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Jun 30, 2022
Dana Q2 2022 Earnings Report
Dana Incorporated reported mixed second-quarter 2022 financial results with sales increase offset by margin compression due to inflation and supply chain disruptions, but generated strong free cash flow.
Key Takeaways
Dana Incorporated reported second-quarter 2022 financial results with increased sales of $2.59 billion, but margins were impacted by record inflation, rising material costs, and supply-chain disruptions. Despite these challenges, the company generated significant cash flow.
Sales increased by $381 million to $2.59 billion.
Net income attributable to Dana was $8 million.
Adjusted EBITDA was $162 million.
Free cash flow was $167 million, an increase of $180 million.
Revenue by Segment
Forward Guidance
Dana provided financial guidance for the full year 2022, with sales expected to be between $10 to $10.2 billion and adjusted EBITDA between $700 to $740 million.
Positive Outlook
- Sales of $10 to $10.2 billion
- Adjusted EBITDA of $700 to $740 million
- Diluted adjusted EPS of $0.60 to $0.90
- Operating cash flow of approximately 6.2 to 6.5 percent of sales
- Free cash flow of approximately 1.8 to 2.2 percent of sales
Challenges Ahead
- Profit margin lower due to cost inflation and operational inefficiencies
- Translation of foreign currency expected to be a sales and profit headwind.
- Organic growth driven by strong sales in all end markets
- Net cost inflation of ~$38 million and customer-demand-driven operational environment
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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