Company Overview - Dana (DAN) shares increased by 14.9% to close at $15.20, supported by high trading volume, and have gained 12% over the past four weeks [1][2] - The company is implementing a $300 million cost-cutting plan and considering a potential sale of its Off-Highway business, aiming for long-term growth and enhanced financial flexibility [2] Financial Performance - Dana is expected to report quarterly earnings of $0.09 per share, reflecting a year-over-year increase of 212.5%, while revenues are projected to be $2.37 billion, a decrease of 5% from the previous year [3] - The consensus EPS estimate for Dana has remained unchanged over the last 30 days, indicating that stock price movements may be limited without earnings estimate revisions [4] Industry Context - Dana operates within the Zacks Automotive - Original Equipment industry, where Custom Truck One Source, Inc. (CTOS) has a Zacks Rank of 2 (Buy) and is expected to report an EPS of $0.03, down 57.1% year-over-year [4][5]

Company and Industry Overview * **Company**: Dana Incorporated (NYSE:DAN) * **Industry**: Automotive and mobility * **Focus**: Engineered powertrain, sealing, and thermal management solutions for internal combustion engines (ICE), plug-in hybrids (PHEV), and electric vehicles (EV). Key Financial Highlights * **Third Quarter 2024**: * **Sales**: $2.5 billion, down 2.5% year-over-year due to softening demand for EVs and ICE vehicles. * **Adjusted EBITDA**: $232 million, down slightly from last year despite the sales reduction. * **Profit Margin**: 9.4%, up 30 basis points year-over-year. * **Year-to-Date 2024**: * **Sales**: $7.95 billion, down $119 million year-over-year. * **Adjusted EBITDA**: $699 million, up $10 million year-over-year. * **Profit Margin**: 8.8%, up 30 basis points year-over-year. Market and Operational Updates * **Off-Highway Segment**: * **Demand**: Lower, particularly in Europe, due to softening construction and agriculture equipment markets. * **Efficiency**: Company achieved company-wide efficiency improvements, resulting in increased profit margin. * **EV Segment**: * **Demand**: Declining due to lower end market demand in driveline segments, partially offset by gains in battery cooling sales. * **Investment**: Company continues to invest in EV technology and capacity, but remains flexible based on market demand. * **Overall Strategy**: * **Maintain Discipline**: Achieve balanced growth while navigating market cyclicality and volatility. * **Leverage Synergies**: Maximize impact through product, system, and technology offerings across all end markets. * **Optimize Resources**: Maintain agility to meet ICE, PHEV, and EV demand across multiple markets and regions. * **Prudent Capital Allocation**: Maximize investment in new business growth. Future Outlook * **2024**: * **Sales**: Expected to be about $10.3 billion, down from previous guidance due to lower demand for traditional and electric vehicles. * **Adjusted EBITDA**: Expected to be about $875 million at the midpoint of the updated range. * **Free Cash Flow**: Expected to be about $100 million. * **2025**: * **Lower Cost Structure**: Expected due to navigating softer end market demand and tempered demand for electric vehicles. * **Investment**: Expected to be about $375 million to support backlog and technology development. Additional Notes * **Inflation**: Company continues to manage inflationary pressures through cost-saving actions and improved efficiency. * **Commodity Prices**: Lower commodity prices have positively impacted profitability. * **Capital Allocation**: Company remains focused on prudent capital allocation to support growth and maximize returns.

Sales Performance and Guidance - Preliminary sales for 2024 were approximately $10.3 billion, in line with prior guidance, compared to $10.6 billion in 2023, driven by weakening demand for electric vehicles, commercial trucks, and off-highway equipment[2] - 2025 sales guidance is projected between $9.525 billion and $10.025 billion, with adjusted EBITDA expected to be $925 million to $1,025 million, implying a margin of approximately 10.0% at the midpoint[8] - Sales for 2025 are projected to be between $6,950M and $7,350M for New Dana and between $2,575M and $2,675M for Off-Highway[33] - Lower end-market demand in Off-Highway and currency translation are expected to negatively impact sales and profit[39] Adjusted EBITDA and Margins - Adjusted EBITDA for 2024 was approximately $885 million, or 8.6% of sales, compared to $845 million, or 8.0% of sales in 2023, reflecting efficiency improvements and cost-savings actions[3] - Adjusted EBITDA margin is projected to improve to between 9.5% and 10.5% in 2026, driven by cost reduction actions[6] - Adjusted EBITDA for 2025 is expected to range from $565M to $635M for New Dana and from $360M to $390M for Off-Highway[33] - Adjusted EBITDA margin for 2025 is projected to be between 8.1% and 8.6% for New Dana and between 14.0% and 14.6% for Off-Highway[33] - Adjusted EBITDA for 2025 is preliminarily estimated at $975M, with a margin of 10.0%[38] Free Cash Flow and Capital Expenditures - Free cash flow for 2024 was approximately $70 million, compared to a use of $25 million in 2023, impacted by higher-than-expected working capital requirements in Q4[3] - Free cash flow for 2025 is expected to be between $175 million and $275 million, driven by improved working capital efficiency and reduced capital expenditures[6][8] - Free Cash Flow for 2025 is anticipated to be approximately $225M, driven by higher profit and lower capital spending[41] - 2025 net capital spend is expected to be around $325M[35] - 2025 Free Cash Flow improvement is attributed to higher profit, improved working capital efficiency, and lower capital investment requirements[40] - Dana expects free cash flow to be approximately 4% of sales over the business cycle, with a target of maintaining net leverage at 1x[6] Cost Reduction and Efficiency Improvements - Dana increased its total cost reduction target to $300 million through 2026, with $175 million in savings expected in 2025[2][6] - Efficiency improvements and cost savings actions are driving higher profit and margins compared to the previous year[35] - Lower commodity costs are expected to result in lower sales recoveries, but the profit benefit of lower input costs is more than offset by cost true-ups with customers[39] Organizational and Strategic Changes - Dana is simplifying its organizational structure into two business segments: Light Vehicle Systems and Commercial Vehicle Systems, effective Q1 2025[5] - The company is pursuing the sale of its Off-Highway business, which is expected to unlock substantial value for shareholders and strengthen the balance sheet[5]

