EL7.AI
StocksMedium•12 November 2026•
4 min read

Doncasters Targets $1.33 Billion in 2027 Revenue With New Turbine Contract

Key Facts

1Doncasters expects fiscal 2027 revenue of $1.23 billion to $1.33 billion.
2The company is targeting adjusted EBITDA of $240 million to $260 million and a margin of about 19.5% in 2027.
3Third-quarter revenue rose to $308.1 million, an annual increase of 39.2%.
4The company expects its fifth partnership to add more than $100 million in annual revenue by 2032.

DPC Holdings, known as Doncasters and listed on the New York Stock Exchange under ticker DPC, reported record third-quarter results on November 12, 2026, and forecast fiscal 2027 revenue of $1.23 billion to $1.33 billion. The midpoint implies revenue of $1.28 billion, according to the company’s statement, which tied the guidance to its controlling interest in Montana Precision Products and spending on its fifth strategic partnership. The guidance excludes Evostud, following its divestiture. Doncasters is targeting adjusted EBITDA of $240 million to $260 million in 2027. The midpoint of the EBITDA range is $250 million, with an expected margin of about 19.5%.

Management said the midpoint of its 2027 adjusted EBITDA outlook represents growth of 22% against the reference period used in its guidance. The target follows the company’s increase to its fiscal 2026 forecast, to revenue of $1.115 billion to $1.130 billion and adjusted EBITDA of $204 million to $207 million. Its previous 2026 estimates were revenue of $1.000 billion to $1.040 billion and adjusted EBITDA of $182 million to $187 million. The company attributed the higher outlook to strong operating performance. In the nine months ended September 27, 2026, revenue rose to $813.4 million from $610.4 million in the comparable period, an annual increase of 33.3%.

The company reported revenue of $308.1 million for the third quarter ended September 27, 2026, compared with $221.4 million in the corresponding quarter ended September 28, 2025, an increase of 39.2%. It swung to net income of $31.8 million from a net loss of $42.2 million a year earlier. Adjusted EBITDA was $58.2 million, versus $37.4 million, up 55.6%. The adjusted EBITDA margin rose to 18.9% from 16.9% in the year-earlier quarter. The company said its revenue grew faster than the aerospace and industrial gas turbine markets, which grew 45% and 43%, respectively, while transportation rose 21%.

The Engine Products segment was a leading driver of the quarter, with revenue up 43%, including growth of 47% in Europe and 37% in North America. The company attributed the performance to higher production, product-mix and pricing gains, as well as passing higher metal costs on to customers. The group’s adjusted EBITDA margin increased 200 basis points year over year to 18.9%. Management said passing on metal-cost inflation reduced the margin by 90 basis points during the quarter. In Engine Products, the margin reached 23.8%, up 380 basis points year over year, supported by higher volumes and value-based pricing.

Doncasters said it had signed its fifth strategic partnership with an original equipment manufacturer in the industrial gas turbine sector, under a contract lasting at least ten years. The company expects the partnership to add more than $100 million in annual revenue, with an enhanced margin, by 2032. The customer plans to fund about 80% of the capacity investment, which exceeds $200 million. The company says its five strategic partnership agreements together are expected to provide more than $300 million in additional annual revenue once the expansion is complete by 2031. The fiscal 2027 guidance includes the impact of spending on the fifth partnership.

On financing, the company announced a $325 million unsecured revolving credit facility, providing three years of multi-currency borrowing through September 2029. The facility includes an option to extend for two additional years. The company also expects total capital expenditure of $145 million to $170 million in fiscal 2027. It said higher spending that year reflects the fifth strategic partnership and the purchase of a building in the U.K. Adjusted free cash flow was $111 million in the nine months ended September 27, 2026, compared with $6 million in the corresponding period, excluding payments under the legacy management incentive plan from this measure.

The company said more than 70% of its revenue is covered by long-term agreements and its order book stood at about $1 billion when results were announced, compared with $725 million on December 31, 2025. Before announcing its results, it had called a conference call for November 12 at 08:00 a.m. Eastern Time to discuss them, led by Chief Executive Mike Quinn and Chief Financial Officer David Egan. In premarket trading that day, its shares rose 7.8% to $34.15, according to Investing.com. The company’s guidance for the coming year includes a capital expenditure range with a high end of $170 million, as it funds capacity expansion and the purchase of the U.K. building. The expected additional annual revenue from the fifth partnership extends through the 2032 target, while the estimate for all five partnerships is tied to completion of the expansion by 2031.