Dauch reports $45.3 million net loss for Q3 2026

Cover page 3 changes

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For the quarterly period ended June September 30, 2026

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As of August 4, November 3, 2026, the latest practicable date, the number of shares of the registrant's Common Stock, par value $0.01 per share, outstanding was 237,604,602 237,632,773 shares.

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FOR THE QUARTER ENDED JUNE SEPTEMBER 30, 2026

Forward-looking statements 3 changes

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Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and actual results may differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:

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• risks related to disruptions to ongoing business operations as a result of the business combination with Dowlais Group Limited (Dowlais), including disruptions to management time;

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• supply shortages and the availability of natural gas or other fuel and utility sources in certain regions, labor shortages, including increased labor costs, or price increases in raw material and/or freight, utilities or other operating supplies for us or our customers as a result of pandemic or epidemic illness, geopolitical conflicts, including the current instability in the Middle East, natural disasters or otherwise;

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Financial statements 157 changes

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Three Months Ended Six Nine Months Ended

September 30, September 30,

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Net sales $ 2,955.6 $ 1,536.2 $ 5,334.5 $ 2,947.5

Cost of goods sold 2,617.4 1,335.5 4,770.9 2,572.9

Gross profit 338.2 200.7 563.6 374.6

Selling, general and administrative expenses 166.9 100.8 304.2 191.7

Amortization of intangible assets 21.8 20.4 44.7 41.0

Restructuring and acquisition-related costs 49.8 16.5 148.7 36.2

Operating income 99.7 55.0 66.0 97.7

Interest expense ( 89.8 ) ( 43.1 ) ( 179.4 ) ( 86.0 )

Interest income 7.2 5.6 19.3 11.2

Net sales $ 2,908.6 $ 1,505.3 $ 8,243.1 $ 4,452.8

Cost of goods sold 2,626.4 1,316.3 7,397.3 3,889.2

Gross profit 282.2 189.0 845.8 563.6

Selling, general and administrative expenses 140.4 98.8 444.6 290.5

Amortization of intangible assets 22.6 20.4 67.3 61.4

Impairment charge (Note 2) — 8.0 — — 8.0

Restructuring and acquisition-related costs 47.4 21.4 196.1 57.6

Operating income 71.8 48.4 137.8 146.1

Interest expense ( 86.6 ) ( 42.7 ) ( 266.0 ) ( 128.7 )

Interest income 5.7 7.0 25.0 18.2

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Income from equity-method affiliates 17.4 0.5 27.7 0.5

Other income (expense), net ( 16.0 ) 3.1 ( 44.6 ) 0.2

Income (loss) before income taxes 17.6 67.4 ( 102.0 ) 88.5

Income tax expense (benefit) 16.1 28.1 ( 3.5 ) 42.1

Net income (loss) $ 1.5 $ 39.3 $ ( 98.5 ) $ 46.4

Net income (loss) attributable to Dauch $ 1.0 $ 39.3 $ ( 99.3 ) $ 46.4

Basic earnings (loss) per share $ — $ 0.32 $ ( 0.46 ) $ 0.38

Diluted earnings (loss) per share $ — $ 0.32 $ ( 0.46 ) $ 0.38

Debt refinancing and redemption costs ( 0.9 0.8 ) — ( 3.9 4.7 ) ( 3.3 )

Gain (loss) on Business Combination Derivative (Note 6) — 46.3 ( 16.0 ) 12.9 68.2 52.2

Income (loss) from equity-method affiliates 15.1 ( 0.4 ) 42.8 0.1

Other income (expense), net ( 35.9 ) 2.0 ( 80.5 ) 2.2

Income (loss) before income taxes ( 30.7 ) ( 1.7 ) ( 132.7 ) 86.8

Income tax expense (benefit) 13.9 ( 10.9 ) 10.4 31.2

Net income (loss) $ ( 44.6 ) $ 9.2 $ ( 143.1 ) $ 55.6

Net income attributable to noncontrolling interests ( 0.5 0.7 ) — ( 0.8 1.5 ) —

Net income (loss) attributable to Dauch $ ( 45.3 ) $ 9.2 $ ( 144.6 ) $ 55.6

Basic earnings (loss) per share $ ( 0.19 ) $ 0.07 $ ( 0.65 ) $ 0.45

Diluted earnings (loss) per share $ ( 0.19 ) $ 0.07 $ ( 0.65 ) $ 0.45

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Net income (loss) $ 1.5 $ 39.3 $ ( 98.5 ) $ 46.4

Three Months Ended Six Nine Months Ended

September 30, September 30,

Net income (loss) $ ( 44.6 ) $ 9.2 $ ( 143.1 ) $ 55.6

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Foreign currency translation adjustments ( 7.0 ) 24.8 6.4 48.1

Foreign currency translation adjustments 17.6 29.2 24.0 77.3

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Other comprehensive income (loss) ( 1.3 ) 33.4 19.1 58.6

Comprehensive income (loss) $ 0.2 $ 72.7 $ ( 79.4 ) $ 105.0

Other comprehensive income (loss) 32.4 32.1 51.5 90.7

Comprehensive income (loss) $ ( 12.2 ) $ 41.3 $ ( 91.6 ) $ 146.3

Net income attributable to noncontrolling interests ( 0.5 0.7 ) — ( 0.8 1.5 ) —

Comprehensive income (loss) attributable to Dauch $ ( 0.3 12.9 ) $ 72.7 41.3 $ ( 80.2 93.1 ) $ 105.0 146.3 (a) Amounts are net of tax of $ — million and $ 0.1 million for the three and six nine months ended June September 30, 2026 and $ 0.1 0.2 million and $ 0.2 0.4 million for the three and six nine months ended June September 30, 2025.

(b) Amounts are net of tax of $( 1.4 3.7 ) million and $( 3.2 6.9 ) million for the three and six nine months ended June September 30, 2026 and $( 2.8 1.1 ) million and $( 3.7 4.8 ) million for the three and six nine months ended June September 30, 2025.

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June September 30, 2026 December 31, 2025

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Cash and cash equivalents $ 880.8 800.2 $ 708.9

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Goodwill 684.7 174.4

Total assets $ 11,050.0 $ 6,670.2

Accounts receivable, net 1,517.0 1,553.3 733.0

Inventories, net 1,000.3 1,005.7 466.4

Prepaid expenses and other 329.9 347.8 230.1

Total current assets 3,728.0 3,707.0 3,635.0

Property, plant and equipment, net 4,108.0 4,038.2 1,591.5

Deferred income taxes 360.9 371.1 235.9

Goodwill 682.9 174.4

Other intangible assets, net 348.6 326.4 375.2

GM postretirement cost sharing asset 118.8 116.9 116.0

Operating lease right-of-use assets 169.9 158.1 122.3

Investments in equity-method affiliates 889.9 865.1 12.1

Other assets and deferred charges 641.2 653.1 407.8

Total assets $ 10,918.8 $ 6,670.2

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Deferred revenue 23.4 38.5

Deferred revenue 40.4 33.9

Current portion of long-term debt $ — 5.7 $ 10.4

Accounts payable 1,698.1 1,663.9 718.3

Accrued compensation and benefits 513.6 506.7 254.9

Deferred revenue 17.1 38.5

Current portion of operating lease liabilities 37.6 35.8 24.7

Accrued expenses and other 394.1 439.2 187.2

Total current liabilities 2,666.8 2,668.4 1,234.0

Long-term debt, net 5,025.9 4,895.0 4,039.1

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and 77 more changes in the filing

Note 1: ORGANIZATION AND BASIS OF PRESENTATION 2 changes

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In order to prepare the accompanying interim condensed consolidated financial statements, we are required to make estimates and assumptions that affect the reported amounts and disclosures in our interim condensed consolidated financial statements. These estimates and assumptions are impacted by risks and uncertainties, including those associated with tariffs and the significant instability in U.S. trade relations with certain non-U.S. countries in addition to the indirect impact of geopolitical conflicts, including instability in the Middle East, contributing to supply chain constraints. While we have made estimates and assumptions based on the facts and circumstances as of the date of this report, the full impact of tariffs and potential changes in U.S. trade relations, as well as the potential impact of geopolitical conflicts, cannot be predicted, and actual results could differ materially from those estimates and assumptions.

