Dana Incorporated Reports Strong Third-Quarter Results
DANA Inc (DAN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Dana Incorporated Reports Strong Third-Quarter Results; Eaton Mobility Transaction on Track; Increases Share Repurchases Third-Quarter Highlights: • Sales of $2.0 billion, an increase of $121 million versus the third quarter of 2025 • Net income of $15 million, inclu
How this was made
The 30-second read
Why it matters
The raised sales guidance reflects stronger commercial‑vehicle demand and may attract buying interest, while the pending Eaton Mobility transaction adds strategic upside.
Market read
Dana's earnings beat and raised guidance provide a fresh catalyst that can move the stock and influence the broader industrial component sector.
What to watch
Potential delays in the Eaton Mobility transaction could offset the guidance uplift.
Dana reported higher third-quarter sales and adjusted EBITDA, expanded adjusted EBITDA margin by 220 basis points, raised its sales outlook, and increased planned 2026 share repurchases.
Third-quarter sales increased to $2.04 billion and adjusted EBITDA increased to $218 million with a 10.7 percent margin. Continuing-operations GAAP results remained a loss because of debt-extinguishment and tax charges, while adjusted net income, diluted adjusted EPS, and operating performance improved materially.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $2.04B | – | $121 million |
| Earnings from continuing operations before interest and income taxes, three months ended September 30, 2026GAAP | $92M | – | – |
| Net income (loss) from continuing operations, three months ended September 30, 2026GAAP | −$10M | – | – |
| Net income from discontinued operations, three months ended September 30, 2026GAAP | $29M | – | – |
| Net income, three months ended September 30, 2026GAAP | $19M | – | – |
| Net income attributable to the parent company, three months ended September 30, 2026GAAP | $15M | – | – |
| Diluted earnings (loss) per share from continuing operations, three months ended September 30, 2026GAAP | $ (0.13) | – | – |
| Diluted earnings per share from discontinued operations, three months ended September 30, 2026GAAP | $ 0.27 | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.14 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $218M | – | $56 million |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 10.7 percent | – | 220 basis points |
| Adjusted net income (loss) attributable to the parent company, three months ended September 30, 2026non-GAAP | $44M | – | – |
| Diluted adjusted EPS, three months ended September 30, 2026non-GAAP | $ 0.41 | – | $0.45 |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $102M | – | – |
| Adjusted free cash flow, three months ended September 30, 2026non-GAAP | $66M | – | – |
| Net sales, nine months ended September 30, 2026GAAP | $5.92B | – | – |
| Earnings (loss) from continuing operations before interest and income taxes, nine months ended September 30, 2026GAAP | $187M | – | – |
| Net loss from continuing operations, nine months ended September 30, 2026GAAP | −$14M | – | – |
| Net income from discontinued operations, nine months ended September 30, 2026GAAP | $1.12B | – | – |
| Net income attributable to the parent company, nine months ended September 30, 2026GAAP | $1.10B | – | – |
| Diluted loss per share from continuing operations, nine months ended September 30, 2026GAAP | $ (0.25) | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 10.18 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $596M | – | – |
| Adjusted net income (loss) attributable to the parent company, nine months ended September 30, 2026non-GAAP | $81M | – | – |
| Diluted adjusted EPS, nine months ended September 30, 2026non-GAAP | $ 0.74 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $16M | – | – |
| Adjusted free cash flow, nine months ended September 30, 2026non-GAAP | −$61M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Light Vehicle, three months ended September 30, 2026Segment-specific sales driver was not separately provided. | $1.37B | – | – |
| Commercial Vehicle, three months ended September 30, 2026Stronger commercial vehicle demand, backlog conversion, and commercial and cost-recovery actions were cited as drivers of total sales growth. | $667M | – | – |
| Light Vehicle, nine months ended September 30, 2026Segment-specific sales driver was not separately provided. | $4.02B | – | – |
| Commercial Vehicle, nine months ended September 30, 2026Segment-specific sales driver was not separately provided. | $1.90B | – | – |
full-year 2026 outlook
- Revenue$7.75 to $7.85 billion
- NoteAdjusted EBITDA $800 to $850 million
- NoteImplied adjusted EBITDA margin ~10.6%
- NoteDiluted Adjusted EPS $1.75 to $2.25
- NoteAdjusted free cash flow $275 to $375 million
- NoteSales outlook raised by approximately $50 million
- NoteEaton Mobility transaction remains on track to close around the end of the first quarter of 2027
- NoteDana expects to repurchase an additional $100 million of shares in the fourth quarter of 2026
Capital returns
- Repurchased approximately 6.6 million shares for $200 million during the third quarter.
