To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Summary of Dana (NYSE:DAN) Conference Call - December 03, 2025 Company Overview - **Company**: Dana, Inc. - **Ticker**: NYSE:DAN - **Recent Transformation**: Dana is undergoing a transformation by selling its off-highway business and recapitalizing its balance sheet with the proceeds [1][9] Key Points Discussed Financial Guidance and Performance - **Fourth Quarter Guidance**: Dana is on track to meet its implied guidance for the fourth quarter despite headwinds from a fire at Novelis affecting Ford [2][3] - **Volume Trends**: There were volume decreases in October, but Ford is running more consistently, which is beneficial for Dana's operational efficiency [3][6] Market Outlook - **Light Vehicle Market**: Dana's largest customer is Ford, and the company sees a relatively flat overall market but potential upside if Ford resolves its issues [6][17] - **Commercial Vehicle Market**: The commercial vehicle market is not expected to recover significantly in the first half of 2026, but it has stabilized [23][25] Off-Highway Business Sale - **Separation Process**: The sale of the off-highway business is nearing completion, focusing on IT and physical separations to ensure a smooth transition for both Dana and Allison [9][10] - **Employee Transition**: A significant number of employees from the off-highway segment will transition to Allison, necessitating careful management of the separation process [12] Financial Strategy Post-Sale - **Deleveraging and Capital Return**: Dana plans to use approximately $2 billion for deleveraging and has announced a $1 billion capital return, with $500 million-$600 million already executed through stock buybacks [14][15] - **Stock Buybacks**: Dana has accelerated its stock buyback program, indicating confidence in the company's undervalued stock [15][16] Business Segments and Strategy - **Light Vehicle Driveline**: The light vehicle segment includes traditional products and is expected to grow in areas like battery and electronics cooling, particularly for electric vehicles (EVs) [18][32] - **Commercial Vehicle Strategy**: Dana is focusing on gaining market share with customers like Navistar and Volvo, despite a challenging macro environment [27][28] Cost Management and Efficiency - **Cost Reduction Initiatives**: Dana has identified $310 million in cost reductions, primarily in corporate and engineering functions, with further opportunities for efficiency improvements in manufacturing [44][46] - **Automation and Quality Improvements**: Investments in automation and AI are expected to enhance productivity and quality, particularly in plant operations [49][53] Working Capital Management - **Impact of Off-Highway Sale**: The off-highway business was the most working capital intensive segment, and its sale is expected to improve Dana's working capital dynamics [59][60] Metals Pricing and Supply Chain - **Metals Pricing Outlook**: Dana does not anticipate drastic changes in core metals pricing and has effective commodity recovery mechanisms in place [62][64] China Market Strategy - **Joint Ventures and EV Focus**: Dana has a joint venture with Dongfeng in the ICE commercial vehicle market and sees growth opportunities in the EV sector in China [70][71] Future Growth Opportunities - **Aftermarket Business**: Dana is focusing on expanding its aftermarket business, particularly in sealing products, to replicate its strong position in Europe within North America [75] Conclusion Dana is strategically positioning itself for future growth by divesting its off-highway business, focusing on core segments, and implementing cost management strategies. The company is optimistic about its light vehicle and commercial vehicle segments while navigating challenges in the broader market.

Group 1 - The conference is focused on the automotive industry, specifically on power conveyance and transformational transactions within the sector [1] - The company is undergoing a significant change by selling its off-highway business, which will alter its end market mix dramatically [1] Group 2 - The CFO and the head of Investor Relations are present to engage in a series of discussions and answer questions from the audience [2] - Attendees are encouraged to participate by raising questions or sending emails to the designated contact [2]