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On November 4, 2024, the Financial Accounting Standards Board (FASB) issued ASU Accounting Standards Update 2024-03 - Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) (ASU 2024-03) . ASU 2024-03 expands existing annual and interim requirements for costs and expenses to include a footnote disclosure disaggregating expense captions on the face of the income statement by specific expense categories using a tabular presentation. ASU 2024-03 also requires a qualitative disclosure of the amounts remaining in relevant expense captions that are not separately disclosed as part of the specific expense categories, as well as disclosures about the entity's total selling expenses and in annual periods, a definition of selling expenses. This guidance becomes effective at the beginning of our 2027 fiscal year for annual requirements, and at the beginning of our 2028 fiscal year for interim requirements, using either a prospective or retrospective transition method. We will adopt this guidance on January 1, 2027 for the annual requirements and will adopt the interim requirements on January 1, 2028. We are currently assessing the impact that this standard will have on our consolidated financial statements.

Note 2: ACQUISITIONS AND DISPOSITIONS 9 changes

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The Business Combination was accounted for using the acquisition method under Accounting Standards Codification (ASC) 805 - Business Combinations (ASC 805) with the purchase price allocated to identifiable assets and liabilities of the acquired company based on the respective fair values of the assets and liabilities.

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Accounts receivable 656.8

Accounts receivable 670.5

Property, plant and equipment 2,706.4 2,700.1

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Prepaid expenses and other long-term assets 569.1 566.2

Total assets acquired $ 5,814.1 5,821.7

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Accrued expenses and other 785.6 793.1

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Postretirement benefits and other long-term liabilities 794.0 791.7

Net assets acquired $ 1,233.0 1,235.4

Notes to the financial statements 5 changes

The preliminary allocation of the purchase price to the assets acquired and liabilities assumed, including the residual amount recognized as goodwill, is based upon estimated information and is subject to change within the measurement period. Under the guidance of ASC 805, the measurement period is a period not to exceed one year from the acquisition date during which we may adjust estimated or provisional amounts recorded during purchase accounting if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in revised estimated values of those assets or liabilities as of that date. Measurement period adjustments are recorded in the period identified with an offsetting entry to goodwill. Any adjustments to amounts recorded in purchase accounting that do not qualify as measurement period adjustments will be included in earnings in the period identified. In Since the second quarter completion of 2026, the Business Combination, we have recorded measurement period adjustments that were primarily related to deferred tax liabilities, resulting in an increase in deferred tax liabilities of approximately $ 43.0 million.

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Included in net sales and net loss attributable to Dauch for the period from the Business Combination completion date on February 3, 2026 through June September 30, 2026 were approximately $ 2,411 3,801 million and a loss of $ 50 70 million, respectively, attributable to Dowlais. The loss of $ 50 70 million includes approximately $ 30 million, net of tax, attributable to the step-up of Dowlais inventories to fair value in purchase accounting and the expense associated with the subsequent sale of these inventories.

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Unaudited pro forma net sales for Dauch, on a combined basis with Dowlais for the six nine months ended June September 30, 2026 and June September 30, 2025, were $ 5,825.8 8,734.4 million and $ 5,749.2 8,712.9 million, respectively, excluding sales between Dauch and Dowlais during these periods. Unaudited pro forma net loss amounts for the six nine months ended June September 30, 2026 and June September 30, 2025 were a loss of approximately $ 32.4 77.7 million and a loss of approximately $ 92.5 73.6 million, respectively. These pro forma amounts have been calculated after applying Dauch's accounting policies and converting the historical financial statements of Dowlais from International Financial Reporting Standards (IFRS) to U.S. GAAP. The results primarily reflect depreciation adjustments relating to the fair value step-up of property, plant and equipment, incremental interest expense as a result of the financing associated with the Business Combination and the impact of the step-up of inventory to fair value.

The unaudited pro forma net loss amounts for the six nine months ended June September 30, 2026 and June September 30, 2025 have been adjusted by approximately $ 38 million related to the pre-tax step-up of inventory to fair value as a result of the Business Combination, and approximately $ 54 million in pre-tax acquisition-related costs. This adjustment resulted in a reclassification of approximately $ 73 million, net of tax, from unaudited pro forma net loss for the first six nine months of 2026 into pro forma net loss for the first six nine months of 2025, as we are required to disclose the unaudited pro forma amounts as if the Business Combination had been completed on January 1, 2025.

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In October 2024, we entered into a definitive agreement to sell our commercial vehicle axle business and related assets in India (AAM India Manufacturing Corporation Pvt., Ltd.) to Bharat Forge Limited. The sale of AAM India Manufacturing Corporation Pvt., Ltd. was completed in July 2025 and did not qualify for classification as discontinued operations as the sale does not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results. For the three and six nine months ended June September 30, 2025, we recorded an impairment charge of $ 8.0 million to reduce the carrying value of this business to fair value less costs to sell.

Note 3: INVENTORIES 7 changes

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Finished goods 216.8 114.5

June September 30, 2026 December 31, 2025

Raw materials and work-in-progress $ 886.2 887.5 $ 383.5

Finished goods 220.5 114.5

Gross inventories 1,103.0 1,108.0 498.0

Inventory valuation reserves ( 102.7 102.3 ) ( 31.6 )

Inventories, net $ 1,000.3 1,005.7 $ 466.4

Note 4: GOODWILL AND OTHER INTANGIBLE ASSETS 12 changes

Goodwill The following table provides a reconciliation of changes in goodwill for the six nine months ended June September 30, 2026:

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Balance at June 30, 2026 $ 623.7 $ 61.0 $ 684.7

Business Combination with Dowlais 450.0 61.0 511.0 58.6 508.6

Foreign currency translation ( 0.7 0.1 ) — ( 0.7 0.1 )

Balance at September 30, 2026 $ 624.3 $ 58.6 $ 682.9

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June September 30, December 31,

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Capitalized computer software $ 78.4 79.6 $ ( 60.2 63.9 ) $ 18.2 15.7 $ 61.2 $ ( 55.7 ) $ 5.5

Customer platforms 856.2 ( 586.7 602.6 ) 269.5 253.6 856.2 ( 555.0 ) 301.2

Customer relationships 53.0 ( 31.6 32.5 ) 21.4 20.5 53.0 ( 29.9 ) 23.1

Technology and other 149.5 ( 110.0 112.9 ) 39.5 36.6 149.5 ( 104.1 ) 45.4

Total $ 1,137.1 1,138.3 $ ( 788.5 811.9 ) $ 348.6 326.4 $ 1,119.9 $ ( 744.7 ) $ 375.2

Amortization expense for our intangible assets was $ 21.8 22.6 million for the three months ended June September 30, 2026 and $ 20.4 million for the three months ended June September 30, 2025, and was $ 44.7 67.3 million for the six nine months ended June September 30, 2026 and $ 41.0 61.4 million for the six nine months ended June September 30, 2025. Estimated amortization expense for the years 2026 through 2029 is expected to be in the range of approximately $ 80 million to $ 90 million per year, decreasing to approximately $ 50 million in 2030, as certain of the intangible assets identified as part of our 2017 acquisition of Metaldyne Performance Group, Inc. become fully amortized.

