It’s always the quiet ones, isn’t it? The companies that aren’t shouting from the rooftops, just… quietly making drivelines and metal things. Atlantic Investment Management seems to have a soft spot for them. They just dropped a cool $12.07 million into Dauch Corporation (DCH 0.71%). I’m not saying I understand it, but then, I rarely do. My assistant, bless her, assures me it’s a “strategic allocation.” I suspect it’s more of a whim, like deciding to take up competitive birdhouse building.
The filing, dated February 17, 2026, revealed the purchase of 1,883,000 shares. A tidy sum. It now represents 6.8% of their reportable 13F AUM. Which means, if things go south, it’s a noticeable dent. I’ve seen portfolios take hits. Believe me. There was the alpaca farm incident of ’18. Let’s not talk about it.
Looking at the rest of their holdings, it’s a pattern. AXTA, KEX, FLS, APTV, OSK… all industrial, all transportation-heavy. They seem to believe in things you can actually touch. I’m more of a cloud computing sort of guy, personally. Less chance of splinters.
Dauch, for the uninitiated, makes axles, driveshafts, and other safety-critical components. They serve everyone from light vehicle manufacturers to off-highway behemoths. They’re in Detroit, which, let’s be honest, is a good story in itself. A company still making things in Detroit. It’s almost… charming.
Here’s the tricky part. Dauch posted a net loss for the full year – $19.7 million on $5.84 billion in sales. Not exactly setting the world on fire. But Adjusted EBITDA reached $743.2 million, with margins expanding to 12.7%. And they’re projecting $10.3 to $10.7 billion in sales next year, with even better margins. It’s all very… optimistic. Like my uncle’s predictions for his miniature golf course.
The Dowlais combination, apparently, is supposed to add $50 to $75 million in synergy benefits. Synergies. That’s always the word, isn’t it? It sounds so… efficient. As if two companies can just merge their cultures and become instantly more productive. I’ve seen office romances create more synergy, and that usually ends with passive-aggressive sticky notes.
So, what does this all mean? Honestly, I’m not sure. If Dauch can deliver on its projections, today’s valuation could look conservative. But if the integration falters, well, leverage and restructuring costs will be a problem. It’s a risk. Everything is a risk. Even getting out of bed in the morning. My therapist keeps telling me that.
As of February 17th, the stock was trading at $7.28, up 26% over the past year. Which, in this market, is practically a miracle. It even outperformed the S&P 500. I’m starting to think Atlantic Investment Management knows something I don’t. Or maybe they just have a really good dartboard.
| Metric | Value |
|---|---|
| Price (as of market close February 17, 2026) | $7.28 |
| Revenue (TTM) | $5.84 billion |
| Net income (TTM) | ($19.70 million) |
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2026-02-23 00:54