DPC Holdings Reports Record Third Quarter 2026 Results

Acquired 50% Stake in Montana Precision Products and Signed Fifth Strategic Customer Partnership

Upgrades Full Year 2026 Guidance and Issues Full Year 2027 Guidance

Third Quarter 2026 GAAP Financial Results

• Revenue of $308 million, up 39% year over year
• Net income of $32 million, versus ($42) million loss in third quarter of 2025
• Earnings per share of $0.21 versus ($0.37) loss in the third quarter of 2025
• Cash and cash equivalents of $277 million and borrowings of $86 million as at September 27, 2026

Third Quarter 2026 Segmental and Adjusted Financial Results

• Group adjusted EBITDA of $58 million, up 56% year over year, delivering an adjusted EBITDA margin of 18.9%
• Engine Products segment delivered strong year-over-year revenue growth of 43%, up 47% in Europe and 37% in North America, reflecting above market growth within Aerospace and Industrial Gas Turbine (IGT)
• Engine Products segment adjusted EBITDA growth of 70%, up 46% in Europe and 129% in North America, due to higher volumes and value-based pricing with the adjusted EBITDA margin growing 380bps to 23.8%
• Adjusted net income of $73 million versus $24 million in third quarter of 2025
• Adjusted earnings per share of $0.49 versus $0.22 in the third quarter of 2025

Key Announcements

• Acquired SeaCast’s 50% stake in Montana Precision Products, an established joint venture with Unison, a GE Aerospace company, as the continuing partner
• Fifth Strategic Customer Partnership: a minimum 10-year contract with an IGT OEM who plans to fund ~80% of the >$200 million capacity investment to deliver an expected >$100 million annual incremental margin-accretive revenue by 2032
• Refinancing of debt facilities with a new $325 million unsecured senior revolving credit facility with $150 million accordion capacity repaying and replacing term loan and ABL
• Divested Ivostud, our business held for sale

ST HELIER, Jersey--(BUSINESS WIRE)--DPC Holdings PLC (NYSE: DPC):

Summary Financial Results

DPC Holdings PLC (NYSE: DPC) (‘Doncasters’, ‘the Company’) reported financial results for the third quarter 2026.

Doncasters reported record third quarter 2026 revenue of $308 million, up 39% year over year, driven by outperformance against our Aerospace and IGT end markets with growth of 45% and 43% respectively, and 21% in Transportation. Within Engine Products, above market growth, product portfolio gains, pricing benefits and metal cost inflation pass-through to customers led to combined revenue growth of 43% with 47% and 37% in Europe and North America respectively.

Net income in the quarter of $32 million, versus ($42) million loss in third quarter of 2025. Adjusted EBITDA in the quarter grew 56% compared to the prior year’s quarter, with 70% growth from Engine Products, up 46% in Europe and 129% in North America. The adjusted EBITDA margin of 18.9% was 200bps better than the prior year’s third quarter despite the impact of metal cost inflation pass-through which diluted the margin by 90bps, higher corporate costs and increased loss from Ivostud (which was divested on October 23, 2026). The segment adjusted EBITDA margin for Engine Products grew 380bps year over year to 23.8%, reflecting operating leverage from higher volumes and execution of value-based pricing.

Adjusted net income was $73 million, an improvement from the $24 million of the prior year quarter due to improved profitability with adjusted earnings per share of $0.49 versus the prior year of $0.22.

We refinanced our debt facilities with a new $325 million unsecured senior revolving credit facility, providing multi-currency borrowing capacity for three years to September 2029. The facility can be extended by an additional two years at Doncasters’ discretion and includes uncommitted accordion capacity of up to $150 million. Proceeds from our IPO, completed on June 26, 2026, and this new refinancing replace Doncasters’ debt facilities and are expected to increase liquidity and financial flexibility, reduce annual interest expenses and extend debt maturities.

On September 27, 2026, Doncasters had a net cash position of $192 million (cash and cash equivalents of $277 million less borrowings of $86 million). Adjusted free cash flow, which excludes payment of the old Management Incentive Plan, was $111 million versus $6 million in the prior year. Working capital increased primarily due to growth-related investment and metal cost inflation pass-through. Capital expenditure of $14 million includes capacity investment that is supported by our strategic customer partnerships.

Doncasters’ Chief Executive Officer Mike Quinn said, “This has been an exciting quarter for Doncasters. We delivered record revenue, adjusted EBITDA and adjusted EBITDA margin progression while making significant strategic progress as a trusted strategic partner for our customers.

