Dana (DAN) Q1 2026 earnings summary

Executive summary

• Achieved strong year-over-year margin improvement and revenue growth in Q1 2026, with sales of $1.87 billion, marking a positive start to the Dana 2030 plan.

• Significant new business wins, including a major Stellantis Ram Dakota award, increased backlog and near-term sales visibility.

• Leadership transition underway, with the outgoing CEO moving to Chairman and the incoming CEO emphasizing continuity and execution.

• Strategic focus shifted to light and commercial vehicles, supported by a leaner cost structure and improved balance sheet.

• Repurchased 4.4 million shares, returning $125 million to shareholders in Q1, progressing toward a $2 billion target by 2030.

Financial highlights

• Q1 2026 sales reached $1.868 billion, up from $1.781 billion year-over-year, despite lower end-market demand.

• Adjusted EBITDA was $171 million (9.2% margin), a 400 basis point improvement over Q1 2025.

• Adjusted free cash flow from continuing operations was a use of $195 million, reflecting higher profitability but typical Q1 working capital usage.

• Achieved $35 million in cost savings in Q1, on track for $65 million in 2026.

• Repurchased 4.4 million shares, returning $125 million to shareholders in Q1.

Outlook and guidance

• 2026 revenue expected at approximately $7.5 billion, with adjusted EBITDA around $800 million (10%-11% margin).

• Diluted adjusted EPS guidance for 2026 is about $2.50, using a share count of 109 million.

• Adjusted free cash flow for 2026 projected at $300 million, reflecting stable earnings and disciplined capital spending.

• Guidance remains unchanged but trending toward the upper end due to strong Q1 performance, currency, and tariff recoveries.

• 2030 targets: $10 billion sales, 14–15% adjusted EBITDA margin, 6% adjusted FCF margin.