Snapshot
DANA Inc reported $1.94B of revenue in Q2 2025, up -5.5% year over year, with diluted EPS of $0.19 and an operating margin of 1.3%.
- Revenue
- $1.94B
- YoY growth
- +-5.5%
- Diluted EPS
- $0.19
- Operating margin
- 1.3%
$1.94B
Revenue
+-5.5%
YoY growth
$0.19
Diluted EPS
1.3%
Operating margin
01 Key takeaways
What management said
- •Welcome to Dana Incorporated's earnings call for the second quarter of 2025.
- •I guess I'd sort of characterize the second quarter as another quarter of the Dana team delivering on our commitments with a solid Q2 beat, double-digit margins, and accelerating free cash flow.
- •Right now, we have some headwind here in the second quarter, about 80 basis points.
- •We need to make them go away so that we don't impact end vehicle demand.
- •In terms of our profit guide, and here I'm referring only to new Dana, we're upping our profits guidance for the year by $35 million.
- •On a free cash flow basis, we're upping our target by $50 million to about $275 million at the midpoint of our guidance.
- •Our guidance, and as we've talked at the end of the first quarter, we had indicated our sales were trending towards the higher end of our previous range.
- •In terms of the guidance for the two parts of the business, if you think about the original guide at $975 million, you can kind of see the split.
- •Our revised guidance that I touched on in my previous slide, up $35 million for new Dana, down $20 million for off-highway for a net positive $15 million.
- •The net effect of the higher sales and increased stranded costs is to temporarily lower the profit margin of continuing operations until the sale closes and transition service payments begin.
- •Finally, cash flow is the one metric that will include off-highway as we had previously.
- •Since the sale transaction excludes cash, all cash flow will remain with Dana until closing.
What went well
- •Solid Q2 beat with continuing-operations adjusted EBITDA of $145 million at a 7.5% margin, up 210 basis points year-over-year
- •Announced the sale of the Off-Highway business to Allison Transmission for just over $2.7 billion, with about $2.4 billion net cash proceeds
- •Raised capital return target to $600 million from $550 million, having bought back over 10% of shares in the quarter (returning $257 million), targeting a roughly 25% year-over-year share count reduction to around 110 million
- •Delivered nearly $60 million of cost reduction in the quarter and $110 million to date, and raised the cost reduction run-rate goal to $310 million
- •Raised new Dana profit guidance by $35 million and free cash flow guidance by $50 million to about $275 million at the midpoint
- •Strong tariff position with over 80% recovery expected for the year and active customer mitigation work
What went wrong
- •Continuing-operations sales of $1.94 billion were $112 million lower than last year, driven by lower end-market demand
- •Volume and mix lowered sales by $173 million with an unfavorable mix in the quarter, including high-margin CV and EV sales hit by China rare-earth/magnet export issues
- •Softening North America commercial vehicle market, with order book-to-build running about half of last year amid tariff and business-climate uncertainty
- •Adjusted free cash flow was a use of $5 million, $109 million lower than Q2 last year, on higher one-time costs and a $115 million working capital use
- •Off-Highway full-year guidance cut by $20 million on tariff-related volume softness, particularly European product imported into the U.S.
Guidance changes
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Performance breakdown
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Earnings call themes & trends
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