Dana Q2 Earnings Call Highlights

Dana reported higher second-quarter sales, earnings and cash flow, citing pricing actions, cost savings, favorable mix and improving commercial-vehicle demand. The company also raised its full-year outlook and said it would resume share repurchases before the expected close of its Eaton Mobility transaction in the first quarter of 2027. Second-quarter sales totaled $2.01 billion, up from $1.94 billion a year earlier, while adjusted EBITDA rose to $207 million from $147 million. Adjusted EBITDA margin expanded 270 basis points year over year to 10.3%. Chief Executive Officer Byron Foster said the quarter reflected continued execution of Dana’s operational and strategic plans. The company generated $19 million in cost savings during the quarter, bringing year-to-date savings to $54 million and keeping it on track for its $65 million cost-savings target for 2026. Dana said its broader cost-reduction program is targeting $325 million. Adjusted net income increased to $21 million from $4 million in the prior-year quarter, while diluted adjusted earnings per share rose to $0.19 from $0.03. Net interest expense declined 59% year over year to $17 million following debt repayment actions undertaken after the company’s off-highway divestiture. Chief Financial Officer Timothy Kraus said the $75 million year-over-year sales increase included $29 million from performance, primarily pricing and recovery actions; $24 million from foreign currency translation; $12 million from commodity recoveries; and about $4 million from tariff recoveries. Volume and mix added $6 million. On the profit side, volume and mix added $10 million of adjusted EBITDA, performance added $29 million, and cost savings contributed $19 million. Tariffs added $4 million and foreign exchange contributed $2 million, while commodities represented a $3 million headwind due largely to the timing of customer recovery mechanisms, Kraus said. Dana generated $68 million of adjusted free cash flow in the second quarter, a $75 million improvement from the prior-year period. Kraus attributed the increase to improved earnings, lower interest expense and a $79 million benefit from working capital and other items, including favorable accounts-payable timing and lower inventory. Higher capital spending partially offset those gains. Based on first-half performance and strengthening demand in commercial vehicles, Dana raised its 2026 outlook. The company now expects approximately $7.75 billion in sales at the midpoint, up $225 million from its previous forecast, and adjusted EBITDA of approximately $825 million at the midpoint, an increase of $25 million.