Group 1 - Disney's business strategy focuses on bundling streaming services with its linear television channels to reach a broader audience [1][2] - The company reported a 1.4 million increase in Disney+ subscriptions, bringing the total to 126 million, surpassing investor expectations [2] - Disney's linear TV programming, particularly in sports, is growing and supports its streaming service by activating the entire library when new seasons air [3] Group 2 - Disney announced a stand-alone ESPN streaming service priced at $29.99 per month, which is discounted when bundled with Disney+ and Hulu for a total of $35.99 [4] - The company emphasizes its "unique ecosystem" that differentiates it from competitors, leveraging its iconic characters and stories across various platforms [5]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended: March 31, 2025 OR Dana Incorporated (Exact name of registrant as specified in its charter) | Delaware | 26-1531856 | | --- | --- | | (State of incorporation) | (IRS Employer Identification Number) | | 3939 Technology Drive, Maumee, OH | 43537 | | (Address of principal executive of ices) | (Z ...

Financial Data and Key Metrics Changes - Sales for Q1 2025 were $2.4 billion, a decrease of $83 million compared to the previous year, driven by lower demand across all end markets [19][21] - Adjusted EBITDA was $188 million, with a profit margin of 8%, just 20 basis points lower than last year [19] - Net income attributable to Dana was $25 million, significantly up from $3 million in the previous year, primarily due to the proposed divestiture of a non-core hydraulics business [20] - Operating cash flow was a use of $30 million, an improvement of $65 million year-over-year due to lower working capital requirements [25] Business Line Data and Key Metrics Changes - The integration of the former power technology segment into the aftermarket business is expected to yield operational improvements and contribute $30 to $35 million to the overall cost reduction target of $300 million [10] - Cost savings initiatives added $41 million in profit for Q1 2025, with an expectation to realize an additional $50 million in cost savings this year [23] Market Data and Key Metrics Changes - North American commercial vehicle customers are experiencing a reduction in schedules, impacting the outlook for the segment [13] - There is a slight increase in pre-buy interest in the Off Highway segment, with some positive signs of order improvements outside North America in the second half of the year [14] Company Strategy and Development Direction - The company is accelerating its cost reduction program from $175 million to $225 million for 2025, focusing on operational efficiencies and leveraging best practices across its businesses [10] - The company aims to maintain its market share in light vehicles while being cautious about potential risks in the second half of the year [15] Management's Comments on Operating Environment and Future Outlook - Management views the tariff situation as manageable, with several mitigation actions already in place [12] - The company expects to recover steel and aluminum tariffs through already negotiated mechanisms with customers, although timing may vary [13] - The overall outlook for 2025 remains unchanged, with expectations for sales to be above the midpoint of the guidance range [26] Other Important Information - The company won its tenth PACE award for a hybrid transmission product, which is expected to grow sales significantly in the coming years [16][17] - The company is focusing on divesting non-core assets, with expectations to generate $50 million in proceeds in the second quarter and potentially another $50 million in the back half of the year [11][100] Q&A Session Summary Question: Guidance and Market Assumptions - Management indicated that commercial vehicle expectations are lower than previously seen, but this is offset by light vehicle and Off Highway revenue [33] Question: Tariff Exposure and Recovery Timing - The company expects tariff recoveries to take less than a quarter on average, with a structured process already in place for claims [46] Question: Light Vehicle Production Assumptions - Current light vehicle production outlook remains consistent with previous forecasts, with no substantial changes noted [61] Question: Non-Core Asset Divestiture - The company is actively pursuing the sale of non-core assets, including a joint venture in India, to improve capital efficiency [101]