Note 5: LONG-TERM DEBT 13 changes

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June September 30, 2026 December 31, 2025

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Term Loan A Facility 472.1 460.0 484.3

Term Loan B Facility 644.6 641.3 648.0

Tranche C Term Facility 824.6 820.4 —

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Non-U.S. credit facilities and other 4.6 19.2 10.7

Total debt 5,119.9 4,989.9 4,093.0

Less: Current portion of long-term debt — 5.7 10.4

Long-term debt 5,119.9 4,984.2 4,082.6

Less: Debt issuance costs 94.0 89.2 43.5

Long-term debt, net $ 5,025.9 4,895.0 $ 4,039.1

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On February 24, 2025, we entered into the Second Amendment to the Amended and Restated Credit Agreement and the Incremental Facility Agreement (the Second Amendment). The Second Amendment, among other things, a) increased the maximum availability under the Revolving Credit Facility from $ 925.0 million to $ 1,495.0 million, effective upon closing of the Business Combination, b) provided for an incremental $ 843.0 million Tranche C Term Facility in connection with the Business Combination, which was subsequently decreased by AAM, Inc. to $ 835.0 million and c) extended the maturity of the Revolving Credit Facility and Term Loan A Facility for five years from the date of the Second Amendment, resetting for another five years upon the closing of the Business Combination. In connection with the Second Amendment, we paid $ 11.6 million of debt issuance costs, and expensed $ 3.3 million of fees and a portion of the unamortized debt issuance costs that we had been amortizing over the expected life of these borrowings. The maturity date of the Term Loan B Facility in the fourth quarter of 2029 was not changed by the Second Amendment.

At June September 30, 2026, we had $ 1,469.7 million available under the Revolving Credit Facility. This availability reflects a reduction of $ 25.3 million primarily for standby letters of credit issued against the facility.

As of June September 30, 2026, we have prepaid $ 25.7 40.1 million of the outstanding principal on our Term Loan A Facility, Term Loan B Facility and Tranche C Term Facility. These payments satisfy our obligation for principal payments under the Term Loan A Facility, Term Loan B Facility and Tranche C Term Facility through the second quarter of 2027.

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Note 6: DERIVATIVES 10 changes

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Currency derivative contracts From time to time, we use foreign currency forward contracts to reduce the effects of fluctuations in exchange rates relating to certain foreign currencies. As of June September 30, 2026 and December 31, 2025, we had currency forward contracts outstanding with a total notional amount of $ 903.3 1,064.3 million and $ 216.2 million, respectively, that hedge our exposure to changes in foreign currency exchange rates for certain working capital items into the first quarter of 2029. The increase in the notional value as of September 30, 2026 as compared to December 31, 2025 is related to derivatives acquired as part of the Business Combination. See Note 2 - Acquisitions and Dispositions for additional detail on the Business Combination.

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Fixed-to-fixed cross-currency swaps In the second quarter of 2024, we entered into a fixed-to-fixed cross-currency swap that is designated as a fair value hedge. This fixed-to-fixed cross-currency swap reduces the variability of functional currency equivalent cash flows associated with changes in exchange rates on certain Euro-based intercompany loans. At June September 30, 2026 and December 31, 2025, we had a notional amount outstanding under the fixed-to-fixed cross-currency swap of € 175.0 million, which was equivalent to $ 199.9 198.4 million and $ 205.5 million, respectively. The fixed-to-fixed cross-currency swap hedges our exposure to changes in exchange rates on the intercompany loans through the second quarter of 2027.

In the first quarter of 2026, we entered into additional fixed-to-fixed cross-currency swaps that are designated as fair value hedges. These fixed-to-fixed cross-currency swaps reduce the variability of functional currency equivalent cash flows associated with changes in exchange rates on certain Euro-based intercompany loans. At June September 30, 2026, we had a notional amount outstanding under the fixed-to-fixed cross-currency swaps of € 200.0 400.0 million, which was equivalent to $ 228.5 453.5 million, € 200.0 million of which hedges our exposure through the first quarter of 2028 and € 200.0 million which was equivalent to $ 228.5 million of which hedges our exposure through the first quarter of 2029.

Variable-to-fixed interest rate swap As of June September 30, 2026, we have $ 1.0 billion notional amount hedged in relation to our variable-to-fixed interest rate swap through the fourth quarter of 2028, which subsequently decreases to $ 900.0 million through the fourth quarter of 2030 and to $ 500.0 million through the fourth quarter of 2031.

The following table summarizes the reclassification of pre-tax derivative gains and losses into net income (loss) from accumulated other comprehensive income (loss) for those derivative instruments designated as cash flow and fair value hedges under Accounting Standards Codification ASC 815 - Derivatives and Hedging : (ASC 815):

Location Gain (Loss) Reclassified During Total of Financial Gain Expected of Gain (Loss) Three Months Ended Six Nine Months Ended Statement to be Reclassified

Reclassified into June September 30, June September 30, Line Item During the

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Currency forward contracts Cost of goods sold $ 4.0 $ ( 1.9 ) 1.6 $ 6.5 10.5 $ ( 6.0 4.4 ) $ 4,770.9 7,397.3 $ 10.1 0.8

Fixed-to-fixed cross-currency swap Other income (expense), net 6.9 ( 17.0 ) 20.7 4.9 0.9 25.6 ( 25.0 24.1 ) ( 44.6 80.5 ) —

Variable-to-fixed interest rate swap Interest expense ( 0.5 0.1 ) 0.4 ( 0.4 ) 1.4 0.1 1.5 ( 179.4 266.0 ) 1.9 9.8

Note 7: FAIR VALUE 15 changes

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June September 30, 2026 December 31, 2025 Input

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Cash equivalents $ 157.4 242.4 $ 183.1 Level 1

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Cash flow hedges - currency forward contracts 10.2 6.2 9.0 Level 2

Cash flow hedges - variable-to-fixed interest rate swap 3.2 10.8 0.1 Level 2

Nondesignated - currency forward contracts 33.4 19.7 53.7 Level 2

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Cash flow hedges - currency forward contracts 6.3 3.5 4.9 Level 2

Fair value hedges - fixed-to-fixed cross-currency swap 12.5 16.2 — Level 2

Cash flow hedges - variable-to-fixed interest rate swap 12.3 38.4 0.7 Level 2

Nondesignated - currency forward contracts 3.6 0.8 — Level 2

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Cash flow hedges - currency forward contracts 0.1 5.4 — Level 2

Fair value hedges - fixed-to-fixed cross-currency swap 15.9 14.3 — Level 2

Nondesignated - currency forward contracts 3.2 5.4 — Level 2

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Cash flow hedges - currency forward contracts 4.5 — Level 2

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Nondesignated - currency forward contracts 1.1 0.9 — Level 2

Nondesignated - other derivative contracts 14.1 — Level 3

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Note 8: RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) 27 changes

Reclassification adjustments and other activity impacting accumulated other comprehensive income (loss) during the three and six nine months ended June September 30, 2026 and June September 30, 2025 are as follows (in millions) :

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Balance at March 31, 2026

Other comprehensive income (loss) before reclassifications — ( 7.0 ) 17.5 10.5

Income tax effect of other comprehensive income (loss) before reclassifications — — ( 3.6 ) ( 3.6 )

Amounts reclassified from accumulated other comprehensive income (loss) 0.4 (a) — ( 10.8 ) (b) ( 10.4 )

Income taxes reclassified into net income — — 2.2 2.2

Net change in accumulated other comprehensive income (loss) 0.4 ( 7.0 ) 5.3 ( 1.3 )

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Other comprehensive income before reclassifications — 17.6 27.5 45.1

Income tax effect of other comprehensive income before reclassifications — — ( 5.8 ) ( 5.8 )

