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1. Company Snapshot

1.a. Company Description

Dana Incorporated provides power-conveyance and energy-management solutions for vehicles and machinery in North America, Europe, South America, and the Asia Pacific.It operates in four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies.The Light Vehicle Drive Systems segment offers axles, driveshafts, e-axles, electrodynamic and drivetrain components, and transmissions, as well as electric, hybrid, and ICE products for light trucks, sport and crossover utility vehicles, vans, and passenger cars.


The Commercial Vehicle Drive and Motion Systems segment provides axles, driveshafts, e-axles, e-transmissions, electrodynamic and drivetrain components, and electric vehicle integration services, as well as software as a service for medium and heavy duty trucks, buses, and specialty vehicles.The Off-Highway Drive and Motion Systems segment offers axles, driveshafts, transmissions, planetary hub drives, e-axles and e-drives, and helical and bevel-helical gearboxes, as well as electrodynamic, hydraulic, and drivetrain components for construction, earth moving, agricultural, mining, forestry, material handling, and industrial stationary markets.The Power Technologies segment offers gaskets and sealing, cover modules, heat shields, thermal management, e-thermal management, cooling, and bipolar fuel cell plates products for light vehicle, medium/heavy vehicle, and off-highway markets.


The company was formerly known as Dana Holding Corporation and changed its name to Dana Incorporated in August 2016.Dana Incorporated was founded in 1904 and is headquartered in Maumee, Ohio.

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1.b. Last Insights on DAN

The recent 3-month performance of Dana Incorporated was negatively impacted by a disappointing Q1 earnings release. The company's adjusted EBITDA of $188 million fell short of the Zacks Consensus Estimate of $213 million, resulting in an adjusted EBITDA margin of 8.0 percent. Additionally, Dana's net income attributable to the company of $25 million, or $0.17 per share, missed the consensus estimate of $0.17 per share.

1.c. Company Highlights

2. Dana Incorporated's Q3 2025 Earnings: A Closer Look

Dana Incorporated reported sales of $1.917 billion for Q3 2025, a modest increase of $20 million compared to the same period last year. The company's adjusted EBITDA margin expanded by 260 basis points to 8.5%, resulting in an adjusted EBITDA of $162 million, a $51 million improvement year-over-year. However, the actual EPS came in at $0.17, missing estimates of $0.26. The company's adjusted free cash flow was $101 million, a significant improvement of $109 million compared to the prior year.

Publication Date: Nov -25

📋 Highlights
  • Cost Savings Progress:: Restructuring initiatives on track to deliver $310 million in annualized cost savings, contributing to improved margin expansion.
  • Share Repurchases:: Executed 30 million shares repurchased (20% of outstanding shares), with remaining buybacks planned within the next month.
  • Q3 Financial Performance:: Sales rose to $1.917 billion (+$20M YoY), adjusted EBITDA reached $162 million ($51M improvement YoY), and adjusted free cash flow surged to $101 million ($109M improvement YoY).
  • Full-Year Guidance:: Sales of $7.4 billion midpoint, adjusted EBITDA of $590 million, and free cash flow of $275 million, despite ongoing volume softness in key markets.
  • 2026 Margin Target:: Management confident in achieving 10-10.5% margin by 2026, driven by $50-75 million incremental savings from standardization and footprint optimization.

Revenue and Margin Performance

The revenue growth was driven by recoveries in currency benefits and lower demand. The company's margin expansion was primarily due to cost savings initiatives, which are on track to deliver $310 million in savings. The Off-Highway divestiture is also proceeding as planned, with closure expected in the fourth quarter. As Timothy Kraus noted, "our team has done a great job delivering on the things we can control, and it's helping us offset the things we cannot control."

Valuation Metrics

Using the current valuation metrics, Dana Incorporated's P/E Ratio stands at 55.45, EV/EBITDA at 8.16, and P/S Ratio at 0.39. These metrics indicate that the market is pricing in a certain level of growth, with analysts estimating a 2.5% revenue growth for next year. The company's ROE is 4.39%, and ROIC is -2.0%, indicating room for improvement in returns.

Guidance and Outlook

Dana Incorporated has guided for full-year sales from continuing operations to be approximately $7.4 billion, with adjusted EBITDA expected to be around $590 million. The company is also committed to returning $600 million to shareholders this year. Management is confident in delivering a 10% to 10.5% margin in 2026, driven by continued cost savings and restructuring actions. The company's strong fourth-quarter performance is expected to be driven by better mix, continued improvement from cost savings initiatives, and restructuring actions.

Future Prospects

The company's exposure to the aftermarket is expected to remain stable, driven by the aging of vehicle fleets and the need for replacements. Dana Incorporated is also poised to benefit from new program launches in 2026, including the Super Duty and Bronco programs. With a target CapEx of around 4% of sales, the company is expected to redeploy some of the dollars from increased profitability back into the business, potentially generating a snowball effect and driving margins higher over the next 2-3 years.

