Dana (DAN) Q4 2025 earnings summary

Executive summary

• 2025 results exceeded preliminary estimates, with adjusted EBITDA of $610 million, adjusted free cash flow of $331 million, and strong margin expansion.

• Completed Off-Highway business sale, using most of the $2 billion proceeds for nearly $2 billion in debt reduction and streamlined operations.

• Achieved $248 million in cost savings in 2025, with a run rate of $325 million into 2026 and an additional $65 million targeted.

• Shareholder returns exceeded $700 million in 2025, including $650 million in share repurchases and a 20% dividend increase.

• New business backlog stands at $750 million, with $200 million incremental expected in 2026.

Financial highlights

• Q4 2025 sales were $1.867 billion, up $93 million year-over-year, with full-year sales at $7.5 billion, down $234 million from 2024.

• Q4 adjusted EBITDA was $208 million (11.1% margin), up 640 basis points from prior year; full-year margin rose to 8.1% (up 300 basis points).

• Full-year adjusted free cash flow reached $331 million, $250 million higher than prior year.

• EBIT from continuing operations was $138 million, compared to a $176 million loss last year.

• Returned $704 million to shareholders in 2025, including $650 million in share repurchases and $54 million in dividends.

Outlook and guidance

• 2026 revenue expected at $7.5 billion, flat year-over-year, with adjusted EBITDA projected at $800 million (10–11% margin), up $200 million from 2025.

• Adjusted free cash flow for 2026 guided at $300 million, maintaining stability.

• Diluted adjusted EPS guidance reinstated at $2.50 per share for 2026, based on 109 million shares.

• Long-term targets for 2030: $10 billion revenue, 14–15% EBITDA margin, and 6% adjusted free cash flow margin.

• Share repurchase authorization extended to $2 billion through 2030, with up to $300 million in repurchases expected in 2026.