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Dec 31, 2023

Dana Q4 2023 Earnings Report

Dana reported a decrease in sales due to the UAW strike, but strong efficiency improvements partially offset the impact on adjusted EBITDA. Net loss was primarily due to the UAW strike, lower earnings from equity-method affiliates, and the devaluation of the Argentine peso.

Key Takeaways

Dana Incorporated reported fourth-quarter sales of $2.5 billion, a decrease compared to the same period in 2022. The net loss attributable to Dana was $39 million, or $0.27 per share. Adjusted EBITDA was $156 million, compared to $176 million for the same period in 2022.

Sales for the fourth quarter of 2023 totaled $2.5 billion, compared with $2.6 billion in the same period of 2022.

Adjusted EBITDA for the fourth quarter of 2023 was $156 million, compared with $176 million for the same period in 2022.

The net loss attributable to Dana was $39 million, or $0.27 per share.

Operating cash flow in the fourth quarter of 2023 was $278 million, compared with $342 million in the same period of 2022.

Total Revenue
$2.49B
Previous year: $2.56B
-2.4%
EPS
-$0.08
Previous year: -$0.1
-20.0%
Adjusted EBITDA
$156M
Previous year: $176M
-11.4%
Gross Profit
$164M
Previous year: $180M
-8.9%
Cash and Equivalents
$529M
Previous year: $425M
+24.5%
Free Cash Flow
$136M
Previous year: $202M
-32.7%
Total Assets
$7.97B
Previous year: $7.45B
+6.9%

Dana

Dana

Forward Guidance

Dana provided 2024 financial targets, including sales of $10.65 to $11.15 billion and adjusted EBITDA of $875 to $975 million.

Positive Outlook

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

Challenges Ahead

  • Translation of foreign currency expected to be a headwind to sales and profit
  • Lower commodity costs driving lowering sales recoveries
  • Profit impacted by commodity cost true-ups with customers as input commodities decline
  • Labor costs increasing
  • Monitoring ocean freight