Dana Raises Outlook as Margins Expand
Second-quarter sales rose 4% to $2.01 billion as demand, pricing and currency provided a lift.
Vehicle-components supplier Dana Incorporated (DAN) increased adjusted EBITDA 41% to $207 million in the second quarter, widening its margin to 10.3% from 7.6% a year earlier.
Dana achieved another $19 million of cost savings during the quarter, while operational efficiencies and pricing initiatives also supported the earnings improvement. Gross profit climbed to $210 million from $138 million as cost of sales remained nearly flat, expanding the implied gross margin to about 10.4% from 7.1%.
Sales rose 4% to $2.01 billion from $1.94 billion, driven by higher end-market demand, pricing actions and favorable currency translation. Net income from continuing operations swung to $11 million, or $0.06 a diluted share, from a $12 million loss, or $0.11 a share, while adjusted EPS increased to $0.19 from $0.03.
Earnings from continuing operations before interest and taxes rose to $76 million from $16 million. Interest expense fell by more than half to $21 million after Dana used proceeds from its Off-Highway divestiture to repay debt.
Operating cash flow increased to $109 million from $32 million a year earlier. Adjusted free cash flow improved to $68 million from a $7 million use of cash.
Dana raised its 2026 outlook by about $225 million for sales and about $25 million for adjusted EBITDA due to stronger market conditions, favorable commercial-vehicle demand, cost reductions and currency translation.
The company restarted its share-repurchase program and bought about 1.2 million shares for $44 million during the quarter, with roughly $200 million of additional repurchases planned by the end of 2026. Its Eaton Mobility transaction remains targeted to close in the first quarter of 2027 under a split-off structure that Dana and Eaton expect to be tax-free to shareholders.