Dana (DAN) Q1 2025 earnings summary

Executive summary

• Q1 2025 results met expectations, with net sales of $2.352 billion, adjusted EBITDA of $188 million, and net income attributable to the company rising to $25 million from $3 million year-over-year, aided by accelerated cost reductions and segment integration.

• Off-Highway divestiture process is ongoing, with multiple bidders and expected pre-tax proceeds of ~$50 million in Q2.

• Integration of Power Technologies and Aftermarket into core segments completed, closing the door on a Power Technologies sale and aiming for operational synergies.

• Cost-savings plan accelerated, targeting $225 million in 2025 and $300 million run-rate, with 70% of headcount actions completed.

• Dana won its 10th Automotive News PACE Award for its modular high-performance hybrid 8-speed dual-clutch transmission.

Financial highlights

• Q1 2025 sales were $2.352 billion, down from $2.735 billion year-over-year, primarily due to lower demand and currency headwinds.

• Adjusted EBITDA was $188 million (8.0% margin), down from $223 million (8.2%) year-over-year, with cost savings offsetting some margin impact.

• Net income attributable to the company was $25 million, up from $3 million last year, mainly due to cost reductions and lower tax expense.

• Adjusted net income was $19 million ($0.13/share), down from $37 million ($0.26/share) year-over-year.

• Adjusted free cash flow was a use of $101 million, $67 million better than Q1 2024, driven by lower working capital requirements.

Outlook and guidance

• Full-year 2025 guidance maintained: sales of $9.525–$10.025 billion, adjusted EBITDA of $925–$1,025 million, and adjusted free cash flow of $175–$275 million.

• Adjusted EBITDA margin guidance is 9.7%–10.2%; adjusted EPS guidance is $1.15–$1.65, revised down due to higher expected tax expense.

• Cost-savings plan increased to $225 million for 2025, with a $300 million target.

• Tariff impacts are being managed, with most recoveries expected within a quarter or by year-end.

• First half expected to be weaker, with recovery in the back half as comps ease and cost actions take hold.