DANA (DAN) Company Report

On December 4, 2025, Dana Incorporated and Dana Financing Luxembourg S.à r.l. commenced cash tender offers for several series of outstanding senior notes, including up to $173 million of 2027 Notes, $173 million of 2028 Notes, €141 million of 2029 Notes, $173 million of 2030 Notes, €184 million of 2031 Notes, and $152 million of 2032 Notes.
These offers are conditioned on the consummation of the previously disclosed sale of Dana's off-highway business, which is expected to generate approximately $2.3 billion in net cash proceeds. Dana intends to use approximately $1,066 million of these proceeds to fund the note purchases as part of a debt reduction plan.
The tender offers are set to expire on January 5, 2026. Concurrently, Dana issued notices for the conditional full redemption of all outstanding 2027 Notes and 2028 Notes, with a redemption date of January 8, 2026, also subject to the off-highway business sale.

1 day ago

8-K

Dana, Inc. Provides Q4 2025 Update, Details Off-Highway Sale Progress, and Capital Allocation Plans

DAN

Guidance Update

M&A

Share Buyback

Dana, Inc. is on track to meet its implied fourth-quarter 2025 guidance. The company expects to close the sale of its off-highway business by the end of 2025, which will contribute to $2 billion in deleveraging and improved working capital efficiency.
The company has a $1 billion capital return authorization, with approximately $400 million remaining for stock buybacks through 2027.
Management is ahead of schedule on its $310 million cost-out target and anticipates further margin expansion through plant-level efficiencies and automation over the next 1-3 years.
For 2026, Dana projects CapEx to be around 4%-4.5% of sales and aims for a 4% free cash flow margin. The EV backlog is expected to be lower than previously thought due to cancellations and delays, but this also means less investment is required.

2 days ago

Transcript

Dana Inc. Provides Q4 2025 Outlook and Updates on Off-Highway Sale and Capital Allocation

DAN

M&A

Guidance Update

Share Buyback

Dana Inc. is on track to achieve its implied fourth-quarter 2025 guidance.
The sale of the off-highway business is expected to close by year-end 2025, with $2 billion allocated for deleveraging and $1 billion for capital return, including $400 million remaining for stock buybacks through 2027.
The company anticipates margin improvements in 2026 for the light vehicle segment and has achieved $310 million in cost reductions, with future CapEx projected at 4%-4.5% of sales for 2026.
The commercial vehicle market is expected to remain flat in the first half of 2026, though Dana is gaining market share, and the sale of the off-highway business is expected to improve working capital efficiency.

2 days ago

Transcript

Dana's CFO Discusses Strategic Transformation, 2026 Margin Targets, and Free Cash Flow Outlook

DAN

M&A

Guidance Update

New Projects/Investments

Dana is undergoing a strategic transformation with the sale of its off-highway business, simplifying its focus to light vehicle and commercial vehicle end markets.
The company targets a 10-10.5% margin for 2026, a significant improvement from the current year's ~8%, driven by $310 million in cost savings, elimination of $35-$40 million in stranded costs, and operational improvements.
Dana anticipates free cash flow of approximately 4% of sales in 2026 (around $300 million), supported by margin expansion, significantly lower cash interest payments due to a $2 billion debt reduction, and a reduced cash tax bill.
The EV market slowdown has impacted Dana's backlog, with 70-75% of the backlog being EV-related, leading to lower volumes and program delays. Dana is now seeking guaranteed volumes, upfront engineering payments, or CapEx from customers for new EV programs.
CapEx is projected to increase to 4% of sales in 2026 from 3% in 2025, primarily for program renewals, plant floor investments (including automation), and delayed maintenance.

Nov 19, 2025, 6:40 PM

Transcript

Dana Outlines Strategic Transformation and Margin Expansion Targets

DAN

M&A

Guidance Update

New Projects/Investments

Dana is undergoing a significant transformation by selling its off-highway business to focus on light vehicle and commercial vehicle markets, aiming for a simplified business model.
The company projects a 10-10.5% margin for 2026, a substantial increase from 8% in the current year, driven by $310 million in cost savings, elimination of $35-$40 million in stranded costs, and improved operating performance.
Dana anticipates achieving 4% of sales in free cash flow in 2026, approximately $300 million, supported by margin expansion, a $2 billion debt paydown, and a lower cash tax bill.
The company is implementing a more pragmatic EV strategy, leveraging existing technologies and requiring customers to guarantee volume or cover upfront engineering/CapEx for new programs, while actively pursuing commercial recovery for impacted EV volumes.

