DAN · Dana Incorporated

Dana Incorporated reported strong first-quarter 2026 results, with sales of $1.87 billion, up 5% from $1.78 billion in the same period last year, driven by customer recoveries and currency translation. Adjusted EBITDA surged to $171 million from $93 million, representing a 9.2% margin compared to 5.2% in Q1 2025, a 400 basis point improvement. The margin expansion was primarily driven by cost-savings actions and efficiency improvements, including $35 million in additional cost savings achieved in the quarter. The company maintained its full-year 2026 guidance, targeting sales of $7.30-$7.70 billion, adjusted EBITDA of $750-$850 million (implying a 10.0%-11.0% margin), diluted adjusted EPS of $2.00-$3.00, and adjusted free cash flow of $250-$350 million. Dana also announced a significant new business win with Stellantis for the RAM Dakota program, expanding its presence in the compact truck market, with production expected to begin in early 2028. This win increased the three-year net new sales backlog to approximately $950 million. Additionally, Dana repurchased 4.4 million shares for $125 million in Q1, on track for its ~$300 million buyback target for 2026. Management highlighted disciplined execution and the Dana 2030 plan, which outlines a path to higher sales, structurally higher margins, and increased adjusted free cash flow generation. The company completed the sale of its Off-Highway business during the quarter. Operating cash flow was a use of $156 million, and adjusted free cash flow was a use of $195 million, reflecting typical seasonal patterns and investments.