This article first appeared on GuruFocus.
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Sales: $1.917 billion, up $20 million compared to Q3 of last year.
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Adjusted EBITDA: $162 million, an improvement of $51 million year-over-year.
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EBIT: Improved to $53 million from a loss of $8 million in the prior period.
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Net Income: $13 million compared with a loss of $21 million in Q3 of last year.
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Adjusted Free Cash Flow: $101 million, a $109 million improvement compared to the prior year.
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Cost Savings: $73 million in profit added, with a full-year target of $235 million.
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Capital Spending: $59 million, up $16 million year-over-year.
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Full-Year Sales Guidance: Approximately $7.4 billion at the midpoint.
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Full-Year Adjusted EBITDA Guidance: About $590 million at the midpoint.
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Full-Year Adjusted Free Cash Flow Guidance: $275 million at the midpoint.
Release Date: October 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Dana Inc (NYSE:DAN) reported a significant improvement in adjusted EBITDA, increasing by $51 million year-over-year, with a margin expansion of 260 basis points to 8.5%.
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The company is on track to deliver $310 million in cost savings, with accelerated realization contributing positively to the financial outlook.
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Dana Inc (NYSE:DAN) successfully executed a share repurchase program, buying back over 20% of its shares outstanding, demonstrating strong capital return to shareholders.
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The Off-Highway divestiture is progressing well, with most regulatory approvals received and expected closure in the fourth quarter.
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Dana Inc (NYSE:DAN) has a positive outlook for Light Vehicle demand, which remains stable, and expects to benefit from improved tariff conditions and cost recovery.
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Dana Inc (NYSE:DAN) experienced volume softness, particularly in the Commercial Vehicle segment in North America and Brazil.
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The company faced headwinds from a five-week downtime at Jaguar Land Rover (JLR), impacting financial performance.
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There were some supplier and EV program cancellations, leading to charges in the quarter, although recovery is expected in the fourth quarter.
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Commercial Vehicle market conditions are deteriorating, with no immediate signs of improvement, particularly in North America.
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Dana Inc (NYSE:DAN) anticipates continued profit headwinds from tariffs, although recovery is expected in the future.
Q: How are recent tariff policy changes impacting Dana Inc, especially in relation to US and European OEMs? A: R. Bruce Mcdonald, CEO, explained that the recent tariff policy changes primarily benefit US OEMs, as the rebates are based on vehicles assembled in the US. This diminishes the risk of vehicle demand dropping due to higher prices being passed to end customers.
Q: What is the outlook for the Commercial Vehicle market, and are there any signs of recovery? A: R. Bruce Mcdonald, CEO, stated that there is no immediate sign of recovery in the Commercial Vehicle market, particularly in North America. The market remains soft, with no significant pre-buy activity expected in 2026 due to emissions legislation changes.
Q: Can you explain the strong margin improvement expected in Q4 despite lower revenue? A: Timothy Kraus, CFO, highlighted that the margin improvement is driven by continued cost savings, improved mix, and the completion of restructuring actions. These factors provide a strong foundation for entering 2026.
Q: What are the main drivers of the $110 million performance improvement, and how does pricing play a role? A: Timothy Kraus, CFO, noted that the performance improvement is largely due to pricing improvements from new platforms and programs, as well as recoveries from customers. This includes about $80 million in top-line improvements flowing through to the $110 million performance gain.
Q: How does Dana Inc plan to achieve its 2026 margin targets, and what are the key levers for margin expansion? A: R. Bruce Mcdonald, CEO, emphasized that Dana Inc is confident in achieving its 2026 margin targets through continued cost savings, plant automation, and product line rationalization. The company sees significant opportunities for margin expansion beyond the 10% to 10.5% target.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.