Dana Incorporated Reports Strong 2025 Financial Results; Reaffirms 2026 Targets Featuring New Business Growth, Increased Margins

Rhea-AI Summary

Dana (NYSE:DAN) reported 2025 sales of $7.5 billion, adjusted EBITDA $610 million (8.1% margin) and adjusted free cash flow $331 million. The company completed the Off‑Highway sale, returned $704 million to shareholders and repurchased 34 million shares (23%). Dana affirmed 2026 guidance with adjusted EBITDA of $750–$850 million, extended its capital return program to $2 billion, and outlined Dana 2030 targets including ~$10 billion sales and 14–15% EBITDA margin.

Positive

• Adjusted EBITDA increased to $610 million (+54% vs 2024)
• Adjusted free cash flow of $331 million, exceeding preliminary estimates by $16 million
• Share repurchases of 34 million shares (23% of shares outstanding) and $704 million returned
• Nearly $2 billion of debt reduction supported by Off‑Highway sale
• 2026 guidance midpoint implies higher profitability (10.7% margin midpoint)

Negative

• None.

News Market Reaction – DAN

+5.78%

6 alerts

+5.78% News Effect

+3.3% Peak in 3 min

+$219M Valuation Impact

$4.00B Market Cap

0.1x Rel. Volume

On the day this news was published, DAN gained 5.78%, reflecting a notable positive market reaction. Argus tracked a peak move of +3.3% during that session. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $219M to the company's valuation, bringing the market cap to $4.00B at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

2025 Sales: $7.5 billion 2025 Adjusted EBITDA: $610 million 2025 Adjusted FCF: $331 million +5 more

8 metrics

2025 Sales $7.5 billion Full-year 2025 sales from continuing operations

2025 Adjusted EBITDA $610 million Full-year 2025 adjusted EBITDA, above preliminary estimate

2025 Adjusted FCF $331 million Full-year 2025 adjusted free cash flow, above preliminary estimate

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

Share Repurchases 2025 34 million shares (23%) Shares repurchased during 2025 as percent of shares outstanding

Three-year backlog $750 million Three-year new-business backlog with $200M incremental in 2026

2026 EBITDA guidance $750–$850 million 2026 adjusted EBITDA preliminary guidance (10–11% margin)

2030 Sales Target $10 billion 2030 sales target under Dana 2030 strategy

Market Reality Check

Price: $34.27 Vol: Volume 1,388,663 is below...

normal vol

$34.27 Last Close

Volume Volume 1,388,663 is below the 20-day average of 1,593,881, suggesting no outsized trading response pre-news. normal

Technical Shares at 32.87 are trading above the 200-day MA of 20.62, near the 34.05 52-week high.

Peers on Argus

DAN fell 1.56% with mixed peers: GTX -2.27%, GT -5.24%, ATMU -1.25%, ADNT -3.48%...

DAN fell 1.56% with mixed peers: GTX -2.27%, GT -5.24%, ATMU -1.25%, ADNT -3.48%, while PHIN rose 1.36%, pointing to stock-specific factors around the print.

Previous Earnings Reports

5 past events · Latest: Jan 21 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 21	Prelim 2025 earnings	Positive	+10.9%	Preliminary 2025 results and 2026 outlook with higher margins and cash flow.
Oct 29	Q3 2025 earnings	Positive	+7.6%	Q3 beat with higher EBITDA, raised 2025 guidance and progress on Off‑Highway sale.
Aug 05	Q2 2025 earnings	Positive	+7.4%	Strong Q2, Off‑Highway sale agreement and launch of $1B capital return plan.
Apr 30	Q1 2025 earnings	Positive	+5.8%	Q1 in line with stable guidance and accelerated cost‑savings plan.
Jan 24	2024 prelim & 2025 guide	Positive	+14.9%	Preliminary 2024 results, higher cost‑reduction target and 2025/2026 guidance.

Pattern Detected

Earnings-related news has typically triggered strong positive moves, with all recent earnings events showing solid upside reactions.

Recent Company History

Over the past year, Dana’s earnings cycle has featured repeated guidance raises, margin expansion, and a major portfolio shift via the Off‑Highway sale. Prior updates highlighted rising adjusted EBITDA, a growing cost‑savings program, and an expanding capital‑return framework. The latest release converts preliminary 2025 figures into final numbers modestly above prior estimates, reiterates 2026 targets, and layers on longer‑term 2030 goals, extending the narrative of improving profitability and shareholder returns.

