Dowlais Group (DWL) Trading Update summary

Trading performance and revenue

• Adjusted revenue for the ten months to 31 October 2024 was £4.2 billion, a 6.1% year-on-year decline, mainly due to continued weakness in the ePowertrain product line.

• Translational foreign exchange headwinds contributed £173 million to a reported adjusted revenue decline of 10%.

• Adjusted operating margin was 6.1%, down 30bps year-on-year, but improved 20bps from the first half due to commercial recovery and cost management.

Business unit performance

• Driveline outperformed global light vehicle production outside China, with a 2.4% revenue decline versus a 3.0% market drop.

• ePowertrain revenue fell 19% year-on-year, reflecting ongoing volatility in BEV production volumes.

• Powder Metallurgy revenue declined 1.9%, underperforming the market due to unfavorable customer mix in North America; operating margin remained stable at 9.0%.

Strategic initiatives and outlook

• Strategic focus remains on operational efficiencies, commercial recoveries, and cost management to mitigate lower volumes.

• The strategic review of the Powder Metallurgy business is progressing as options are evaluated.

• The group aims to accelerate its transition to a powertrain-agnostic portfolio for sustainable growth.