Dana Q2 2026: Gross Margin Expands to 10.4%, Full-Year Adjusted EBITDA Guidance Raised to $800–$850M
DAN sits 72% above its 52-week low of $16.575.
Summary
Dana posted Q2 2026 net sales of $2.01 billion and a gross margin of 10.4%, up from 7.1% a year ago. Full-year adjusted EBITDA guidance was raised to $800–$850 million, and the company provided updates on financing for the Eaton Mobility acquisition.
Key Events · Earnings and Guidance · DAN
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Q2 Gross Margin Expands to 10.4%
Gross margin improved 330 basis points year-over-year to 10.4%, driven by cost reduction initiatives, higher material cost savings, and operational efficiencies.
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Full-Year Adjusted EBITDA Guidance Raised
Dana raised its 2026 adjusted EBITDA outlook to $800–$850 million, implying a 250-basis-point margin improvement over 2025, with adjusted free cash flow of $275–$375 million.
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Eaton Mobility Acquisition Financing Update
In connection with the pending $5.1 billion Reverse Morris Trust acquisition, Dana entered into a $2.6 billion bridge facility, a $350 million term loan A commitment, and a $1.2 billion revolving credit facility commitment.
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Subsequent Debt Redemption and New Facilities
After quarter-end, Dana redeemed all outstanding July 2031 Notes and entered into a new $500 million Term A Facility, a $350 million Term Loan A, and a $1.2 billion Revolving Credit Facility to support the Eaton Mobility acquisition.
Analysis · DAN · Manufacturing
Second-quarter results underscore a sharp profitability inflection, with gross margin widening 330 basis points to 10.4% on the back of cost-reduction initiatives and favorable pricing. Reflecting that momentum, the full-year adjusted EBITDA outlook was lifted to $800–$850 million, implying a 250-basis-point margin improvement over 2025. The filing also details progress on the pending Eaton Mobility acquisition, including new financing commitments, and discloses subsequent debt redemptions and credit facilities that fortify the balance sheet ahead of closing.
At the time of this filing, DAN was trading at $28.51 on NYSE in the Manufacturing sector, with a market capitalization of approximately $3.1B. The 52-week trading range was $16.58 to $39.56. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.