Dana (DAN) Guidance summary

Opening remarks and agenda

• The call opened with a welcome, logistics for Q&A, and a reminder of the upcoming Q4 and full-year earnings call in February.

• Forward-looking statements and Safe Harbor reminders were provided, with reference to supporting materials on the investor website.

• Leadership team introduced, including CEO, CFO, and Senior Director of Investor Relations.

• Agenda included business review, financial review, and announcement of preliminary, unaudited 2024 financial results and 2025 guidance.

Guidance on key objectives

• Proceeding with the sale of the Off-Highway business, with signing expected in early Q2 and closing by year end.

• Cost reduction targets increased from $200 million to $300 million in run rate savings by 2026, with $185 million already actioned by end of 2025 and $175 million expected in 2025.

• 2025 sales guidance ranges from $9.525 to $10.025 billion, with adjusted EBITDA of $925 to $1,025 million and profit margins of 9.7%-10.2%.

• 2026 adjusted EBITDA margin expected between 9.5% and 10.5%, with free cash flow targeted at 4% of sales over the business cycle.

• Net leverage ratio targeted at about one times, with free cash flow of about 4% of sales through the cycle.

Market trends and strategic opportunities

• Significant deterioration in EV market timing and volume projections, with lower demand for EVs, ICE vehicle programs, and off-highway equipment.

• Battery cooling business remains a profitable focus, with a shift to technology-agnostic investments and more stringent criteria for new EV programs.

• Off-Highway sale process is robust, with strong strategic interest from large, well-capitalized buyers seeking adjacent growth.

• Rapid expansion into the EV market previously led to higher costs and capital investment; now a measured approach is prioritized, leveraging existing infrastructure.

• Despite lower sales, efficiency improvements and cost-saving actions are expected to drive higher margins.