Our visible growth has never been stronger or clearer, with over 70% of our revenue under Long-Term Agreements (LTAs) and an order book of approximately $1 billion, versus $725 million as at December 31, 2025, with our strategic partnerships expected to bring in over $300 million of annual incremental margin-accretive revenue by 2031.

We completed the acquisition of SeaCast of Montana LLC’s 50% stake in Montana Precision Products LLC (‘MPP’), an established joint venture with Unison Industries LLC (‘Unison’), a GE Aerospace company, as the continuing partner. We acquired the stake for cash on October 30, 2026, and the transaction is expected to be earnings accretive within the first year. GE Aerospace, through Unison, plans to continue to be a key strategic partner and customer of MPP, and we look forward to working together to develop the business further.

Founded in 2012 and based in Butte, Montana, MPP is an AS9100D certified aerospace manufacturing facility producing small structural castings and tube and duct assemblies for aerospace applications including supporting GE Aerospace engine platforms. Working with Unison, Doncasters plans to support MPP with its specialist technical expertise and advanced foundry capabilities, helping drive future growth. We value our long-standing relationship with GE Aerospace and look forward to building future opportunities together.

We signed our fifth Strategic Customer Partnership, our largest to date, further strengthening our long-term relationships and earnings visibility with key Original Equipment Manufacturers (OEMs) across both the Aerospace and Industrial Gas Turbine markets.

Our fifth partnership is a minimum 10-year contract (with extension provisions) with an IGT OEM for a defined portfolio of gas turbine blades and vanes each year. The portfolio includes some of the largest and most complex DS/SX IGT blade and vane castings in the world. To support the new contract, Doncasters plans to increase capacity at its facility in Bochum, Germany, with customer-funding anticipated to equate to approximately 80% of the total capital cost of the project, of over $200 million. The partnership is expected to deliver over $100 million of annual incremental margin-accretive revenue by 2032.

We disposed of Ivostud to Lenbach Equity Opportunities III. GmbH & Co. KG, a private equity fund advised by DUBAG Group, on October 23, 2026. Ivostud was a non-material asset held for sale which was non-core to our casting and superalloy businesses.

Looking ahead, our two major end markets, Aerospace and IGT, continue to benefit from strong structural growth drivers, significant supply backlogs, constrained capacity and high barriers to entry. Industry consolidation could further reduce the number of independent, scalable casting suppliers with the technical expertise, customer qualifications and capital-intensive assets required to meet OEM demand, with Doncasters being well positioned to capture additional market share.

In Aerospace, demand is being driven by rising air travel, ageing fleets and higher fuel prices supporting more fuel-efficient engines. In IGT, our growth assumptions are based upon increasing electricity demand, growing energy needs driven by energy transition, security, climate change and reliability, and replacement parts demand: AI advancement and data center development provides further potential upside to base market estimates. Within our Turbo Wheels segment, I’m pleased to report our first, albeit small, contract to supply casting product into the Unmanned Aerial Vehicle (UAV) end market in 2027.

We believe our revenue and earnings visibility is increasing. Our strategic customer partnerships are supported by committed production volumes averaging approximately 10 years or a take-or-pay clause. The five partnerships to date are expected to deliver over $300 million of annual incremental revenue at accretive margins with several including customer-funding totalling approximately $200 million over the life of the contracts, supporting our capacity investment. In addition, approximately 70% of our revenue is underpinned by contracted LTAs, which typically span 5 years or longer, the majority of which have been renegotiated within the past two years.

We continue to invest in additional capacity and automation to support growth ahead of our end markets, leveraging our specialist manufacturing capabilities, strategic partnerships and strong customer relationships to secure larger awards and improved commercial terms. Supported by operating leverage, pricing and operational excellence initiatives, we are driving margin expansion and free cash flow conversion to deliver sustained profitable growth and long-term value creation.”

Full Year 2026 Outlook Raised – New Full Year 2027 Guidance Provided

We have raised our FY 2026 outlook because of strong business performance. We have introduced FY 2027 outlook which includes our controlling interest in MPP and total capital expenditure relating to our fifth strategic partnership. Ivostud is excluded post divestment on October 23, 2026.

Conference Call and Webcast

DPC Holdings will hold a conference call at 08:00 a.m. Eastern time on November 12, 2026 to discuss matters relating to this press release. This will be led by Chief Executive Officer, Mike Quinn, and Chief Financial Officer, David Egan. The call will be webcast via www.ir.doncasters.com. Please pre-register on https://events.q4inc.com/attendee/713142982.

A webcast replay will be available on the News and Events page of our investor relations website following the webcast.

