Dana's FY24 Preliminary Results Highlight Increased Margins Amid EV Demand Slowdown; Stock Jumps
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 24 2025
0mins
Source: Benzinga
FY24 Preliminary Results: Dana Incorporated reported sales of approximately $10.3 billion for FY24, slightly above consensus expectations, but down from the previous year due to weaker demand in key sectors. Adjusted EBITDA increased to about $885 million, and the company announced a cost reduction target of $300 million through 2026.
FY25 Outlook and Business Restructuring: For FY25, Dana expects sales between $9.525 billion and $10.025 billion, with an adjusted EBITDA forecast of $925 million to $1.025 billion. The company plans to restructure its business segments and is considering selling its Off-Highway segment, which will be classified as discontinued operations once a deal is reached.
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Analyst Views on DAN
Wall Street analysts forecast DAN stock price to fall
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 33.360
Low
24.00
Averages
26.60
High
28.00
Current: 33.360
Low
24.00
Averages
26.60
High
28.00
About DAN
Dana Incorporated specializes in designing and manufacturing propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The Company is providing solutions for on-highway vehicles. The Company's technologies include drive systems (axles, driveshafts and transmissions); electrodynamic technologies (motors, inverters, software and control systems, battery-management systems, and fuel cell plates); sealing solutions (gaskets, seals, cam covers, and oil pan modules); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, charge air cooling, and thermal-acoustical protective shielding), and digital solutions (active and passive system controls and descriptive and predictive analytics). The Company serves its global light vehicle and medium/heavy vehicle markets through two business units: Light Vehicle Systems and Commercial Vehicle Systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Leadership: As a global leader in efficient propulsion solutions, Dana reported sales of $7.5 billion in 2025, demonstrating its strong influence in the light and commercial vehicle markets.
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- Market Leadership: As a global leader in efficient propulsion solutions, Dana reported sales of $7.5 billion in 2025, demonstrating its strong influence in the light and commercial vehicle markets.
- Global Presence: With 27,000 employees across 24 countries, Dana showcases its global operational capabilities, further supporting its leadership in drive systems and clean energy technologies.
See More
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- Strategic Focus: The share repurchase strategy aims to enhance shareholder value and reflect confidence in the company's long-term growth prospects.
See More
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- Strategic Shift: Dana is refining its strategy to address the volatility in electrification demand by focusing on projects that can more reliably drive profitability, thereby maintaining growth potential in the future.
- Market Demand Evolution: The company is broadening its demand base to reduce reliance on traditional original equipment cycles, shifting towards higher-margin internal combustion and hybrid programs to lower execution risks and ensure clearer returns.
- Aftermarket Opportunities: Dana aims to expand its higher-margin aftermarket business in North America, with an estimated $250 million market opportunity, which will improve margins and reduce reliance on cyclical OEM demand.
- Technological Diversification: The company is building out its “Applied Technologies” initiatives to enter adjacent markets such as powersports and defense, representing a $400-500 million incremental revenue opportunity, enhancing the business's resilience against cyclical downturns.
See More
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- Long-Term Strategy Announcement: Dana Incorporated will outline its Dana 2030 long-term value creation strategy during the Capital Markets Day on March 25, aiming to accelerate growth and enhance sales and margins through controlled cost structure and execution.
- Leadership Confidence: Incoming CEO Byron Foster emphasized that the Dana 2030 strategy reflects the company's confidence in its core businesses and aims to leverage growth opportunities in light vehicles, commercial vehicles, and adjacent markets.
- Event Details: The event will take place in New York City from 9:00 a.m. to 12:00 p.m. EDT, with registration required for both in-person and virtual attendance, ensuring limited space for participants and a live webcast available for broader access.
- Company Overview: Dana reported sales of $7.5 billion in 2025 and is committed to providing efficient propulsion solutions for light and commercial vehicle markets, employing 27,000 people across 24 countries, showcasing its extensive global operations and influence.
See More
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- Margin Improvement: The company anticipates adjusted EBITDA margins of 14% to 15%, driven by higher-margin new business, operational efficiencies, and structural cost actions, resulting in nearly 400 basis points of improvement that will enhance profitability.
- Cash Flow Targets: Dana has set a target of approximately 6% for adjusted free cash flow margin, a ~200 basis point improvement, indicating ongoing optimization in capital allocation and cash flow management.
- Share Repurchase Plan: The company plans to execute up to $2 billion in cumulative share repurchases by 2030, building on the $750 million already completed, demonstrating a commitment to shareholder returns and confidence in future growth.
See More
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- Strong Financial Performance: Dana Incorporated reported Q4 2025 sales of $1.867 billion, an increase of $93 million year-over-year, with adjusted EBITDA of $208 million resulting in an 11.1% margin, reflecting a significant 640 basis point improvement in profitability.
- Capital Return Plan: Management announced an increase in the share repurchase program to $2 billion and a 20% increase in the quarterly dividend to $0.12 per share, aimed at enhancing shareholder returns and boosting market confidence, indicating strong confidence in future cash flows.
- Optimistic Market Outlook: The company expects 2026 revenue to reach approximately $7.5 billion, with adjusted EBITDA projected at $800 million, an increase of about $200 million compared to 2025, showcasing ongoing growth potential in traditional ICE and hybrid markets.
- Clear Long-Term Goals: Management set a target of nearly $10 billion in sales by 2030, with expected EBITDA margins increasing to 14%-15%, planning to achieve this through accelerated cost reductions and new business pursuits, demonstrating firm confidence in future growth.
See More
