Dana Incorporated Reports Strong 2025 Financial Results; Reaffirms 2026 Targets Featuring New Business Growth, Increased Margins

Core Insights - Dana Incorporated reported strong financial results for 2025, with adjusted EBITDA and adjusted free cash flow exceeding preliminary estimates, and reaffirmed its targets for 2026, emphasizing new business growth and increased margins [1] 2025 Financial Highlights - Sales for 2025 totaled $7.5 billion, a decrease from $7.7 billion in 2024, attributed to lower demand across all end markets, partially offset by customer recoveries and currency translation [1] - Adjusted EBITDA for 2025 was $610 million, up from $395 million in 2024, driven by cost-saving actions and performance improvements [1] - Adjusted free cash flow for 2025 was $331 million, exceeding preliminary estimates by $16 million [1] - The company repurchased 34 million shares, representing 23% of shares outstanding, and returned $704 million to shareholders [1] 2026 Financial Outlook - Dana announced a capital return program extension and increase from $1 billion to $2 billion, with a new business backlog of $750 million and an expected $200 million incremental growth in 2026 [1] - Preliminary guidance for 2026 includes sales between $7.30 billion and $7.70 billion, adjusted EBITDA between $750 million and $850 million, and an implied adjusted EBITDA margin of 10.0% to 11.0% [1] - The company plans to host a Capital Markets Day on March 25, 2026, to discuss its long-term financial guidance as part of the Dana 2030 strategy, targeting approximately $10 billion in sales by 2030 [1] Fourth Quarter 2025 Performance - Fourth-quarter sales reached $1.9 billion, an increase from $1.8 billion in the same period of 2023, driven by higher demand for light truck programs [1] - Adjusted EBITDA for the fourth quarter was $208 million, representing an 11.1% margin, compared to $84 million (4.7% margin) in the same period of 2024 [1] - Operating cash flow for the fourth quarter was $406 million, up from $302 million in the fourth quarter of 2024 [1] Strategic Initiatives - The company completed the sale of its Off-Highway business and achieved $248 million in cost savings, aligning with its preliminary estimates [1] - Dana's strategic priorities have focused on enhancing profitability, improving margins, and maintaining financial agility [1]