Dana's Q3 highlights:
- Reported sales of $1.9 billion from continuing operations. Full-year guidance for 2025 is $7.3-$7.5 billion.
- Net income is up $34 million year over year.
- Operating cash flow is up $76 million over last year and adjusted free cash flow is up $109 million.
- The sale of the off-highway business to Allison is expected to close in the fourth quarter.
Dana Incorporated's third-quarter results reflect its discontinued off-highway business, which was sold to Allison earlier this year. The transaction is expected to be complete in the fourth quarter.
"Our business is performing very well and we are experiencing minimal impact from market fluctuations and customer production disruptions," says R. Bruce McDonald, Dana's chairman and CEO.
Dana's third-quarter results
Sales for continuing operations in the third quarter totaled $1.92 billion, up slightly from the $1.9 billion reported in Q3 2024. Net income was $13 million, compared with a net loss off $21 million at the same time last year.
Adjusted EBITDA for the quarter was $162 million or 8.5% of sales, compared with $111 million or 5.9% of sales year over year. The company's cost savings program, which has a goal of $310 million, has mitigated the margin impact of lower volumes and cost inflation. Dana reported saving more than $70 million in Q3.
Operating cash flow in the third quarter was $111 million, compared with $35 million last year. Adjusted free cash flow was $101 million, compared with a use of $8 million in 2024. Dana says the improvement comes from higher profit, lower taxes and working capital requirements.
Looking ahead to Q4
Continuing operations — disregarding the off-highway business — are expected to end 2025 with $7.3-$7.5 billion in sales, the company says. Dana has raised full-year profit guidance due to its accelerated cost savings.
"The continued execution of our cost-saving plan and operating efficiency improvements are driving our higher profit expectations for this year," says Timothy Kraus, senior vice president and CFO. "Additionally, the tariff recovery mechanisms we have in place are functioning well and we expect to recover the majority of these costs within the year."
