Dana Targets $250M in Eaton Synergies as Cost Cuts and Buybacks Gain Speed

Dana expects its Eaton Mobility acquisition to close in Q1 2027 , creating a company with approximately $11 billion in pro forma 2026 revenue and roughly 15% EBITDA margins.

The deal is projected to deliver $250 million in annual run-rate synergies by the end of the second year after closing.

Dana generated $19 million in incremental cost savings during the second quarter and remains on track toward its $325 million cost-reduction target.

The company also resumed share repurchases, planning to buy back about $200 million of stock by the end of the year as part of a broader goal to complete $2 billion in buybacks by 2029.

Growth initiatives include commercial-vehicle recovery, Ford Super Duty volumes, aftermarket expansion, defense programs and automation.

Dana is also evaluating early-stage opportunities to apply its thermal-management technology to data centers.

Dana NYSE: DAN President and CEO Byron Foster said the company’s second-quarter performance reflected continued progress on cost reductions, manufacturing efficiency and portfolio initiatives, while the planned combination with Eaton Mobility is expected to expand its commercial-vehicle and aftermarket presence.

Speaking at a JPMorgan event, Foster said Dana reported second-quarter sales of just over $2 billion, adjusted EBITDA margin of 10.3% and EBITDA of $207 million.

The company generated $19 million in incremental cost savings during the quarter as it advances toward a previously announced $325 million cost-reduction target.

Foster said Dana is also addressing stranded costs associated with the planned spin-off of its Off-Highway business.

He credited plant productivity projects, automation and product-line profitability efforts for supporting margin improvement over the past 18 months.

Dana expects its acquisition of Eaton Mobility to close in the first quarter of 2027.

On a pro forma 2026 basis, Foster said the combined company would have approximately $11 billion in revenue and EBITDA margins of about 15%.

The transaction is expected to generate $250 million in annual run-rate synergies by the end of the second year following closing.

Dana expects to capture $75 million in the first year, $200 million in the second year and the full $250 million entering the third year, according to the discussion.

Foster said the anticipated synergies include corporate overhead reductions, purchasing gains, manufacturing-footprint opportunities and plant automation.

He said Dana has established integration work streams, targets and preliminary action plans that are being refined ahead of closing.

“We are highly confident in the 250 of synergies that we can deliver as part of this combination,” Foster said, adding that the company is pursuing internal goals above that level to provide a cushion if certain initiatives do not produce expected results.

The combination is intended to bring complementary products together across commercial-vehicle driveline, transmission and engine-related systems.

Foster said the deal also would provide a better balance between Dana’s light-vehicle and commercial-vehicle operations, add customer diversity and increase purchasing scale.

Dana expects the combined companies to have a $1.7 billion aftermarket business.

Foster said Eaton’s existing aftermarket sales presence could help Dana accelerate an expansion that otherwise would have required building additional sales teams organically.

Dana has resumed share repurchases and plans to buy back roughly ...