Dana (DAN) Q3 2026 earnings summary

Executive summary

• Q3 sales were $2.038B, up $121M YoY; adjusted EBITDA rose $56M to $218M, and adjusted EBITDA margin expanded 220 bps to 10.7%.

• Commercial vehicle demand, backlog conversion, favorable mix, productivity, cost recovery and operational efficiencies supported results; adjusted net income was $44M.

• The Eaton Mobility transaction remained on track for a close near end-Q1 2027, with one regulatory approval pending and $250M in run-rate synergies targeted within 24 months post-close.

Financial highlights

• Q3 sales were $2.038B versus $1.917B a year earlier; 9M sales were $5.916B versus $5.633B.

• Q3 adjusted EBITDA was $218M versus $162M; 9M adjusted EBITDA was $596M versus $402M.

• Continuing-operations net loss was $10M; adjusted net income was $44M versus a $5M loss, and diluted adjusted EPS was $0.41 versus $(0.04).

• Q3 adjusted free cash flow was $66M versus $101M; higher earnings were offset by working-capital timing and increased capital spending.

• Sales growth included $87M from volume/mix, $17M from commodity recoveries, $12M from tariff recoveries and $5M from currency.

Outlook and guidance

• FY2026 sales guidance increased $50M at the midpoint to $7.75B–$7.85B, reflecting stronger commercial vehicle demand and higher commodity recoveries.

• Adjusted EBITDA guidance remained $800M–$850M, with an implied adjusted margin of ~10.6%; diluted adjusted EPS guidance remained $1.75–$2.25.

• Adjusted free cash flow guidance remained $275M–$375M; lower one-time costs, interest, taxes and working capital are expected to offset nearly all divested-business profit loss.

• Management expects a further margin step-up in 2027, supported by commercial vehicle growth, aftermarket expansion and manufacturing efficiency.