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]

Financial Performance - Net sales for the three months ended September 30, 2025, were $1,917 million, a 1.1% increase from $1,897 million in the same period of 2024[8] - Net income attributable to the parent company for the three months ended September 30, 2025, was $83 million, compared to $4 million in the same period of 2024[8] - Total comprehensive income for the three months ended September 30, 2025, was $86 million, compared to $19 million in the same period of 2024[11] - Net income for the nine months ended September 30, 2025, was $148 million, a significant increase from $27 million in the same period of 2024[16] - The company reported a net income of $87 million for Q3 2025, significantly higher than $11 million in Q3 2024, and a net income of $148 million for the nine months ended September 30, 2025, compared to $27 million in the same period of 2024[11] Assets and Liabilities - Total assets increased to $8,108 million as of September 30, 2025, from $7,502 million as of December 31, 2024[13] - Current liabilities rose to $3,158 million as of September 30, 2025, compared to $2,560 million as of December 31, 2024[13] - Long-term debt increased to $2,565 million as of September 30, 2025, from $2,387 million as of December 31, 2024[13] - The company reported a net loss from continuing operations of $16 million for the nine months ended September 30, 2025, compared to a loss of $147 million in 2024[16] Cash Flow and Investments - Cash and cash equivalents decreased to $414 million as of September 30, 2025, from $494 million as of December 31, 2024[13] - The company reported net cash used in investing activities of $(130) million for the nine months ended September 30, 2025, compared to $(205) million in 2024[16] - Cash provided by operating activities from discontinued operations was $165 million for the nine months ended September 30, 2025, down from $192 million in 2024[16] Divestitures and Restructuring - The Off-Highway business is being sold to Allison Transmission Holdings, Inc. for $2,732 million, with the transaction expected to close in Q4 2025[29] - The company incurred $54 million in transaction-related costs for the Off-Highway business divestiture during the nine months ended September 30, 2025[32] - The company plans to reduce approximately 600 employees over the next year as part of its restructuring efforts[39] Stock and Dividends - The company declared a cash dividend of $0.10 per share for the first three quarters of 2025[42] - A stock repurchase program was approved for up to $1 billion, with $556 million remaining available for future repurchases as of September 30, 2025[43] - The company repurchased 14,286,505 shares for $251 million from the Icahn Group on June 17, 2025[43] Segment Performance - Light Vehicle Systems generated external sales of $1,353 million in Q3 2025, up from $1,285 million in Q3 2024, representing an increase of about 5.3%[103] - Commercial Vehicle Systems reported external sales of $564 million for Q3 2025, a decrease of approximately 7.8% from $612 million in Q3 2024[103] - Segment EBITDA for Light Vehicle Systems was $126 million for Q3 2025, compared to $82 million in Q3 2024, indicating a significant increase of 53.7%[103] Tax and Compliance - The effective tax rate for the nine months ended September 30, 2025, was (4)%, compared to (8)% for the same period in 2024[90] - The company recognized a tax benefit of $2 million for the third quarter of 2025, compared to a tax benefit of $18 million for the third quarter of 2024[90] Other Financial Metrics - The company recognized stock compensation expense of $8 million in the third quarter of 2025, compared to $7 million in the third quarter of 2024[55] - The balance of accumulated other comprehensive income (loss) as of September 30, 2025, was $(1,047) million[47] - The company reported a warranty liability balance of $80 million at the end of the third quarter of 2025, down from $84 million at the end of the third quarter of 2024[86]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $1.917 billion, an increase of $20 million compared to Q3 2024, reflecting currency recoveries offsetting lower demand [12] - Adjusted EBITDA improved by $51 million year-over-year to $162 million, with a margin expansion of 260 basis points to 8.5% due to cost-saving actions and operational efficiencies [12][13] - EBIT improved significantly to $53 million from a loss of $8 million in the prior period, while net income attributable to Dana was $13 million compared to a loss of $21 million in Q3 2024 [12][13] Business Line Data and Key Metrics Changes - Volume and mix in Q3 2025 were $66 million lower, driven by lower demand in commercial vehicle markets, partially offset by higher sales in light vehicles [14] - Cost savings contributed $73 million in profit, bringing the total to $183 million year-to-date, with an increased target of $235 million for the full year 2025 [16][18] Market Data and Key Metrics Changes - Commercial vehicle demand in North America is deteriorating, with a current annualized run rate of around 200,000 units, and no signs of improvement expected until mid-2026 [30][90] - Light vehicle demand remains stable, with production disruptions having minimal impact on light vehicle system sales [10][12] Company Strategy and Development Direction - The company is focused on restructuring initiatives that are expected to turn from headwinds to tailwinds, with an emphasis on cost-saving measures and operational improvements [5][10] - The off-highway divestiture is on track to close in Q4 2025, with most regulatory approvals received [8][10] - The company plans to continue investing in automation and efficiency improvements to enhance margins and shareholder value [60][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year guidance, with an expectation of improved performance in Q4 driven by cost-saving initiatives and better product mix [18][84] - The outlook for commercial vehicles remains cautious, with no immediate signs of recovery, while light vehicle programs are expected to drive volume growth [30][48] Other Important Information - The company repurchased approximately 9.5 million shares, representing 7% of outstanding shares, and plans to complete the share repurchase program soon [9] - Adjusted free cash flow for Q3 2025 was $101 million, a $109 million improvement year-over-year, driven by higher profitability and better working capital management [17] Q&A Session Summary Question: Impact of tariff policy changes on U.S. OEMs - Management noted that U.S. OEMs are likely benefiting more from recent tariff policy changes compared to European counterparts, as the rebate is based on vehicles assembled in the U.S. [26][27] Question: Deterioration in commercial vehicle market - Management indicated no signs of improvement in the commercial vehicle market, expecting a soft market through mid-2026 [30] Question: Drivers of