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Dana Incorporated Reports Strong 2025 Financial Results

Dana Incorporated has announced impressive financial outcomes for 2025, showcasing a strong commitment to growth and profitability. The company reported sales reaching $7.5 billion and an adjusted EBITDA of $610 million, which exceeded initial expectations by $10 million. This performance corresponds to an 8.1% EBITDA margin, demonstrating a slight improvement over preliminary estimates.

Key Highlights of 2025 Results

In addition to robust sales figures, Dana reported several noteworthy accomplishments:

• - Adjusted free cash flow totaled $331 million, surpassing estimates by $16 million.
• - The company achieved $248 million in cost savings aligning with earlier expectations.
• - A significant return of $704 million to shareholders was noted, with 34 million shares being repurchased, representing 23% of its shares outstanding.

The company also emphasized its strategic maneuvers, including the successful divestment of its Off-Highway business, which played a pivotal role in repositioning Dana's financial landscape.

2026 Financial Outlook

Looking ahead to 2026, Dana has outlined a strong growth trajectory. Key elements of their strategy include:

• - Completion of a nearly $2 billion debt reduction, facilitated by funds from the Off-Highway sale.
• - Extension and expansion of its capital return program from $1 billion to $2 billion, indicating an aggressive approach to enhancing shareholder value.
• - Expectations of $750 million in new business backlog over the next three years, with $200 million earmarked for incremental growth in 2026.
• - A projected EBITDA margin of 10.7%, with robust plans to reach higher profitability through disciplined execution and targeted initiatives.

Strengthening Business Position

Dana’s CEO, R. Bruce McDonald, elaborated on the progress during 2025, stating, “We made significant strides on our strategic priorities, reshaping Dana into a more focused organization with enhanced financial agility.” This transformation has reinforced Dana's market position and improved its operational margins.

Fourth Quarter Performance

In the fourth quarter of 2025, Dana recorded sales of $1.9 billion, displaying growth compared to $1.8 billion in the same quarter of the previous year. This notable performance was bolstered by increased demand for light truck programs, despite a dip in the commercial truck market. Adjusted EBITDA for this quarter was reported at $208 million, translating to an 11.1% margin—a considerable improvement from the previous year's figures.

Future Prospects

Additionally, Dana set forth its long-term financial guidance as part of the `Dana 2030` strategy, aiming for approximately $10 billion in sales by 2030, indicating a 33% increase in expectations compared to the 2026 outlook. With future profitability projected at 14 to 15% EBITDA margins, coupled with increased adjusted free cash flow, Dana is poised to create long-term shareholder value.

For those interested in a deep dive into Dana's strategies and financial forecasts, the company will host a `Capital Markets Day` on March 25, 2026, in New York City. This event promises to elucidate Dana's ambitious plans and the robust foundation it is building moving forward.

Overall, Dana Incorporated's financial successes in 2025 have paved the way for a promising and innovative future, marked by strategic growth and adaptability within the evolving market landscape.