Dana Incorporated's Earnings Miss Analyst Estimates, Analysts Forecast Revenue Decline and Loss in 2026

Dana Incorporated's Q2 earnings missed analyst estimates, with revenues of $2.6b in line with predictions but earnings per share at $0.19, missing estimates by 10%. Analysts now forecast a 24% decline in revenue to $7.53b in 2025 and a statutory loss of $0.20 in 2026, a sharp decline from a profit in the previous year. The consensus price target remains at $23.71, with the most bullish analyst valuing Dana at $26.00 and the most bearish at $18.00.

Dana Incorporated (DAN) reported its Q2 2025 earnings on July 2, 2025, missing analyst estimates. The company's earnings per share (EPS) of $0.19 fell short of expectations by 10%, while revenue of $1.94 billion was in line with predictions. Analysts now forecast a 24% decline in revenue to $7.53 billion in 2025 and a statutory loss of $0.20 in 2026, a sharp decline from a profit in the previous year. The consensus price target remains at $23.71, with the most bullish analyst valuing Dana at $26.00 and the most bearish at $18.00.

The company's Q2 performance highlighted a mixed bag of results. While the adjusted EPS beat estimates by 25.21%, driven by aggressive cost-cutting and operational efficiencies, revenue fell to $1.94 billion, missing forecasts by 23.62%. The reclassification of its Off-Highway business as a discontinued operation contributed to the revenue miss. The sale of the Off-Highway business for $2.7 billion will fund a $1 billion capital return program, including share repurchases and dividends [3].

Dana's 7.5% EBITDA margin, up from 5.4%, reflects the company's strategic repositioning towards core segments. The company's revised full-year guidance—$7.4 billion in sales and $575 million in adjusted EBITDA—shows confidence in its cost-cutting measures and operational efficiencies [3].

The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call and how the estimates for the coming quarters and the current fiscal year change. The current consensus EPS estimate is $0.20 on $1.94 billion in revenues for the coming quarter and $0.67 on $7.43 billion in revenues for the current fiscal year [1, 2].

Investors should also be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [1, 2].

Workhorse Group (WKHS), another stock in the same industry, has yet to report results for the quarter ended June 2025. This truck and drone manufacturer is expected to post a quarterly loss of $3.98 per share in its upcoming report, which represents a year-over-year change of +77.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days [1, 2].

References:
[1] https://finance.yahoo.com/news/dana-dan-q2-earnings-revenues-225504688.html
[2] https://www.nasdaq.com/articles/dana-dan-q2-earnings-and-revenues-miss-estimates
[3] https://www.ainvest.com/news/assessing-dana-dan-post-q2-earnings-stock-recover-missed-estimates-mixed-analyst-sentiment-2508/