year increase of at least 80bps, with both Automotive and Powder
Metallurgy positively contributing to margin expansion."

 

iii.   "Adjusted free cash flow for the period is likely to be no less than
£100 million."

In line with Rule 28.1(c), the Takeover Panel has granted Dowlais a
dispensation from the requirement to include reports from reporting
accountants and Dowlais' financial advisers in relation to the Profit
Estimates. Other than the Profit Estimates, nothing in this announcement is
intended, or is to be construed, as a profit forecast for any period.

The Board confirms that, as at the date of this announcement, the Profit
Estimates are valid and have been properly compiled on the basis of the
assumptions set out below and that the basis of the accounting used is
consistent with Dowlais' accounting policies, which are in accordance with
IFRS.

The Dowlais Estimates are based on the unaudited condensed financial
statements of Dowlais for the twelve months ended 31 December 2025. The basis
of accounting used is consistent with the accounting policies of Dowlais which
are in accordance with IFRS and are those that Dowlais expects to apply in
preparing its Annual Report and Financial Statements for the financial year
ending 31 December 2025. Given that the period to which the Profit Estimates
relate has been completed, there are no other principal assumptions
underpinning the Profit Estimates.

Forward-Looking Statements

This trading update includes certain forward-looking statements. These
forward-looking statements involve known and unknown risks and uncertainties,
many of which are beyond Dowlais' control and all of which are based on
Dowlais' current beliefs and expectations about future events. Forward-looking
statements are sometimes identified by the use of terminology such as
"believe", "expects", "may", "will", "would", "could", "should", "shall",
"risk", "intends", "estimates", "aims", "plans", "predicts", "goal",
"continues", "assumes", "positioned", "anticipates" or "targets" or the
negative thereof, other variations thereon or comparable terminology. These
forward-looking statements include matters that are not historical facts,
statements regarding the intentions, beliefs or current expectations
concerning, among other things, the future results of operations, financial
condition, prospects, growth, strategies, and dividend policy and industry of
Dowlais. These forward-looking statements and other statements contained in
this trading update regarding matters that are not historical facts involve
predictions. No assurance can be given that such future results will be
achieved, and actual events or results may differ materially as a result of
risks and uncertainties facing Dowlais. Such risks and uncertainties could
cause actual results to vary materially from the future results indicated,
expressed or implied in such forward-looking statements. Forward-looking
statements contained in this trading update speak only to the date of this
trading update. Dowlais and its directors expressly disclaim any obligation or
undertaking to update these forward-looking statements to reflect any change
in their expectations or any change in events, conditions, or circumstances on
which such statements are based unless required to do so by applicable law.

 

 

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