The chart below shows how DAN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DAN sees a +2.92% change in stock price 10 days leading up to the earnings, and a -1.40% change 10 days following the report. On the earnings day itself, the stock moves by -2.10%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Strong EPS Performance: Dana Incorporated reported an adjusted EPS of $0.25, exceeding expectations of $0.10, indicating strong financial performance.
Adjusted EBITDA Improvement: The company achieved an adjusted EBITDA of $186 million in Q4 2024, reflecting a 170 basis point improvement over the previous year, showcasing enhanced operational efficiency.
Free Cash Flow Improvement: Free cash flow improved significantly, reaching $70 million for the full year 2024, a $95 million increase compared to the previous year, demonstrating better cash management.
Cost Reduction Impact: Dana's cost reduction program is yielding results, contributing $10 million to profit in Q4 2024 and expected to total $175 million in 2025, enhancing profitability.
Adjusted EBITDA Margin Growth: The company anticipates a strong adjusted EBITDA margin of 10% for 2025, which is a 140 basis point increase from 2024, indicating positive growth prospects.
Strong Backlog for Growth: Dana's backlog stands at $650 million, with over 80% of it in new Dana programs, suggesting a solid foundation for future revenue growth.
Negative
Sales Decline Analysis: Sales decreased by nearly $300 million for the full year, reflecting softness in key areas such as EV and off-highway markets.
Fourth Quarter Sales Decline: Fourth quarter sales were $2.34 billion, which is $159 million below last year due to lower vehicle production and currency impacts.
Sales Decline Analysis: Full year sales were $10.28 billion, down $271 million driven by end market weakness.
Increased Net Loss: Net loss attributable to Dana was $80 million for the fourth quarter, compared to a loss of $41 million last year, primarily due to higher restructuring charges.
Net Loss Analysis: Full year net loss was $57 million compared to net income of $38 million last year, driven by higher restructuring charges and losses from the planned divestiture of the hydraulics business.
Free Cash Flow Analysis: Free cash flow for the full year was $70 million, which, while an improvement, is still considered insufficient compared to expectations.
Sales Forecast Decline: The company anticipates about $500 million lower sales for 2025 driven by lower end market demand and delays in some EV programs.
Sales Projection Decline: Expected organic sales for 2025 are projected to be $285 million lower, indicating continued demand weakness across all end markets.
Dana Incorporated (NYSE:DAN) Q4 2024 Earnings Call Transcript
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