Wendy Dong's questions to Dana Inc (DAN) leadership • Q2 2025
Question
Wendy Dong from Deutsche Bank requested commentary on current end-market conditions for light and commercial vehicles and asked for an explanation of the difference between Q2's high decremental margins and the lower full-year forecast.
Answer
Senior VP & CFO Timothy Kraus noted stable light truck demand but significant softness in North American Class 8 commercial vehicles, which is factored into the outlook. He explained that Q2's unfavorable 30% decremental margin was due to a temporary negative sales mix, particularly in high-margin CV EV products, which is expected to normalize in the second half of the year.