Dana Lifts 2026 Sales Outlook After Margin Expansion

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter sales reached $2.04 billion as adjusted EBITDA hit $218 million and the company raised its full-year sales target by about $50 million.

Dana Incorporated (DAN), a global supplier of propulsion systems for light and commercial vehicles, reported third-quarter sales of $2.04 billion, up $121 million from $1.92 billion a year earlier, and raised its 2026 sales outlook by about $50 million.

The company said the increase was driven primarily by stronger commercial vehicle demand, backlog conversion, and commercial and cost-recovery actions. Adjusted EBITDA was $218 million, or a 10.7 percent margin, compared with $162 million and an 8.5 percent margin in the third quarter of 2025. Dana attributed the margin improvement to cost-savings actions, operational efficiency, and commercial initiatives.

That expansion followed a second quarter in which adjusted EBITDA was $207 million and the margin was 10.3 percent. Year to date, the company said it had achieved $60 million in cost savings.

Commercial Vehicle sales were $667 million, compared with $564 million a year earlier. Light Vehicle sales were $1.37 billion. Commercial Vehicle adjusted EBITDA was $69 million; Light Vehicle adjusted EBITDA was $151 million. Corporate expense and other items, net, reduced adjusted EBITDA by $2 million.

Net income attributable to the parent company was $15 million, including $29 million from discontinued operations and $41 million of debt-extinguishment and net tax charges. Net loss from continuing operations was $10 million, or $0.13 a share, compared with net income of $13 million, or $0.07 a share, a year earlier. Dana said significantly improved operating performance and lower net interest expense were more than offset by a $24 million loss on the extinguishment of debt and higher income tax expense, including a $29 million charge related to the settlement of a foreign income tax, partially offset by a $12 million benefit associated with post Off-Highway sale restructuring actions.

Adjusted net income was $44 million, or $0.41 a share, compared with an adjusted net loss of $5 million, or an adjusted loss of $0.04 a share, in the year-ago quarter.

Operating cash flow was $102 million, compared with $111 million a year earlier. Adjusted free cash flow was $66 million, compared with $101 million. Dana said higher earnings from continuing operations and lower one-time costs, net interest, and cash taxes partially offset the absence of cash generation from the divested Off-Highway business, higher capital spending, and working capital timing.

During the third quarter, Dana repurchased about 6.6 million shares for $200 million, bringing year-to-date repurchases to $369 million. The company said it expects to repurchase an additional $100 million of shares in the fourth quarter of 2026.

Dana raised its 2026 sales target to $7.75 billion to $7.85 billion, reflecting higher demand and recoveries. It maintained adjusted EBITDA guidance of $800 million to $850 million, implying an adjusted EBITDA margin of about 10.6 percent, diluted adjusted EPS of $1.75 to $2.25, and adjusted free cash flow of $275 million to $375 million.

The Eaton Mobility transaction remains on track to close around the end of the first quarter of 2027. Dana said nearly all regulatory approvals have been obtained, with only one pending. Chief Executive Officer Byron Foster said the company continues to see strategic and financial benefits from the combination and is maximizing opportunities to return capital to shareholders before closing.