Dana Incorporated Reports 2025 First-quarter Financial Results in Line with Expectations; Maintained Sales and Adjusted EBITDA Guidance Ranges

First Quarter Highlights

• Sales of $2.4 billion
• Net income attributable to Dana of $25 million, or $0.17 per share
• Net income margin of 1 percent
• Adjusted net income of $19 million, or $0.13 per share
• Adjusted EBITDA of $188 million
• Adjusted EBITDA margin of 8.0 percent
• Operating cash flow was a use of $37 million
• Cost-savings plan accelerated, targeting $225 million of savings in 2025

MAUMEE, Ohio, April 30, 2025 /PRNewswire/ -- Dana Incorporated (NYSE: DAN) today announced financial results for the first quarter of 2025.

"Our efforts to transform the company into a stronger, more focused business are gaining momentum. The sale of our Off-Highway business is underway with a competitive process. We also continue to execute our cost-savings initiative and have taken further steps to accelerate the realization of our $300 million plan," said R. Bruce McDonald, chairman and chief executive officer. "While the situation remains fluid, we believe the impact of tariffs are manageable based on completed mitigation actions and expected substantial recoveries from customers."

Sales for the first quarter of 2025 totaled $2.35 billion, compared with $2.74 billion in the same period of 2024.

Net income attributable to Dana was $25 million, or $0.17 per share, compared with $3 million, or $0.02 per share, in the first quarter of 2024. As a percentage of sales, the first quarter of 2025 was 1 percent compared to 0.1 percent last year.

During the first quarter of 2024, Dana entered into a definitive agreement to sell its non-core European Off-Highway hydraulics business. This business was classified as held for sale, and a $29 million loss was recognized to adjust the carrying value of net assets to fair value less estimated costs to sell. This sale agreement was terminated and the transaction did not close.

Adjusted net income attributable to Dana was $19 million, or $0.13 per share, for the first quarter of 2025, compared with adjusted net income of $37 million, or $0.26 per share, in 2024.

Adjusted EBITDA for the first quarter of 2025 was $188 million or 8 percent of sales, compared with $223 million or 8.2 percent of sales for the same period in 2024. The company's cost-savings program has mitigated the margin impact of lower volumes, tariffs, and cost inflation.

Operating cash flow in the first quarter of 2025 was a use of $37 million, compared with a use of $102 million in the same period of 2024. Adjusted free cash flow was a use of $101 million, compared with a use of $168 million in the first quarter of 2024.

"Our focus on managing working capital continues to show results as we have once again improved adjusted free cash flow in the first quarter. Our cost-savings actions and efficiency improvements are helping to offset the impact of tariffs until we can affect full recovery," said Timothy Kraus, Dana senior vice president and chief financial officer. "We are maintaining our guidance ranges for most of our measures including adjusted EBITDA and we expect that sales will increase slightly due to tariff recoveries and currency translation offsetting weaker end-market demand."

Revised 2025 Financial Targets

• Sales above the midpoint of the range of $9.525 to $10.025 billion;
• Adjusted EBITDA of $925 to $1,025 million;
• Implied adjusted EBITDA of 9.7% to 10.2%;
• Operating cash flow of approximately $500 to $600 million;
• Adjusted free cash flow of $175 to $275 million; and
• Diluted Adjusted EPS of $1.15 to $1.65.

Dana to Host Conference Call at 9 a.m. Wednesday, April 30
Dana will discuss its first-quarter results in a conference call at 9 a.m. EDT on Wednesday, April 30. The conference call can be accessed by telephone from both domestic and international locations using the information provided below:

Conference ID: 9943139
Participant Toll-Free Dial-In Number: 1 [phone]
Participant Toll Dial-In Number: 1 [phone]

Audio streaming and slides will be available online via a link provided on the Dana investor website: www.dana.com/investors. Phone registration will be available beginning at 8:30 a.m. EDT.

A webcast replay can be accessed via Dana's investor website following the call.

Non-GAAP Financial Information
Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit costs and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for earnings (loss) before income taxes, net income (loss) or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Adjusted net income (loss) attributable to the parent company is a non-GAAP financial measure which we have defined as net income (loss) attributable to the parent company, excluding any discrete income tax items, restructuring charges, amortization expense and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to net income attributable to the parent company reported by other companies. Adjusted net income (loss) attributable to the parent company is neither intended to represent nor be an alternative measure to net income (loss) attributable to the parent company reported in accordance with GAAP.

