DPC Holdings PLC Ordinary Shares

Hello everyone, thank you for joining us and welcome to the DPC Holdings Report's second quarter 2026 results. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. If you have logged in via the webcast, please submit your questions using the Q&A button. I will now hand the conference over to Lucy Sharma, head of investor relations. Please go ahead.

Thank you, Alexandra. Good morning and welcome to DPC Holdings second quarter 2026 results conference call. I'm Lucy Sharma, responsible for investor relations. I'm joined by Mike Quinn, Chief Executive Officer and David Egan, Chief Financial Officer. Mike and David will run through a short presentation outlining our results, strategic updates and outlook. We will then open the call for questions. Before I hand over, I'd like to note that today's discussion will include forward-looking statements regarding our future performance, plans and expectations. Information about factors that could cause actual results to differ materially from these statements can be found in today's presentation, our earnings release and our SEC filings. During the presentation, we refer to certain non-GAAP financial measures with reconciliations to the most comparable GAAP measures available in the earnings release issued today, as well as in the appendix to the presentation. Unless otherwise indicated, all performance comparisons are on a year-over-year basis and all numbers will be in US dollars. With that, I'd like to hand the call over to Mike and slide three.

Great, thanks, Lucy, and good morning, everyone. Welcome to DPC Holdings' second quarter 2026 earnings call. I'm delighted to be reporting our first set of results as a listed company and to welcome many new shareholders alongside our existing ones who are as cited as we are for the growth opportunities and potential to generate significant further value. The listing was a major achievement in Doncaster's history, but our priorities remain the same. And as our second quarter results show, we're continuing to deliver record profitable growth. Let's move on to the operational and strategic highlights of the second quarter, ended June 28th, 2026 on slide four. We've delivered record, sorry, we have delivered record revenue in adjusted EBITDA. Revenue grew 34% year on year to $269 million. Engine products increased 39%, growing 49% in Europe and 29% in North America. Adjusted EBITDA grew 33% to $48 million. Revenue and adjusted EBITDA in the quarter were ahead of expectations. Adjusted EBITDA margin was 17.8% in the quarter, broadly in line with last year, but well ahead from quarter one. As you can see, we're flagging a 60 basis point dilution to the adjusted EBITDA margin due to metal inflation in the quarter. Metal elements as traded commodities see price fluctuations, and so our commercial contracts are structured for metal pass-through protection. This is a normal practice for us, and we've always passed through inflation. Recently, we've seen some metals, especially hafnium, experience elevated cost increases, which have been more pronounced than normal, resulting in a higher than expected pass-through quantum. Hafnium is used largely within our IGT business. Passing this through to our customers meant there was no impact on our EBITDA, but it did slightly dilute the reported margin. Thank you very much. During the quarter, we signed our fourth strategic customer partnership with an aerospace OEM, which underpins the building of a new Greenfield super alloy site in Alabama. Lastly, we are initiating guidance for the 20 to 26 full year. We are on track to deliver significant long-term value creation. On to slide five. For those of you who don't know us, DonCast is a specialist manufacturer of precision castings and super alloys that are highly engineered, used in mission-critical applications within the hot zone of aerospace engines and industrial gas turbines. We operate in substantial and growing markets of aerospace and IGT that are benefiting from long-term structural unprecedented demand. We have deep technical capabilities and proprietary metallurgy experience. We're vertically reintegrating, making our own super-alloys, providing us with the supply, shorter lead times, and internalizing margin. On the customer front, we are a trusted supplier of major aero and IGT OEMs and have differentiated strategic customer partnerships we shall expand on in a minute. We are one of a small number of scale suppliers capable of meeting the technical qualification and capacity requirements of major aerospace and IGT OEMs. Those requirements create significant barriers to entry and high switching costs. And now post the IPO, we have a strong balance sheet, which will support our investment in organic and inorganic growth and operational improvements. We have a long track record working with some of the leading names in both aerospace and IGTN markets, and you will recognize a lot of the customer logos on our slide. To summarize, we are well positioned for future growth supported by strong OEM relationships. But don't just listen to me, look at our customer support for our strategic partnerships. Moving to slide six. These are long-term agreements that provide customers with dedicated production capacity while giving Doncaster's enhanced commercial terms, such as longer dated LTAs, committed volumes, accreted margins, and sometimes customer contributions towards capacity investments. In return, these partnerships enable us to secure larger portfolio-level awards and strengthen long-term revenue visibility. These provide OEMs with access to their own capacity, which we believe is differentiated within the industry. During the second quarter, we signed our fourth partnership with an Arrow OEM, which included long-dated multi-agreement LTAs of existing castings and superalloys, and volume commitments that underpin the building of a new superalloy greenfield facility in Alabama. This is exciting news for the group and for the wider industry as this brings super allied capacity into the casting supply chain. Today, we have four customer partnerships with two Aero and two IGT OEMs ranging in duration from five to 15 years in terms of LTA length. And each of these partnerships are margin accretive to our group. Each partnership is bespoke in nature and has resulted in contributions from the OEMs, whether that be capital contributions or capacity reservation contributions. In total, we estimate these four partnerships represent in excess of $200 million of our annual revenue, with full rate revenue beginning being delivered in 2029. This is $200 million plus in additional revenue and accretive to our base business. Continue to have an active pipeline of potential additional partnerships. We're building stronger relationships with our customers, and I believe that these strategic partnerships illustrate the confidence and support we have from our Aero and IGT OEMs. Moving on to slide 7, we expect to deliver material value creation through organic growth, operational improvements, long-term cash generation and investments. This is our long-term value creation model. We have many drivers of top-line growth, market demand, aftermarket, our LTAs and order backlog. The revenue generated from growing our capacity and value-based pricing. Moving on to margin, expansion is expected to come from volume, which drives operating leverage, value-based pricing and operational efficiencies. We expect to generate cash through profitable growth, capacity utilization and working capital efficiency. And lastly, we continue to invest in our capacity and our capital equipment. We expect to complement this with potential bolt-on acquisitions. Underpinning all of these drivers are our strategic customer partnerships, as we've talked about, which provide larger portfolio awards, a margin of creative, sometimes have cash or capital contributions and support our capacity investment through volume commitments. This is our long-term value creation model. We are passionate about this across Doncaster's. It is ingrained within our business model in every site and every function and every day. It is alive in our company and has become part of our DNA over the last six years. I'd like to pass you over to David now.