Dana Incorporated Announces Strong Preliminary 2025 Financial Results and Provides 2026 Outlook Featuring New Business Growth and Increased Margins

Rhea-AI Summary

Dana (NYSE:DAN) reported preliminary 2025 results and issued 2026 targets highlighting stronger margins, cash generation, and shareholder returns. Key 2025 metrics: sales ~$7.5 billion, adjusted EBITDA ~$600 million (8% of sales), adjusted free cash flow ~$315 million, completed Off‑Highway sale at $2.7 billion enterprise value, returned $704 million to shareholders and repurchased 34 million shares (23%).

2026 preliminary targets: sales $7.3–$7.7B, adjusted EBITDA $750–$850M (10–11% margin), adj. free cash flow $250–$350M; company reduced debt by $1.9B, raised cost‑savings target to $325M, and disclosed a $750M three‑year new business backlog.

Positive

• Sales approximately $7.5 billion in 2025
• Adjusted EBITDA approximately $600 million (8% of sales)
• Off‑Highway sale completed at $2.7B enterprise value
• Debt reduced by $1.9 billion following divestiture
• Returned $704 million to shareholders; repurchased 34M shares (23%)
• 2026 guidance implies adjusted EBITDA margin expansion to 10–11%

Negative

• Adjusted EBITDA guidance has a $100 million range (750–850M)
• Company did not provide a GAAP net income reconciliation for 2026 guidance

News Market Reaction

+10.86%

69 alerts

+10.86% News Effect

+10.8% Peak in 23 hr 53 min

+$363M Valuation Impact

$3.71B Market Cap

1.3x Rel. Volume

On the day this news was published, DAN gained 10.86%, reflecting a significant positive market reaction. Argus tracked a peak move of +10.8% during that session. Our momentum scanner triggered 69 alerts that day, indicating high trading interest and price volatility. This price movement added approximately $363M to the company's valuation, bringing the market cap to $3.71B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

2025 Sales: $7.5 billion 2025 Adjusted EBITDA: $600 million (8% margin) 2025 Adjusted Free Cash Flow: $315 million +5 more

8 metrics

2025 Sales $7.5 billion Preliminary full-year 2025 sales

2025 Adjusted EBITDA $600 million (8% margin) Preliminary full-year 2025 adjusted EBITDA

2025 Adjusted Free Cash Flow $315 million Preliminary full-year 2025 adjusted free cash flow

Off-Highway Sale Value $2.7 billion Enterprise value of Off‑Highway business sale

Capital Returned 2025 $704 million Capital returned to shareholders in 2025

Debt Reduction $1.9 billion Debt reduction completed, supported by Off‑Highway sale proceeds

New Business Backlog $750 million Three-year new business backlog, $200M incremental in 2026

2026 EBITDA Guidance $750–$850 million (10–11% margin) Preliminary 2026 adjusted EBITDA guidance range

Market Reality Check

Price: $28.90 Vol: Volume 1,835,384 vs 20-da...

normal vol

$28.90 Last Close

Volume Volume 1,835,384 vs 20-day average 1,959,048 (slightly below, ~0.94x). normal

Technical Price $27.25 trades above 200-day MA ($18.8) and 3.5% below 52-week high ($28.24).

Peers on Argus

DAN was down 1.02% pre-news while peers were mixed: GTX -1.54%, PHIN -2.34%, ADN...

DAN was down 1.02% pre-news while peers were mixed: GTX -1.54%, PHIN -2.34%, ADNT -1.76%, ATMU -0.36%, GT +0.39%. Moves do not indicate a unified sector direction.

Historical Context

5 past events · Latest: Jan 07 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 07	Conference preview	Positive	+3.4%	Announcement of call on backlog growth and preliminary 2025 results.
Jan 02	Asset sale completion	Positive	+5.0%	Completion of $2.7B Off‑Highway sale and capital return, deleveraging plans.
Nov 25	Conference participation	Positive	+2.5%	UBS conference participation and reminder of 2024 scale and recognition.
Nov 19	Regulatory approvals	Positive	+0.3%	All required approvals for Off‑Highway transaction and debt reduction plans.
Nov 14	Conference participation	Positive	-1.3%	Barclays conference appearance; stock dipped despite neutral-positive update.

Pattern Detected

Earnings and strategic updates have frequently coincided with positive price reactions, especially when tied to guidance raises and the Off-Highway portfolio actions.

