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Dowlais Group PLC on Monday said it expects full-year adjusted results to be higher than previously anticipated. The London-based automotive engineering firm said its adjusted revenue for 2025 is likely to be around £5 billion. This would be up 3.1% on-year at constant currency from £4.94 billion in 2024, driven by growth in its Automotive and Powder Metallurgy segments. Dowlais also expects translational foreign exchange headwinds of about £90 million to reduce reported adjusted revenue growth to around 1.3%. This compares with 2024, when adjusted revenue declined by 10% at reported rates and by 6.4% at constant exchange rates. Furthermore, the company anticipates no less than £370 million in adjusted operating profit, a 14% on-year increase from £324 million. It said this reflects global footprint restructuring initiatives, commercial recoveries from prior volume losses, and other ongoing performance improvement measures. The adjusted operating margin is forecast to expand by a minimum of 80 basis points to at least 7.4%, Dowlais said. Adjusted free cash flow is also likely to increase on-year to ‘no less than’ £100 million from £15 million. This would be ‘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.’ Dowlais said the adjusted free cash flow, revenue and operating profit margin expectations are ahead of its guidance. The firm previously predicted growth of ‘flat to a mid-single digit adjusted revenue decline’, a 6.5% to 7.0% margin, and free cash flow ‘slightly ahead’ of the prior year. Dowlais shares traded 0.6% lower at 93.83 pence on Monday morning in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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