Dana Inc. Delivers Strong Q2 2025 Performance Amid Market Challenges, Raises Capital Return to Shareholders and Increases Profit Guidance

Dana Inc reported strong Q2 performance with a beat on earnings, double-digit margins, and accelerating free cash flow. The company is raising its capital return to shareholders to $600 million and on track to achieve $310 million in cost savings by 2026. However, the off-highway business guidance has been reduced due to tariff impacts, and there is uncertainty in the market due to tariffs and business climate.

Dana Incorporated (NYSE: DAN) reported robust second-quarter (Q2) 2025 financial results, reflecting a focus on cost savings and capital return to shareholders. The company's continuing operations generated $1.9 billion in sales, a 5.4% decrease from the same period last year. Despite the decline, the company's adjusted EBITDA reached $145 million, up 41% year-over-year, and operating cash flow was $36 million, a significant improvement from the $215 million reported in Q2 2024.

The company's strategic decision to sell its Off-Highway business has proven beneficial, as it has enabled Dana to initiate a $1 billion capital return program. This program has already seen the repurchase of 14.6 million shares in Q2, totaling $250 million, with plans to return an additional $100 to $150 million in the third quarter and approximately $600 million by the end of the year.

Dana's cost-savings initiatives are also progressing well, with $59 million realized in Q2 and $110 million to date. The company aims to achieve a total of $310 million in cost savings by 2026, which is expected to help the company reach a 10% adjusted EBITDA margin by that year.

However, the off-highway business's guidance has been reduced due to tariff impacts. The company's full-year guidance for continuing operations has been revised, with sales expected to range from $7.25 to $7.55 billion, adjusted EBITDA from $540 to $610 million, and operating cash flow from $550 to $650 million.

Dana Incorporated will host a conference call at 9 a.m. EDT on Tuesday, August 5, to discuss its first-quarter results and provide further insights into its financial performance.

References:
[1] https://danaincorporated.gcs-web.com/news-releases/news-release-details/dana-incorporated-reports-2025-strong-second-quarter-financial