Q4 performance - Management highlighted continued cost-saving improvements and better product mix as key drivers for expected Q4 performance [36][38] Question: Performance drivers and pricing improvements - Management confirmed that pricing improvements and new platform launches are contributing to performance, with a focus on productivity and efficiency [44][46] Question: Backlog and EV program cancellations - Management acknowledged that the backlog has been impacted by EV program cancellations, but expects increases in internal combustion engine (ICE) programs [107][108]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $1.917 billion, an increase of $20 million compared to Q3 2024, reflecting currency recoveries offsetting lower demand [12] - Adjusted EBITDA improved by $51 million year-over-year to $162 million, with a margin expansion of 260 basis points to 8.5% due to cost-saving actions and operational efficiencies [12][13] - EBIT improved significantly to $53 million from a loss of $8 million in the prior period, while net income attributable to Dana was $13 million compared to a loss of $21 million in Q3 2024 [12][13] Business Line Data and Key Metrics Changes - Volume and mix in Q3 2025 were $66 million lower, driven by lower demand in commercial vehicle markets, partially offset by higher sales in light vehicles [14] - Cost savings contributed $73 million in profit, bringing the total to $183 million year-to-date, with an increased target of $235 million for the full year 2025 [16][18] Market Data and Key Metrics Changes - Commercial vehicle demand in North America is deteriorating, with a current annualized run rate of around 200,000 units, and no signs of improvement expected until mid-2026 [30][90] - Light vehicle demand remains stable, with production disruptions having minimal impact on light vehicle system sales [10][12] Company Strategy and Development Direction - The company is focused on restructuring initiatives that are expected to turn current headwinds into tailwinds, with an emphasis on cost savings and operational improvements [5][10] - The off-highway divestiture is on track to close in Q4 2025, with most regulatory approvals received [8][10] - The company plans to maintain a capital return commitment of $600 million for the year [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year guidance, with an expectation of improved performance in Q4 driven by cost-saving initiatives and better product mix [10][18] - The outlook for commercial vehicles remains cautious, with no immediate signs of recovery, while light vehicle demand is expected to remain stable [10][30] Other Important Information - The company has been actively buying back shares, having repurchased nearly 30 million shares or over 20% of its outstanding shares [9] - Adjusted free cash flow for Q3 2025 was $101 million, representing a $109 million improvement compared to the prior year [17] Q&A Session Summary Question: Impact of tariff policy changes on U.S. OEMs - Management noted that U.S. OEMs are likely benefiting more from recent tariff policy changes compared to European OEMs, as the rebate is based on vehicles assembled in the U.S. [27] Question: Deterioration in commercial vehicle market - Management confirmed that there are no signs of improvement in the commercial vehicle market, with expectations of a soft market continuing into mid-2026 [30] Question: Fourth quarter margin outlook - Management indicated that sequential margin improvement is expected due to continued cost-saving initiatives and improved product mix [36] Question: Drivers of pricing improvements - Pricing improvements are driven by new platforms and programs, with commercial teams successfully negotiating recoveries [45] Question: Backlog and EV cancellations - Management acknowledged that the backlog has been impacted by EV program cancellations, but there are still increases in internal combustion engine (ICE) programs expected [107][110]

Financial Performance - Sales for Q3 2025 were $1.917 billion, an increase of $20 million year-over-year, driven by currency benefits despite lower demand [11][12] - Adjusted EBITDA improved to $162 million, up $51 million from the previous year, with a margin expansion of 260 basis points to 8.5% due to cost-saving actions [11][12] - Net income attributable to Dana was $13 million, a positive swing of $34 million compared to a loss of $21 million in Q3 of last year [12] Business Line Performance - Volume and mix negatively impacted sales by $66 million, primarily due to lower demand in commercial vehicle markets, partially offset by higher sales in light vehicles [13] - Cost savings contributed $73 million to profit, with a total of $183 million achieved to date, and an increased target of $235 million for the full year [14][19] Market Performance - Commercial vehicle demand in North America continues to deteriorate, with no signs of recovery expected until mid-2026 [29][30] - Light vehicle demand remains stable, with production disruptions having minimal impact on sales [9][10] Company Strategy and Industry Competition - The company is on track to close the off-highway divestiture in Q4 2025, with most regulatory approvals received [6][10] - The company plans to return $600 million to shareholders this year, having repurchased nearly 30 million shares, or over 20% of shares outstanding [7][22] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving a full-year sales target of approximately $7.4 billion and an adjusted EBITDA of about $590 million [17][18] - The company anticipates a margin improvement in continuing operations, with a target of 10% to 10.5% margins for 2026 [22][23] Other Important Information - Adjusted free cash flow for Q3 was $101 million, a $109 million improvement year-over-year, driven by higher profitability and lower working capital requirements [15][16] - The company expects to recover $10 million in costs related to EV program cancellations in Q4 [64][68] Q&A Session Summary Question: Impact of tariff policy changes on U.S. OEMs - Management noted that U.S. OEMs are likely benefiting more from recent tariff policy changes compared to European counterparts due to their higher production in the U.S. [26][27] Question: Deterioration in commercial vehicle market - Management indicated no signs of recovery in the commercial vehicle market, expecting a soft market through mid-2026 [29][30] Question: Drivers of fourth-quarter performance - Management highlighted continued cost-saving initiatives and improved product mix as key drivers for expected performance in Q4 [32][33] Question: Performance of pricing improvements - Pricing improvements are driven by new platforms and effective negotiations with customers, contributing significantly to profit [40][42] Question: Backlog and EV cancellations - Management confirmed that the backlog has been impacted by EV program cancellations, but there are still increases in ICE programs expected [100][102]