Dana Incorporated

Second quarter 2026 sales were $2.01 billion, up from $1.94 billion in the prior period, and adjusted EBITDA was $207 million versus $147 million a year ago. Adjusted EBITDA margin was 10.3%, up 270 basis points year over year; adjusted net income was $21 million versus $4 million; and diluted adjusted EPS was $0.19 versus $0.03. For the full year, Dana raised sales guidance to approximately $7.75 billion at the midpoint, adjusted EBITDA to approximately $825 million, adjusted EBITDA margin to approximately 10.6%, adjusted EPS to approximately $2 per share, and adjusted free cash flow to approximately $325 million. Management said the higher sales outlook is driven mainly by stronger commercial vehicle demand, while the EPS outlook was lowered due to higher D&A, higher interest expense, lower equity earnings from China JVs, and tax headwinds.

Byron Foster framed the quarter as evidence that Dana’s execution and strategic initiatives are translating into real operating improvement. He emphasized customer recognition, new aftermarket wins, and growth in Applied Technologies, especially defense, as proof points for Dana 2030. On the Eaton Mobility transaction, he said the combination strengthens Dana’s strategic position, expands aftermarket scale, and supports a clearer path to margin expansion and cash flow growth.

Timothy Kraus highlighted strong operating leverage and cash generation, noting sales of $2.01 billion, adjusted EBITDA of $207 million, and free cash flow of $68 million, up $75 million from the prior period. He said net interest expense fell 59% year over year to $17 million, and that Q2 included $19 million of cost savings, bringing year-to-date savings to over $310 million. For 2026, he cited higher D&A from faster in-service assets, higher interest tied to refinancing and the Eaton process, and lower equity earnings from China JVs as the main reasons EPS guidance was revised down despite higher sales, while free cash flow guidance rose to about $325 million.

Analysts pressed on whether Dana could keep buying back stock after the Eaton deal, and management said it is still exploring a restart during the 24-month post-close period but also noted it may be able to complete the $2 billion authorization by 2029 even without that. On the EPS cut, management said the change reflected higher D&A, higher interest, lower equity earnings from China JVs, and some tax headwinds; they also confirmed the $20 million union ratification bonus is incremental and included in free cash flow guidance. Questions on commercial vehicle demand and the North America truck market drew comments that Class 8 demand is improving, the prebuy is being pushed out, and Ford/Oakville launches are proceeding on schedule.