Amounts reclassified from accumulated other comprehensive income (loss) 0.4 (a) — ( 9.4 ) (b) ( 9.0 )

Income taxes reclassified into net loss — — 2.1 2.1

Net change in accumulated other comprehensive income 0.4 17.6 14.4 32.4

Balance at September 30, 2026

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Balance at March 31, 2025

Other comprehensive income (loss) before reclassifications — 24.8 ( 6.9 ) 17.9

Income tax effect of other comprehensive income (loss) before reclassifications — — 1.4 1.4

Amounts reclassified from accumulated other comprehensive income (loss) ( 0.3 ) (a) — 18.5 (b) 18.2

Income taxes reclassified into net income 0.1 — ( 4.2 ) ( 4.1 )

Net change in accumulated other comprehensive income (loss) ( 0.2 ) 24.8 8.8 33.4

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Other comprehensive income (loss) before reclassifications — ( 3.6 ) 6.8 3.2

Income tax effect of other comprehensive income (loss) before reclassifications — — ( 1.4 ) ( 1.4 )

Amounts reclassified from accumulated other comprehensive income (loss) ( 0.4 ) (a) 32.8 ( 2.6 ) (b) 29.8

Income taxes reclassified into net income 0.2 — 0.3 0.5

Net change in accumulated other comprehensive income (loss) ( 0.2 ) 29.2 3.1 32.1

Balance at September 30, 2025

(a) These amounts were reclassified from AOCI to Other income (expense), net for the three months ended June September 30, 2026 and June September 30, 2025.

(b) The amounts reclassified from AOCI included $( 4.0 ) million in cost of goods sold (COGS), $( 0.1 0.5 ) million in interest expense and $( 6.9 4.9 ) million in Other income (expense), net for the three months ended June September 30, 2026 and $( 1.9 1.6 ) million in COGS, $( 0.4 0.1 ) million in interest expense and $( 17.0 0.9 ) million in Other income (expense), net for the three months ended June September 30, 2025.

Note 9: EMPLOYEE BENEFIT PLANS 20 changes

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Service cost $ 1.0 $ — $ 1.6 $ 0.1

Interest cost 22.7 6.0 39.8 12.0

Net periodic benefit cost $ 6.4 $ 1.8 $ 11.4 $ 3.6

Three Months Ended Six Nine Months Ended

September 30, September 30,

Service cost $ 0.9 $ 0.1 $ 2.5 $ 0.2

Interest cost 22.7 5.9 62.5 17.9

Expected asset return ( 19.9 ) ( 6.4 ) ( 35.1 55.0 ) ( 12.8 19.2 )

Amortized loss 2.6 2.2 5.1 4.3 7.7 6.5

Net periodic benefit cost $ 6.3 $ 1.8 $ 17.7 $ 5.4

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Interest cost 2.8 2.2 5.3 4.5

Amortized gain ( 2.1 ) ( 2.4 ) ( 4.1 ) ( 4.7 )

Three Months Ended Six Nine Months Ended

September 30, September 30,

Service cost $ 0.2 $ — 0.1 $ 0.4 0.6 $ — 0.1

Interest cost 2.8 2.3 8.1 6.8

Amortized gain ( 2.0 ) ( 2.4 ) ( 6.1 ) ( 7.1 )

Amortized prior service credit ( 0.1 0.2 ) ( 0.1 0.2 ) ( 0.3 0.5 ) ( 0.3 0.5 )

Net periodic benefit cost (credit) $ 0.8 $ ( 0.3 0.2 ) $ 1.3 2.1 $ ( 0.5 0.7 )

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The noncurrent liabilities associated with our pension and other postretirement benefit plans are classified as Postretirement benefits and other long-term liabilities on our Condensed Consolidated Balance Sheets. As of June September 30, 2026 and December 31, 2025, we have a noncurrent pension liability of $ 490.6 484.0 million and $ 69.7 million, respectively. As of June September 30, 2026 and December 31, 2025, we have a noncurrent other postretirement benefits liability of $ 310.8 310.1 million and $ 276.6 million, respectively.

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Note 10: PRODUCT WARRANTIES 14 changes

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Accruals 7.1 3.5 17.0 7.6

Payments ( 11.2 ) ( 2.7 ) ( 19.8 ) ( 5.2 )

Adjustment to prior period accruals 4.4 ( 1.9 ) 4.3 ( 1.9 )

Business Combination with Dowlais ( 7.7 ) — 103.0 —

Ending balance $ 165.8 $ 62.5 $ 165.8 $ 62.5

Three Months Ended Six Nine Months Ended

September 30, September 30,

Beginning balance $ 173.8 165.8 $ 62.6 62.5 $ 63.3 $ 60.6

Accruals 10.3 4.1 27.3 11.7

Payments ( 11.8 ) ( 3.7 ) ( 31.6 ) ( 8.9 )

Adjustment to prior period accruals ( 5.2 ) ( 1.6 ) ( 0.9 ) ( 3.5 )

Business Combination with Dowlais ( 2.6 ) — 100.4 —

Foreign currency translation 0.1 ( 0.6 0.1 ) 1.0 ( 2.0 1.9 ) 1.4 1.3

Ending balance $ 156.6 $ 61.2 $ 156.6 $ 61.2

Note 11: REVENUE FROM CONTRACTS WITH CUSTOMERS 48 changes

Net sales recognized from contracts with customers, disaggregated by segment and geographical location, are presented in the following table for the three and six nine months ended June September 30, 2026 and 2025. Net sales are attributed to regions based on the location of production. Intersegment sales have been excluded from the table.

In the first quarter of 2026, we moved certain plant locations that were previously reported under our Metal Forming segment to our Driveline segment in order to better align our product and process technologies. The amounts in the table below for the three and six nine months ended June September 30, 2025 have been recast to reflect this reorganization.

Three Months Ended June September 30, 2026

1 unchanged paragraph

North America $ 1,368.8 $ 412.5 $ 1,781.3

Asia 256.4 47.9 304.3

Europe 496.7 245.3 742.0

South America 99.7 28.3 128.0

Total $ 2,221.6 $ 734.0 $ 2,955.6

North America $ 1,364.0 $ 431.9 $ 1,795.9

Asia 260.3 51.5 311.8

Europe 428.3 231.5 659.8

South America 111.3 29.8 141.1

Total $ 2,163.9 $ 744.7 $ 2,908.6

Three Months Ended June September 30, 2025

1 unchanged paragraph

North America $ 846.8 $ 293.7 $ 1,140.5

Asia 142.9 2.7 145.6

Europe 88.6 111.5 200.1

South America 27.1 22.9 50.0

Total $ 1,105.4 $ 430.8 $ 1,536.2

Six Months Ended June 30, 2026

North America $ 828.5 $ 299.4 $ 1,127.9

Asia 126.6 2.6 129.2

Europe 84.7 107.1 191.8

South America 32.2 24.2 56.4

Total $ 1,072.0 $ 433.3 $ 1,505.3

Nine Months Ended September 30, 2026

1 unchanged paragraph

North America $ 2,467.5 $ 760.8 $ 3,228.3

Asia 479.9 79.3 559.2

Europe 876.1 454.1 1,330.2

South America 163.7 53.1 216.8

Total $ 3,987.2 $ 1,347.3 $ 5,334.5

Six Months Ended June 30, 2025

North America $ 3,831.5 $ 1,192.7 $ 5,024.2

Asia 740.2 130.8 871.0

Europe 1,304.4 685.6 1,990.0

South America 275.0 82.9 357.9

Total $ 6,151.1 $ 2,092.0 $ 8,243.1

Nine Months Ended September 30, 2025

1 unchanged paragraph

North America $ 1,589.3 $ 584.2 $ 2,173.5

Asia 280.6 6.1 286.7

Europe 172.5 222.7 395.2

South America 48.2 43.9 92.1

Total $ 2,090.6 $ 856.9 $ 2,947.5

North America $ 2,417.8 $ 883.6 $ 3,301.4

Asia 407.2 8.7 415.9

Europe 257.2 329.8 587.0

South America 80.4 68.1 148.5

Total $ 3,162.6 $ 1,290.2 $ 4,452.8

Note 12: RESTRUCTURING AND ACQUISITION-RELATED COSTS 19 changes

1 unchanged paragraph

A summary of our restructuring activity for the first six nine months of 2026 and 2025 is shown below:

