Dana Incorporated Reports 2025 Strong Second-quarter Financial Results; Raises 2025 Full-year Guidance

Rhea-AI Summary

Dana Incorporated (NYSE: DAN) reported Q2 2025 financial results and announced significant strategic changes. The company entered into a definitive agreement to sell its Off-Highway business and launched a $1 billion capital return program. Q2 sales from continuing operations reached $1.95 billion, with adjusted EBITDA of $145 million (7.5% margin), up from 5.4% in Q2 2024.

The company has raised its 2025 full-year guidance, increasing sales targets by $250 million, adjusted EBITDA by $35 million, and adjusted free cash flow by $50 million. Dana's cost-savings program has achieved $110 million in savings to date, with plans to reach $310 million through 2026. The company expects to return approximately $600 million to shareholders by year-end 2025.

Positive

• Expanded cost-savings target to $310 million through 2026, with $110 million already achieved
• Adjusted EBITDA margin improved to 7.5% from 5.4% year-over-year
• Launched $1 billion capital return program with $250 million in shares already repurchased
• Raised full-year guidance for sales, adjusted EBITDA, and free cash flow
• Strategic sale of Off-Highway business to strengthen balance sheet

Negative

• Q2 sales declined to $1.95 billion from $2.05 billion year-over-year
• Reported loss before tax of $24 million from continuing operations
• Operating cash flow decreased to $36 million from $215 million in Q2 2024
• Adjusted free cash flow showed negative $5 million compared to positive $104 million in Q2 2024
• Facing ongoing challenges from tariffs and cost inflation

News Market Reaction

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On the day this news was published, DAN gained 7.42%, reflecting a notable positive market reaction. Argus tracked a peak move of +9.4% during that session. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $177M to the company's valuation, bringing the market cap to $2.57B at that time.

Data tracked by StockTitan Argus on the day of publication.

Second Quarter Highlights

• Sales of $1.9 billion from continuing operations; $662 million from discontinued operations
• Income (loss) before taxes was $(24) million from continuing operations; $77 from discontinued operations
• Adjusted EBITDA of $145 million from continuing operations; $111 from discontinued operations
• Operating cash flow was $36 million*
• Entered into definitive agreement to sell Off-Highway business
• Announced $1 billion capital return authorization; increased expecting 2025 capital return to be approximately $600 million
• Repurchased 14.6 million shares in Q2
• Realized $59 million in cost savings in Q2; $110 million to date
• Increased total cost savings to $310 million through 2026
• Increased full-year guidance for sales by $250 million, adjusted EBITDA by $35 million, and adjusted free cash flow by $50 million*

*Cash flow includes cash from both continuing and discontinued operations to align with deal structure

MAUMEE, Ohio, Aug. 5, 2025 /PRNewswire/ -- Dana Incorporated (NYSE: DAN) today announced financial results for the second quarter of 2025 reflecting the Off-Highway business as a discontinued operation for all periods.

"In June, we announced a definitive agreement to sell our Off-Highway business, a key step in our strategy to become a more focused supplier to the light- and commercial-vehicle markets," said R. Bruce McDonald, chairman and chief executive officer. "This transaction significantly strengthens our balance sheet and enabled us to begin a $1 billion capital return program, including the repurchase of over $250 million in shares during the second quarter. We expect to return an additional $100 to $150 million to shareholders in the third quarter and approximately $600 million by the end of the year. Meanwhile, our expanded $310 million cost-savings initiative is progressing well, with nearly $60 million realized in the second quarter and $110 million to date—underpinning our commitment to deliver 10% adjusted EBITDA margin in 2026."

Sales for continuing operations in the second quarter of 2025 totaled $1.95 billion, compared with $2.05 billion in the same period of 2024. 

Loss before tax was $24 million compared with a loss of $53 million in the second quarter of 2024.

Adjusted EBITDA for the second quarter of 2025 was $145 million or 7.5 percent of sales, compared with $110 million or 5.4 percent of sales for the same period in 2024.  The company's cost-savings program has mitigated the margin impact of lower volumes, tariffs, and cost inflation.

