Dana(US:DAN)2025-10-29 11:00Financial Performance - Sales for continuing operations in Q3 2025 totaled $1.92 billion, a 1.1% increase from $1.90 billion in Q3 2024[3] - Net income from continuing operations was $13 million, compared to a net loss of $21 million in Q3 2024, representing a $34 million improvement[4] - Adjusted EBITDA for Q3 2025 was $162 million, or 8.5% of sales, up from $111 million, or 5.9% of sales, in Q3 2024, reflecting a 260 basis point increase[4] - Net sales for the nine months ended September 30, 2025, decreased to $5.633 billion from $5.960 billion in 2024, a decline of approximately 5.5%[26] - Net loss from continuing operations improved to $(16) million for the nine months ended September 30, 2025, compared to $(147) million in 2024, representing a significant reduction of 89%[28] - Total comprehensive income for the nine months ended September 30, 2025, was $244 million, compared to a loss of $(54) million in 2024, indicating a turnaround in performance[28] - Basic earnings per share for the nine months ended September 30, 2025, increased to $0.97 from $0.16 in 2024, marking a growth of 506%[26] - Adjusted EBITDA for the nine months ended September 30, 2025, increased to $402 million, a 29.3% increase from $311 million in 2024[79] Cash Flow and Liquidity - Operating cash flow in Q3 2025 was $111 million, a $76 million increase compared to $35 million in Q3 2024[5] - Adjusted free cash flow was $101 million, compared to a use of $8 million in Q3 2024, marking a $109 million improvement[5] - The company reported a net cash position of $111 million, indicating strong liquidity[30] - Net cash provided by operating activities for Q3 2025 was $111 million, compared to $35 million in Q3 2024[34] - The net cash used in operating activities from continuing operations was $59 million, compared to $44 million in the previous year[32] - The company reported net cash used in investing activities of $57 million, consistent with the prior year[32] Cost Savings and Guidance - The company realized $73 million in cost savings in Q3 2025, totaling $183 million to date, with an expectation of $235 million for the full year[6] - Dana raised its full-year profit guidance due to accelerated cost savings initiatives[6] - 2025 financial targets for continuing operations include sales guidance of $7.3 to $7.5 billion and adjusted EBITDA guidance of $570 to $610 million[8] - Full-year sales guidance for 2025 is set at approximately $7.4 billion, with an adjusted EBITDA expectation of around $590 million[55] - A cost savings plan of $310 million is on track for completion by 2026, with $235 million of savings anticipated in 2025[46] Shareholder Returns and Repurchases - The company plans to repurchase an additional $155 million in shares in Q4 2025, bringing the total repurchases for the year to $600 million[3] - The company repurchased common stock worth $182 million during the period[31] Segment Performance - Light Vehicle segment sales increased to $1,353 million in Q3 2025 from $1,285 million in Q3 2024[35] - Commercial Vehicle segment sales decreased to $564 million in Q3 2025 from $612 million in Q3 2024[35] - Light Vehicle segment sales for the nine months ended September 30, 2025, were $3,901 million, a decrease of 3.7% from $4,049 million in 2024[77] Debt and Interest Expenses - Interest expense increased to $130 million for the nine months ended September 30, 2025, compared to $117 million in 2024, an increase of 11.1%[26] - Interest expense for Q3 2025 was $47 million, compared to $38 million in Q3 2024[37] Operational Challenges and Outlook - Future outlook remains cautious due to market conditions and operational challenges[30] - The pending sale of the Off-Highway business is expected to close late in Q4 2025, aligning with the company's strategic focus[45]