Dana (DAN) Q2 2026 earnings summary

Executive summary

• Achieved Q2 2026 sales of $2.01 billion, up 4% year-over-year, with adjusted EBITDA of $207 million (10.3% margin), a 270 basis point improvement, driven by higher demand, pricing actions, and favorable currency translation.

• Realized $19 million in Q2 cost savings, $54 million year-to-date, on track for $65 million in 2026 and $325 million program target.

• Restarted share repurchase program, buying back 1.2 million shares ($44 million) in Q2 and $169 million year-to-date, with plans for $200 million more in 2026.

• Progressing with Eaton Mobility transaction, structured as a split-off, expected to close in Q1 2027, targeting at least $250 million in run-rate cost synergies within 24 months post-close.

• Off-Highway business divestiture completed, generating $2,630 million in cash proceeds and a $1,186 million pre-tax gain in discontinued operations.

Financial highlights

• Q2 2026 sales rose to $2.01 billion from $1.94 billion year-over-year, driven by volume/mix, pricing, and FX gains.

• Adjusted EBITDA increased to $207 million (10.3% margin), up from $147 million and 8.0% margin in Q2 2025.

• Adjusted net income rose to $23 million from $2 million; diluted adjusted EPS up to $0.19 from $0.03.

• Adjusted free cash flow was $68 million, up $75 million year-over-year, reflecting improved operating performance and working capital.

• Net interest expense declined 59% to $17 million due to debt repayment after the Off-Highway divestiture.

Outlook and guidance

• Raised full-year 2026 sales guidance to $7.75 billion (up $225 million), driven by stronger commercial vehicle demand.

• Adjusted EBITDA guidance increased to $825 million (10.6% margin), up $25 million from prior outlook.

• Diluted adjusted EPS guidance at ~$2.00, reflecting higher D&A, interest, and lower JV equity earnings.

• Adjusted free cash flow guidance raised to $325 million, up $25 million, reflecting higher earnings and working capital benefits.

• $950 million sales backlog for 2026–2028, with $200 million expected to be realized in 2026.