2 unchanged paragraphs

Cash utilization ( 2.2 ) ( 4.6 ) ( 6.8 )

Accrual at June 30, 2025 $ — $ 2.3 $ 2.3

Charges 2.5 11.9 14.4

Cash utilization ( 2.6 ) ( 11.2 ) ( 13.8 )

Accrual at September 30, 2025 $ 0.7 $ 2.7 $ 3.4

2 unchanged paragraphs

Charges 11.3 35.5 46.8

Cash utilization ( 38.3 ) ( 38.1 ) ( 76.4 )

Accrual at June 30, 2026 $ 53.6 $ 15.1 $ 68.7

Charges 17.0 57.5 74.5

Cash utilization ( 54.1 ) ( 53.3 ) ( 107.4 )

Accrual at September 30, 2026 $ 43.5 $ 21.9 $ 65.4

As part of our restructuring actions, we incurred total severance charges of approximately $ 11.3 17.0 million and $ 1.4 2.5 million during the six nine months ended June September 30, 2026 and 2025, respectively. We also incurred total implementation costs of approximately $ 35.5 57.5 million and $ 4.9 11.9 million during the six nine months ended June September 30, 2026 and 2025, respectively. Implementation costs consist primarily of plant exit costs.

Approximately $ 31.2 44.0 million of our total restructuring costs for the six nine months ended June September 30, 2026 related to Dowlais' existing restructuring programs, approximately $ 8.6 13.5 million were associated with the 2024 Program and approximately $ 7.0 17.0 million were associated with Tekfor. From inception of the 2024 Program, we have incurred $ 30.9 35.8 million of total restructuring costs under this program. We have incurred $ 48.6 58.6 million of total restructuring costs associated with Tekfor.

Approximately $ 32.1 49.4 million and $ 9.2 16.2 million of our total restructuring costs for the six nine months ended June September 30, 2026 related to our Driveline and Metal Forming segments, respectively, while the remainder were corporate costs. Approximately $ 2.0 7.5 million and $ 3.4 5.8 million of our total restructuring costs for the six nine months ended June September 30, 2025 related to our Driveline and Metal Forming segments, respectively, while the remainder were corporate costs. We expect to incur approximately $ 90 million to $ 120 110 million of total restructuring charges in 2026.

In 2026, we incurred acquisition-related costs and integration costs primarily associated with the Business Combination. and integration costs primarily related to our acquisition of Dowlais. Additionally, in 2025 we incurred acquisition-related costs associated with the Business Combination and integration costs primarily related to our previous acquisition of Tekfor. The following table represents a summary of charges incurred in 2026 and 2025 associated with acquisition and integration costs:

1 unchanged paragraph

Charges for the six nine months ended June September 30, 2026

Charges for the six nine months ended June September 30, 2025

Acquisition-related costs primarily consist of advisory, legal, accounting, valuation and certain other professional or consulting fees incurred, as well as expenses related to compensation arrangements under the Co-operation Agreement associated with the Business Combination. Integration expenses primarily reflect costs for synergy attainment, including professional fees and severance incurred in conjunction with integration activities. Total restructuring charges and acquisition-related charges are presented on a separate line item titled Restructuring and acquisition-related costs in our Condensed Consolidated Statements of Operations and totaled $ 49.8 47.4 million and $ 16.5 21.4 million for the three months ended June September 30, 2026 and June September 30, 2025, and $ 148.7 196.1 million and $ 36.2 57.6 million for the six nine months ended June September 30, 2026 and June September 30, 2025, respectively.

Note 13: INCOME TAXES 13 changes

1 unchanged paragraph

Income tax expense (benefit) $ 16.1 $ 28.1 $ ( 3.5 ) $ 42.1

Effective income tax rate 91.5 % 41.7 % 3.4 % 47.6 %

Our income tax expense (benefit) and effective income tax rates for the three and six nine months ended June September 30, 2026 and June September 30, 2025 are as follows:

Three Months Ended Six Nine Months Ended

September 30, September 30,

Income tax expense (benefit) $ 13.9 $ ( 10.9 ) $ 10.4 $ 31.2

Effective income tax rate ( 45.3 ) % 641.2 % ( 7.8 ) % 35.9 %

For the three and six nine months ended June September 30, 2026, our effective income tax rate varies rates vary from the U.S. federal statutory rate primarily due to the impact of net losses in certain jurisdictions with no corresponding tax benefit due to increases in our valuation allowance and permanent adjustments associated with nondeductible transaction costs incurred in conjunction with the Business Combination, partially offset by the benefit from utilization of tax credits. For the six months ended June 30, 2026, these tax expenses were partially offset by the release of $ 22.4 million of valuation allowance in a non-U.S. jurisdiction.

For the three months ended September 30, 2026, we recognized income tax benefits of $ 7.1 million and $ 15.0 million associated with the release of provisions for unrecognized tax benefits due to the expiration of the statute of limitations in a non-U.S. jurisdiction and as a result of the closure of a tax examination in the U.S., respectively.

For the nine months ended September 30, 2026, we recognized an income tax benefit of $ 22.4 million associated with the release of a valuation allowance in a non-U.S. jurisdiction.

On July 4, 2025, H.R. 1 the One Big Beautiful Bill Act (the Act) was enacted into law. During the three and nine months ended September 30, 2025, we recognized an income tax benefit of $ 22.0 million as a result of the enactment of the Act.

Our income tax expense and effective income tax rate for the three and six nine months ended June September 30, 2026 vary from our income tax expense and effective income tax rate for the three and six nine months ended June September 30, 2025 primarily as a result of the items described in the preceding paragraph, paragraphs, as well as the mix of earnings on a jurisdictional basis.

For the three and six nine months ended June September 30, 2025, our effective income tax rates varied vary from the U.S. federal statutory rate primarily due to the unfavorable impact of disallowed interest expense deductions in the U.S., Act, as well as the mix of earnings on a jurisdictional basis, and the impact of certain non-U.S. tax rates and non-U.S. withholding taxes. In addition, the impact of tax expense from valuation allowances in certain non-U.S. jurisdictions also impacted our effective tax rate, as compared to the U.S. federal statutory rate, for the three and six nine months ended June September 30, 2025. These tax expenses were partially offset by the favorable impact of tax credits.