Summary of Dana (NYSE:DAN) FY Conference Call - November 19, 2025 Company Overview - **Company**: Dana Incorporated (NYSE:DAN) - **Industry**: Automotive components, specifically focusing on power conveyance systems Key Points and Arguments Business Transformation - Dana is undergoing a significant transformation by selling its off-highway business, marking it as one of the largest transactions in the company's history [2][3] - The company aims to simplify its operations by focusing on two main end markets: light vehicles and commercial vehicles, which will lead to a more streamlined customer base and product portfolio [3][4] Supply Chain and Market Dynamics - Dana is currently managing supply chain disruptions, particularly with Ford, but expects to benefit from the popularity and higher profit margins of the products involved [6][7] - The company anticipates that supply chain issues will impact its financial guidance but is aligned with customer expectations [7] Margin Improvement - Dana projects a significant increase in margins for Q4, expecting nearly 11% compared to 8.5% in Q3, driven by cost savings, recovery from previous charges, and favorable product mix [8][9] - For 2026, Dana targets a margin of 10-10.5%, up from an estimated 8% in 2025, with key drivers including $310 million in cost savings and elimination of stranded costs [11][12] Cost Management and Operational Efficiency - The company has high confidence in achieving its cost savings targets and is actively working on reducing stranded costs associated with the business transition [12][13] - Dana is implementing ongoing cost improvement plans at the plant level, focusing on efficiency and automation to enhance operational performance [14][16][17] Electric Vehicle (EV) Strategy - Dana has shifted its approach to EV programs, emphasizing a more pragmatic view on risk and cost recovery, while still maintaining a strong portfolio of EV technologies [28][30] - The company is focusing on leveraging existing products and technologies rather than developing bespoke solutions, which lowers risk and aligns with customer needs [30][31] Commercial Vehicle (CV) Market Challenges - The CV market remains challenging, with no immediate recovery expected until mid-2026, but Dana is gaining market share, which may help offset volume losses [35][41] - The company is actively managing costs and optimizing factory operations to mitigate the impact of lower sales volumes [38][39] Competitive Landscape - Dana is focused on maintaining profitability and does not view size as a primary competitive advantage, emphasizing the strength of its product offerings and customer relationships [42][43] Free Cash Flow and Capital Allocation - Dana targets a free cash flow conversion of approximately 4% of sales for 2026, despite losing contributions from the off-highway business, due to margin expansion and reduced interest and tax expenses [50][52] - The company plans to allocate capital efficiently, focusing on profitable products and customers while considering potential M&A opportunities in the future [48][49] Future Outlook - Dana is optimistic about its ability to grow margins and free cash flow, driven by operational improvements, strategic focus, and market share gains in both light and commercial vehicle segments [41][52] Additional Important Insights - The company is undergoing a deliberate process to prune unprofitable products, aiming for a more robust cash flow and margin profile [45][46] - Dana is also exploring opportunities for repricing contracts to ensure profitability across its customer base [47] This summary encapsulates the key discussions and insights from Dana's FY conference call, highlighting the company's strategic direction, market challenges, and financial outlook.

Core Insights - Dana Incorporated and Allison Transmission Holdings have received all necessary regulatory approvals for the sale of Dana's Off-Highway business to Allison, with the transaction expected to close by the end of the year [1][2] - This transaction is part of Dana's transformation strategy, allowing the company to return $600 million to shareholders and reduce debt by approximately $2 billion in the following year [2] Company Overview: Dana Incorporated - Dana is a leader in designing and manufacturing efficient propulsion and energy-management solutions for various mobility markets globally, focusing on sustainable progress through both conventional and clean-energy solutions [3] - In 2024, Dana reported sales of approximately $7.7 billion and employs around 28,000 people across 26 countries [4] - The company has received recognition as one of the "World's Most Ethical Companies" for 2025 and as one of "America's Most Responsible Companies 2025" [4] Company Overview: Allison Transmission Holdings - Allison Transmission is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles, recognized as the largest global manufacturer of medium- and heavy-duty fully automatic transmissions [5] - The company operates in over 150 countries and has regional headquarters in the Netherlands, China, and Brazil, with manufacturing facilities in the USA, Hungary, and India [5]

Core Insights - Dana Incorporated will participate in the Barclays 16th Annual Global Automotive and Mobility Tech Conference on November 19, with CFO Timothy Kraus engaging in a 35-minute fireside chat [1] - The company reported sales of approximately $7.7 billion in 2024 and operates in 26 countries with a workforce of 28,000 [4] - Dana is recognized for its commitment to ethical practices, being named among the "World's Most Ethical Companies" for 2025 and one of "America's Most Responsible Companies 2025" [4] Company Overview - Dana Incorporated specializes in designing and manufacturing efficient propulsion and energy-management solutions for various mobility markets globally [3] - The company focuses on sustainable progress through both conventional and clean-energy solutions, supporting nearly every vehicle manufacturer with a range of technologies [3] Recent Developments - Dana has raised its full-year profit guidance for 2025 following solid third-quarter financial results [5]

Group 1: Market Overview - The third-quarter 2025 earnings season has positively impacted broader equity markets despite a prolonged government shutdown [1] - The Federal Reserve's recent rate cut marks the second reduction this year, which is expected to enhance borrowing and market liquidity, driving deal volumes and trading opportunities [1] - Concerns remain regarding the increasing valuations of AI firms [1] Group 2: Stock Recommendations - Individual investors may find it challenging to select appropriate stocks for impressive returns; thus, broker advice is recommended [2] - Broker-friendly stocks to monitor for healthy returns include Par Pacific Holdings (PARR), General Motors (GM), American Airlines (AAL), Allegiant Travel Company (ALGT), and Dana Incorporated (DAN) [2][7] Group 3: Stock Screening Methodology - A screening process has been designed to shortlist stocks based on improving analyst recommendations and upward estimate revisions over the last four weeks [3] - The price/sales ratio is included as a complementary valuation metric, focusing on the company's top line [3] Group 4: Screening Parameters - The screening parameters include net upgrades in analyst ratings, percentage change in earnings estimates, and price-to-sales ratio [4][5] - Stocks must have a current price greater than $5, an average daily volume exceeding 100,000 shares, and be among the top 3000 in market capitalization [5] Group 5: Company Highlights - Par Pacific operates an integrated energy platform with a refining capacity of 219,000 barrels per day and serves key western U.S. markets [6] - General Motors holds a 17% market share in the U.S. and has consistently beaten earnings estimates, with an average beat of 9% over the last four quarters [8][9] - American Airlines is benefiting from increased air travel demand and low fuel costs, expecting a 1% revenue increase in 2025 [10] - Allegiant Travel is capitalizing on buoyant air travel demand and aims to expand its fleet to 123 by the end of 2025 [11] - Dana Incorporated is focused on cost-reduction measures and efficiency gains, with an 84.2% upward revision in current-quarter earnings estimates [12]

