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Mar 31, 2023
Dana Q1 2023 Earnings Report
Reported record sales and higher profit in the first quarter of 2023.
Key Takeaways
Dana Incorporated reported strong first-quarter results with sales of $2.64 billion, a 7% increase year-over-year. Net income attributable to Dana was $28 million, and adjusted EBITDA was $204 million, driven by healthy customer demand and new business.
Sales increased by $164 million, or 7 percent over last year, reaching $2.64 billion.
Net income attributable to Dana increased by $11 million over last year, totaling $28 million.
Diluted adjusted EPS increased by $0.09 per share to $0.25.
Adjusted EBITDA increased by $34 million, or 20 percent over last year, reaching $204 million.
Dana
Dana
Dana Revenue by Segment
Revenue by Segment
Light Vehicle Revenue
CapyFin.comCommercial Vehicle Revenue
CapyFin.comOff-Highway Revenue
CapyFin.com Forward Guidance
The company reaffirmed its full-year guidance for 2023, with sales expected to be between $10.35 to $10.85 billion and adjusted EBITDA between $750 to $850 million.
Positive Outlook
- Sales growth supported by improved end-market demand, pricing actions, and market share gains
- Gross inflation and related recoveries are now expected to be lower than prior estimate; net profit impact from inflation remains the same, as cost recovery actions are expected to offset all but ~$50M of inflation headwind
- Continued investment in EV business offsetting profit contribution
- Translation of foreign currency expected to be slightly less of a sales headwind due to the revised outlook for the relative value of the Mexican peso, Brazilian real, and Argentine peso
- Steel price outlook slightly elevated from prior estimate, lowering the expected margin benefit by ~20 bps
Challenges Ahead
- Cost inefficiencies, driven by volatile customer production, and higher sales due to cost recoveries hindering margin
- Free cash flow includes significant capital investment to support accelerated EV growth and roll-on business
- ~60% effective tax rate included in adjusted EPS guide driven primarily by valuation allowances in U.S
- Inflation is expected to impact profit by approximately $50 million despite cost recovery actions.
- Continued investment in the EV business is offsetting profit contribution.
Revenue & Expenses
Visualization of income flow from segment revenue to net income