1 unchanged paragraph

Note 14: EARNINGS (LOSS) PER SHARE (EPS) 18 changes

2 unchanged paragraphs

Three Months Ended Six Nine Months Ended

September 30, September 30,

1 unchanged paragraph

Net income (loss) attributable to Dauch $ 1.0 $ 39.3 $ ( 99.3 ) $ 46.4

Net income (loss) attributable to Dauch $ ( 45.3 ) $ 9.2 $ ( 144.6 ) $ 55.6

Less: Net income attributable to participating securities — 0.1 ( ( 1.6 0.4 ) — ( 1.9 2.3 )

Net income (loss) attributable to common shareholders - Basic and Dilutive $ 0.9 ( 45.3 ) $ 37.7 8.8 $ ( 99.3 144.6 ) $ 44.5 53.3

1 unchanged paragraph

Weighted-average shares outstanding 245.0 123.9 222.7 123.2

Less: Weighted-average participating securities ( 7.8 ) ( 5.3 ) ( 7.3 ) ( 5.0 )

Weighted-average shares outstanding 245.0 124.0 230.2 123.5

Less: Weighted-average participating securities ( 7.4 ) ( 5.4 ) ( 7.4 ) ( 5.2 )

Weighted-average common shares outstanding 237.2 237.6 118.6 215.4 118.2 222.8 118.3

1 unchanged paragraph

Dilutive stock-based compensation — 0.3 0.2 — 0.1 0.2

1 unchanged paragraph

Basic EPS $ — $ 0.32 $ ( 0.46 ) $ 0.38

Diluted EPS $ — $ 0.32 $ ( 0.46 ) $ 0.38

Adjusted weighted-average shares after assumed conversions 237.5 118.8 215.4 118.3 237.6 118.9 222.8 118.5

Basic EPS $ ( 0.19 ) $ 0.07 $ ( 0.65 ) $ 0.45

Diluted EPS $ ( 0.19 ) $ 0.07 $ ( 0.65 ) $ 0.45

Basic and diluted loss per share are the same for the six three and nine months ended June September 30, 2026 because the effect of potentially dilutive stock-based compensation would have been antidilutive. Excluded potentially dilutive shares were 0.3 million for both the six three and nine months ended June September 30, 2026.

1 unchanged paragraph

Note 15: INVESTMENTS IN EQUITY-METHOD AFFILIATES 15 changes

2 unchanged paragraphs

As part of the Business Combination, we acquired a 50% interest in Shanghai GKN HUAYU Driveline Systems Co Limited (SDS). SDS is our only significant equity method investment. Our net share of income from SDS for the period from the closing date of the Business Combination on February 3, 2026 through June September 30, 2026, as well as our investment in SDS at June September 30, 2026, are as follows (in millions) :

1 unchanged paragraph

June 30, 2026 June 30, 2026

June 30, 2026 June 30, 2026

Dividend from SDS $ 49.7 $ 49.7

Three Months Ended Six Nine Months Ended

September 30, 2026 September 30, 2026

Proportionate share of income from SDS $ 22.0 20.2 $ 35.8 56.0

Amortization of acquisition intangible asset attributable to SDS, net of tax ( 6.8 ) ( 11.2 18.0 )

Net share of income from SDS $ 15.2 13.4 $ 24.6 38.0

Condensed Consolidated Balance Sheet Information June September 30, 2026

Investment in SDS $ 848.8 821.8

Condensed Consolidated Statement of Cash Flows Information Three Months Ended Six Nine Months Ended

September 30, 2026 September 30, 2026

Dividends from SDS $ 50.7 $ 100.4

Our net share of income from SDS is included within Income from equity-method affiliates, net in our Condensed Consolidated Statement of Operations. Our investment in SDS is included within Investments in equity-method affiliates in our Condensed Consolidated Balance Sheet. As of, and for the three and six nine months ended June September 30, 2026, there were no significant related-party transactions or balances between Dauch and SDS. See Note 2 - Acquisitions and Dispositions for additional information about the Business Combination.

Note 16: SEGMENT REPORTING 2 changes

5 unchanged paragraphs

For the three and six nine months ended June September 30, 2026, based in part on our recent Business Combination and to more effectively measure our global business profile, we revised our definition of Adjusted EBITDA to exclude the impact of unrealized foreign exchange gains and losses on acquired U.S. Private Placement Notes, mark-to-market on nondesignated foreign exchange derivatives assumed as part of the Business Combination with Dowlais, gains and losses on the disposal of property, plant and equipment, and amortization of the acquisition intangible asset attributable to our investment in Shanghai GKN HUAYU Driveline Systems Co Limited (SDS). We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. As revised, Total Segment Adjusted EBITDA is defined as EBITDA for our reportable segments excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gains or losses on the derivative associated with our Business Combination with Dowlais, interest income on debt held in escrow, gains or losses on equity securities, impairment charges, unrealized foreign exchange gains and losses on acquired U.S. Private Placement Notes, mark-to-market on nondesignated foreign exchange derivatives assumed as part of the Business Combination with Dowlais, gains and losses on the disposal of property, plant and equipment, amortization of the acquisition intangible asset attributable to our investment in SDS, net of tax, and non-recurring items.

1 unchanged paragraph

Additionally, in the first quarter of 2026, we moved certain plant locations that were previously reported under our Metal Forming segment to our Driveline segment in order to better align our product and process technologies. The amounts in the tables below for the three and six nine months ended June September 30, 2025 have been recast to reflect this reorganization.

MD&A 174 changes

3 unchanged paragraphs

We are a primary supplier of driveline products to General Motors Company (GM) for its full-size rear-wheel drive (RWD) light trucks, sport utility vehicles (SUVs), and crossover vehicles manufactured in North America, supplying a significant portion of GM's rear axle and four-wheel drive and all-wheel drive (4WD/AWD) axle requirements for these vehicle platforms. We also supply GM with various components from our Metal Forming segment. Sales to GM were approximately 30% of our consolidated net sales for the first six nine months of 2026, and 44% for both the first six nine months of 2025 and the full year 2025.

We also supply driveline system products to Stellantis N.V. (Stellantis) for programs including the heavy-duty Ram full-size pickup truck and its derivatives. In addition, we sell various components to Stellantis from our Metal Forming segment. Sales to Stellantis were approximately 13% of our consolidated net sales for each of the first six nine months of 2026, the first six nine months of 2025 and the full year 2025.

We are also a supplier to Ford Motor Company (Ford) for driveline system products on certain vehicle programs including the Bronco Sport, Maverick and Lincoln Nautilus, and we also sell various components to Ford from our Metal Forming segment. Sales to Ford were approximately 11% of our consolidated net sales for the first six nine months of 2026, and 15% for both the first six nine months of 2025 and the full year 2025.

2 unchanged paragraphs

On February 3, 2026, we completed our previously announced acquisition of Dowlais whereby we acquired the entire issued share capital of Dowlais (the Business Combination). Pursuant to the Business Combination, Dowlais shareholders received for each Dowlais ordinary share: 0.0881 shares of new Dauch Corporation common stock and 43 pence per share in cash (approximately $0.59 per share as of the closing date), resulting in the issuance of approximately 117 million shares (and an increase in authorized shares from 150 million shares to 375 million shares) and a total purchase price of approximately $1.7 billion. See Note 2 - Acquisitions and Dispositions for further detail on the Business Combination.

1 unchanged paragraph

In 2025, the U.S. government implemented tariffs and increased certain existing tariffs on various products including assembled vehicles and automotive parts and components imported into the U.S., and there is considerable uncertainty around the extent, timing and duration of these tariffs. This has resulted in retaliatory tariffs against the U.S. by the governments of various countries, resulting in significant instability and uncertainty in U.S. trade relations with certain countries. Additionally, the expected 2026 review of the United States-Mexico-Canada Agreement (USMCA) could further contribute to this instability and uncertainty in trade relations.

For the six nine months ended June September 30, 2026, the net impact on earnings related to the aforementioned tariffs was approximately $30 $25 million and we expect a continuing impact from tariffs in future periods. For the year ended December 31, 2025, the net impact on earnings related to the aforementioned tariffs was approximately $10 million. We are implementing mitigation actions and pursuing recoveries from our customers for the cost increases resulting from the tariffs but have not reached final agreement with all customers and therefore the total amount and timing of such recoveries is unknown. Further, certain of these recoveries may include government-issued credits and there is uncertainty about whether we will be able to effectively monetize such credits. For the full year 2026, we anticipate the impact on earnings of these tariffs to be approximately $10 $20 million to $20 $25 million after mitigation actions and estimated customer recoveries. However, due to uncertainty associated with the potential further implementation or expansion of tariffs, as well as the potential for additional retaliatory actions and other changes to existing trade agreements or changes in international trade relations, the actual impact on 2026 earnings could differ materially from this estimate.