Diluted adjusted EPS is a non-GAAP financial measure which we have defined as adjusted net income (loss) attributable to the parent company divided by adjusted diluted shares. We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income (loss) attributable to the parent company. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies. Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported in accordance with GAAP.

Adjusted free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment plus proceeds from sale of property, plant and equipment. We believe adjusted free cash flow is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Adjusted free cash flow is not intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported in accordance with GAAP. Adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.

The accompanying financial information provides reconciliations of adjusted EBITDA, diluted adjusted EPS and adjusted free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have not provided a reconciliation of our adjusted EBITDA and diluted adjusted EPS outlook to the most comparable GAAP measures of net income (loss) and diluted EPS. Providing net income (loss) and diluted EPS guidance is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items that are included in net income (loss) and diluted EPS, including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.

Forward-Looking Statements
Certain statements and projections contained in this news release are, by their nature, forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates, and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," and similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties, and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Dana's Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss important risk factors that could affect our business, results of operations and financial condition. The forward-looking statements in this news release speak only as of this date. Dana does not undertake any obligation to revise or update publicly any forward-looking statement for any reason.

About Dana Incorporated
Dana is a leader in the design and manufacture of highly efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company is shaping sustainable progress through its conventional and clean-energy solutions that support nearly every vehicle manufacturer with drive and motion systems; electrodynamic technologies, including software and controls; and thermal, sealing, and digital solutions.

Based in Maumee, Ohio, USA, the company reported sales of $10.3 billion in 2024 with 39,000 people in 30 countries across six continents. With a history dating to 1904, Dana was named among the "World's Most Ethical Companies" for 2025 by Ethisphere and as one of "America's Most Responsible Companies 2025" by Newsweek. The company is driven by a high-performance culture that focuses on valuing others, inspiring innovation, growing responsibly, and winning together, earning it global recognition as a top employer. Learn more at dana.com.

DANA INCORPORATED
Consolidated Statement of Operations (Unaudited)
For the Three Months Ended March 31, 2025 and 2024
			Three Months Ended
(In millions, except per share amounts)			March 31,
			2025		2024
Net sales			$ 2,352		$ 2,735
Costs and expenses
Cost of sales			2,132		2,491
Selling, general and administrative expenses			132		139
Amortization of intangibles			3		3
Restructuring charges, net			5		5
Loss on disposal group previously held for sale					(29)
Other income (expense), net			(8)		2
Earnings before interest and income taxes			72		70
Interest income			3		4
Interest expense			39		39
Earnings before income taxes			36		35
Income tax expense			8		37
Equity in earnings of affiliates			2		2
Net income			30		-
Less: Noncontrolling interests net income			5		5
Less: Redeemable noncontrolling interests net loss					(8)
Net income attributable to the parent company			$ 25		$ 3
Net income per share available to common stockholders
Basic			$ 0.17		$ 0.02
Diluted			$ 0.17		$ 0.02
Weighted-average shares outstanding - Basic			145.6		144.8
Weighted-average shares outstanding - Diluted			147.0		144.8

DANA INCORPORATED
Consolidated Statement of Comprehensive Income (Unaudited)
For the Three Months Ended March 31, 2025 and 2024
					Three Months Ended
(In millions)					March 31,
					2025		2024
Net income					$ 30		$ -
Other comprehensive income (loss), net of tax:
Currency translation adjustments					14		(20)
Hedging gains and losses					18		(2)
Defined benefit plans							1
Other comprehensive income (loss)					32		(21)
Total comprehensive income (loss)					62		(21)
Less: Comprehensive income attributable to noncontrolling interests					(5)		(4)
Less: Comprehensive loss attributable to redeemable noncontrolling interests							11
Comprehensive income (loss) attributable to the parent company					$ 57		$ (14)

