Dana Reports Strong Q1 Results, Maintains Full-Year Guidance, and Secures Major New Business Win

summarizeSummary

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.

check_boxKey Events

• 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.

• 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).

• 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.

• 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.

auto_awesomeAnalysis

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.