Key Highlights

  • Revenue grew 39.2% to USD 308.1 million, with engine products up 43%.
  • Adjusted EBITDA rose 56% to USD 58.2 million, a Margin of 18.9%.
  • Net income was USD 31.8 million for the quarter.
  • 2027 guidance: Revenue USD 1.23 billion to USD 1.33 billion.

DPC Holdings (NYSE:DPC), the Holding Company of the Doncasters Group, reported third-quarter 2026 revenue of USD 308.1 million, against an estimate of USD 266.40 million, up USD 86.7 million, or 39.2%, from USD 221.4 million. Earnings Per Share were USD 0.49, against an estimate of USD 0.22. Doncasters makes engineered precision components for aeroengines, industrial gas turbines and other high-performance applications.

Net income was USD 31.8 million, and capital expenditures were USD 13.8 million. Adjusted EBITDA was USD 58.2 million, with a margin of 18.9%, up 200 basis points.

Segment Performance and Margins

Engine products in Europe and North America grew revenue by 43% and EBITDA by 70%, with segment margin up 83 basis points to 23.8% on higher volumes and value-based pricing. Metal cost Inflation pass-through does not affect EBITDA dollars but diluted the consolidated margin by 90 basis points in the quarter. Adjusted cost of sales rose broadly in line with revenue, reflecting the pass-through of USD 13.3 million of higher metal costs in the quarter, offset by operating leverage. Segment adjusted EBITDA margin rose 950 basis points against the third quarter of 2025.

Another segment's gross revenue grew 37% to USD 97 million, and third-party growth, which excludes last year's superalloy sales made internally to Turbowheels, was 45%. Management attributed this to aerospace, which accounts for 80% of that segment's revenue. Segment adjusted EBITDA rose 46%.

For the nine months, revenue was USD 813.4 million, up 33.3% from USD 610.4 million, with a net loss of USD 146.8 million, or USD 1.17 per share, against USD 144.7 million, or USD 1.28 per share. Nine-month adjusted EBITDA was USD 146.1 million, an 18.0% margin including 60 basis points of dilution from metal cost pass-through, and capital expenditures were USD 33.6 million.

Partnerships, Refinancing and Guidance

The company signed its fifth strategic customer partnership, its largest to date, a minimum ten-year contract that management said is projected to generate over USD 100 million of annual revenue when fully ramped, with the customer providing funding support for more than 80% of the capital cost. It refinanced its Debt facilities with a new USD 325 million revolving Credit facility, replacing its existing term Loan and asset-based facility, and exited its Ivostud business, which had been held for sale.

Management updated full-year 2026 guidance and introduced 2027 guidance. For 2026 it guides to adjusted EBITDA of USD 204 million to USD 207 million, an adjusted EBITDA margin of approximately 18% including dilution from metal cost pass-through. For 2027, it guides to revenue of USD 1.23 billion to USD 1.33 billion, with a midpoint of USD 1.28 billion, and adjusted EBITDA of USD 240 million to USD 260 million, with a midpoint of USD 250 million, which management described as growth of 22% at the midpoint.

Casting Portfolio and Reported Reference Points

On the call, management described its aerospace casting portfolio, which is largely nickel-based superalloy structural castings accounting for more than 80% of aero casting revenue, with aero airfoils at under 10%. It referred to an established joint venture with Unison, a GE aerospace company.

The reported items are record revenue, record adjusted EBITDA, the metal pass-through effect on margins, the new revolving credit Facility and the fifth strategic partnership.