Core Viewpoint - Dana (DAN) reported quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.17 per share, representing an earnings surprise of -23.53% [1][2] Financial Performance - The company posted revenues of $2.35 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.65%, but down from $2.74 billion year-over-year [2] - Over the last four quarters, Dana has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Dana shares have increased by approximately 12.4% since the beginning of the year, contrasting with the S&P 500's decline of -5.5% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $2.46 billion, and for the current fiscal year, it is $1.40 on revenues of $9.42 billion [7] - The estimate revisions trend for Dana is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Automotive - Original Equipment industry, to which Dana belongs, is currently in the bottom 36% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Sales for Q1 2025 were $2.4 billion, a decrease of $83 million compared to the previous year, driven by lower demand across all end markets [17] - Adjusted EBITDA was $188 million, with a profit margin of 8%, just 20 basis points lower than last year [17] - Net income attributable to Dana was $25 million, significantly up from $3 million last year, primarily due to the proposed divestiture of a non-core hydraulics business [17][18] - Operating cash flow was a use of $30 million, an improvement of $65 million year-over-year due to lower working capital requirements [18][23] Business Line Data and Key Metrics Changes - The integration of the former power technology segment into the aftermarket business is expected to yield operational improvements and contribute $30 to $35 million to the overall $300 million cost reduction target [8][21] - Cost savings added $41 million in profit from various actions taken, with an expectation to realize an additional $50 million of the total $300 million in cost savings this year [21] Market Data and Key Metrics Changes - North American commercial vehicle customers are experiencing a reduction in schedules, impacting the outlook for the company [11][12] - There is a slight increase in pre-buy interest in the Off Highway segment, with some positive signs of order improvements outside North America in the second half of the year [12][13] Company Strategy and Development Direction - The company is accelerating its cost reduction program from $175 million to $225 million for 2025, focusing on operational improvements and leveraging best practices across its businesses [8][21] - The company has decided to retain its power technology segment, indicating a strategic shift towards enhancing operational efficiency rather than divesting [92] Management's Comments on Operating Environment and Future Outlook - Management noted that the tariff situation is manageable, with several mitigation actions already completed [10][11] - The company expects to see a recovery in sales and profitability in the back half of the year, despite acknowledging risks in the commercial vehicle segment [12][13][108] Other Important Information - The company won its tenth PACE award for a hybrid transmission product, which is expected to grow sales significantly over the next few years [14][15] - Full-year adjusted free cash flow is expected to be $225 million, approximately $155 million higher than last year [26][27] Q&A Session Summary Question: Guidance changes considering tariffs and market assumptions - Management indicated that commercial vehicle expectations are lower, but this is offset by light vehicle and Off Highway improvements, along with additional revenue from tariff offsets [31][34] Question: Impact of tariffs on the business - Management stated that the tariff impact was $6 million for the quarter, with expectations for recovery within a quarter [44][46] Question: Light vehicle production assumptions - Management confirmed that current light vehicle production assumptions remain consistent with previous forecasts, with no substantial changes expected [58][60] Question: Cost savings sources and sustainability - Management expressed confidence in achieving the $225 million cost savings, primarily from headcount reductions and operational efficiencies [87][90] Question: Timing of the Off Highway sale - Management expects the Off Highway sale process to conclude later in the second quarter, with ongoing work from bidders [82][83]

2025 First-Quarter Earnings Conference Call April 30, 2025 Value Others | Inspire Innovation | Grow Responsibly | Win Together Safe Harbor Statement Certain statements and projections contained in this presentation 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 b ...

Core Insights - Dana Incorporated received the 2025 Automotive News PACE Award for its Graziano™ modular high-performance hybrid 8-speed dual clutch transmission, marking the company's 10th PACE Award in the program's history [1][3] Company Overview - Dana is a leader in designing and manufacturing efficient propulsion and energy-management solutions for vehicles and machines across global mobility markets [5] - The company reported sales of $10.3 billion in 2024 and employs 39,000 people in 30 countries [6] - Dana has been recognized as one of the "World's Most Ethical Companies" for 2025 and as one of "America's Most Responsible Companies 2025" [6] Product Innovation - The Graziano modular high-performance hybrid 8-speed dual clutch transmission is designed for applications of 1,000-horsepower or more, featuring both transversal and longitudinal variants [2] - The transmission platform offers class-leading power and torque density, improving vehicle weight distribution and reducing wheelbase [2] - The architecture of the hybrid 8-speed DCT allows for multiple operating modes, enhancing the driving experience for customers [3] Industry Recognition - The PACE Awards, presented by Automotive News, recognize automotive suppliers for innovation, technological advancement, and business performance [3][4] - The competition is open to suppliers contributing products, processes, materials, or services directly to vehicle manufacturing, establishing the PACE Award as a global benchmark for innovation [3]

