Dana Incorporated Posts Strong 2025 Results, Targets Higher Margins in 2026
Event summary
- Dana Incorporated reported 2025 sales of $7.5 billion, adjusted EBITDA of $610 million, and adjusted free cash flow of $331 million, all exceeding preliminary estimates.
- The company completed the sale of its Off-Highway business and achieved $248 million in cost savings.
- Dana returned $704 million to shareholders, including repurchasing 34 million shares (23% of shares outstanding).
- For 2026, Dana expects sales of $7.30 to $7.70 billion, adjusted EBITDA of $750 to $850 million, and adjusted free cash flow of $250 to $350 million.
- The company announced a $750 million three-year new business backlog, with $200 million incremental in 2026.
The big picture
Dana Incorporated's strong 2025 financial results and strategic restructuring reflect a broader industry trend toward cost efficiency and capital discipline in the automotive supply chain. The company's focus on higher-margin programs and disciplined execution aligns with the shift toward electrification and advanced propulsion technologies. Dana's ability to deliver on its 2026 targets will be critical in maintaining its position as a global leader in powertrain solutions.
What we're watching
- Margin Expansion
- Whether Dana can sustain its adjusted EBITDA margin improvement to the 10-11% range in 2026.
- Debt Reduction
- The pace at which Dana can further reduce its debt following the $2 billion reduction in 2026.
- New Business Growth
- How the $750 million three-year new business backlog will translate into incremental revenue growth in 2026.
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