Dana (DAN) Investor update summary

Strategic achievements and portfolio transformation

• Completed sale of Off-Highway business for $2.7 billion, netting $2.4 billion after costs and debt, and used proceeds to pay down $1.9 billion in debt.

• Increased cost reduction target to $325 million, with $250 million realized in 2025 and an additional $65 million expected in 2026.

• Merged Power Technologies into core segments, completed buyout of TM4 joint venture for under $200 million, and reduced corporate overhead.

• Returned over $700 million to shareholders in 2025 through buybacks and dividends, with $200–$300 million in buybacks planned for 2026.

• Revised EV commercial strategy to align with market realities and efficiency.

Financial performance and 2026 outlook

• 2025 revenue reached $7.5 billion with adjusted EBITDA of $600 million (8% margin); Q4 margin was 10.7%.

• 2026 guidance: flat sales at $7.5 billion, EBITDA of $800 million (10.5% margin), and $300 million in free cash flow.

• Projected 2026 sales between $7.30 and $7.70 billion, adjusted EBITDA of $750–$850 million (10.0–11.0% margin), and free cash flow of $250–$350 million.

• Achieved highest free cash flow since 2013 and improved balance sheet to less than one times leverage.

• CapEx expected at 4% of sales in 2026, with working capital improvements anticipated.

Market and backlog developments

• Three-year backlog increased to $750 million, with $200 million growth expected in 2026, mostly from light trucks.

• Backlog growth offsets a slightly down market, with new programs and content extensions on key platforms.

• Commercial vehicle share gains driven by investments in low-cost manufacturing and new customer wins.

• Aftermarket expansion in North America and Europe, including major contracts with AutoZone and Advance Auto Parts.

• Conservative market assumptions for 2026, with potential upside if market conditions improve.