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Dana
🇺🇸 NYSE:DAN
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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

Total Revenue
$2.75B
Previous year: $2.59B
+6.3%
EPS
$0.37
Previous year: $0.08
+362.5%
Adjusted EBITDA
$243M
Previous year: $162M
+50.0%
Gross Profit
$271M
Previous year: $183M
+48.1%
Cash and Equivalents
$484M
Previous year: $321M
+50.8%
Free Cash Flow
$134M
Previous year: $167M
-19.8%
Total Assets
$8.05B
Previous year: $7.92B
+1.6%

Dana

Dana

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

Company Overview

Full financial data and analysis

View Dana