0001437749-26-017296
SEC filingSales up 5% YoY to $1.868B; gross margin expanded 240 bps; adjusted EBITDA nearly doubled to $171M; Off-Highway divestiture completed.
Dana's first quarter 2026 net sales increased 4.9% year-over-year to $1.868 billion, driven primarily by favorable currency effects (+$64M) and net customer pricing and tariff recovery actions (+$56M). Organic sales grew $23M, reflecting pricing actions and backlog conversion partially offset by lower medium/heavy-truck production in North America and reduced electric-vehicle orders. Gross margin expanded 240 basis points to 9.0%, benefiting from cost reduction initiatives ($33M), material cost savings ($23M), and operational efficiencies ($14M), partially offset by tariff-related impacts ($50M) and non-material inflation ($24M). Selling, general and administrative expenses decreased $3M to $102M (5.5% of sales) due to headcount reductions from the 2024 restructuring. Earnings from continuing operations before interest and income taxes improved to $19M from $8M in the prior year. Net income from continuing operations was a loss of $15M vs. $17M loss, while net income including discontinued operations surged to $1.091 billion due to the $1.191B pre-tax gain on the Off-Highway divestiture.
Light Vehicle segment sales rose 4.6% YoY to $1.269B, with organic growth of 2% excluding currency. Pricing actions and tariff recovery contributed $36M, while lower EV product orders weighed on volume. Segment EBITDA increased from $68M to $112M, with margin expanding from 5.6% to 8.8%, driven by favorable product mix, cost savings ($5M), and operational efficiencies ($13M), offset by $36M in tariff costs and $19M inflation.
Commercial Vehicle segment sales grew 5.5% to $599M, but organic sales declined 1% due to a 25% drop in North America Class 8 production. International markets showed growth (Europe +10%, South America +2%, Asia Pacific +9%). Segment EBITDA rose from $41M to $63M, with margin improving from 7.2% to 10.5%, reflecting pricing actions ($20M), material cost savings ($9M), and cost reductions ($3M), partly offset by $14M tariff costs and $6M electrification spending.
Dana expects full-year 2026 sales between $7.3B and $7.7B, reflecting declining global demand offset by $200M of net new business backlog, tariff recovery lag dissipation, and currency tailwinds. Adjusted EBITDA is guided at $750-$850M, implying an adjusted EBITDA margin of approximately 10.6% at the midpoint—a 250 basis-point improvement over 2025—driven by cost savings, operational performance, and product mix. Adjusted free cash flow is projected at $250-$350M, benefiting from higher EBITDA and lower interest/tax payments. The company's sales backlog for 2026-2028 stands at $950M, with $200M expected in 2026. Strategic priorities include continued cost reduction, disciplined capital allocation following the Off-Highway divestiture, and selective bolt-on acquisitions.