During the first six nine months of 2026, geopolitical conflicts, including instability in the Middle East, have indirectly impacted our operations and financial results primarily through supply chain disruptions. We continue to work with customers and suppliers in our effort to protect continuity of supply as we expect these challenges to continue in 2026. However, we may not be successful in mitigating these cost increases, either by recovery from our customers or otherwise. Due to the ongoing uncertainty associated with these supply chain constraints, the ultimate impact on our net sales, results of operations and cash flows is unknown.

3 unchanged paragraphs

Net sales $ 2,955.6 $ 1,536.2 $ 1,419.4 92.4 %

The impact of the Business Combination on net sales in the second quarter of 2026 was approximately $1,439 million. Excluding the impact of the Business Combination, the change in net sales for the second quarter of 2026, as compared to the second quarter of 2025, primarily reflects lower production volumes on certain vehicle programs that we support and a reduction of approximately $34 million as a result of the sale of AAM India Manufacturing Corporation Pvt., Ltd., which was completed on July 1, 2025. These decreases were partially offset by an increase of approximately $35 million associated with the effect of metal market pass-throughs to our customers and the impact of foreign exchange related to translation adjustments.

RESULTS OF OPERATIONS –– THREE MONTHS ENDED JUNE SEPTEMBER 30, 2026 AS COMPARED TO THREE MONTHS ENDED JUNE SEPTEMBER 30, 2025 (in millions) 2026 2025 Change Percent Change

Three Months Ended June September 30,

1 unchanged paragraph

Cost of goods sold $ 2,617.4 $ 1,335.5 $ 1,281.9 96.0 %

The impact on cost of goods sold of the Business Combination was approximately $1,300 million for the second quarter of 2026. Excluding the impact of the Business Combination, the change in cost of goods sold in the second quarter of 2026, as compared to the second quarter of 2025, primarily reflects lower production volumes on certain vehicle programs that we support. For the three months ended June 30, 2026, material costs were approximately 51% of total costs of goods sold, as compared to approximately 55% for the three months ended June 30, 2025.

Net sales $ 2,908.6 $ 1,505.3 $ 1,403.3 93.2 %

The impact of the Business Combination on net sales in the third quarter of 2026 was approximately $1,390 million. Excluding the impact of the Business Combination, the change in net sales for the third quarter of 2026, as compared to the third quarter of 2025, primarily reflects an increase of approximately $33 million associated with the effect of metal market pass-throughs to our customers and the impact of foreign exchange related to translation adjustments. This increase was partially offset by lower production volumes on certain vehicle programs that we support.

Three Months Ended June September 30,

1 unchanged paragraph

Gross profit $ 338.2 $ 200.7 $ 137.5 68.5 %

Cost of goods sold $ 2,626.4 $ 1,316.3 $ 1,310.1 99.5 %

The impact on cost of goods sold of the Business Combination was approximately $1,310 million for the third quarter of 2026. Excluding the impact of the Business Combination, the change in cost of goods sold in the third quarter of 2026, as compared to the third quarter of 2025, primarily reflects an increase of approximately $30 million associated with the effect of metal market pass-throughs to our customers and the impact of foreign exchange related to translation adjustments, partially offset by lower production volumes on certain vehicle programs that we support. For the three months ended September 30, 2026, material costs were approximately 51% of total costs of goods sold, as compared to approximately 54% for the three months ended September 30, 2025.

Three Months Ended September 30,

(in millions) 2026 2025 Change Percent Change

Gross profit $ 282.2 $ 189.0 $ 93.2 49.3 %

Gross margin was 11.4% 9.7% in the second third quarter of 2026, as compared to 13.1% 12.6% in the second third quarter of 2025. Gross profit and gross margin were impacted by the factors discussed in Net Sales and Cost of Goods Sold above.

1 unchanged paragraph

Three Months Ended June September 30,

1 unchanged paragraph

Selling, general & administrative expenses $ 166.9 $ 100.8 $ 66.1 65.6 %

Impairment Charge In connection with the sale of AAM India Manufacturing Corporation Pvt., Ltd., we recorded an impairment charge in the three months ended June 30, 2025 of $8.0 million to reduce the carrying value of this business to fair value less costs to sell. See Note 2 - Acquisitions and Dispositions for additional detail regarding the sale of AAM India Manufacturing Corporation Pvt., Ltd.

Net sales $ 5,334.5 $ 2,947.5 $ 2,387.0 81.0 %

The impact of the Business Combination on net sales for the first six months of 2026 was approximately $2,411 million. Excluding the impact of the Business Combination, the change in net sales in the first six months of 2026, as compared to the first six months of 2025, primarily reflects lower production volumes on certain vehicle programs that we support and a reduction of approximately $69 million as a result of the sale of AAM India Manufacturing Corporation Pvt., Ltd., which was completed on July 1, 2025. These decreases were partially offset by an increase of approximately $79 million associated with the effect of metal market pass-throughs to our customers and the impact of foreign exchange related to translation adjustments.

Six Months Ended June 30,

Selling, general & administrative expenses $ 140.4 $ 98.8 $ 41.6 42.1 %

SG&A as a percentage of net sales was 5.6% 4.8% in the second third quarter of 2026, as compared to 6.6% in the second third quarter of 2025. Research and development (R&D) expense, net of customer engineering, design and development (ED&D) recoveries, was approximately $56.8 $57.2 million in the second third quarter of 2026, as compared to $36.1 $37.4 million in the second third quarter of 2025. In addition to the increase in R&D expense, the change in SG&A in the second third quarter of 2026, as compared to the second third quarter of 2025, reflects an increase of approximately $46 $25 million associated with the Business Combination, which was partially offset by the achievement of synergies as a result of the Business Combination.

Amortization of Intangible Assets Amortization expense related to intangible assets was $21.8 $22.6 million for the three months ended June September 30, 2026 and $20.4 million for the three months ended June September 30, 2025.

Restructuring and Acquisition-Related Costs Restructuring and acquisition-related costs were $49.8 $47.4 million in the second third quarter of 2026 and $16.5 $21.4 million in the second third quarter of 2025.

During the three months ended June September 30, 2026, we incurred approximately $3 $28 million of restructuring costs. Additionally, during the three months ended September 30, 2026, we incurred approximately $2 million of acquisition-related costs and approximately $26 $17 million of integration expenses associated with the Business Combination. Acquisition-related costs in the second third quarter of 2026 primarily consisted of expenses related to compensation arrangements under the Co-operation Agreement associated with the Business Combination. Integration expenses primarily reflect costs for synergy attainment, including professional fees and severance incurred in conjunction with integration activities. See Note 12 - Restructuring and Acquisition-Related Costs for additional detail regarding our restructuring, acquisition and integration activity.

Operating Income Operating income was $99.7 $71.8 million in the second third quarter of 2026, as compared to $55.0 $48.4 million in the second third quarter of 2025. Operating margin was 3.4% 2.5% in the second third quarter of 2026, as compared to 3.6% 3.2% in the second third quarter of 2025. The changes in operating income and operating margin were primarily due to factors discussed in Net Sales, Cost of Goods Sold, SG&A and Restructuring and Acquisition-Related Costs above.

Interest Expense and Interest Income Interest expense was $89.8 $86.6 million in the second third quarter of 2026, as compared to $43.1 $42.7 million in the second third quarter of 2025. The weighted-average interest rate of our long-term debt outstanding was 7.1% 6.9% in the second third quarter of 2026 and 6.7% in the second third quarter of 2025. The increase in interest expense in the second third quarter of 2026, as compared to the second third quarter of 2025, primarily reflects the issuance of new indebtedness in connection with the Business Combination.

