Strong Finish to 2025 at the High End of Expectations
Dana Incorporated reported preliminary full-year 2025 financial results that came in at the upper end of management’s expectations, underscoring a year marked by decisive portfolio actions and disciplined execution. The company generated approximately $7.5 billion in sales, with adjusted EBITDA of around $600 million, representing 8% of sales. Adjusted free cash flow for the year totaled roughly $315 million, reflecting improved operating performance and tighter capital discipline.
A defining milestone in 2025 was the completion of the sale of Dana’s Off-Highway business, which closed at an enterprise value of $2.7 billion. The transaction materially reshaped Dana’s portfolio, enabling management to focus on higher-margin on-highway and electrification opportunities while strengthening the balance sheet.
Cost Savings and Shareholder Returns Drive Value Creation
Dana achieved approximately $250 million in cost savings during 2025, a key contributor to margin resilience amid a mixed global automotive demand environment. The company also remained highly active in capital returns, distributing $704 million to shareholders over the year.
As part of this effort, Dana repurchased 34 million shares, equivalent to 23% of shares outstanding, reducing the share count to 112.3 million shares as of December 31, 2025. Management characterized these actions as central to its broader capital allocation strategy, balancing reinvestment with meaningful shareholder returns.
2026 Outlook: Stronger Balance Sheet and Expanding Margins
Looking ahead, Dana issued a preliminary outlook for 2026 that emphasizes higher profitability, continued cost discipline, and improved financial flexibility. The company has already completed $1.9 billion in debt reduction, supported primarily by proceeds from the Off-Highway divestiture.
Dana raised its cumulative cost-savings target to $325 million, reflecting additional opportunities identified across operations and corporate functions. In parallel, management increased 2026 adjusted EBITDA margin guidance, raising the midpoint to 10.5%, within a projected range of 10% to 11%.
During the year, Dana also completed the previously disclosed buy-out of the TM4 joint venture, simplifying its structure and enhancing strategic control over key electrification technologies.
New Business Momentum and Strategic Visibility
Dana’s three-year new business backlog totals $750 million, driven by new program awards, higher content per vehicle, and expanded platforms across both light- and commercial-vehicle markets. Of this total, the company expects $200 million of incremental growth in 2026, largely tied to next-generation vehicle platforms with global OEMs.
To further articulate its long-term strategy, Dana will host a Capital Markets Day on March 25, 2026, where management plans to provide deeper insight into growth priorities, margin expansion initiatives, and capital allocation plans.
