Question · Q3 2025
Josh asked how to bridge the Q4 2025 margin into 2026, seeking clarity on main drivers and any unusual factors. He also inquired about the impact of key platform volumes and a richer mix towards off-road performance trims on Dana's powertrain changes.
Answer
Senior Vice President and CFO Timothy Kraus clarified that the Q4 run rate is highly indicative of the 10-10.5% margin target for 2026, driven by the full run rate of $310 million in cost savings and the removal of stranded costs. He emphasized that achieving the 2026 target is not expected to be difficult. Mr. Kraus also noted that a richer mix towards models like the Jeep Wrangler Rubicon and Bronco, along with increased Super Duty production, benefits Dana due to higher content and larger axles.