Nov 19, 2025, 6:40 PM

Transcript

Dana outlines post-off-highway sale strategy and financial targets

DAN

M&A

Guidance Update

Demand Weakening

Dana is undergoing a transformational transaction with the sale of its off-highway business, simplifying its focus to light vehicle and commercial vehicle end markets.
The company is targeting a 10-10.5% margin for next year (2026), a significant improvement from 8% in the current year (2025), driven by cost savings, stranded cost elimination, and operational performance improvements.
Dana expects to achieve 4% of sales in free cash flow next year (2026), supported by margin expansion, a $2 billion debt paydown leading to significantly less interest, and a lower cash tax bill.
Dana is managing supply chain disruptions, particularly for Ford's popular and high-profit margin products , and is taking a more pragmatic approach to EV programs, requiring OEMs to guarantee volume, pay for engineering upfront, or cover CapEx.
Despite a challenging commercial vehicle (CV) market with no expected "green shoots" until mid-2026, Dana is managing the impact through cost actions and market share gains.

Nov 19, 2025, 6:40 PM

Transcript

Dana and Allison Receive Regulatory Approvals for Off-Highway Business Sale

DAN

M&A

Share Buyback

Dana Incorporated and Allison Transmission Holdings, Inc. have received all required regulatory approvals for the sale of Dana's Off-Highway business to Allison.
The transaction is targeted to close at or near the end of this year.
As a result of this transaction, Dana expects to return $600 million to shareholders this year and reduce debt by approximately $2 billion next year.

Nov 19, 2025, 11:50 AM

Press Release

Dana Discusses Off-Highway Sale, Financial Transformation, and Future Strategy

DAN

M&A

Share Buyback

Guidance Update

Dana Incorporated completed the $2.4 billion net sale of its off-highway business to Allison Transmission, expected to close this quarter, which will make the company net debt neutral with approximately $100 million of net debt.
Following the sale, Dana will operate with two segments and has a cost reduction target of $310 million, with $235 million anticipated to be delivered this fiscal year, aiming for 10-10.5% margins in 2026.
The company used $600 million of the sale proceeds for a share buyback, reducing the current share count from 130 million to about 115 million.
Dana has adjusted its EV strategy, reducing investment due to market shifts, and is focusing on growth opportunities in its aftermarket business, defense, and power sports.
CEO Bruce McDonald expects his successor to start around mid-next year, with a gradual transition.

Nov 3, 2025, 7:50 PM

Transcript

Dana Incorporated Details Off-Highway Business Sale, Capital Allocation, and Strategic Transformation

DAN

M&A

Share Buyback

Management Change

Dana Incorporated is selling its off-highway business to Allison Transmission for a net sale of $2.4 billion, with the transaction anticipated to close in the current quarter. This sale is expected to make the company essentially net debt neutral, with approximately $100 million of net debt.
The company plans to allocate $600 million of the $2.4 billion net proceeds from the sale towards stock buybacks, having already repurchased over 30 million shares as of November 2, 2025, reducing the share count to about 115 million.
Dana is undergoing a transformation aimed at achieving 10-10.5% margins by 2026. This includes a cost-saving target of $310 million, with $235 million anticipated to be delivered in the current fiscal year, and $75 million realized in the most recent quarter.
The company has shifted its EV strategy to focus on existing customers with internal combustion engine (ICE) exposure, creating a natural hedge against stalled North American SUV market electrification and reduced program volumes.
Bruce McDonald, CEO and Chairman, expects his successor to begin in the middle of next year (2026), with a gradual transition.

Nov 3, 2025, 7:50 PM

Transcript

Dana Incorporated Discusses Strategic Sale, Profitability Targets, and Share Buyback

DAN

M&A

Guidance Update

Share Buyback

Dana Incorporated is selling its off-highway business for a net sale of $2.4 billion, expected to close in the current quarter, which will make the company net debt neutral.
The company targets 10-10.5% margins by 2026 through a $310 million cost-saving initiative, with $235 million anticipated to be delivered in the current fiscal year.
$600 million from the sale proceeds will be used for a stock buyback, with over 30 million shares already repurchased, reducing the share count to approximately 115 million.
Dana is adjusting its EV strategy due to market changes and sees future growth in its aftermarket, defense, and power sports businesses, alongside further margin enhancement opportunities.