Dana (DAN) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales were $2.48B, down from $2.67B year-over-year, due to softening demand in EV, commercial, off-highway, and light-truck markets, as well as currency and commodity impacts.

• Adjusted EBITDA for Q3 was $232M (9.4% margin), up 30 bps year-over-year despite lower sales, reflecting strong cost control and operational execution.

• Net income attributable to the company was $4M for Q3, down from $19M, mainly due to higher taxes.

• The company continues to leverage its vertically integrated ICE, PHEV, and EV strategy, focusing on electrification, operational efficiency, and global market expansion.

• Ongoing efficiency improvements and disciplined capital allocation have helped maintain profit and free cash flow guidance ranges.

Financial highlights

• Q3 2024 sales: $2.48B (down $193M year-over-year); nine-month sales: $7.95B (down $112M).

• Q3 adjusted EBITDA: $232M (9.4% margin); nine-month adjusted EBITDA: $699M.

• Q3 net income: $4M; nine-month net income: $23M, down from $77M in 2023.

• Q3 operating cash flow: $35M; nine-month operating cash flow: $148M.

• Q3 free cash flow: use of $11M; nine-month free cash flow: use of $79M; full-year free cash flow guidance maintained at $100M.

Outlook and guidance

• Full-year 2024 sales guidance lowered to $10.2B–$10.4B, with adjusted EBITDA expected at $855M–$895M (approx. 8.5% margin at midpoint), up 50 bps year-over-year.

• Free cash flow guidance maintained at ~$100M, $125M higher than last year, reflecting reduced capital spending.

• GAAP EPS guidance is $0.05–$0.25; adjusted EPS is $0.75–$0.95.

• Early 2025 expectations include operating with a lower cost structure amid continued soft end-market demand, especially for EVs.

• Outlook reflects weaker commercial vehicle, agricultural, and construction/mining equipment markets, and lower EV demand.