US LNG exports surge but will buyers in China turn up?
Investing.com -- Dowlais Group reported first-half 2025 earnings on Thursday that significantly exceeded market expectations, with EBIT coming in 16% ahead of consensus and 10% above Jefferies estimates, primarily driven by strong performance in its GKN (LON:GKN) Automotive division.
The company reported sales of £2,464 million for the first half, representing a 1.6% organic constant currency decline compared to the same period last year.
This was slightly better than the 2.5% decline reported in the first four months of the year, indicating improved performance in May and June.
EBITA reached £154 million, compared to consensus expectations of £133 million, resulting in a 6.3% margin that was 40 basis points higher year-over-year on a constant currency basis.
Profit before tax came in at £104 million with earnings per share of 5.6p, both significantly above market forecasts.
The GKN Automotive division was the standout performer with sales of £1,975 million and EBITA of £132 million, achieving a 6.7% margin that improved 70 basis points year-over-year.
The Powder Metallurgy division reported sales of £489 million and EBITA of £41 million, with an 8.4% margin that declined 110 basis points year-over-year.
Despite the strong first-half performance, Dowlais noted significantly lower new bookings, with Auto bookings exceeding £1.5 billion compared to over £2.4 billion in the first half of 2024.
The Powder Metallurgy order book stood at £55 million, down from £77 million a year earlier, though the percentage of orders related to electric vehicles increased to 62% from 53%.
The company maintained its full-year 2025 guidance, continuing to expect sales growth at the lower end of a flat to mid-single-digit percentage decline year-over-year, with a margin between 6.5% and 7.0%.
Dowlais shares are currently trading at 70.65p, with analysts at Jefferies maintaining a Hold rating and a price target of 75p, suggesting 6% upside potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.