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Dec 31, 2024
Dana Q4 2024 Earnings Report
Dana reported a net loss and a decline in sales for Q4 2024 but saw improvements in adjusted EBITDA and free cash flow.
Key Takeaways
Dana Incorporated reported Q4 2024 sales of $2.3 billion, a decline from $2.5 billion in Q4 2023. The company recorded a net loss of $80 million, compared to a net loss of $39 million in the prior year. Adjusted EBITDA improved to $186 million, up from $156 million, driven by efficiency gains and cost reductions. Free cash flow also increased to $149 million from $136 million in Q4 2023.
Sales declined by $159 million year-over-year due to lower demand for electric vehicles and off-highway equipment.
Adjusted EBITDA increased by $30 million, driven by cost-savings and operational efficiencies.
Net loss widened to $80 million, impacted by higher restructuring costs.
Free cash flow increased by $13 million, reaching $149 million.
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 expects continued cost savings and efficiency improvements in 2025, though sales may be impacted by lower off-highway equipment demand and currency translation.
Positive Outlook
- Expecting a 10% increase in adjusted EBITDA for 2025.
- Cost-savings actions to contribute $175 million in 2025.
- Improved working capital efficiency anticipated.
- Lower capital expenditures expected to boost free cash flow.
- Targeting up to $1.025 billion in adjusted EBITDA for the year.
Challenges Ahead
- Sales are expected to be lower due to weak demand for off-highway equipment.
- Foreign currency translation may negatively impact revenue.
- Restructuring charges will continue to affect net income.
- Inflationary pressures on material costs remain a challenge.
- Higher financing costs could impact profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income