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Investment Rating - The report assigns an "Overweight" (OW) rating to General Motors (GM) and Ford, while Tesla and Rivian are rated "Underweight" (UW) [6][7]. Core Insights - The automotive industry is experiencing varied performance metrics across different companies, with GM and Ford showing potential upside in their stock prices, while Tesla and Rivian face significant downside risks [6][7]. - The report highlights the importance of valuation metrics such as EV/EBITDA, P/E ratios, and sales growth projections for assessing investment opportunities within the automotive sector [6][22]. Global Auto OEMs Investment Comparables - General Motors (GM) has a current price of $44.57 with a market cap of $43.067 billion and a target price of $53.00, indicating a 19% upside potential [6]. - Ford (F) is priced at $9.63 with a market cap of $38.294 billion and a target price of $11.00, representing a 14% upside [6]. - Ferrari (RACE) is valued at $439.97 with a target price of $460.00, showing a 5% upside [6]. - Tesla (TSLA) is currently priced at $241.37 with a target price of $120.00, indicating a -50% downside [6]. - Rivian (RIVN) has a price of $11.60 with a target price of $11.00, reflecting a -5% downside [6]. Global Auto Parts Suppliers Valuation Metrics - The average EV/EBITDA for US auto parts suppliers is projected at 1.8x for 2024, with a corresponding EBITDA margin of 12% [22]. - Aptiv (APTV) is rated "Overweight" with a current price of $51.71 and a target price of $102, indicating a 97% upside [22]. - Borg Warner (BWA) is rated "Overweight" with a price of $26.45 and a target price of $46, representing a 74% upside [22]. - Lear Corp (LEA) is rated "Overweight" with a price of $79.42 and a target price of $140, indicating a 76% upside [22]. Performance Metrics - The report indicates that the average revenue CAGR for US auto parts suppliers is projected to be 2% from 2023 to 2025 [74]. - The EBITDA margin for US auto parts suppliers is expected to be around 12% in 2025, with some companies showing higher margins [74][83]. - The report also highlights the financial returns of various suppliers, with some companies achieving significant returns on invested capital (ROIC) [54][56].

Core Viewpoint - Dana Incorporated (DAN) is expected to report first-quarter 2025 results on April 30, with earnings per share (EPS) estimated at 16 cents and revenues at $2.27 billion, reflecting a significant growth of 700% year-over-year despite a recent downward revision of 7 cents in earnings estimates over the past 60 days [1][2]. Financial Performance - The Zacks Consensus Estimate for DAN's quarterly revenues indicates a year-over-year decline of 16.88%, with the company having beaten earnings estimates in two of the last four quarters and missed twice, resulting in an average surprise of 11.79% [2]. - In Q4 2024, DAN reported an adjusted EPS of 25 cents, surpassing the Zacks Consensus Estimate of 10 cents, and improved from a loss of 8 cents in the previous year, although net sales of $2.33 billion fell short of the $2.35 billion estimate, marking a 5.6% decline year-over-year [2]. Margin and Cost Management - Dana reported an adjusted EBITDA margin of 8.6% in 2024, an improvement of 60 basis points from 2023, attributed to cost-saving measures and enhanced efficiencies, with expectations for the margin to reach 10% in 2025 [3]. Sales Outlook - For 2025, Dana anticipates a foreign currency headwind impacting sales by approximately $195 million and a commodity headwind of around $30 million due to declining steel and other commodity prices, projecting sales between $9.525 billion and $10.025 billion, down from $10.28 billion in 2024 due to lower end-market demand and delays in electric vehicle (EV) programs [4]. Earnings Prediction - The current model does not predict an earnings beat for Dana for the upcoming quarter, as it lacks the necessary combination of a positive Earnings ESP and a favorable Zacks Rank [5][6].