Dana Inc (DAN) Q4 2024 Earnings Call Highlights: Strong Operational Performance Amid Sales Decline

• Full-Year Sales: $10.28 billion, down $271 million from the previous year.

• Fourth-Quarter Sales: $2.34 billion, $159 million below last year.

• Adjusted EBITDA (Full Year): $885 million, $40 million higher than the previous year, with a profit margin of 8.6%.

• Adjusted EBITDA (Q4): $186 million, with a profit margin of 8%, a 170 basis point improvement over last year’s fourth quarter.

• Net Loss (Q4): $80 million, $41 million lower than last year.

• Net Loss (Full Year): $57 million compared to net income of $38 million last year.

• Adjusted EPS (Q4): $0.25 per share compared to a loss of $0.08 last year.

• Adjusted EPS (Full Year): $0.94 per share, $0.10 better than the prior year.

• Free Cash Flow (Q4): $149 million.

• Free Cash Flow (Full Year): $70 million, a $95 million improvement over the previous year.

• 2025 Sales Guidance: Approximately $9.75 billion at the midpoint.

• 2025 Adjusted EBITDA Guidance: $975 million at the midpoint, implying a profit margin of 10%.

• 2025 Free Cash Flow Guidance: $225 million at the midpoint.

• 2025 Adjusted EPS Guidance: $1.65 per share at the midpoint.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Dana Inc (NYSE:DAN) reported a $40 million increase in adjusted EBITDA for the full year, despite lower sales volumes, indicating strong operational performance.

• The company successfully implemented a $300 million cost reduction program, with $100 million already actioned, contributing to improved margins.

• Dana Inc (NYSE:DAN) achieved a significant improvement in free cash flow, moving from a negative position in 2023 to $70 million in 2024, with expectations to more than triple in 2025.

• The company is on track to complete the off-highway divestiture, which is expected to unlock significant shareholder value and strengthen the balance sheet.

• Dana Inc (NYSE:DAN) is committed to achieving new margin targets of 8.1% to 8.6% in 2025 and pushing towards double digits in 2026, supported by cost savings and operational efficiencies.

• Sales for the full year were down by $271 million, driven by end-market weakness and lower vehicle production.

• The company reported a net loss of $57 million for the full year, compared to a net income of $38 million the previous year, primarily due to restructuring charges and divestiture expenses.

• Dana Inc (NYSE:DAN) faced a $40 million profit headwind due to lower commodity cost recovery, impacting margins by 40 basis points.

• The backlog decreased by $300 million from the previous year, largely due to lower volumes on EV programs.

• The company anticipates difficult year-over-year comparisons in Q1 and Q2 due to previous volume pickups associated with strikes and tough comps in off-highway and commercial vehicle segments.

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