DANA INCORPORATED
Consolidated Balance Sheet (Unaudited)
As of March 31, 2025 and December 31, 2024
(In millions, except share and per share amounts)				March 31,		December 31,
				2025		2024
Assets
Current assets
Cash and cash equivalents				$ 507		$ 494
Accounts receivable
Trade, less allowance for doubtful accounts of $17 in 2025 and $15 in 2024				1,425		1,195
Other				236		261
Inventories				1,617		1,547
Other current assets				246		206
Total current assets				4,031		3,703
Goodwill				257		250
Intangibles				148		150
Deferred tax assets				579		560
Other noncurrent assets				137		189
Investments in affiliates				127		126
Operating lease assets				299		293
Property, plant and equipment, net				2,222		2,214
Total assets				$ 7,800		$ 7,485
Liabilities, redeemable noncontrolling interests and equity
Current liabilities
Short-term debt				$ 130		$ 8
Current portion of long-term debt				215		214
Accounts payable				1,659		1,522
Accrued payroll and employee benefits				273		236
Taxes on income				90		69
Current portion of operating lease liabilities				46		44
Other accrued liabilities				415		468
Total current liabilities				2,828		2,561
Long-term debt, less debt issuance costs of $18 in 2025 and $19 in 2024				2,428		2,389
Noncurrent operating lease liabilities				262		258
Pension and postretirement obligations				304		295
Other noncurrent liabilities				343		397
Total liabilities				6,165		5,900
Commitments and contingencies
Redeemable noncontrolling interests				189		189
Parent company stockholders' equity
Preferred stock, 50,000,000 shares authorized, $0.01 par value,
no shares outstanding				-		-
Common stock, 450,000,000 shares authorized, $0.01 par value,
145,726,212 and 144,993,614 shares outstanding				2		2
Additional paid-in capital				2,294		2,282
Retained earnings				214		204
Treasury stock, at cost (1,304,731 and 837,803 shares)				(21)		(13)
Accumulated other comprehensive loss				(1,110)		(1,142)
Total parent company stockholders' equity				1,379		1,333
Noncontrolling interests				67		63
Total equity				1,446		1,396
Total liabilities, redeemable noncontrolling interests and equity				$ 7,800		$ 7,485

DANA INCORPORATED
Consolidated Statement of Cash Flows (Unaudited)
For the Three Months Ended March 31, 2025 and 2024
			Three Months Ended
(In millions)			March 31,
			2025		2024
Operating activities
Net income			$ 30		$ -
Depreciation			96		101
Amortization			5		5
Amortization of deferred financing charges			1		1
Earnings of affiliates, net of dividends received			(2)		(2)
Stock compensation expense			13		6
Deferred income taxes			(20)		2
Pension expense, net					(7)
Change in working capital			(141)		(251)
Change in other noncurrent assets and liabilities			(15)		(4)
Loss on disposal group previously held for sale					29
Other, net			(4)		18
Net cash used in operating activities			(37)		(102)
Investing activities
Purchases of property, plant and equipment			(75)		(70)
Proceeds from sale of property, plant and equipment			11		4
Settlements of undesignated derivatives			(1)		(1)
Other, net					4
Net cash used in investing activities			(65)		(63)
Financing activities
Net change in short-term debt			121		17
Repayment of long-term debt			(4)		(27)
Dividends paid to common stockholders			(15)		(15)
Distributions to noncontrolling interests			(1)		(3)
Collection of note receivable from noncontrolling interest					11
Contributions from redeemable noncontrolling interests					9
Other, net			(6)		9
Net cash provided by financing activities			95		1
Net decrease in cash, cash equivalents and restricted cash			(7)		(164)
Cash, cash equivalents and restricted cash - beginning of period			512		563
Effect of exchange rate changes on cash balances			18		(12)
Cash, cash equivalents and restricted cash - end of period			$ 523		$ 387

DANA INCORPORATED
Reconciliation of Net Cash Used In Operating Activities to
Adjusted Free Cash Flow (Unaudited)
		Three Months Ended
(In millions)		March 31,
		2025			2024
Net cash used in operating activities		$ (37)			$ (102)
Purchases of property, plant and equipment		(75)			(70)
Proceeds from sale of property, plant and equipment			11		4
Adjusted free cash flow		$ (101)			$ (168)