Segment Performance 
Engine Products – Europe

Gross segment revenue for the Engine Products - Europe segment increased $50.6 million, or 47.3%, in the three months ended September 27, 2026 compared to the three months ended September 28, 2025, and increased $114.8 million, or 42.6%, in the nine months ended September 27, 2026, compared to the nine months ended September 28, 2025, in each case, due to output increase linked to the strong end market, including OEM build rates, metal cost inflation pass-through and value-based pricing. Adjusted cost of sales in both the three and nine months ended September 27, 2026, increased broadly in proportion to the increase in revenue compared to the three and nine months ended September 28, 2025, reflecting the pass-through of $25.7 million of higher metal costs offset by the operating leverage impact of higher revenue.

The increase in sales has dropped through to segment adjusted EBITDA at 23.5% in the third quarter of 2026, and 26.7% in the nine months ended September 27, 2026. This resulted in a decrease in segment adjusted EBITDA margin of 20bps in the third quarter 2026 compared to the third quarter 2025, predominantly driven by dilution from higher metal cost inflation pass-through. In the nine months ended September 27, 2026, compared to the nine months ended September 28, 2025, the EBITDA margin increased 130bps.

Capital expenditure is expected to increase through 2027 and 2028, with additional investments in capacity expansions to accommodate increased customer demand and delivery of three strategic IGT customer partnership agreements across both Germany and the United Kingdom.

Engine Products - North America

Gross segment revenue for the Engine Products - North America segment increased $27.2 million, or 37.1%, in the third quarter of 2026 compared to the third quarter of 2025, and increased $70.4 million, or 32.8%, in the nine months ended September 27, 2026, compared to the nine months ended September 28, 2025, in each case, primarily attributable to increased output following investments in capacity increases. Our facility in Groton, CT, is benefiting from higher production output driven by the installation of new capital equipment. Strong growth in the commercial and defense aerospace and gas turbine markets has driven increased output and pricing. Adjusted cost of sales for Engine Products – North America in both the three and nine months ended September 27, 2026, increased at a lower rate than the increase in revenue compared to the three and nine months ended September 28, 2025, reflecting the operational leverage impact of the revenue increase.

The increase in sales has dropped through to segment adjusted EBITDA at 48.9% in the third quarter of 2026, and 39.3% in the nine months ended September 27, 2026. This resulted in an increase in segment adjusted EBITDA margin of 950bps in the third quarter 2026 compared to the third quarter 2025, and an increase of 540bps in the nine months ended September 27, 2026, compared to the nine months ended September 28, 2025.

Segment adjusted EBITDA was $23.6 million, up 129.1% year over year, driven by operating leverage from volume growth and value-based pricing.

Capital expenditure increased versus the prior year, due to capacity expansion investments to support market growth and our two Aerospace Customer Strategic Partnerships including initial equipment deposits for our greenfield superalloy facility in Alabama.

Turbo Wheels

Gross revenue for the Turbo Wheels segment increased $5.4 million, or 11.9%, in the three months ending September 27, 2026, compared with the three months ending September 28, 2025. Excluding Ivostud (business held for sale), revenue grew $7.4 million, or 20%. The majority of this growth came from new auto contracts won in 2024 ramping up in 2026. Growth in Asia & Americas, supported by power generation and commercial vehicle applications, offset a flat turbocharger market in Europe.

Gross segment revenue increased $4.8 million or 3.4% in the nine months ending September 27, 2026, compared to the nine months ending September 28, 2025. Excluding Ivostud, revenue grew 10%.

Adjusted EBITDA for the Turbo Wheels segment decreased $0.6 million, or 19.4%, in the three months ending September 27, 2026, compared to the three months ended September 28, 2025. Excluding Ivostud, adjusted EBITDA increased by $0.5 million, or 12% in the three months driven by drop through from higher revenue and improved operational performance.

Adjusted EBITDA decreased $4.0 million, or 40.8% in the nine months ending September 27, 2026, compared to the nine months ending September 28, 2025. Excluding Ivostud, adjusted EBITDA decreased by 5% in the nine months ending September 27, 2026.

Segment adjusted EBITDA margin decreased 190bps in the three months ending September 27, 2026, compared to the three months ending September 28, 2025. It decreased 300bps in the nine months to September 27, 2026, compared to the nine months ending September 28, 2025. Excluding Ivostud, segment adjusted EBITDA margin was 10.2% in the three months ending September 27, 2026, a decrease of 70bps compared to the third quarter of 2025.

The following table reconciles Total Segment Adjusted EBITDA to Net income/(loss) for the periods presented.

Lucy Sharma
DPC Holdings Investor Relations
InvestorRelations@doncasters.com