Dowlais Signals 2025 Results Ahead of Guidance as Margins and Cash Generation Improve

Dowlais Group plc (LSE:DWL) said its trading performance in 2025 is expected to come in ahead of previous guidance, supported by stronger margins and improved cash flow. Based on unaudited figures, the group anticipates adjusted revenue of approximately £5 billion, reflecting year-on-year growth of 3.1% at constant exchange rates and 1.3% on a reported basis, after accounting for foreign exchange headwinds.

Adjusted operating profit is forecast to be at least £370 million, representing a 14% increase year on year. This is expected to translate into an adjusted operating margin of no less than 7.4%, marking an improvement of at least 80 basis points. Both the Automotive and Powder Metallurgy divisions contributed to the margin expansion, highlighting broad-based operational progress across the group.

Management said the improved profitability reflects the benefits of global footprint restructuring, commercial recoveries following earlier volume losses and ongoing performance improvement initiatives. These gains more than offset operational inefficiencies experienced at two North American facilities. In addition, adjusted free cash flow is expected to reach at least £100 million, exceeding the prior year, supported by higher operating profit, reduced capital expenditure and one-off cash inflows from asset disposals and customer advance payments.

While the company has faced financial pressures historically, including revenue declines and operational losses, recent trading momentum has been more encouraging. The shares have shown positive technical trends, and a series of strategic corporate developments — including board-level changes and potential consolidation opportunities — are viewed as supportive of the longer-term outlook. A relatively high dividend yield also remains a point of interest for income-focused investors.

More about Dowlais Group PLC

Dowlais Group plc is a specialist engineering group serving the global automotive industry through its Automotive and Powder Metallurgy segments. The company supplies engineered components and systems to vehicle manufacturers worldwide, with a strategic focus on improving operational efficiency, optimising its global manufacturing footprint and delivering sustainable margin improvement across its core businesses.