Dana (DAN) CMD 2026 summary

Strategic transformation and growth initiatives

• Dana 2030 is a comprehensive, bottom-up initiative focused on redefining growth and profitability after the Off-Highway business sale, emphasizing operational excellence, lean processes, and a renewed focus on core markets.

• Five strategic pillars guide the plan: traditional product growth, aftermarket expansion, applied technologies, manufacturing excellence, and structural cost reduction.

• Over 500 initiatives are underway, managed by a dedicated PMO reporting to the CEO, ensuring accountability and rapid execution.

• The company is pivoting back to ICE and hybrid technologies, leveraging installed capacity and customer relationships as EV growth expectations have moderated.

• The plan is designed to deliver sustainable, profitable growth, empowering teams and maintaining a culture of innovation and quality.

Financial targets and capital allocation

• Targeting $10 billion in revenue by 2030, representing a 33% increase over 2026 guidance midpoint and a 6% CAGR, with adjusted EBITDA margins expanding from 10%-10.5% to 14%-15%.

• Free cash flow is expected to rise from 4% to 6% of sales, with $600 million projected in 2030.

• Capital allocation priorities include $2 billion in share buybacks and $250 million in dividends over five years, with a 20% dividend increase in 2026, while maintaining leverage at or below 1x.

• Nearly half of $4 billion in operating cash flow from 2026-2030 will be returned to shareholders, with the remainder reinvested in CapEx and growth initiatives.

• The company aims for a 30% pre-tax return on invested capital by 2030, up from 5% in 2024, and targets 12%-15% pre-tax ROIC by 2030.

Core business and market opportunities

• Traditional products will drive nearly $2 billion of the $2.5 billion top-line growth, focusing on margin expansion, protecting key programs, and growing share in underrepresented regions.

• Aftermarket is a standalone priority, targeting $200 million in incremental revenue and $65 million in EBITDA, with a focus on North America and leveraging premium OE brands.

• Applied technologies will pursue $400 million in new revenue from high-value EV segments and adjacent markets such as thermal management, material handling, powersports, and defense.

• The EV business is expected to double sales over five years, with profitability improving from 4% in 2025 to over 10% by 2030, focusing on high-value segments and platform-based approaches.

• The company is not expanding outside its core competencies, instead applying existing technologies to new segments and leveraging existing assets.