MAUMEE, Ohio, Jan. 24, 2025 /PRNewswire/ -- Dana Incorporated (NYSE: DAN) today announced select, preliminary, unaudited financial results for the full year ended December 31, 2024, presented its financial outlook for 2025, and provided a business update including a simplified organizational structure and the status of the proposed sale of its Off-Highway business and cost-savings actions.Full-Year 2024, Preliminary, Unaudited Financial Results Sales of approximately $10.3 billion  Adjusted EBITDA of approx ...

Company Recognition - Dana Incorporated was recognized as a 'Global Top Employer 2025' and received further recognition in 25 countries [1] - The company was also selected as a Top Employer for its Asia-Pacific, European, and North American regions due to the high number of operations earning honors there [1] - This prestigious award by the Top Employers Institute recognizes excellence in people practices with a particular emphasis on exceptional human resources programs [2] - Nine countries joined the growing list of Dana operations identified as being a Top Employer for creating empowering environments [3] Company Overview - Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe [4] - The company is shaping sustainable progress through its conventional and clean-energy solutions that support nearly every vehicle manufacturer with drive and motion systems, electrodynamic technologies, including software and controls, and thermal, sealing, and digital solutions [4] - Based in Maumee, Ohio, USA, the company reported sales of $10.6 billion in 2023 with 42,000 people in 31 countries across six continents [5] - With a history dating to 1904, Dana was named among the "World's Most Ethical Companies" for 2023 and 2024 by Ethisphere and as one of "America's Most Responsible Companies 2023" by Newsweek [5] Company Culture - Dana's culture focuses on supporting exceptional talent, valuing others, inspiring innovation, and winning together [3] - The company is driven by a high-performance culture that focuses on valuing others, inspiring innovation, growing responsibly, and winning together, earning it global recognition as a top employer [5]

Company Announcements - Dana Incorporated will host a conference call and webcast on January 24, 2025, at 9 a.m. EST, featuring Chairman and CEO R. Bruce McDonald and CFO Timothy Kraus, who will provide a business update and present the 2025 financial outlook [1] - The company will report its 2024 fourth-quarter and full-year financial results and host a conference call on February 20, 2025 [3] Company Overview - Dana Incorporated is a global leader in designing and manufacturing propulsion and energy-management solutions for vehicles and machines across all mobility markets [4] - The company provides conventional and clean-energy solutions, including drive and motion systems, electrodynamic technologies, thermal, sealing, and digital solutions, supporting nearly every vehicle manufacturer [4] - Dana reported sales of $10.6 billion in 2023 and employs 42,000 people across 31 countries on six continents [5] - The company has a history dating back to 1904 and has been recognized as one of the "World's Most Ethical Companies" for 2023 by Ethisphere and one of "America's Most Responsible Companies 2024" by Newsweek [5] Investor Information - The conference call can be accessed via telephone or online, with audio streaming and slides available on Dana's investor website [2] - A webcast replay will be available on the investor website following the call [2]

Company Policy Changes - Meta announced the end of its third-party fact-checking program, shifting to a user-generated system similar to X's Community Notes [4] - The company will lift restrictions on certain topics and focus enforcement on illegal and high-severity violations while offering a more personalized approach to political content [4] - Meta's new chief global affairs officer, Joel Kaplan, stated that the changes aim to return to a fundamental commitment to free expression [2] Employee Reactions - Some Meta employees expressed concern that the policy changes could lead to an influx of racist and transphobic content, particularly around topics like immigration and gender identity [4] - One employee criticized the decision, stating that it sends a message that facts no longer matter and conflates this with a victory for free speech [4] - Another employee expressed fear that the changes could pave the way for the further spread of misinformation [4] - However, some employees supported the decision, with one noting that X's Community Notes feature has proven to be a better representation of the ground truth [4] Strategic Moves - Meta added new members to its board, including UFC CEO Dana White, a longtime friend of Donald Trump [3] - The company confirmed a $1 million contribution to Trump's inauguration [3] - Meta had already been scaling back its fact-checking program, with the AP's agreement ending in January 2024 [6] Historical Context - Meta previously scrapped an internal fact-checking project in 2023 as part of its massive layoffs, which would have allowed third-party fact-checkers like the Associated Press and Reuters to verify flagged content [5]

