0001437749-25-032594
SEC filingQ3 2025 revenue up 1.1% YoY to $1.9B, gross margin expanded 230 bps to 8.7% on cost savings, adjusted EBITDA rose 46%.
In Q3 2025, Dana reported net sales of $1,917M, up $20M (1.1%) from $1,897M a year ago. The increase was driven by favorable currency effects ($21M) and net customer pricing/tariff recovery actions ($65M), partially offset by a slight organic decline ($1M) due to lower medium/heavy-truck production in North America and South America and lower EV product orders. Gross margin improved significantly by 230 bps to 8.7% ($166M vs $122M), as cost reduction initiatives ($66M), material cost savings ($25M), operational efficiencies ($10M), and lower premium freight ($6M) more than offset tariff impacts ($50M), non-material inflation ($32M), and commodity cost increases ($7M). SG&A decreased $19M to $87M (4.5% of sales) from cost reduction actions. EBIT swung to a profit of $53M from a loss of $8M. Net income from continuing operations was $13M vs a loss of $21M. Adjusted EBITDA rose 46% to $162M from $111M.
Light Vehicle segment sales increased 5% (ex-currency) to $1,353M, driven by higher North American production volumes and pricing actions. Segment EBITDA grew to $126M (9.3% margin) from $82M (6.4%), with performance improvements from pricing ($54M) and cost reduction ($35M) partially offset by tariffs ($41M) and inflation ($25M). Commercial Vehicle sales declined 10% to $564M on weaker global demand (North America Class 8 down 28%). Segment EBITDA increased to $51M (9.0% margin) from $45M (7.4%), supported by cost reduction ($17M) and pricing ($11M), despite lower volumes.
For full-year 2025, Dana guided to sales of ~$7.4B, adjusted EBITDA of ~$590M, and adjusted free cash flow of ~$275M. The company expects continued benefits from cost reduction initiatives (annualized savings of $310M through 2026) and the Off-Highway divestiture to close in Q4 2025, with proceeds used for debt reduction and shareholder returns. Management highlighted ongoing uncertainty from tariffs and market weakness in commercial vehicle and EV segments.
As of September 30, 2025, Dana held $414M in cash and equivalents, down from $494M at year-end 2024. Total debt (excluding disposal group) stood at $3,217M, comprising $630M short-term debt, $22M current portion of long-term debt, and $2,565M long-term debt. The increase from $2,609M at December 31, 2024 was driven by the draw of a $250M Term A Facility in July 2025, partially offset by $200M repayment of senior notes due April 2025. Shareholders' equity was $1,150M, down from $1,396M due to share repurchases. The current ratio (including disposal group current assets/liabilities) was 1.31x. The company maintained compliance with debt covenants, including a first lien net leverage ratio not exceeding 2.00x.
No material purchase commitments were disclosed in the Notes. The company reported $60M in confirmed supplier finance program obligations as of September 30, 2025, and $14M in environmental liabilities. The pending sale of the Off-Highway business for $2.732B represents a significant future cash inflow, with the transaction expected to close in Q4 2025. Dana will enter into transition services and supply agreements post-closing.
Buybacks: On June 8, 2025, the Board authorized a $1,000M share repurchase program (less any special dividends from the Off-Highway sale). During Q3 2025, Dana repurchased 14.3M shares from the Icahn Group for $251M and an additional 9.8M shares in open market for $193M. As of September 30, 2025, $556M remained under the program. Total buybacks for nine months were $439M.
Dividends: Dana paid $0.10 per share quarterly, totaling $42M in dividends during the first nine months of 2025, consistent with the prior year.
Debt: Net debt increased by $608M as the company issued a $250M Term A Facility and retired $200M senior notes due April 2025. The Term A Facility matures in 2026, with mandatory quarterly amortization.
Capex: Capital expenditures of $153M (2.7% of sales) were down 23% year-over-year, reflecting disciplined spending.
Dana operates through two segments: Light Vehicle and Commercial Vehicle. For Q3 2025, Light Vehicle generated $1,353M in external sales (+5.3% YoY) with segment EBITDA of $126M (9.3% margin), driven by North America strength ($971M). Commercial Vehicle sales declined 7.8% to $564M, with segment EBITDA of $51M (9.0% margin), impacted by weaker North America ($218M, -19.3%). Geographically, North America accounted for 62% of total sales, Europe 19%, South America 9%, and Asia Pacific 10%. The Off-Highway business, now classified as discontinued operations, contributed $625M in Q3 sales and $74M net income.
Dana's total operating cash flow of $106M for the first nine months of 2025 was entirely driven by discontinued operations ($165M), as continuing operations used $59M of cash. Net loss from continuing operations was $16M, but after adding back non-cash items (depreciation $257M, amortization $9M, stock comp $31M, deferred taxes -$67M) and working capital outflows of $212M, continuing operations generated negative cash flow. Capital expenditures of $153M (down from $198M) represented a capex intensity of around 144% of continuing ops CFO (excluding discontinued), but when including discontinued ops, the ratio is 144% of total CFO. Significant share repurchases of $439M and dividends of $42M totaled $481M in capital returns, far exceeding operating cash flow, implying reliance on debt and other financing. The company issued $622M in short-term debt and repaid $216M in long-term debt. Working capital changes consumed $212M, primarily from inventory and receivables build. Overall, cash flow quality is weak from continuing operations, with reliance on discontinued ops and debt to fund shareholder returns.