- Year-to-date capital returned to shareholders through share repurchases was $369 million.
- Dana expects to repurchase an additional $100 million of shares in the fourth quarter of 2026.
- Dividends paid to common stockholders were $ 13 million for the three months ended September 30, 2026 and $ 39 million for the nine months ended September 30, 2026.
- Program-to-date share repurchases returned $1,020M to shareholders.
- The $2B authorization completion was accelerated to mid-2029.
What drove it
- Stronger commercial vehicle demand.
- Backlog conversion.
- Commercial and cost-recovery actions.
- Cost-savings actions and operational efficiency improvements.
- Favorable commercial vehicle mix, material cost savings, structural cost actions, and currency benefits largely driven by the real and rand.
- Dana achieved $60 million in cost savings year to date and cited a $325M program target to be realized in Q4.
- Net interest expense declined $28 million following debt-reduction actions completed after the Off-Highway divestiture.
Concerns
- Net loss from continuing operations was $10 million, compared with net income of $13 million in the prior-year quarter.
- Third-quarter GAAP results included a $24 million loss on extinguishment of debt.
- Income tax expense included a $29 million charge related to a foreign income-tax settlement, partially offset by a $12 million benefit associated with post Off-Highway sale restructuring actions.
- Adjusted free cash flow declined to $66 million from $101 million, reflecting the absence of cash generation from the divested Off-Highway business, higher capital spending, and working-capital timing.
- Tariff recoveries were a modest margin headwind, while commodities remained a modest margin headwind.
- The Eaton Mobility transaction had one remaining regulatory approval pending.
What to watch
- Execution against full-year sales guidance of $7.75 to $7.85 billion and adjusted EBITDA guidance of $800 to $850 million.
- Delivery of the $325M cost-savings program target to be realized in Q4.
- Fourth-quarter execution of the additional $100 million of planned share repurchases.
- Working-capital timing, capital spending, and adjusted free cash flow against guidance of $275 to $375 million.
- The remaining regulatory approval and the targeted closing of the Eaton Mobility transaction around the end of the first quarter of 2027.
- Progress toward at least $250M of run-rate cost synergies within 24 months post-close.
Balance sheet and cash flow
- Cash and cash equivalents were $ 321 million as of September 30, 2026, compared with $ 469 million as of December 31, 2025.
- Short-term debt was $ 710 million as of September 30, 2026, compared with $ 615 million as of December 31, 2025.
- Current portion of long-term debt was $ 26 million as of September 30, 2026, compared with $ 30 million as of December 31, 2025.
- Long-term debt, less debt issuance costs, was $ 839 million as of September 30, 2026, compared with $ 2,566 million as of December 31, 2025.
- Total assets were $ 6,078 million as of September 30, 2026, compared with $ 7,808 million as of December 31, 2025.
- Total liabilities were $ 4,302 million as of September 30, 2026, compared with $ 6,909 million as of December 31, 2025.
- Total equity was $ 1,776 million as of September 30, 2026, compared with $ 899 million as of December 31, 2025.
- Purchases of property, plant and equipment were $ (70) million for the three months ended September 30, 2026 and $ (274) million for the nine months ended September 30, 2026.
- Net cash used in financing activities was $ (28) million for the three months ended September 30, 2026 and $ (2,396) million for the nine months ended September 30, 2026.
Analysis
Dana delivered a stronger operating quarter. Sales were $2.04 billion versus $1.92 billion in the same period of 2025, led by stronger commercial vehicle demand, backlog conversion, and commercial and cost-recovery actions. Commercial Vehicle sales were $667 million and Light Vehicle sales were $1,371 million. The company also reported $60 million of cost savings year to date and cited a $325M program target to be realized in Q4.
