Off-highway business sale highlights Dana's Q2 earnings report

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Dana

Dana’s second quarter at a glance:

  • Dana reported sales of $1.9 billion from continuing operations, which doesn't include the off-highway operations.
  • The company announced a $1 billion capital return authorization. It expects the 2025 capital return to be around $600 million.
  • Dana repurchased 14.6 million shares in the second quarter.
  • Dana realized $59 million in cost savings in Q2, bringing the year to date total to $110 million. It expects total cost savings of $310 million through 2026.

Dana Incorporated's second quarter was marked by the sale of its off-highway business to Allison

"In June, we announced a definitive agreement to sell off our off-highway business, a key step in our strategy to become a more focused supplier to the light- and commercial-vehicle markets," says R. Bruce McDonald, chairman and CEO. 

Sales for the quarter was $1.9 billion from continuing operations and $662 million from the discontinued operations. Continuing operations had a loss of $24 million while discontinued operations showed an income of $77 million. The adjusted earnings before interest, taxes, debt and amortization (EBITDA) was $145 million from continuing operations and $111 million from discontinued operations. 

"[The sale] significantly strengthens our balance sheet and enabled us to begin a $1 billion capital return program, including the repurchase of over $250 million in shares during the second quarter," McDonald says. "We expect to return an additional $100 to $150 million to shareholders in the third quarter and approximately $600 million by the end of the year." 

The company's operating cash flow was $36 million from both continuing and discontinued operations to align with the deal's structure, Dana says. Adjusted free cash flow was a use of $5 million, compared with $104 million on the same period of 2024. 

"Our expanded $310 million cost-savings initiative is progressing well, with nearly $60 million realized in the second quarter and $110 million to date — underpinning our commitment to deliver 10% adjusted EBITDA margin in 2026," McDonald says.

Timothy Kraus, Dana's senior vice president and chief financial officer says these initiatives have been key to mitigating the impacts of tariffs and inflation on the company's business. 

"We are actively working with our customers to recover the majority of these costs within the year," Kraus says. "Additionally, as previously noted, we are no reporting results and guidance only for continuing operations. Reflecting higher tariff recoveries, enhanced cost performance, and reduced working capital requirements, we are raising our full-year guidance for continuing operations." 

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