Summary of Dana Incorporated FY Conference Call Company Overview - **Company**: Dana Incorporated (NYSE:DAN) - **Industry**: Manufacturing of driveline systems, power conveyance, sealing, and thermal systems - **Market Capitalization**: Approximately $2.8 billion with around 130 million shares trading at about $21 [1][1] - **Recent Performance**: Stock price increased by 80% over the past year [1][1] Key Business Segments - **Sales**: Just over $10 billion [5][5] - **Segments**: - Light vehicle driveline (largest segment, focused on North America) - Commercial vehicle segment (products for class 6 and above trucks) - Off-highway axle business (recently sold to Allison Transmission) [5][6] Strategic Decisions - **Sale of Off-Highway Business**: - Decision driven by the need to fund electrification opportunities, estimated at $4 billion-$5 billion [8][8] - Sale was strategic despite being the highest margin business [7][9] - Anticipated closure of the sale in the current quarter [9][9] Financial Performance and Projections - **Debt Position**: Post-transaction, Dana will be nearly net debt neutral with about $100 million in net debt [1][1] - **Margin Goals**: Targeting 10-10.5% margins by 2026, with current margins around 10% for the on-highway business [12][12] - **Cost Reduction Initiatives**: - Initial target of $300 million in cost cuts, now increased to $310 million, with $235 million expected in the current fiscal year [14][14] Market Conditions - **Commercial Vehicle Market**: - Forecasted decline from 225,000 units to around 200,000 units in North America for the next year [16][16] - No signs of recovery or prebuy activity anticipated for 2026 [15][15] Electrification and EV Strategy - **Current EV Business**: Approximately $700 million [18][18] - **Market Stagnation**: North American SUV electrification has stalled, with significant reductions in program volumes [18][19] - **Strategic Shift**: Focus on existing customers with internal combustion engine (ICE) exposure to mitigate risks associated with EV investments [19][19] Growth Opportunities - **Aftermarket Business**: $800 million business with potential for margin improvement [22][22] - **Manufacturing Operations**: Plans for rationalizing plants and increasing automation, with an estimated $70-$80 million opportunity in automation alone [35][35] - **Defense Business**: Potential growth in military applications, leveraging existing technology [39][39] Future Outlook - **M&A Considerations**: With minimal net debt, Dana is open to exploring M&A opportunities but focuses on rebuilding investor credibility first [29][29] - **Long-term Growth**: Emphasis on underappreciated growth opportunities beyond 2026, including niche products and aftermarket expansions [31][31][32][32] Conclusion - Dana Incorporated is undergoing significant transformation with strategic divestitures and a focus on cost reduction and margin improvement. The company is navigating a challenging commercial vehicle market while positioning itself for future growth in electrification and aftermarket services.

Core Insights - Dana Incorporated's main struggle is linked to the effectiveness of its internal initiatives rather than external market cycles [1] - The company has appointed a portfolio manager and is focusing on fundamental equity research, macro and geopolitical strategy to enhance its performance [1] Company Strategy - Dana is managing multi-asset strategies and equity portfolios, emphasizing a combination of top-down macro analysis and bottom-up stock selection [1] - The focus areas include earnings, technological disruption, policy shifts, and capital flows to identify mispriced investment opportunities [1] Market Positioning - The company aims to deliver high-conviction ideas and contrarian views in a noisy market environment [1] - Dana's stock performance is expected to be driven by internal business catalysts rather than external factors [1]

Core Insights - Dana Incorporated's main struggle is linked to the effectiveness of its internal initiatives rather than external market cycles [1] - The company has appointed a portfolio manager and is focusing on fundamental equity research, macro and geopolitical strategy to enhance its business performance [1] Company Strategy - Dana is managing multi-asset strategies and equity portfolios, emphasizing a combination of top-down macro analysis and bottom-up stock selection [1] - The focus areas include earnings, technological disruption, policy shifts, and capital flows to identify mispriced investment opportunities [1] Market Positioning - The company aims to deliver high-conviction ideas and contrarian views in a noisy market environment, providing deep analyses of both growth and value stocks [1]