Dana (NYSE:DAN) Releases Earnings Results

Key Points

• Dana missed quarterly EPS expectations, reporting $0.41 versus the $0.69 consensus, but revenue reached $2.04 billion, beating estimates and rising 6.4% year over year. Adjusted EBITDA grew to $218 million, with margins expanding to 10.7%.
• Management raised its full-year sales outlook to approximately $7.8 billion while maintaining adjusted EBITDA guidance of $825 million and free cash flow guidance of about $325 million. The Eaton Mobility transaction remains on track to close around the end of the first quarter of 2027.
• Inflation and weaker international aftermarket demand remain key risks, particularly in energy and freight costs that may not be automatically recovered from customers. Dana shares fell 3.9% to $26.13 following the results.

Dana (NYSE:DAN - Get Free Report) posted its quarterly earnings results on Wednesday. The auto parts company reported $0.41 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.69 by ($0.28), FiscalAI reports. The firm had revenue of $2.04 billion for the quarter, compared to the consensus estimate of $1.97 billion. During the same quarter in the prior year, the firm posted $0.07 EPS. The business's revenue was up 6.4% on a year-over-year basis.

Here are the key takeaways from Dana's conference call:

• Third-quarter performance improved materially: Sales rose $121 million year over year to $2.038 billion, while adjusted EBITDA increased $56 million to $218 million; the margin expanded 220 basis points to 10.7% and adjusted EPS reached $0.41.
• Dana raised its full-year sales outlook to approximately $7.8 billion, citing stronger commercial-vehicle demand and higher commodity recoveries. Adjusted EBITDA remains guided to $825 million, with adjusted free cash flow at approximately $325 million.
• The Eaton Mobility transaction remains on track to close around the end of the first quarter of 2027, with only one regulatory approval outstanding. Management remains confident in achieving $250 million of annual run-rate synergies within 24 months, including approximately $75 million in 2027.
• Shareholder returns remain a focus: Dana repurchased $200 million of stock in the third quarter and now targets $469 million of repurchases in 2026. However, the company has not yet finalized whether buybacks can resume after the Eaton transaction closes.
• Inflation remains a significant risk, particularly in energy and freight, where customer contracts generally do not provide automatic recovery mechanisms. Management described the gross inflation exposure as a nine-digit figure, while aftermarket demand is facing additional headwinds in Europe, the Middle East and Asia.

Dana Stock Down 3.9%

Dana stock traded down $1.07 during mid-day trading on Wednesday, hitting $26.13. 921,959 shares of the company's stock traded hands, compared to its average volume of 1,477,126. Dana has a one year low of $18.95 and a one year high of $39.56. The firm has a 50 day moving average price of $29.31 and a 200 day moving average price of $31.13. The company has a market cap of $2.61 billion, a PE ratio of 2.59 and a beta of 2.05.

Dana Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Friday, November 6th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, November 6th. This represents a $0.48 annualized dividend and a yield of 1.8%. Dana's payout ratio is presently 4.78%.

Analyst Ratings Changes

Several research firms recently weighed in on DAN. Deutsche Bank Aktiengesellschaft dropped their price objective on shares of Dana from $40.00 to $39.00 and set a "buy" rating on the stock in a research note on Tuesday, July 7th. Barclays upped their target price on Dana from $33.00 to $35.00 and gave the company an "equal weight" rating in a report on Friday, August 14th. UBS Group dropped their price target on Dana from $38.00 to $36.00 and set a "buy" rating on the stock in a research report on Wednesday, October 7th. Weiss Ratings lowered Dana from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Finally, Royal Bank Of Canada raised their target price on Dana from $33.00 to $37.00 and gave the company an "outperform" rating in a research note on Friday, August 7th. Four investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $36.67.

About Dana

Dana Incorporated NYSE: DAN is a global supplier of drivetrain, motion, and thermal-management technologies for the automotive, commercial-vehicle, and off-highway industries. The company develops systems that help vehicles transmit power, manage heat, and operate efficiently across conventional, hybrid, and electric powertrains.

Dana's products include axles, driveshafts, gearboxes, transmissions, sealing solutions, thermal-management systems, and components for electrified propulsion.

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