DATL expects lower 2026 results amid weak first-half performance

Birmingham, UK – Dunlop Aircraft Tyres (DATL) has lowered its full-year sales and earnings forecasts after second-quarter revenue fell 21% year-on-year.

Revenue for the three months to 30 June came in at £13.7 million (€16 million), down 21.7% compared with £17.5 million a year earlier, DATL reported 31 Aug.

Adjusted earnings (EBITDA) fell 48% to £1.6 million from £3.1 million, with the margin declining to 12%.

DATL linked the decline mainly to disruption in the Middle East, lower revenues from some aircraft programmes and the timing of military orders.

The ongoing conflict in the Middle East reduced regional distributor revenue by around £2 million year-on-year, the company said.

Defence revenues declined £800,000 year-on-year, reflecting a £300,000-million  payment which DATL expects to recover in the fourth quarter.

Lower revenues from ‘key commercial contracts,’ including the discontinuation of the MD-11 platform and lower C-17 business, also accounted for a further £1 million decline.

“The reduction in year-on-year revenue is driven by three things,” said CFO Shashank Dhawan, pointing to the loss of C-17 business, the Middle East conflict and the “timing/phasing of several repeat military orders.”

Most of the military variance related to order timing on “sole source platforms,” he added, with DATL remaining in negotiations over future orders.

For the first half, revenue fell 21% to £27.1 million, while adjusted earnings declined 51% to £2.9 million.

DATL posted a pre-tax loss of £6.0 million, compared with a £2.8 million loss a year earlier.

For the full year, DATL said it now expects revenue to come in between £63 million and 65 million, down from £68 million in 2025.

Adjusted earnings are forecast at £8.5-9.5 million, also below the prior-year level.

CEO Mick Wallwork said the company continued to invest in R&D across commercial, freight, military and emerging eVTOL applications despite the near-term pressures.

DATL, he said, was recently invited by a “leading defence customer” to expand collaboration on a “high-profile military platform”, which Wallwork said could generate “significant volumes”.

DATL's financial disclosures follow a refinancing completed at the end of 2025 by parent company Tyre MidCo Ltd.

Under the transaction, Tyre MidCo issued $93 million of senior secured bonds on 2 Dec 2025, within a framework allowing up to $120 million of bonds through 2029. The initial bonds were issued at 98% of nominal value.

The proceeds were intended primarily to refinance £56.3 million of existing senior debt, as well as cover transaction costs and provide funds for general corporate purposes.

As part of the financing terms, Tyre MidCo is required to publish quarterly unaudited consolidated financial statements, including management commentary, within two months of each reporting period.

The structure remains backed by DATL owner Liberty Hall Capital Partners.