Historical Comparison

+9.3% avg move · Past earnings headlines saw an average move of 9.32%, while this earnings release coincided with a -...

earnings

+9.3%

Average Historical Move earnings

Past earnings headlines saw an average move of 9.32%, while this earnings release coincided with a -1.56% move, marking a weaker-than-usual reaction.

Earnings updates have traced a path from 2024 prelims through Q1–Q3 2025 and preliminary 2025 results, now culminating in final 2025 numbers, reiterated 2026 targets, and new 2030 sales and margin ambitions.

Market Pulse Summary

The stock moved +5.8% in the session following this news. A strong positive reaction aligns with Dan...

Analysis

The stock moved +5.8% in the session following this news. A strong positive reaction aligns with Dana’s history of robust responses to earnings updates, where prior events averaged moves of 9.32%. Investors have often focused on rising margins, cost savings, and capital returns. However, sentiment could moderate if execution on cost reductions, backlog conversion, or long-range 2030 targets wavers, or if macro demand weakens across end markets.

Key Terms

adjusted ebitda, adjusted free cash flow, adjusted net income, diluted adjusted eps, +1 more

5 terms

adjusted ebitda financial

"Adjusted EBITDA of $610 million; $10 million higher than preliminary estimate"

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 $331 million; $16 million higher than preliminary estimate"

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.

adjusted net income financial

"Adjusted net income (loss) attributable to the parent company is a non-GAAP financial measure"

Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.

diluted adjusted eps financial

"Diluted adjusted EPS | $2.00 to $3.00"

Diluted adjusted EPS is a per-share profit figure that removes one-time or unusual items from reported earnings and assumes all potential shares from things like options and convertibles are issued. Investors use it to see the company’s underlying profit available to each share on a conservative basis, like comparing a cleaned-up household budget while imagining every possible roommate has moved in.

non-gaap financial measure financial

"Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before interest"

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.

AI-generated analysis. Not financial advice.

2025 Highlights:

• Sales of $7.5 billion
• Adjusted EBITDA of $610 million; $10 million higher than preliminary estimate
• 8.1 percent adjusted EBITDA margin; 10 basis points higher than preliminary estimate
• Adjusted free cash flow of $331 million; $16 million higher than preliminary estimate
• Completed sale of the Off‑Highway business
• Achieved $248 million in cost savings; in line with our preliminary estimate
• Returned $704 million to shareholders
• Repurchased 34 million shares, representing 23% of shares outstanding

2026 Highlights:

• Completed nearly $2 billion in debt reduction, supported by proceeds from the Off‑Highway sale
• Announced capital return program has been extended and increased from $1 billion to $2 billion
• Repurchased $100 million in shares in January; expect repurchases of up to $300 million in 2026
• Announced $750 million three-year new business backlog; $200 million incremental in 2026
• 2026 margin guidance range at a midpoint of 10.7 percent
• Announced new long-range targets for sales, profitability, and adjusted free cash flow
• Will host a Capital Markets Day on March 25, 2026

MAUMEE, Ohio, Feb. 18, 2026 /PRNewswire/ -- Dana Incorporated today announced its full‑year 2025 financial results, with adjusted EBITDA and adjusted free cash flow above the preliminary results issued in January.  Dana also confirmed its outlook for 2026, highlighting stronger profitability, significant cost‑reduction progress, increased capital return, and further improvements to its balance sheet.

"Over the past year, Dana made incredible progress on every one of our strategic priorities — from successfully completing the Off‑Highway separation to realizing significant cost efficiencies across the enterprise," said R. Bruce McDonald, Chairman and Chief Executive Officer. "These actions have reshaped Dana into a more focused, more resilient organization with improved margins and enhanced financial agility. In 2026, we remain on track to finalize the balance of our $325 million cost‑reduction initiative, deliver adjusted EBITDA margins in the 10 to 11 percent range. With a stronger balance sheet, a richer mix of higher‑margin programs, a continued focus on disciplined execution, and our commitment to significant capital return in the years ahead."

All results are for continuing operations.