Recent Company History

Over the past six months, Dana has steadily reshaped its portfolio and improved profitability metrics. The company pursued the Off-Highway divestiture, received regulatory approvals, and ultimately closed the sale, supporting debt reduction and shareholder returns. Multiple conference appearances highlighted its strategy and 2025 guidance. Earnings releases on Jan 24, 2025, Apr 30, 2025, Aug 5, 2025, and Oct 29, 2025 showed solid sales, rising adjusted EBITDA margins, and expanding cost-savings targets, often leading to strong positive single-day stock moves.

Market Pulse Summary

The stock surged +10.9% in the session following this news. A strong positive reaction aligns with D...

Analysis

The stock surged +10.9% in the session following this news. A strong positive reaction aligns with Dana’s history of sizable moves on earnings and guidance updates, where prior events averaged 8.93%. The article highlights higher-margin 2025 results, a sizeable Off‑Highway divestiture, debt reduction, and a $750 million backlog, all reinforcing the strategic shift seen in earlier periods. Investors would still need to monitor execution of the remaining cost-savings, delivery of 2026 margin targets, and capital return pacing to assess how durable any strength might be.

Key Terms

adjusted ebitda, adjusted free cash flow, non-gaap financial measure, net income, +4 more

8 terms

adjusted ebitda financial

"Adjusted EBITDA of approximately $600 million; 8 percent of sales"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted free cash flow financial

"Adjusted free cash flow of approximately $315 million"

Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.

non-gaap financial measure financial

"Adjusted EBITDA is a non-GAAP financial measure which we have defined"

A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.

net income financial

"defined as net income (loss) before interest, income taxes, depreciation"

Net income is the amount of money a company keeps after paying all its costs, interest, taxes and one-time charges — effectively the company’s profit “left over” at the end of a reporting period. Investors use it like a report card: it shows whether the business is generating real profit, influences earnings per share and dividend potential, and helps determine valuation and long-term financial health.

pension settlements financial

"gain/loss on debt extinguishment, pension settlements, divestitures, impairment"

A pension settlement is an action that removes a company’s responsibility for future pension payments by making a one-time payment or transferring the obligations to a third party, such as an insurance company, or by offering lump-sum payouts to plan members. It matters to investors because settlements can shrink a company’s long-term liabilities and volatility on the balance sheet but often require large cash outlays up front, affecting cash flow, credit metrics and perceived financial risk—think of trading a long-term IOU for a single big payment.

free cash flow financial

"reconciliations of adjusted EBITDA and free cash flow to the most directly comparable"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

forward-looking statements regulatory

"Certain statements and projections contained in this news release are, by their nature, forward-looking"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

form 10-k regulatory

"Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

AI-generated analysis. Not financial advice.

2025 Highlights: 

• Sales of approximately $7.5 billion
• Adjusted EBITDA of approximately $600 million; 8 percent of sales
• Adjusted free cash flow of approximately $315 million
• Completed sale of the Off‑Highway business at a $2.7 billion enterprise value
• Achieved approximately $250 million in cost savings
• Returned $704 million to shareholders
• Repurchased 34 million shares, representing 23 percent of shares outstanding
• Shares outstanding as of December 31 were 112.3 million

2026 Highlights:

• Completed $1.9 billion in debt reduction, supported by proceeds from the Off‑Highway sale
• Announced $750 million three-year new business backlog; $200 million incremental in 2026
• Raised cumulative cost savings target to $325 million
• Raises 2026 margin guidance range to a midpoint of 10.5 percent
• Completed the previously disclosed buy‑out of TM4 joint venture
• Will host a Capital Markets Day on March 25, 2026

MAUMEE, Ohio, Jan. 21, 2026 /PRNewswire/ -- Dana Incorporated today announced its preliminary full‑year 2025 financial results, which came in at the high end of the company's expectations. Dana also issued its preliminary outlook for 2026, highlighting stronger profitability, significant cost‑reduction progress, incremental capital return, and improvements to its balance sheet.

"We closed 2025 with strong momentum and executed on every major strategic commitment, from completing the Off‑Highway divestiture to delivering substantial cost savings," said R. Bruce McDonald, Chairman and Chief Executive Officer of Dana Incorporated. "Our actions have reshaped Dana into a more streamlined, higher‑margin company with greater financial flexibility. In 2026, we expect to complete the remainder of our now $325 million cost‑reduction program, continue executing our $1 billion capital return plan, and expand adjusted EBITDA margins to 10–11 percent—positioning Dana for durable, long‑term value creation. We are entering the year with a strengthened balance sheet, higher‑margin new business, and an ongoing commitment to shareholder returns and operational excellence."

