DPC Holdings Ltd.

Second-quarter revenue was $269 million, up 34% year over year. Adjusted EBITDA was $48 million, up 33% year over year, and adjusted EBITDA margin was 17.8%. Adjusted net income was $5.6 million versus a $10.8 million loss in the prior-year quarter, and adjusted EPS was $0.05. Management said metal cost inflation pass-through added about 4 percentage points to sales growth and diluted reported EBITDA margin by 60 basis points, but had no impact on adjusted EBITDA dollars. Segmentally, Engine Products revenue grew 39% and EBITDA grew 53%, with margin rising 210 basis points to 23.5%; Engine Products Europe revenue grew 49% and EBITDA 54% with margin at 24.2%, while North America revenue grew 29% and EBITDA 53% with margin at 22.6%. The company ended the quarter with transaction-adjusted net cash of $118 million. For full-year 2026, guidance is revenue of $1 billion to $1.04 billion and adjusted EBITDA of $182 million to $187 million; management said stripping out year-over-year metal pass-through would imply an adjusted EBITDA margin of around 19% at both ends of the range.

Mike Quinn emphasized that this was the first earnings call as a listed company and framed the quarter as proof that the business is delivering "record profitable growth." He highlighted structural demand in aerospace and IGT, the company’s differentiated vertical integration, and the strategic customer partnership model as the core drivers of long-term value creation. He also said the business has a "long growth runway" and expects continued capacity expansion, margin improvement and portfolio-level awards.

David Egan focused on the mechanics behind the quarter’s growth: revenue of $269 million, adjusted EBITDA of $48 million, adjusted EPS of $0.05, and net cash of $118 million after IPO and private placement proceeds. He reiterated that metal inflation pass-through created 4 points of sales benefit and 60 basis points of margin dilution, with no EBITDA impact, and said working capital rose because of demand growth and the pass-through timing cycle. On capital allocation, he said cash will go to organic CapEx, working capital and bolt-on acquisitions, and noted that CapEx should be stronger in 2027 as partnerships are built out.

Analysts pressed on segment profitability differences, LTA repricing, strategic partnership timing, and cash flow. Management said Europe is more IGT-heavy and the Americas more aerospace-heavy, but both segments have similar margin upside from volume, pricing and efficiency; on LTAs, Mike Quinn said the company has achieved double-digit price increases on all LTAs and expects a steady stream of renewals rather than any "cliff edge." On partnerships, management said the fourth partnership contributes some revenue in 2027, more in 2028 and full run-rate from the second half of 2029, with incremental revenue in excess of $200 million at full run rate. On free cash flow, David Egan said 2026 will see heightened cash use from growth, working capital and metal timing, with stronger cash generation expected later as the business normalizes.