Fourth-quarter 2025 Financial Results
Sales in the fourth quarter of 2025 totaled $1.9 billion, compared with $1.8 billion in the same period of 2023.  The improvement was driven by increased demand for our key light truck programs offsetting lower market demand for commercial trucks. Customer recovery and currency translation provided a further benefit.

Adjusted EBITDA for the fourth quarter of 2025 was $208 million representing an 11.1 percent margin, compared with $84 million, or 4.7 percent, for the same period in 2024. Cost-savings actions and efficiency improvements were the primary drivers of the improvement.

Operating cash flow in the fourth quarter of 2025 was $406 million, compared with $302 million in the same period of 2024.  Adjusted free cash flow was $324 million, compared with $153 million in the fourth quarter of 2024. 

Full-year 2025 Financial Results
Sales for 2025 were $7.5 billion, compared with $7.7 billion in 2024.  The decrease was due to lower demand for vehicles in all end markets partially offset by recoveries from customers and currency translation.

Adjusted EBITDA for 2025 was $610 million, compared with $395 million in 2024, driven by cost-savings actions and performance improvements that more than offset the margin impact of lower sales and tariffs.

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‑vehicle and commercial‑vehicle segments. The company expects $200 million in incremental new business growth in 2026 from next‑generation platforms with global OEMs.

"Dana today introduced its long‑term financial guidance as part of the company's Dana 2030 strategy. In 2030, the company expects to generate approximately $10 billion in sales, reflecting a 33 percent increase over its 2026 outlook," said Byron Foster Senior Vice President and President, Light Vehicle Systems. "We are also targeting a significant expansion in profitability, with adjusted EBITDA margins projected to reach 14 to 15 percent—a 45 percent improvement versus our 2026 guidance—and adjusted free cash flow margins of roughly 6 percent, representing a 50 percent increase. Complementing these financial targets, the company announced a robust capital‑return plan that includes a total of approximately $2 billion in share repurchases through 2030, reinforcing its commitment to delivering long‑term shareholder value."

Join the company for an in-depth discussion of the Dana 2030 strategy at their Capital Markets Day on March 25, 2026, in New York City.

2026 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%
Diluted Adjusted EPS	$2.00 to $3.00
Adjusted free cash flow	$250 to $350 million

 

Dana to Host Conference Call at 9 a.m. Wednesday, February 18
Dana will discuss its 2025 results and 2026 outlook in a conference call at 9 a.m. EDT on Wednesday, February 1.  The conference call can be accessed by telephone from both domestic and international 18ocations 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 (loss) 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 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 Incorporated (NYSE: DAN) is a global leader in the design and manufacture of highly efficient propulsion solutions for the light- and commercial‑vehicle markets. Guided by its vision to be the world's best powertrain company, Dana delivers advanced conventional and clean‑energy technologies that help customers improve the performance, efficiency, and durability of their vehicles. The company supplies leading vehicle manufacturers and related aftermarkets with industry‑defining drive systems, electrodynamic technologies, and thermal and sealing solutions.

Headquartered in Maumee, Ohio, USA, Dana reported sales of $7.5 billion in 2025.  With a history dating to 1904, the company employs 27,000 people in 24 countries across six continents. Learn more at dana.com.

DANA INCORPORATED
Reconciliation of Net Cash Provided By Operating Activities to
Adjusted Free Cash Flow (Unaudited)
		Three Months Ended
(In millions)		December 31,
		2025		2024
Net cash provided by operating activities		$       406		$       302
Purchases of property, plant and equipment - Continuing operations		(61)		(114)
Purchases of property, plant and equipment - Discontinued operations		(23)		(39)
Proceeds from sale of property, plant and equipment - Continuing operations		1		4
Proceeds from sale of property, plant and equipment - Discontinued operations		1		-
Cash paid for Off-Highway business divestiture related activities		14		-
Adjusted free cash flow		$       324		$       153
		Year Ended
(In millions)		December 31,
		2025		2024
Net cash provided by operating activities		$       512		$       450
Purchases of property, plant and equipment - Continuing operations		(214)		(312)
Purchases of property, plant and equipment - Discontinued operations		(56)		(68)
Proceeds from sale of property, plant and equipment - Continuing operations		13		7
Proceeds from sale of property, plant and equipment - Discontinued operations		1		4
Cash paid for Off-Highway business divestiture related activities		75		-
Adjusted free cash flow		$       331		$         81

 