Meta's Board Appointments - Meta appointed three new directors to its board, including UFC head Dana White, Exor CEO John Elkann, and former Microsoft executive Charlie Songhurst, bringing the total board members to 13 [2][5] - Dana White expressed his belief in the future of social media and AI, stating that he joined Meta's board due to this conviction [5] - John Elkann, from the Agnelli industrialist family, is the executive chairman of Stellantis and Ferrari, adding significant industry expertise to Meta's board [5] Meta's Strategic Focus - Meta is intensifying its focus on artificial intelligence and wearable technology development, as highlighted by CEO Mark Zuckerberg [6] - Zuckerberg emphasized that the new board members will provide expertise and perspective to help Meta tackle opportunities in AI, wearables, and the future of human connection [6] Meta's Relationship with Trump Administration - Meta founder and CEO Mark Zuckerberg has been making efforts to repair the company's relationship with the incoming Trump administration, including a $1 million donation to Trump's inauguration fund [2] - Zuckerberg dined with Trump at his Mar-a-Lago resort in November, signaling a strategic move to align with the new administration [3] - Meta also appointed Republican stalwart Joel Kaplan to head public affairs, replacing former British deputy prime minister Nick Clegg [3] Dana White's Connection to Trump - Dana White has maintained a close friendship with Trump for two decades, dating back to when Trump offered his venues for UFC events [4] - White's appointment to Meta's board is seen as a strategic move to strengthen ties with the Trump administration, given his close alliance with the President-elect [2][4]

Board Appointments - Meta Platforms elected three new directors to its board: Dana White (CEO of UFC), Charlie Songhurst (investor and former Microsoft executive), and John Elkann (CEO of Exor) [1] - The new directors bring expertise in AI, wearables, and the future of human connection, as highlighted by Meta CEO Mark Zuckerberg [2] Dana White's Background and Relationship with Meta - Dana White has a long-standing relationship with Donald Trump, having supported his candidacy at multiple Republican National Conventions [3] - Zuckerberg and White have developed a personal relationship, with Zuckerberg expressing gratitude for being invited to a UFC fight in 2022 [4][3] Charlie Songhurst's Role - Charlie Songhurst has been part of Meta's AI advisory group since May, providing guidance on strategic opportunities related to the company's roadmap [5] John Elkann's Background - John Elkann is the executive chairman of Stellantis NV and Ferrari, and chairs the nonprofit Agnelli Foundation, which focuses on education [4] Meta's Political Positioning - Meta has been positioning itself for a potential second Trump presidency, with Zuckerberg expressing regret over past content decisions unpopular with conservatives and praising Trump's response to an assassination attempt [5] - The company recently elevated Joel Kaplan, a prominent Republican policy executive, to the position of global affairs head and donated $1 million to Trump's inaugural fund [6]

Meta's Board Expansion and Strategic Moves - Meta's CEO Mark Zuckerberg announced the addition of UFC President Dana White to the company's board of directors, citing White's entrepreneurial success and ability to build a beloved brand [1] - The new board is expected to help Meta capitalize on opportunities in AI, wearables, and the future of social media [1] - Alongside White, Meta also added John Elkann, CEO of Exor, and former Microsoft executive Charlie Songhurst to its board [2] Zuckerberg and White's Business Relationship - Zuckerberg and White have grown closer since Zuckerberg began attending UFC events in 2022, leading to increased collaboration between their businesses [4] - Meta and UFC announced a partnership in 2022, bringing UFC's streaming service to Meta's virtual reality platform, Horizon Worlds [4] - Zuckerberg and White discussed the use of AI in UFC fighter rankings, with White expressing plans to improve rankings and make strong moves by 2025 [4] Zuckerberg's Personal Interests and Net Worth - Zuckerberg has taken up jiu-jitsu and earned a blue belt, raising concerns among Meta executives about the risks associated with his participation in combat sports [6] - As of the announcement, Zuckerberg's net worth was estimated at $217.7 billion, making him the third-wealthiest person in the world [5] Meta's Political and Industry Relationships - Meta donated $1 million to Trump's inaugural fund, alongside Amazon and OpenAI's Sam Altman, as tech leaders sought to strengthen ties with Trump ahead of his presidency [8] - Zuckerberg has had a mixed relationship with Trump and his allies, who have accused Facebook's content moderation policies of favoring Democrats [8]