Dana Completes $2.7 Billion Sale of Off-Highway Business to Allison, Refocusing on Core Markets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 02 2026
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Source: Newsfilter
- Transaction Completion: Dana has finalized the $2.7 billion sale of its Off-Highway business to Allison Transmission, valued at 7.5 times the expected 2025 adjusted EBITDA, marking a significant milestone in the company's transformation strategy.
- Debt Reduction: The transaction enables Dana to reduce approximately $2 billion in debt, achieving a target net leverage of 1x, thereby enhancing financial stability and improving margins.
- Shareholder Returns: Dana plans to return $1 billion to shareholders by 2027, with about $650 million already returned since the announcement, reflecting the company's commitment to shareholder value enhancement.
- Focus on Core Business: This divestiture allows Dana to concentrate more on the light and commercial vehicle markets with both traditional and electrified systems, reducing complexity and accelerating innovation to enhance competitive positioning.
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Analyst Views on ALSN
Wall Street analysts forecast ALSN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ALSN is 94.40 USD with a low forecast of 80.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 111.560
Low
80.00
Averages
94.40
High
115.00
Current: 111.560
Low
80.00
Averages
94.40
High
115.00
About ALSN
Allison Transmission Holdings, Inc. is a designer and manufacturer of propulsion solutions for commercial and defense vehicles. The Company is also a manufacturer of medium-and heavy-duty fully automatic transmissions. Its products are used in a variety of applications, including on-highway trucks, including distribution, refuse, construction, fire and emergency; buses, including school, transit and coach; motorhomes, off-highway vehicles, and equipment, including energy, mining and construction applications; and defense vehicles, including tactical wheeled and tracked. The Company operates in approximately 150 countries. The Company has manufacturing facilities in the United States, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. The Company also has approximately 1,600 independent distributor and dealer locations worldwide.
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.
Eaton Shares Climb Following Spin-Off Announcement; Company Expands into Aviation and AI Data Centers.
- Strategic Business Decisions: Companies can enhance their growth and profitability by divesting slower-growing segments.
- Focus on Core Operations: Spinning off less profitable businesses allows firms to concentrate on higher-margin opportunities.
- Market Reactions: Such strategic moves can lead to positive market perceptions and increased investor confidence.
- Long-term Benefits: Ultimately, these decisions can position companies for sustained success and competitive advantage.
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Dana Inc (DAN) Exceeds FY25 Expectations, Shares Surge Over 10%
- Strong Performance: Dana's preliminary FY25 sales reached $7.5 billion, exceeding the expected range of $7.3 billion to $7.5 billion, with adjusted operating income of $600 million, showcasing significant financial flexibility during its transformation.
- Share Price Surge: Following robust performance, Dana's shares surged over 10%, reflecting market optimism regarding the company's future growth potential, particularly after the sale of its Off-Highway business.
- Cost-Saving Initiatives: Dana anticipates completing its $325 million cost-reduction program in 2026 while continuing a $1 billion capital return plan, which will further enhance profitability and competitive positioning.
- Long-Term Growth Outlook: The company expects 2026 sales between $7.3 billion and $7.7 billion, surpassing the street consensus of $7.63 billion, with an anticipated $200 million in incremental new business growth from next-generation platforms, indicating sustainable long-term value creation potential.
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