Dana Reports Strong Q1 Results, Maintains Full-Year Guidance, and Secures Major New Business Win
Summary
Dana reported strong first-quarter 2026 results with increased sales and Adjusted EBITDA, maintained its full-year financial guidance, and announced a significant new business win with Stellantis.
Key Events
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Strong Q1 Financial Performance
Sales increased 5% to $1.9 billion, Adjusted EBITDA rose to $171 million (up $78M), and Adjusted EBITDA margin expanded by 400 basis points to 9.2% compared to Q1 2025.
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Full-Year Guidance Maintained
The company reaffirmed its 2026 financial targets for sales ($7.30-$7.70 billion), Adjusted EBITDA ($750-$850 million), Diluted Adjusted EPS ($2.00-$3.00), and Adjusted free cash flow ($250-$350 million).
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Significant New Business Award
Dana secured a new contract with Stellantis for the RAM Dakota program, involving front drive units and rear axles, expected to begin production in early 2028. This adds approximately $250 million in annual sales and increases the three-year net new sales backlog to $950 million.
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Continued Share Repurchases
In Q1 2026, Dana repurchased 4.4 million shares, returning $125 million to shareholders, as part of its existing $2.0 billion share buyback program.
Analysis
This filing details a robust first quarter for Dana, marked by significant improvements in sales and profitability, with Adjusted EBITDA nearly doubling year-over-year. The company's ability to maintain its full-year guidance despite market conditions, coupled with a substantial new business win for the Stellantis RAM Dakota program, underscores strong operational execution and future growth potential. The continued share repurchases demonstrate a commitment to shareholder returns. While operating and adjusted free cash flow saw increased usage, the overall financial health and strategic progress, including the completed Off-Highway divestiture, position Dana favorably, especially as the stock trades near its 52-week high.
At the time of this filing, DAN was trading at $37.70 on NYSE in the Manufacturing sector, with a market capitalization of approximately $4.1B. The 52-week trading range was $12.20 to $39.56. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.