Dana (DAN) Q1 2026 earnings summary

Executive summary

• Achieved strong year-over-year margin improvement and revenue growth in Q1 2026, with sales of $1.87 billion, driven by cost savings and new business wins, marking a positive start to the Dana 2030 plan.

• Completed the sale of the Off-Highway business, recognizing a $1,191 million pre-tax gain, with proceeds used for debt reduction and share repurchases.

• Secured a significant new business award with Stellantis for the Ram Dakota program, increasing backlog and near-term sales visibility.

• Leadership transition underway, with the outgoing CEO moving to Chairman and the incoming CEO emphasizing continuity and execution.

• Strategic focus shifted to light and commercial vehicles, with a leaner cost structure and improved balance sheet.

Financial highlights

• Q1 2026 sales reached $1.868 billion, up from $1.781 billion year-over-year, despite lower end-market demand.

• Adjusted EBITDA was $171 million (9.2% margin), up from $93 million (5.2% margin) in Q1 2025, driven by cost savings and efficiency improvements.

• Adjusted free cash flow from continuing operations was a use of $195 million, reflecting higher profitability but typical Q1 working capital usage and discontinued operations.

• Repurchased 4.4 million shares, returning $125 million to shareholders in Q1, on track for $300 million for the year and $2 billion by 2030.

• Achieved $35 million in cost savings in Q1, on track for $65 million in 2026 and $325 million program total.

Outlook and guidance

• 2026 revenue expected at $7.3–$7.7 billion, with adjusted EBITDA of $750–$850 million (10%–11% margin) and adjusted free cash flow of $250–$350 million.

• Diluted adjusted EPS guidance for 2026 is $2.00–$3.00, using a share count of 109 million.

• Guidance remains unchanged but trending toward the upper end due to strong Q1 performance, currency, and tariff recoveries.

• 2030 targets: $10 billion sales, 14–15% adjusted EBITDA margin, 6% adjusted FCF margin.

• $950 million sales backlog for 2026–2028, with $200 million expected to be realized in 2026.