Dauch Corporation said Thursday it is making strong progress integrating with Dana Incorporated, with synergy savings pacing toward $70 million in run-rate terms by year-end—below the original $100 million first-year target—as the combined company also reports quoting opportunities have nearly doubled to more than $2 billion.
Speaking at the Jefferies Global Industrials Conference on September 10, 2026, executive Chris May outlined the integration timeline roughly six months after the merger closed. The company remains on track for its multi-year synergy targets: $180 million in run-rate savings by end of 2027 and the full $300 million by end of 2028, at which point Dauch expects to realize about $1 of value for every $1 invested in the combination.
The synergy mix breaks down to 30% from selling, general and administrative savings, 50% from purchasing leverage and 20% from operational improvements, May said. Focus has been concentrated on SG&A and product engineering, he noted.
The quote backlog of over $2 billion is nearly twice the level legacy American Axle reported in recent years, a boost May attributed to the expanded product portfolio now including powdered metal components and side shafts from the Dana side. Revenue from quoting activity is geographically weighted 60% North America, 25% Europe and 15% rest of world.
Dauch also addressed its balance sheet trajectory. Leverage stood at 2.6 times as of Q2 2026, after $128 million in 2028 notes were paid down that quarter. The remaining 2028 notes were eliminated in Q3, and General Motors full-size light-duty truck changeovers began in September and early October. The near-term leverage milestone is 2.5 times, with free cash flow directed primarily to debt reduction until that level is reached; the long-term target is 2.0 times or lower. Capital expenditure is targeted at 5% of sales or less.
On the international front, Dauch's China joint venture SDS—with partner HASCO—generates approximately $1.5 billion in revenue serving the domestic Chinese market, where over 50% of its customer base consists of Chinese OEMs. The company also highlighted its strategy of building and buying within the regions where it produces and ships, aiming to minimize tariff exposure.
Dauch announced it will hold a Capital Markets Day in November 2026. Its stock, ticker DCH, was quoted at $5.89 on the day of the conference.
