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Mar 31, 2024
Dana Q1 2024 Earnings Report
Dana reported strong first-quarter performance with increased sales, adjusted EBITDA, and free cash flow.
Key Takeaways
Dana Incorporated reported a positive first quarter in 2024, marked by increased sales reaching $2.74 billion, an adjusted EBITDA of $223 million, and improved free cash flow. The company's performance was boosted by stable market demand and internal efficiency improvements, leading to a profit conversion of 39% on traditional organic sales. Dana also raised its full-year free cash flow guidance.
Sales increased to $2.7 billion, a $91 million rise from the previous year.
Adjusted EBITDA reached $223 million, marking a $19 million increase year-over-year.
Operating cash flow improved by $68 million compared to the previous year.
Full-year 2024 free cash flow guidance was raised by $25 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
Dana provided full year 2024 financial targets. Sales of $10.65 to $11.15 billion; Adjusted EBITDA of $875 to $975 million; Operating cash flow of approximately $500 to $550 million; Free cash flow of $50 to $100 million; Diluted EPS of $0.35 to $0.85.
Positive Outlook
- Sales growth driven by new business backlog, improved end-market demand, new/refreshed programs, and market share gains
- Company-wide efficiency improvements drive higher margins
- YOY free cash flow improvement driven by higher profit, improved working capital efficiency, and lower capital spending
- Organic growth driven by strong sales, pricing, and market share gains
- Strong conversion on organic growth due to improved efficiencies and cost savings actions
Challenges Ahead
- Translation of foreign currency expected to be slightly less of a headwind to sales than previously forecasted
- Lower commodity costs driving reduced sales recoveries; profit impacted by commodity cost true-ups with customers as input commodities decline
- Increase in net interest payments due to higher rates and payment timing from refinancing
- Cost recovery actions expected to mostly offset inflation
- Positive profit contribution on EV sales offset by investment in new program development
Revenue & Expenses
Visualization of income flow from segment revenue to net income