3. NewsRoom

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Dana Incorporated (DAN) Presents at UBS Global Industrials and Transportation Conference Transcript

Dec -03

Source: seekingalpha.com

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Dana Incorporated to Participate in UBS Global Industrials and Transportation Conference

Nov -25

Source: prnewswire.com

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Dana Incorporated (DAN) Presents at Barclays 16th Annual Global Automotive and Mobility Tech Conference Transcript

Nov -19

Source: seekingalpha.com

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Dana and Allison Announce All Required Regulatory Approvals Received for Off-Highway Business Transaction

Nov -19

Source: prnewswire.com

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Dana Incorporated (NYSE:DAN) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Nov -19

Source: defenseworld.net

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Dana Incorporated to Participate in Barclays 16th Annual Global Automotive and Mobility Tech Conference

Nov -14

Source: prnewswire.com

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5 Broker-Adored Stocks to Keep an Eye on for Strong Returns

Nov -10

Source: zacks.com

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Tariff impact will be the headwind for retail in 2026, says top retail analyst Dana Telsey

Nov -07

Source: youtube.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.12%)

6. Segments

Light Vehicle

Expected Growth: 5.22%

Dana Incorporated's Light Vehicle segment growth of 5.22% is driven by increasing demand for electric and hybrid vehicles, rising adoption of advanced drivetrain technologies, and growing need for fuel efficiency and emission reduction. Additionally, expansion in emerging markets and strategic partnerships with OEMs contribute to the segment's growth.

Off-Highway

Expected Growth: 4.65%

Dana Incorporated's Off-Highway segment growth of 4.65% is driven by increasing demand for construction and agricultural equipment, driven by infrastructure development and agricultural mechanization. Additionally, the adoption of electric and hybrid vehicles, as well as the need for emission reduction, are contributing to the segment's growth.

Commercial Vehicle

Expected Growth: 5.45%

Dana Incorporated's Commercial Vehicle segment growth of 5.45% is driven by increasing demand for medium and heavy-duty trucks, growth in construction and infrastructure spending, and rising adoption of electric and hybrid vehicles. Additionally, Dana's strategic acquisitions and partnerships, such as the purchase of TM4, have expanded its electric propulsion capabilities, further contributing to growth.

Power Technologies

Expected Growth: 13.93%

Dana Incorporated's Power Technologies segment growth of 13.93% is driven by increasing demand for electric vehicles, rising adoption of hybrid and electric powertrains, and growing need for energy-efficient solutions. Additionally, the segment benefits from Dana's strategic acquisitions, expanding product portfolio, and strong relationships with major OEMs.

7. Detailed Products

Axles

Dana's axles are designed to provide improved efficiency, reliability, and performance for commercial vehicles, including trucks, buses, and coaches.

Driveline Components

Dana's driveline components, including driveshafts, universal joints, and yokes, are engineered to provide reliable and efficient power transmission.

Electrification Solutions

Dana's electrification solutions, including electric motors, inverters, and gearboxes, are designed to support the transition to electric and hybrid vehicles.

Sealing Solutions

Dana's sealing solutions, including seals, gaskets, and O-rings, are designed to provide a tight seal in a variety of applications.

Thermal Management Solutions

Dana's thermal management solutions, including heat exchangers, radiators, and cooling fans, are designed to manage temperature in a variety of applications.

Brevini Motion Systems

Dana's Brevini motion systems, including gearmotors, winches, and hoists, are designed to provide reliable and efficient motion control.

Spicer Aftermarket Parts

Dana's Spicer aftermarket parts, including driveline components, axles, and brakes, are designed to provide reliable and efficient replacement parts.

8. Dana Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Dana Incorporated's products are moderately substitutable, as customers have some alternatives, but they are not easily replaceable.

Bargaining Power Of Customers

Dana Incorporated's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Dana Incorporated's suppliers have moderate bargaining power, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants is low for Dana Incorporated, as the company has established a strong market presence and has significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry in the industry is high, with many established players competing for market share, but Dana Incorporated's strong brand and diversified product offerings help it maintain a competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.43%
Debt Cost 16.13%
Equity Weight 34.57%
Equity Cost 16.26%
WACC 16.18%
Leverage 189.27%

11. Quality Control: Dana Incorporated passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dana

A-Score: 4.8/10

Value: 4.7

Growth: 3.3

Quality: 2.4

Yield: 5.0

Momentum: 9.0

Volatility: 4.7

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Monro

A-Score: 4.1/10

Value: 7.3

Growth: 2.6

Quality: 2.8

Yield: 8.0

Momentum: 1.0

Volatility: 2.7

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Stock-Card
Holley

A-Score: 4.0/10

Value: 6.8

Growth: 5.9

Quality: 2.6

Yield: 0.0

Momentum: 6.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
American Axle

A-Score: 3.7/10

Value: 7.7

Growth: 4.0

Quality: 2.9

Yield: 0.0

Momentum: 4.0

Volatility: 3.7

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Superior Industries International

A-Score: 3.1/10

Value: 10.0

Growth: 1.9

Quality: 4.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Commercial Vehicle Group

A-Score: 2.6/10

Value: 9.1

Growth: 0.9

Quality: 2.9

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.0$

Current Price

21$

Potential

-0.00%

Expected Cash-Flows