Interest income was $7.2 $5.7 million in the second third quarter of 2026 and $5.6 $7.0 million in the second third quarter of 2025.

Debt Refinancing and Redemption Costs Debt refinancing and redemption costs were $0.9 $0.8 million in the second third quarter of 2026 and we incurred no such expense in the second third quarter of 2025. See Note 5 - Long-Term Debt for additional detail on our debt refinancing and redemption activities.

Gain Loss on Business Combination Derivative In the second third quarter of 2025, we recognized an unrealized gain loss on the Business Combination Derivative of $46.3 $16.0 million. See Note 6 - Derivatives for additional detail on the Business Combination Derivative.

Income (Loss) from Equity-Method Affiliates Income (loss) from equity-method affiliates represents our proportionate share of earnings from equity in unconsolidated subsidiaries. In the second third quarter of 2026, we recognized income from equity-method affiliates of $17.4 $15.1 million, as compared to $0.5 a loss of $0.4 million in the second third quarter of 2025, primarily driven by our net share of income from Shanghai GKN HUAYU Driveline Systems Co Limited (SDS). See Note 15 - Investments in Equity-Method Affiliates for more information on our investment in SDS.

Other Income (Expense), Net Other income (expense), net includes the net effect of foreign exchange gains and losses and all components of net periodic pension and postretirement benefit costs other than service cost. Other income (expense), net was expense of $16.0 $35.9 million in the second third quarter of 2026, as compared to income of $3.1 $2.0 million in the second third quarter of 2025. The change in Other income (expense), net in the third quarter of 2026, as compared to the third quarter of 2025, was primarily driven by changes in foreign exchange gains and losses, in the second quarter impact of 2026, as compared to the second quarter mark-to-market on nondesignated derivatives assumed as part of 2025, the Business Combination, as well as increased net periodic pension and postretirement benefit costs as a result of the Business Combination.

Income Tax Expense (Benefit) Income tax expense (benefit) was $16.1 expense of $13.9 million for the three months ended June September 30, 2026, as compared to $28.1 a benefit of $10.9 million for the three months ended June September 30, 2025. Our effective income tax rate was 91.5% (45.3)% in the second third quarter of 2026, as compared to 41.7% 641.2% in the second third quarter of 2025.

During For the three months ended June September 30, 2026, our effective income tax rate varies from the U.S. federal statutory rate primarily due to the impact of net losses in certain jurisdictions with no corresponding tax benefit due to increases in our valuation allowance and permanent adjustments associated with nondeductible transaction costs incurred in conjunction with the Business Combination, partially offset by the benefit from utilization of tax credits.

For the three months ended September 30, 2026, we recognized income tax benefits of $7.1 million and $15.0 million associated with the release of provisions for unrecognized tax benefits due to the expiration of the statute of limitations in a non-U.S. jurisdiction and as a result of the closure of a tax examination in the U.S., respectively.

On July 4, 2025, H.R. 1 the One Big Beautiful Bill Act (the Act) was enacted into law. During the three months ended September 30, 2025, we recognized an income tax benefit of $22.0 million as a result of the enactment of the Act.

Our income tax expense and effective income tax rate for the three months ended June September 30, 2026 vary from our income tax expense and effective income tax rate for the three months ended June September 30, 2025 primarily as a result of the items described in the preceding paragraph, paragraphs, as well as the mix of earnings on a jurisdictional basis.

For the three months ended June September 30, 2025, our effective income tax rate varied rates vary from the U.S. federal statutory rate primarily due to the unfavorable impact of disallowed interest expense deductions in the U.S., Act, as well as the mix of earnings on a jurisdictional basis, and the impact of certain non-U.S. tax rates and non-U.S. withholding taxes. In addition, the impact of tax expense from valuation allowances in certain non-U.S. jurisdictions also impacted our effective tax rate, as compared to the U.S. federal statutory rate, for the three months ended June September 30, 2025. These tax expenses were partially offset by the favorable impact of tax credits.

Net Income (Loss) Attributable to Dauch and Earnings (Loss) Per Share (EPS) Net income loss attributable to Dauch was $1.0 $45.3 million in the second third quarter of 2026, as compared to $39.3 income of $9.2 million in the second third quarter of 2025. Diluted earnings loss per share was $0.00 $0.19 per share in the second third quarter of 2026, as compared to $0.32 diluted earnings per share of $0.07 in the second third quarter of 2025. Net income (loss) attributable to Dauch and EPS for the second third quarters of 2026 and 2025 were primarily impacted by the factors discussed above.

RESULTS OF OPERATIONS –– SIX NINE MONTHS ENDED JUNE SEPTEMBER 30, 2026 AS COMPARED TO SIX NINE MONTHS ENDED JUNE SEPTEMBER 30, 2025 (in millions) 2026 2025 Change Percent Change

Nine Months Ended September 30,

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Cost of goods sold $ 4,770.9 $ 2,572.9 $ 2,198.0 85.4 %

Six Months Ended June 30,

Net sales $ 8,243.1 $ 4,452.8 $ 3,790.3 85.1 %

The impact on cost of goods sold of the Business Combination was approximately $2,227 million on net sales for the first six nine months of 2026 which includes was approximately $38 $3,801 million. for the step-up of inventory to fair value as a result of purchase accounting. Excluding the impact of the Business Combination, the change in cost of goods sold net sales in the first six nine months of 2026, as compared to the first six nine months of 2025, primarily reflects lower production volumes on certain vehicle programs that we support and a reduction of approximately $65 $69 million as a result of the sale of AAM India Manufacturing Corporation Pvt., Ltd., as well as the impact of lower production volumes which was completed on certain vehicle programs that we support, July 1, 2025. These decreases were partially offset by an increase of approximately $71 $112 million associated with the effect of metal market pass-throughs to our customers and the impact of foreign exchange related to translation adjustments. For the six months ended June 30, 2026, material costs were approximately 52% of total cost of goods sold as compared to approximately 55% for the six months ended June 30, 2025.

Nine Months Ended September 30,

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Gross profit $ 563.6 $ 374.6 $ 189.0 50.5 %

Cost of goods sold $ 7,397.3 $ 3,889.2 $ 3,508.1 90.2 %

The impact on cost of goods sold of the Business Combination was approximately $3,537 million for the first nine months of 2026, which includes approximately $38 million for the step-up of inventory to fair value as a result of purchase accounting. Excluding the impact of the Business Combination, the change in cost of goods sold in the first nine months of 2026, as compared to the first nine months of 2025, primarily reflects a reduction of approximately $65 million as a result of the sale of AAM India Manufacturing Corporation Pvt., Ltd., as well as the impact of lower production volumes on certain vehicle programs that we support, partially offset by an increase of approximately $101 million associated with the effect of metal market pass-throughs to our customers and the impact of foreign exchange related to translation adjustments. For the nine months ended September 30, 2026, material costs were approximately 51% of total cost of goods sold as compared to approximately 55% for the nine months ended September 30, 2025.

Nine Months Ended September 30,

(in millions) 2026 2025 Change Percent Change

Gross profit $ 845.8 $ 563.6 $ 282.2 50.1 %

Gross margin was 10.6% 10.3% in the first six nine months of 2026, as compared to 12.7% in the first six nine months of 2025. Gross profit and gross margin were impacted by the factors discussed in Net Sales and Cost of Goods Sold above.

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Six Months Ended June 30,

Nine Months Ended September 30,

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Selling, general & administrative expenses $ 304.2 $ 191.7 $ 112.5 58.7 %

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Market risk 4 changes

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Controls and procedures 2 changes

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Unregistered sales of stock 9 changes

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Exhibits 1 change

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