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Jun 30, 2023
Dana Q2 2023 Earnings Report
Dana had a strong second quarter, with increased sales, net income, adjusted EBITDA, and free cash flow compared to the same period last year. The company also raised its full-year guidance.
Key Takeaways
Dana Incorporated reported strong second-quarter financial results, with sales of $2.75 billion, a net income of $30 million, adjusted EBITDA of $243 million, and free cash flow of $134 million. The company's performance was driven by higher market demand, cost-recovery actions, and conversion of its sales backlog. Dana also raised its full-year guidance, reflecting confidence in its ability to continue to execute its strategy and capitalize on strong demand across its end markets.
Sales of $2.75 billion, an increase of $162 million or 6 percent over last year
Net income attributable to Dana of $30 million, an increase of $22 million over last year
Diluted EPS of $0.21; diluted adjusted EPS of $0.37, an increase of $0.29 per share
Adjusted EBITDA of $243 million, an increase of $81 million or 50 percent over last year
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 increased its full-year guidance due to strong demand and execution, and improved market dynamics.
Positive Outlook
- Sales growth supported by improved end-market demand, pricing actions, and market share gains
- Organic growth driven by strong sales, pricing, 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 a slight tailwind to sales due to the revised outlook for the relative value of the euro, and Brazilian real
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: ~($50)M
- Commodity price outlook slightly elevated from prior estimate
Revenue & Expenses
Visualization of income flow from segment revenue to net income