Snapshot
DANA Inc reported $1.92B of revenue in Q3 2025, up 1.1% year over year, with diluted EPS of $0.07 and an operating margin of 3.8%.
- Revenue
- $1.92B
- YoY growth
- +1.1%
- Diluted EPS
- $0.07
- Operating margin
- 3.8%
$1.92B
Revenue
+1.1%
YoY growth
$0.07
Diluted EPS
3.8%
Operating margin
01 Key takeaways
What management said
- •Our full-year charge in terms of tariffs is lower than we thought a quarter ago.
- •Cost savings, we're on track to deliver the $310 million we talked about last quarter, but we are realizing those quicker, and that's helping us with some of the uplift to our outlook here.
- •In terms of our capital returns, you'll see in our note we talked about buying between $100 million and $150 million of shares in the third quarter.
- •We continue to make progress getting USMCA compliance, which reduces the sort of headwind both from an on-charge point of view, but also the margin deterioration that we see.
- •Our outlook, our recovery rate is now up in the upper 80%.
- •Lastly, in terms of the balance of the year outlook, I'd say the light demand or the light truck demand remains relatively stable.
- •Nonetheless, the fact that we've got a better outlook in terms of tariffs, quicker realization of cost recovery, we are taking our full-year guide up $15 million at the midpoint.
- •I would note that within our guidance, we do have some volume catch-up factored in here, JLR.
- •We factored in the lower commercial vehicle outlook here in North America in line with estimates out there.
- •This reflects recoveries in currency benefits, offsetting the impact of lower demand.
- •Adjusted EBITDA came in at $162 million, an improvement of $51 million year over year.
- •Our margin expanded by 260 basis points to 8.5%, driven by cost-saving actions and operational efficiencies that help mitigate the profit impact of lower sales and tariffs.
What went well
- •Adjusted EBITDA improved $51 million year-over-year to $162 million, with margin expanding 260 basis points to 8.5%
- •EBIT improved significantly to $53 million from a loss of $8 million in the prior period, and net income attributable to Dana was $13 million versus a $21 million loss
- •Cost savings reached $73 million in the quarter (nearly the full-year run rate) and $183 million year-to-date, on track for the increased $235 million full-year target
- •Adjusted free cash flow of $101 million, a $109 million improvement versus the prior year, driven by higher profitability and lower working capital
- •Repurchased 9.5 million shares (7% of shares outstanding) in the quarter and nearly 30 million shares (over 20%) year-to-date
- •Raised full-year guidance by $15 million at the midpoint on accelerated cost savings and a better tariff outlook, with recovery rate now in the upper 80% range
What went wrong
- •Continued commercial vehicle deterioration in North America (running around a 200,000 unit annualized run rate) and to a lesser extent Brazil, with no light at the end of the tunnel seen into mid-2026
- •JLR was down for about five weeks in the quarter, a headwind
- •Took roughly $8-$10 million in charges related to EV program cancellations across multiple OEMs, expected to be recovered in Q4
- •Volume and mix lowered EBITDA by $35 million, a roughly 50% decremental margin, reflecting mix changes and operational impacts in thermal products including battery cooling
- •Magnet supply constraints in China, India, and Europe limited high-margin orders during the quarter
Guidance changes
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Performance breakdown
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Earnings call themes & trends
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