Dana (NYSE:DAN) Issues Earnings Results, Beats Estimates By $0.02 EPS

Dana (NYSE:DAN) released its quarterly earnings data on Wednesday. The auto parts company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.02, Briefing.com reports. The business had revenue of $1.87 billion for the quarter, compared to analysts’ expectations of $1.80 billion. Dana had a return on equity of 6.35% and a net margin of 0.64%.The firm’s quarterly revenue was up 7.1% on a year-over-year basis. During the same period in the prior year, the firm posted $0.25 EPS.

Here are the key takeaways from Dana’s conference call:

• Dana delivered meaningful margin expansion and cost reductions in 2025, achieving $610M adjusted EBITDA (11.1% Q4 margin) with a $325M run rate of cost savings into 2026, and is guiding to ~$800M adjusted EBITDA in 2026 while targeting $10B revenue and 14%–15% EBITDA margin by 2030.
• Operating cash flow and deleveraging strengthened the balance sheet: adjusted free cash flow was $331M (highest since 2013), the Off‑Highway sale funded roughly $1.9B of debt reduction$1.8B.
• Management raised shareholder returns—a $2B share‑repurchase program through 2030, >34M shares repurchased in 2025 (avg $18.96), ~$100M repurchased early in Q1 2026, and a 20% dividend increase to $0.12/quarter—signaling confidence in cash generation.
• Market outlook is cautious: 2026 revenue is guided roughly flat at $7.5B with volumes assumed flat, backlog of $750M (three‑year) and ~$200M expected to flow in 2026, while management cites a shift from EV toward ICE/hybrid programs as both a headwind and opportunity.
• Near‑term financial headwinds remain: interest expense rose in 2025 (full‑year ~$171M, +$26M YoY) partly from funding accelerated buybacks, and the company notes ~$40M of post‑divestiture stranded costs it expects to largely eliminate in 2026, with net interest projected to decline after deleveraging.

Dana Stock Performance

Shares of Dana stock traded up $1.84 on Wednesday, hitting $34.71. 2,484,316 shares of the company’s stock were exchanged, compared to its average volume of 1,704,243. Dana has a 1 year low of $10.11 and a 1 year high of $35.71. The company has a 50-day simple moving average of $27.35 and a 200-day simple moving average of $22.65. The company has a debt-to-equity ratio of 2.23, a quick ratio of 0.96 and a current ratio of 1.31. The stock has a market capitalization of $4.06 billion, a PE ratio of 77.14, a PEG ratio of 1.41 and a beta of 2.14.

Dana Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 20th. Shareholders of record on Friday, February 27th will be given a $0.12 dividend. The ex-dividend date is Friday, February 27th. This is a boost from Dana’s previous quarterly dividend of $0.10. This represents a $0.48 annualized dividend and a yield of 1.4%. Dana’s payout ratio is 88.89%.

Institutional Trading of Dana

Several hedge funds have recently bought and sold shares of DAN. State of Tennessee Department of Treasury raised its stake in shares of Dana by 10.7% in the second quarter. State of Tennessee Department of Treasury now owns 55,842 shares of the auto parts company’s stock worth $958,000 after buying an additional 5,405 shares during the period. Captrust Financial Advisors bought a new position in shares of Dana during the 2nd quarter valued at approximately $176,000. Entropy Technologies LP increased its holdings in Dana by 266.2% in the 3rd quarter. Entropy Technologies LP now owns 37,303 shares of the auto parts company’s stock worth $748,000 after acquiring an additional 27,116 shares in the last quarter. Horizon Investments LLC bought a new stake in Dana during the 3rd quarter worth approximately $553,000. Finally, Russell Investments Group Ltd. lifted its holdings in Dana by 3.1% during the third quarter. Russell Investments Group Ltd. now owns 927,987 shares of the auto parts company’s stock valued at $18,597,000 after purchasing an additional 27,712 shares in the last quarter. Institutional investors own 96.79% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have recently issued reports on DAN. Barclays upped their price target on Dana from $27.00 to $32.00 and gave the company an “overweight” rating in a report on Thursday, January 22nd. Zacks Research upgraded shares of Dana from a “hold” rating to a “strong-buy” rating in a research note on Thursday, January 22nd. Weiss Ratings reiterated a “hold (c)” rating on shares of Dana in a research note on Monday, December 29th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $36.00 price objective on shares of Dana in a report on Thursday, January 22nd. Finally, Wells Fargo & Company raised their target price on shares of Dana from $24.00 to $30.00 and gave the stock an “equal weight” rating in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $32.17.

About Dana

Dana Incorporated is a global leader in the design and manufacture of drivetrain, sealing, and thermal-management technologies for the automotive, commercial vehicle, off-highway and industrial markets. The company’s product portfolio includes axles, driveshafts, transmissions, e-Propulsion systems and thermal-management assemblies that help improve fuel efficiency, reduce emissions and enhance vehicle performance. Dana’s expertise spans internal combustion and electrified powertrains, positioning it to support both traditional and next-generation mobility solutions.

Founded in 1904 by Clarence W.