Profitability improved substantially on an adjusted basis. Adjusted EBITDA rose to $218 million from $162 million and the adjusted EBITDA margin expanded to 10.7 percent from 8.5 percent. Management attributed the improvement to cost savings, operational efficiency, commercial initiatives, favorable mix, material cost savings, cost-recovery actions, and structural cost actions. Earnings from continuing operations before interest and income taxes increased to $92 million from $53 million.
GAAP continuing-operations earnings did not reflect the operating improvement. Dana recorded a $10 million net loss from continuing operations, compared with $13 million of net income a year earlier, and diluted loss per share from continuing operations was $0.13. The release identified a $24 million loss on debt extinguishment and higher income tax expense, including a $29 million foreign income-tax settlement charge partly offset by a $12 million post Off-Highway sale restructuring benefit. Adjusted net income improved to $44 million from an adjusted net loss of $5 million, while diluted adjusted EPS improved to $0.41 from an adjusted loss per share of $0.04.
Cash conversion was lower year over year despite the stronger adjusted earnings. Operating cash flow was $102 million compared with $111 million, and adjusted free cash flow was $66 million compared with $101 million. Dana cited the absence of cash generation from the divested Off-Highway business, higher capital spending, and working-capital timing, partly offset by higher continuing-operations earnings and lower one-time costs, net interest, and cash taxes. The balance sheet showed $321 million of cash and cash equivalents, $710 million of short-term debt, and $839 million of long-term debt, less debt issuance costs, at September 30, 2026.
Dana raised its full-year sales outlook by approximately $50 million to $7.75 to $7.85 billion while maintaining adjusted EBITDA guidance of $800 to $850 million, diluted adjusted EPS guidance of $1.75 to $2.25, and adjusted free cash flow guidance of $275 to $375 million. Capital allocation remains active: the company repurchased approximately 6.6 million shares for $200 million in the quarter, bringing year-to-date repurchases to $369 million, and expects an additional $100 million in fourth-quarter repurchases. The Eaton Mobility transaction remains targeted for around the end of the first quarter of 2027, with only one regulatory approval pending.
Management, verbatim
Dana delivered strong third-quarter results, reflecting our continued focus on operating the business well and executing our strategy with discipline.
Byron Foster, Chief Executive Officer
Productivity gains, commercial initiatives, and structural cost reductions are driving meaningful margin improvement as we capitalize on stronger commercial vehicle demand and continue to return capital to shareholders.
Byron Foster, Chief Executive Officer
Our increased fourth-quarter repurchases underscore our confidence in Dana and our commitment to shareholder value.
Byron Foster, Chief Executive Officer
Not in the filing
stated, not guessed- GAAP gross margin was not reported.
- GAAP operating margin was not reported.
- Quarterly GAAP operating expenses guidance was not provided.
- Full-year 2026 gross margin, operating expenses, and tax rate guidance were not provided.
- A previous-release outlook was not provided, so a metric-by-metric comparison of reported results with prior guidance cannot be made.
- Prior-quarter comparisons for reported third-quarter metrics were not provided.
- Segment-specific year-over-year and sequential sales changes were not separately reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Dana Inc. (NYSE:DAN) released its Q3 2026 earnings via an SEC Form 8‑K, highlighting sales of $2.04 B, adjusted EBITDA of $218 M, and an updated full‑year sales target of $7.75‑$7.85 B.
Ticker impact
Dana Inc. filed an 8‑K reporting Q3 2026 results and updated full‑year guidance, raising its sales outlook by $50 million.
likely upward pressure as investors price in higher sales outlook
The filing provides fresh, material numbers and a raised sales outlook, which can move the market immediately.
Market effects
Improved outlook for commercial‑vehicle components may lift peers in the industrial sector.
U.S. industrial stocks could see modest gains.
Limited to U.S. and global industrial supply chains.
Counterpoint
If the raised guidance is already priced in, the stock could face a short‑term pull‑back.
Key entities
- partnerEaton Mobility
Transaction with Dana expected to close Q1 2027.
