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Jun 30, 2024

Dana Q2 2024 Earnings Report

Dana reported steady profit and improved margin despite continued future program development costs.

Key Takeaways

Dana Incorporated reported second-quarter financial results with increased Adjusted EBITDA and Adjusted EBITDA margin and raised full-year free cash flow guidance. Sales reached $2.74 billion, net income was $16 million, Adjusted EBITDA was $244 million, and free cash flow was $104 million.

Sales of $2.74 billion.

Net income of $16 million.

Adjusted EBITDA of $244 million, an increase of $1 million over last year.

Free cash flow of $104 million.

Total Revenue
$2.74B
Previous year: $2.75B
-0.4%
EPS
$0.31
Previous year: $0.37
-16.2%
Adjusted EBITDA
$244M
Previous year: $243M
+0.4%
Gross Profit
$246M
Previous year: $271M
-9.2%
Cash and Equivalents
$419M
Previous year: $484M
-13.4%
Free Cash Flow
$104M
Previous year: $134M
-22.4%
Total Assets
$7.81B
Previous year: $8.05B
-3.0%

Dana

Dana

Forward Guidance

Dana is maintaining guidance for Adjusted EBITDA, while raising profit margin and again increasing the free-cash-flow range.

Positive Outlook

  • Sales growth driven by new business backlog
  • Sales growth driven by improved end-market demand
  • Sales growth driven by new / refreshed programs
  • Sales growth driven by market share gains
  • Company-wide efficiency improvements drive higher margins

Challenges Ahead

  • Weakening demand for electric vehicles driving lower sales
  • Increase in net interest payments due to higher rates
  • Increase in net interest payments due to payment timing from refinancing
  • Translation of foreign currency expected to be slightly less of a headwind to sales than previously forecasted
  • Lower commodity costs resulting in lower sales recoveries