Operating cash flow in the second quarter of 2025 was $36 million, compared with $215 million in the same period of 2024.  Adjusted free cash flow was a use of $5 million, compared with $104 million in the second quarter of 2024.

"Our accelerated cost-saving initiatives and efficiency improvements continue to mitigate the impact of tariffs and inflation," said Timothy Kraus, Dana's senior vice president and chief financial officer. "We are actively working with our customers to recover the majority of these costs within the year. Additionally, as previously noted, we are now reporting results and guidance only for continuing operations. Reflecting higher tariff recoveries, enhanced cost performance, and reduced working capital requirements, we are raising our full-year guidance for continuing operations."

2025 Financial Targets Revised for Discontinued Operations
Results for the Off-Highway business will be reported as discontinued operations. The current guidance targets below are for continuing operations for the full year 2025. The prior guidance method is illustrative, showing what updated guidance would have been prior to discontinued operation accounting.

	Current Guidance Method	Midpoint of Prior Method
Sales	$7.25 to $7.55 billion	~$9.9 billion
Adjusted EBITDA	$540 to $610 million	~$990 million
Implied adjusted EBITDA margin	7.4% to 8.1%	~10.0%
Operating cash flow	$550 to $650 million	~$600 million
Adjusted free cash flow	$225 to $325 million	~$275 million

Dana to Host Conference Call at 9 a.m. Tuesday, August 5
Dana will discuss its first-quarter results in a conference call at 9 a.m. EDT on Tuesday, August 5.  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 8:30 a.m. EDT. 

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 net income (loss) attributable to the parent company is a non-GAAP financial measure which we have defined as net income (loss) attributable to the parent company, excluding any discrete income tax items, restructuring charges, amortization expense and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to net income attributable to the parent company reported by other companies. Adjusted net income (loss) attributable to the parent company is neither intended to represent nor be an alternative measure to net income (loss) attributable to the parent company reported in accordance with GAAP.

Diluted adjusted EPS is a non-GAAP financial measure which we have defined as adjusted net income (loss) attributable to the parent company divided by adjusted diluted shares.  We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income (loss) attributable to the parent company.  This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies.  Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported in accordance with GAAP.

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.  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.

The accompanying financial information provides reconciliations of adjusted EBITDA, diluted adjusted EPS and adjusted 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 and diluted adjusted EPS outlook to the most comparable GAAP measures of net income (loss) and diluted EPS. Providing net income (loss) and diluted EPS 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 (loss) and diluted EPS, including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented 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 sales of $7.7 billion in 2024 with 28,000 people in 26 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.

DANA INCORPORATED
Segment Sales and Adjusted EBITDA (Unaudited)
For the Three Months Ended June 30, 2025 and 2024
		Three Months Ended
(In millions)		June 30,
		2025		2024
Sales
Light Vehicle		$        1,335		$        1,401
Commercial Vehicle		600		646
Total Sales		$        1,935		$        2,047
Adjusted EBITDA
Light Vehicle		$           112		$             90
Commercial Vehicle		47		39
Corporate expense and other items, net		(14)		(21)
Adjusted EBITDA		$           145		$           108

 

DANA INCORPORATED
Segment Sales and Adjusted EBITDA (Unaudited)
For the Six Months Ended June 30, 2025 and 2024
		Six Months Ended
(In millions)		June 30,
		2025		2024
Sales
Light Vehicle		$        2,548		$        2,763
Commercial Vehicle		1,168		1,299
Total Sales		$        3,716		$        4,062
Adjusted EBITDA
Light Vehicle		$           180		$           168
Commercial Vehicle		88		72
Corporate expense and other items, net		(32)		(45)
Adjusted EBITDA		$           236		$           195

 