DANA INCORPORATED
Segment Sales and Adjusted EBITDA (Unaudited)
For the Three Months Ended December 31, 2025 and 2024
		Three Months Ended
(In millions)		December 31,
		2025		2024
Sales
Light Vehicle		$        1,316		$        1,201
Commercial Vehicle		551		573
Total Sales		$        1,867		$        1,774
Adjusted EBITDA
Light Vehicle		$           160		$             84
Commercial Vehicle		60		17
Corporate expense and other items, net		(12)		(17)
Adjusted EBITDA		$           208		$             84

 

DANA INCORPORATED
Segment Sales and Adjusted EBITDA (Unaudited)
For the Year December 31, 2025 and 2024
		Year Ended
(In millions)		December 31,
		2025		2024
Sales
Light Vehicle		$        5,217		$        5,250
Commercial Vehicle		2,283		2,484
Total Sales		$        7,500		$        7,734
Adjusted EBITDA
Light Vehicle		$           466		$           334
Commercial Vehicle		199		134
Corporate expense and other items, net		(55)		(73)
Adjusted EBITDA		$           610		$           395

 

DANA INCORPORATED
Reconciliation of Loss From Continuing Operations Before Income Taxes
to Adjusted EBITDA (Unaudited)
For the Year December 31, 2025 and 2024
		Three Months Ended
(In millions)		December 31,
		2025		2024
Income (loss) from continuing operations before income taxes		$             12		$          (154)
Adjustments related to continuing operations
Interest income		(2)		(4)
Interest expense		51		41
Depreciation		88		84
Amortization		3		3
Non-service cost components of pension and OPEB costs		4		5
Restructuring charges, net		6		34
Stock compensation expense		9		9
Strategic transaction expenses				1
Loss on sale of property, plant and equipment				1
Electric vehicle program termination charges		36
Supplier capacity charge adjustment				46
Loss on divestiture of ownership interests		2
Amounts attributable to previously closed/divested operations				9
Other items		(1)		9
Adjusted EBITDA		$           208		$             84

 

DANA INCORPORATED
Reconciliation of Loss From Continuing Operations Before Income Taxes
to Adjusted EBITDA (Unaudited)
For the Year December 31, 2025 and 2024
		Year Ended
(In millions)		December 31,
		2025		2024
Loss from continuing operations before income taxes		$            (33)		$          (321)
Adjustments related to continuing operations
Interest income		(10)		(13)
Interest expense		181		158
Depreciation		345		337
Amortization		12		13
Non-service cost components of pension and OPEB costs		11		17
Restructuring charges, net		23		70
Stock compensation expense		40		30
Strategic transaction expenses		12		3
Loss on sale of property, plant and equipment				1
Electric vehicle program termination charges		36
Supplier capacity charge adjustment		(21)		46
Loss on divestiture of ownership interests		9
Loss on disposal group previously held for sale				26
Amounts attributable to previously closed/divested operations				9
Other items		5		19
Adjusted EBITDA		$           610		$           395

 

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SOURCE Dana Incorporated

FAQ

What were Dana (DAN) full‑year 2025 financial results?

Dana reported $7.5 billion in 2025 sales and adjusted EBITDA $610 million. According to the company, adjusted free cash flow was $331 million and results exceeded preliminary estimates for EBITDA and cash flow.

How much did Dana (DAN) return to shareholders in 2025 and how significant was buyback activity?

Dana returned $704 million to shareholders and repurchased 34 million shares (23% outstanding). According to the company, buybacks were a major component of its capital return program and materially reduced share count.

What is Dana's (DAN) 2026 adjusted EBITDA and sales guidance range?

Dana's preliminary 2026 guidance targets adjusted EBITDA $750–$850 million with sales of $7.30–$7.70 billion. According to the company, the implied adjusted EBITDA margin range is 10.0% to 11.0%.

What strategic actions did Dana (DAN) complete to improve margins and liquidity?

Dana completed the Off‑Highway sale, achieved $248 million in cost savings, and reduced nearly $2 billion of debt. According to the company, these steps improved margins and strengthened the balance sheet.

What are Dana's (DAN) long‑range Dana 2030 financial targets?

Dana targets roughly $10 billion in sales by 2030 with 14–15% adjusted EBITDA margins and ~6% adjusted free cash flow margin. According to the company, the plan includes ~$2 billion in share repurchases through 2030.