Dana's three‑year new business backlog totals $750 million, driven by new program awards, increased content, and expanded vehicle platforms across both the light‑ and commercial‑vehicle segments. The company expects $200 million in incremental new business growth in 2026 from next‑generation platforms with global OEMs.

2026 Preliminary Financial Targets

	Preliminary Guidance
Sales	$7.30 to $7.70 billion
Adjusted EBITDA	$750 to $850 million
Implied adjusted EBITDA margin	10.0% to 11.0%
Adjusted free cash flow	$250 to $350 million

The company will host a Capital Markets Day on March 25, 2026, in New York City, with more information to follow.

Dana to Host Conference Call at 10 a.m. Wednesday, January 21 
Dana will discuss its preliminary 2025 results and 2026 market outlook in a conference call at 10 a.m. EST on Wednesday, January 21. The conference call can be accessed by telephone from both domestic and international locations using the information provided below:

Conference ID: 9943139
Participant Toll-Free Dial-In Number: 1 (888) 440-5873
Participant Toll Dial-In Number: 1 (646) 960-0319

Audio streaming and slides will be available online via a link provided on the Dana investor website: www.dana.com/investors. Phone registration will be available beginning at 9:30 a.m. EST.
A webcast replay can be accessed via Dana's investor website following the call.

Non-GAAP Financial Information 
Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit costs and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for earnings (loss) before income taxes, net income (loss) or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Adjusted free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment plus proceeds from sale of property, plant and equipment plus cash paid for Off-Highway business divestiture related activities. We believe adjusted free cash flow is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Adjusted free cash flow is not intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported in accordance with GAAP. Adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.

Please reference the "Non-GAAP financial information" accompanying our quarterly earnings conference call presentations on our website at www.dana.com/investors for reconciliations of adjusted EBITDA and free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have not provided a reconciliation of our adjusted EBITDA outlook to the most comparable GAAP measures of net income. Providing net income (loss) guidance is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items that are included in net income, including restructuring actions, asset impairments and income tax valuation adjustments. The reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented on our website are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.

Forward-Looking Statements
Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are based on our current expectations, estimates, and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change.  Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," and similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties, and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. 

Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss important risk factors that could affect our business, results of operations and financial condition. The forward-looking statements in this news release speak only as of this date. Dana does not undertake any obligation to revise or update publicly any forward-looking statement for any reason.

About Dana Incorporated 
Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company is shaping sustainable progress through its conventional and clean-energy solutions that support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing, and digital solutions.

Based in Maumee, Ohio, USA, the company reported preliminary sales of $7.5 billion in 2025 with 28,000 people in 24 countries across six continents. With a history dating to 1904, Dana was named among the "World's Most Ethical Companies" for 2025 by Ethisphere and as one of "America's Most Responsible Companies 2025" by Newsweek. The company is driven by a high-performance culture that focuses on valuing others, inspiring innovation, growing responsibly, and winning together, earning it global recognition as a top employer. Learn more at dana.com.

 

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SOURCE Dana Incorporated

FAQ

What were Dana (DAN) preliminary 2025 sales and adjusted EBITDA?

Dana reported 2025 sales of approximately $7.5 billion and adjusted EBITDA of approximately $600 million (about 8% of sales).

What is Dana's 2026 adjusted EBITDA margin guidance for DAN?

Dana guided to an implied adjusted EBITDA margin of 10.0%–11.0% for 2026 (adjusted EBITDA $750–$850M).

How much debt did Dana (DAN) reduce after the Off‑Highway sale?

Dana completed $1.9 billion in debt reduction, supported by proceeds from the Off‑Highway sale.

What shareholder returns did Dana (DAN) complete in 2025?

Dana returned $704 million to shareholders in 2025 and repurchased 34 million shares, representing 23% of shares outstanding.

What is the size of Dana's new business backlog and 2026 incremental target (DAN)?

Dana reported a $750 million three‑year new business backlog and expects $200 million of incremental new business in 2026.

When is Dana's next investor event for DAN and what will it cover?

Dana will host a Capital Markets Day on March 25, 2026, to discuss strategy, financial outlook, and progress against targets.