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Sep 30
Dana Q3 2025 Earnings Report
Dana reported solid third-quarter 2025 financial results, with increased sales, net income, and adjusted EBITDA, leading to raised full-year profit guidance.
Key Takeaways
Dana Incorporated delivered a strong third quarter in 2025, with sales reaching $1.9 billion and net income significantly improving to $13 million from a loss in the prior year. The company's adjusted EBITDA increased to $162 million, reflecting an 8.5 percent margin, driven by accelerated cost savings and operational efficiencies. The Off-Highway business divestiture is on track, and the company is executing a substantial capital return program.
Sales from continuing operations reached $1.92 billion, a slight increase from the prior year, demonstrating resilience amidst market conditions.
Net income from continuing operations improved significantly to $13 million, compared to a net loss of $21 million in Q3 2024.
Adjusted EBITDA rose to $162 million with an 8.5% margin, a 260 basis point increase year-over-year, primarily due to effective cost-saving initiatives.
Operating cash flow increased substantially to $111 million, and adjusted free cash flow improved to $101 million, indicating strong cash generation.
Dana
Dana
Dana Revenue by Segment
Revenue by Segment
Light Vehicle Revenue
CapyFin.comCommercial Vehicle Revenue
CapyFin.com Forward Guidance
Dana Incorporated has raised its full-year profit guidance for 2025, driven by accelerated cost savings and strong operational performance. The company expects continued strong adjusted EBITDA margins and significant cash flow generation.
Positive Outlook
- Raised full-year profit guidance due to accelerated cost savings.
- Fourth-quarter adjusted EBITDA margin expected to be consistent with forecasted 2026 margin of 10-10.5 percent.
- Off-Highway divestiture remains on track for closing in late Q4 2025.
- Execution of $1 billion capital return program, including significant share repurchases.
- Expects to repurchase an additional $155 million in Q4, bringing the total to $600 million for the year.
Challenges Ahead
- Sales guidance for full year 2025 is $7.3 to $7.5 billion, which is lower than 2024 reported sales of $7.7 billion.
- Implied adjusted EBITDA margin guidance for the full year is 7.8% to 8.1%, which is lower than the Q3 2025 margin of 8.5%.
- No specific negative forward-looking statements were highlighted in the report.
- Potential for market fluctuations and customer production disruptions, though currently minimal impact.
- The company did not provide specific negative guidance points for the future.
Revenue & Expenses
Visualization of income flow from segment revenue to net income