DANA INCORPORATED
Reconciliation of Loss from Continuing Operations before Income Taxes
to Adjusted EBITDA (Unaudited)
For the Three Months Ended June 30, 2025 and 2024
		Three Months Ended
(In millions)		June 30,
		2025		2024
Loss from continuing operations before income taxes		$            (24)		$            (53)
Interest income		(4)		(1)
Interest expense		44		40
Depreciation		88		91
Amortization		3		3
Non-service cost components of pension and OPEB costs		2		4
Restructuring charges, net		11		11
Stock compensation expense		10		8
Strategic transaction expenses		5		3
Loss on sale of property, plant and equipment		-		1
Loss on divestiture of ownership interests		7		-
Loss on disposal group previously held for sale		-		1
Other items		3		-
Adjusted EBITDA		$           145		$           108

 

DANA INCORPORATED
Reconciliation of Loss from Continuing Operations before Income Taxes
to Adjusted EBITDA (Unaudited)
For the Six Months Ended June 30, 2025 and 2024
		Six Months Ended
(In millions)		June 30,
		2025		2024
Loss from continuing operations before income taxes		$            (55)		$         (129)
Interest income		(6)		(4)
Interest expense		83		78
Depreciation		170		171
Amortization		6		7
Non-service cost components of pension and OPEB costs		5		7
Restructuring charges, net		13		16
Stock compensation expense		23		13
Strategic transaction expenses		6		4
(Gain) loss on sale of property, plant and equipment		(1)		1
Supplier capacity charge adjustment		(19)		-
Loss on divestiture of ownership interests		7		-
Loss on disposal group previously held for sale		-		30
Other items		4		1
Adjusted EBITDA		$           236		$           195

 

DANA INCORPORATED
Reconciliation of Earnings from Discontinued Operations before Income Taxes
to Adjusted EBITDA (Unaudited)
For the Three Months Ended June 30, 2025 and 2024
		Three Months Ended
(In millions)		June 30,
		2025		2024
Earnings from discontinued operations before income taxes		$             77		$           120
Interest income		(1)		(1)
Depreciation		12		16
Amortization		1		2
Non-service cost components of pension and OPEB costs		1		-
Strategic transaction expenses		21		-
Other items		-		(1)
Adjusted EBITDA		$           111		$           136

 

DANA INCORPORATED
Reconciliation of Earnings from Discontinued Operations before Income Taxes
to Adjusted EBITDA (Unaudited)
For the Six Months Ended June 30, 2025 and 2024
		Six Months Ended
(In millions)		June 30,
		2025		2024
Earnings from discontinued operations before income taxes		$           144		$           231
Interest income		(2)		$              (2)
Depreciation		26		36
Amortization		3		4
Non-service cost components of pension and OPEB costs		1		-
Restructuring charges, net		2		-
Stock compensation expense		1		1
Strategic transaction expenses		34		-
Loss on sale of property, plant and equipment		-		5
Other items		(1)		(3)
Adjusted EBITDA		$           208		$           272

 

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SOURCE Dana Incorporated

FAQ

What were Dana's (DAN) key financial results for Q2 2025?

Dana reported $1.95 billion in sales from continuing operations, with adjusted EBITDA of $145 million (7.5% margin). The company posted a loss before tax of $24 million from continuing operations.

How much does Dana (DAN) plan to return to shareholders in 2025?

Dana plans to return approximately $600 million to shareholders by the end of 2025, including $250 million already spent on share repurchases in Q2 and an additional $100-150 million planned for Q3.

What is Dana's (DAN) cost savings target and progress?

Dana has expanded its cost-savings target to $310 million through 2026. The company has already achieved $110 million in savings to date, with $59 million realized in Q2 2025.

What are Dana's (DAN) revised 2025 financial targets?

Dana raised its 2025 guidance for continuing operations to sales of $7.25-7.55 billion, adjusted EBITDA of $540-610 million, and adjusted free cash flow of $225-325 million.

How will the Off-Highway business sale impact Dana (DAN)?

The sale will strengthen Dana's balance sheet and enable a $1 billion capital return program. The company will become more focused on light- and commercial-vehicle markets, with Off-Highway results reported as discontinued operations.