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Dana Incorporated Reports Q1 2025 Financial Results

Dana Incorporated, a recognized leader in engineered solutions, announced its financial results for the first quarter of 2025, highlighting a sales total of $2.4 billion. This marks a slight decline from $2.74 billion in the same timeframe last year, as the company faces ongoing challenges and takes strategic actions to refine its operations.

Key Financial Metrics

• - Net Income: The company achieved a net income of $25 million, translating to $0.17 per share, showing a positive shift from the $3 million, or $0.02 per share, reported in Q1 2024.
• - Adjusted EBITDA: Dana's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was recorded at $188 million, accounting for 8% of total sales. In comparison, the adjusted EBITDA was $223 million, or 8.2% of sales, in the first quarter of the previous year.
• - Cash Flow: Operating cash flow resulted in a use of $37 million, an improvement from a $102 million use one year prior. Meanwhile, the company reported a net decrease in cash and equivalents of $7 million for Q1 2025.

Chairman and CEO R. Bruce McDonald commented, "Our growth initiatives are gaining traction. The ongoing sale of the Off-Highway segment is in progress, and we are further activating our cost-savings strategies to realize savings targeting $225 million by year-end 2025."

Business Transformation and Cost-Savings Initiatives

Dana is committed to transforming into a more focused business. This includes shedding its non-core European Off-Highway hydraulics business, which had been previously put up for sale. Although the sale did not materialize, Dana has successfully adjusted its operations per the current market conditions and ongoing economic fluctuations. The firm is confident about its management strategies in mitigating tariff impacts and foresees improvements in customer recoveries.

Timothy Kraus, Dana's CFO, expressed, "Our diligent management of working capital is beginning to yield positive results, as indicated by our improved free cash flow. The steps we've taken to enhance efficiency are designed to buffer the direct effects of tariffs until we can achieve a full recovery."

Maintained Guidance and Outlook

Looking forward, Dana has preserved its guidance for various financial indicators. The revised projections for 2025 include estimated sales between $9.525 billion to $10.025 billion and an adjusted EBITDA range of $925 to $1,025 million. The company's focus remains on enhancing profitability and securing a more stable financial footing despite the fluctuating demand in end markets.

Upcoming Conference Call

For further discussion on the financial results, Dana will host a conference call on Wednesday, April 30, at 9 a.m. EDT. Interested parties can access the call through various telephone lines, and a webcast will be available online post-call on Dana's investor relations webpage.

As Dana continues its journey toward operational excellence and strategic refinement, it remains dedicated to providing innovative solutions and fostering sustainable growth across its market segments.

To learn more about Dana's ongoing initiatives and financial performance, visit Dana's investor website.