Wenyang

Wenyang inquired about the drivers behind the $110 million performance increase, specifically if it was mostly due to pricing improvements or other factors. She also asked for preliminary insights into the puts and takes for light vehicle and commercial markets in 2026, and why the Q4 impact from a large customer (Ford) seemed minimal.

Answer

Senior Vice President and CFO Timothy Kraus explained that the performance increase was largely driven by pricing actions, including revised pricing on new platforms and economic recoveries from customers, with the balance from plant-level productivity. Chairman and CEO Bruce McDonald noted that for 2026, light vehicle tailwinds include strong demand for large SUVs (Super Duty, Bronco, Jeep Wrangler) and planned Super Duty volume uplift. Mr. Kraus clarified that Q4 impact from Ford was partially factored into earlier forecasts, and Bruce McDonald added that Dana's exposure is primarily to Super Duty, which Ford is prioritizing.

Wenyang, asking for Edison Yu from Deutsche Bank AG, inquired about the drivers behind the $110 million performance increase, specifically if it was primarily due to pricing improvements from bigger programs or other factors. Wenyang also asked for preliminary insights into light vehicle and commercial market puts and takes for 2026, and how Q4 guidance incorporates potential impacts from a large customer's production losses.

Answer

Timothy Kraus (Senior Vice President and CFO, Dana Incorporated) explained that the performance increase includes revised pricing from new platforms and programs, commercial team efforts for economic and improvement recoveries (about $80 million in top-line pricing), and plant-level productivity improvements. For 2026, he noted continued strength in core light vehicle programs (Super Duty, Bronco, Wrangler, Ranger) and no significant improvement in commercial vehicle markets in the first half. Bruce McDonald (Chairman and CEO, Dana Incorporated) added that soft oil prices are a tailwind for large SUVs, and Ford plans to uplift Super Duty volume next year. Regarding Q4 impacts, Kraus stated some conservatism was already in the forecast, and customers plan to make up some volume later in the quarter, with Dana's exposure being Super Duty, not F-150.