0001437749-25-025910
SEC filingDana's H1 2025 revenue fell 8.5% YoY to $3.7B, but gross margin improved 130 bps to 6.9% driven by cost initiatives and lower commodities; Off-Highway divestiture to reshape portfolio.
For the six months ended June 30, 2025, Dana's net sales from continuing operations decreased $346M (8.5%) to $3,716M compared to $4,062M in the prior year. The decline was primarily organic (-$321M) due to lower full-frame light-truck production in North America (-6% for H1) and significant drops in medium/heavy-truck production (Class 8 -22%, Classes 5-7 -25%). Currency translation also reduced sales by $24M. Gross margin improved $27M to $256M (6.9% of sales, up 130 bps), benefiting from cost reduction initiatives ($90M), material cost savings ($59M), operational efficiencies ($37M), and lower commodity costs ($7M), partially offset by tariff-related impacts ($52M) and non-material inflation ($72M). Operating income swung from a loss of $51M to a profit of $24M, aided by lower SG&A ($18M reduction) and improved gross margin. Net income attributable to parent increased from $19M to $52M. Adjusted EBITDA rose from $200M to $240M. However, adjusted free cash flow worsened from -$64M to -$120M due to higher working capital outflows and lower operating cash flow.
Light Vehicle: Sales fell $215M (7.8%) to $2,548M, primarily from lower volumes in North America and Europe/Asia EV orders, partially offset by pricing recoveries ($55M) and backlog conversion. Segment EBITDA improved $12M to $180M, as cost reduction ($39M), material savings ($28M), and operational efficiencies ($25M) more than offset volume declines. Segment EBITDA margin rose 100 bps to 7.1%.
Commercial Vehicle: Sales decreased $131M (10.1%) to $1,168M, driven by sharp production declines in North America (Class 8 -22%, Classes 5-7 -25%) and Europe (-9%), partially offset by growth in South America (+3%) and Asia Pacific (+9%). Segment EBITDA increased $16M to $88M, with cost reduction ($21M), material savings ($15M), and operational efficiencies ($27M) overcoming volume headwinds. Margin expanded 200 bps to 7.5%.
Dana provided 2025 guidance for continuing operations: sales ~$7.4B, adjusted EBITDA ~$575M, and adjusted free cash flow ~$275M. The company expects the Off-Highway divestiture to close in Q4 2025, generating ~$2.7B in net cash proceeds (subject to adjustments). Proceeds will be used for debt reduction and up to $1B in shareholder returns via buybacks/dividends by 2027. Management also highlighted cost reduction initiatives targeting $310M in annualized savings by 2026, with $235M expected by end of 2025. Key risks include ongoing tariff uncertainty, volatile commodity costs, and subdued North American production volumes.
As of June 30, 2025, Dana held $486M in cash and equivalents, total debt of $3,120M (including $530M short-term debt, $22M current portion of long-term debt, and $2,568M long-term debt), and shareholders' equity of $1,270M. The company also reported $1,105M in inventory. Cash flow from operations (continuing) used $31M in H1 2025, but discontinued operations provided $26M.
The Notes do not disclose any material purchase commitments or contractual obligations beyond normal operating liabilities. Environmental liabilities are $14M, and warranty obligations total $84M at period end. No significant off-balance-sheet arrangements were noted.
In June 2025, Dana's Board authorized a $1,000M stock repurchase program. During Q2 2025, the company repurchased 14.607M shares for $257M, leaving $743M available as of June 30. Quarterly dividends remained $0.10 per share ($30M total in H1). Net debt increased by $312M, primarily from $522M in new short-term borrowings partially offset by $210M long-term debt repayment. Capital expenditures totaled $104M (2.8% of sales), down from $161M in H1 2024.
Dana operates two segments: Light Vehicle Systems (LVS) and Commercial Vehicle Systems (CVS). For the six months ended June 30, 2025, LVS reported external sales of $2,548M (down 7.8% YoY) and segment EBITDA of $180M. CVS had sales of $1,168M (down 10.1% YoY) and segment EBITDA of $88M. Geographically, North America accounted for 59% of total sales, Europe 20%, Asia Pacific 11%, and South America 9%. The Off-Highway business is classified as discontinued operations and not included in continuing segment results.