DANA INCORPORATED
Segment Sales and Adjusted EBITDA (Unaudited)
For the Three Months Ended March 31, 2025 and 2024
		Three Months Ended
(In millions)		March 31,
		2025		2024
Sales
Light Vehicle		$ 1,180		$ 1,324
Commercial Vehicle		568		653
Off-Highway		604		758
Total Sales		$ 2,352		$ 2,735
Adjusted EBITDA
Light Vehicle		$ 68		$ 78
Commercial Vehicle		44		33
Off-Highway		79		115
Corporate expenses and other net		(3)		(3)
Adjusted EBITDA		$ 188		$ 223

DANA INCORPORATED
Reconciliation of Earnings Before Income Taxes to Adjusted EBITDA (Unaudited)
For the Three Months Ended March 31, 2025 and 2024
		Three Months Ended
(In millions)		March 31,
		2025		2024
Earnings before income taxes		$ 36		$ 35
Interest income		(3)		(4)
Interest expense		39		39
Earnings before interest and income taxes		72		70
Depreciation		96		101
Amortization		5		5
Non-service cost components of pension and OPEB costs		2		4
Restructuring charges, net		5		5
Stock compensation expense		13		6
Strategic transaction expenses		15		2
(Gain) loss on sale of property, plant and equipment		(1)		5
Supplier capacity charge adjustment		(19)
Loss on disposal group previously held for sale				29
Other items				(4)
Adjusted EBITDA		$ 188		$ 223

DANA INCORPORATED
Reconciliation of Net Income Attributable to the Parent Company to
Adjusted Net Income Attributable to the Parent Company and
Diluted Adjusted EPS (Unaudited)
For the Three Months Ended March 31, 2025 and 2024
(In millions, except per share amounts)
			Three Months Ended
			March 31,
			2025		2024
Net income attributable to the parent company			$ 25		$ 3
Items impacting income before income taxes:
	Amortization		5		5
	Restructuring charges, net		5		5
	Strategic transaction expenses		15		2
	Supplier capacity commitment charge adjustment		(19)
	Loss on disposal group previously held for sale				29
	Other items				(3)
Items impacting income taxes:
	Net income tax expense on items above		(2)		(13)
	Income tax expense (benefit) attributable to various discrete tax matters		(10)		9
Adjusted net income attributable to the parent company			$ 19		$ 37
Diluted shares - as reported			147.0		144.8
Adjusted diluted shares			147.0		144.8
Diluted adjusted EPS			$ 0.13		$ 0.26

DANA INCORPORATED
2024 Segment Sales and Adjusted EBITDA
Recast for Segment Realignment (Unaudited)
(In millions)
		Q1 2024		Q2 2024		Q3 2024		Q4 2024		FY 2024
Sales
Light Vehicle		$ 1,324		$ 1,366		$ 1,253		$ 1,168		$ 5,111
Commercial Vehicle		653		645		612		570		2,480
Off-Highway		758		727		611		597		2,693
Total Sales		$ 2,735		$ 2,738		$ 2,476		$ 2,335		$ 10,284
Adjusted EBITDA
Light Vehicle		$ 78		$ 89		$ 83		$ 83		$ 333
Commercial Vehicle		33		40		47		17		137
Off-Highway		115		116		103		88		422
Corporate expenses and other net		(3)		(1)		(1)		(2)		(7)
Adjusted EBITDA		$ 223		$ 244		$ 232		$ 186		$ 885
Earnings (loss) before income taxes		$ 35		$ 67		$ 52		$ (74)		$ 80
Interest income		(4)		(2)		(4)		(5)		(15)
Interest expense		39		39		40		43		161
Earnings (loss) before interest and income taxes		70		104		88		(36)		226
Depreciation		101		106		97		97		401
Amortization		5		6		5		5		21
Non-service cost components of pension and OPEB costs		4		2		8		4		18
Restructuring charges, net		5		12		24		35		76
Stock compensation expense		6		8		7		9		30
Strategic transaction expenses		2		2		1		4		9
Loss on sale of property, plant and equipment		5						1		6
Supplier capacity charge								46		46
Amounts attributable to previously divested/closed operations								9		9
Loss on disposal group previously held for sale		29		1		(4)				26
Other items		(4)		3		6		12		17
Adjusted EBITDA		$ 223		$ 244		$ 232		$ 186		$ 885

SOURCE Dana Incorporated