Summary of Dana's Capital Markets Day - March 25, 2026 Company Overview - **Company**: Dana Incorporated (NYSE:DAN) - **Founded**: 1904 - **Revenue**: $7.5 billion in the previous year - **Employee Count**: 27,000 - **Manufacturing Sites**: 66 across 24 countries - **Customer Base**: 5,000 customers in 120 countries - **Market Segmentation**: 70% light vehicle market, 30% commercial vehicle market [22][23] Key Initiatives and Strategies Dana 2030 Initiative - **Objective**: Transformational journey to redefine growth and profitability post the sale of the Off-Highway business [2][3] - **Focus Areas**: Operations, engineering, and sales to enhance efficiency and align long-term strategy [3][4] - **Growth Target**: Projected compound annual growth rate (CAGR) of 6% to reach $10 billion by 2030, with a margin expansion of 400 basis points [12][13] Financial Performance and Projections - **Free Cash Flow**: Expected to increase from 4% to 6% [13] - **Shareholder Returns**: $2 billion in buybacks and $250 million in dividends planned over five years [14] - **Backlog**: Increased by 33% to $750 million, projected to reach $1.15 billion by 2030 [25] Market Dynamics and Opportunities - **Aftermarket Business**: Previously scattered, now consolidated under a common leader to enhance focus and profitability [15] - **EV Market**: While Dana had previously focused on EV, the company is pivoting back to internal combustion engine (ICE) and hybrid technologies [11][33] - **Commercial Vehicle Market**: Anticipated growth driven by replacement cycles and regulatory clarity, with a forecasted CAGR of 15% for Dana [49][50] Operational Enhancements - **Cost Reduction**: Structural cost elements targeting $325 million in savings [16] - **Automation**: Plans to adopt robotics and automation in manufacturing to improve efficiency [17] - **Capital Allocation**: Commitment to maintaining a strong balance sheet with leverage at one turn or less [18][19] Aftermarket Strategy - **Market Size**: Global aftermarket estimated at $6.6 billion, with Dana's business split 60/40 between light and commercial vehicles [58] - **Sales Channels**: Focus on warehouse distribution, retail, and e-commerce, with significant contracts secured with major retailers [61][62] - **Growth Targets**: Aim to increase top-line revenue by $200 million and EBITDA by $65 million [62][63] Work Streams for Growth 1. **Demand Planning and Distribution Optimization**: Enhancing fill rates through data analytics and AI [64][65] 2. **Pricing and Customer Segmentation**: Transitioning to value-based pricing and tiered customer support [66][67] 3. **Sales Enablement**: Investing in sales tools and expanding the sales force to drive market share [70][72] Conclusion - **Cultural Values**: Emphasis on safety, integrity, accountability, and innovation as core values driving the company's mission [29][30] - **Future Outlook**: Dana is positioned to leverage its historical strengths and market opportunities to achieve its ambitious growth targets through the Dana 2030 initiative [28][32]

Financial Data and Key Metrics Changes - The company reported $10,500,000 in revenue for Q1 2025, representing a 58% year-over-year growth and a 44% increase from the prior quarter [30] - Cost of goods sold (COGS) was $35,000,000, resulting in a gross loss of $24,500,000, with a notable improvement in underlying gross margin compared to both the prior year and previous quarter [31][32] - The company ended the quarter with over $111,000,000 in total cash, reflecting significant operational efficiency and working capital management [34] Business Line Data and Key Metrics Changes - The company achieved record output across all areas of manufacturing processes, with Q1 deliveries being 51% higher than Q4 2024 [17][30] - Contract liabilities increased by 80%, indicating strong customer confidence and upfront payments for projects [12] Market Data and Key Metrics Changes - The commercial pipeline closed the quarter with $15,600,000,000 in opportunities, reflecting a 17% year-over-year improvement [40] - The backlog stood at $681,000,000, representing 2.6 gigawatt hours of storage, with new microgrid orders signed [45][46] Company Strategy and Development Direction - The company is focused on scaling manufacturing and transitioning to automated subassemblies to improve productivity and reduce costs [31][32] - The strategic partnership with Cerberus and the execution of the DOE loan are critical for financial stability and growth [11][34] - The company aims to capture growth in the long-duration energy storage market, forecasting significant CAGR over the next ten years [14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing global supply chain volatility and tariff impacts as near-term challenges but expressed confidence in the long-term demand for energy storage [14][15] - The company reiterated its 2025 revenue guidance of $150,000,000 to $190,000,000, which is ten times the revenue from the previous year [17][23] Other Important Information - The company is exploring opportunities for localized manufacturing in the UK and other regions, contingent on sustained demand [90][91] - Management emphasized the importance of delivering profitable growth, not just high growth, by optimizing direct material costs and scaling operations [24][25] Q&A Session Summary Question: Can you provide an update on subassembly automation and its impact on revenue? - Management confirmed that subassembly automation is operational and already producing more than the previous semi-automated line, with expectations for revenue growth as production ramps up [55][56] Question: How is the company managing near-term uncertainties related to project timing? - Management acknowledged market uncertainties but emphasized the ongoing need for energy storage, indicating that projects are still moving forward despite potential delays [60] Question: What is the expected impact of containerization on labor and production? - Management indicated that labor intensity will decrease significantly with the introduction of subassembly manufacturing, leading to higher quality and yield [66] Question: Can you comment on the DOE funding and its potential impact on projects? - Management stated that they are in regular contact with the DOE and are on track for reimbursement submissions, with no current concerns regarding project funding [70][106] Question: What are the company's plans for capacity expansion beyond the current two gigawatt hours? - Management is actively exploring a second site for expansion, with expectations for meaningful volume increases by late this year or early next year [75][76]