Dana (NYSE:DAN) Issues Quarterly Earnings Results

Dana (NYSE:DAN) released its quarterly earnings results on Thursday. The auto parts company reported $0.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.70 by ($0.51), FiscalAI reports. Dana had a return on equity of 4.07% and a net margin of 14.55%.The firm had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $1.93 billion. During the same quarter in the previous year, the business posted $0.13 EPS. The firm’s revenue for the quarter was up 3.9% compared to the same quarter last year. Dana updated its FY 2026 guidance to 1.750-2.250 EPS.

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

• Second-quarter results strengthened: Sales rose to $2.01 billion and adjusted EBITDA increased to $207 million, lifting the margin 270 basis points year over year to 10.3%. Adjusted EPS improved to $0.19 from $0.03, supported by pricing, operational improvements, cost savings, and lower interest expense.
• Dana raised its 2026 guidance to approximately $7.75 billion in sales, $825 million of adjusted EBITDA, and $325 million of adjusted free cash flow, primarily reflecting stronger commercial-vehicle demand. The company expects Class 8 volumes of roughly 275,000 units in 2026, with additional growth anticipated in 2027 and 2028.
• Dana plans to repurchase another $200 million of shares in the balance of 2026 and is exploring ways to resume buybacks after the Eaton Mobility transaction closes. Management said the combined company’s higher earnings and cash flow could accelerate completion of the existing $2 billion authorization to before the end of 2029.
• The Eaton Mobility transaction remains on track to close in the first quarter of 2027 and will use a tax-free split-off structure. Dana expects at least $250 million in run-rate cost synergies within 24 months, while targeting combined sales of $14 billion-$15 billion by 2030 and a larger, higher-margin aftermarket business.
• Despite raising sales and EBITDA expectations, Dana lowered its 2026 adjusted EPS outlook to approximately $2.00 because of higher depreciation and interest expense, tax headwinds, and lower anticipated earnings from China joint ventures. A one-time $20 million U.S. union ratification bonus is also expected in the third quarter.

Dana Stock Up 4.2%

Shares of DAN stock traded up $1.14 on Friday, reaching $28.46. 1,009,284 shares of the company were exchanged, compared to its average volume of 1,332,123. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.49 and a quick ratio of 1.09. The company has a 50-day moving average of $28.92 and a 200-day moving average of $31.97. The company has a market cap of $3.08 billion, a price-to-earnings ratio of 2.83 and a beta of 1.99. Dana has a one year low of $17.38 and a one year high of $39.56.

Dana Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 7th will be issued a dividend of $0.12 per share. The ex-dividend date is Friday, August 7th. This represents a $0.48 annualized dividend and a dividend yield of 1.7%. Dana’s dividend payout ratio is currently 4.66%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Tudor Investment Corp ET AL increased its holdings in shares of Dana by 28.4% during the fourth quarter. Tudor Investment Corp ET AL now owns 273,631 shares of the auto parts company’s stock valued at $6,501,000 after acquiring an additional 60,487 shares in the last quarter. Loomis Sayles & Co. L P lifted its holdings in shares of Dana by 61.2% in the 4th quarter. Loomis Sayles & Co. L P now owns 1,591,768 shares of the auto parts company’s stock worth $37,820,000 after purchasing an additional 604,246 shares in the last quarter. Horizon Investments LLC bought a new position in shares of Dana in the 3rd quarter worth $553,000. Entropy Technologies LP grew its position in Dana by 266.2% in the 3rd quarter. Entropy Technologies LP now owns 37,303 shares of the auto parts company’s stock valued at $748,000 after purchasing an additional 27,116 shares during the period. Finally, Russell Investments Group Ltd. grew its position in Dana by 3.1% in the 3rd 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 during the period. 96.79% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on DAN. Wells Fargo & Company lowered their target price on shares of Dana from $33.00 to $28.00 and set an “equal weight” rating for the company in a research note on Friday. Barclays downgraded Dana from an “overweight” rating to an “equal weight” rating and decreased their price target for the stock from $41.00 to $33.00 in a report on Thursday, July 2nd. Deutsche Bank Aktiengesellschaft lowered their price objective on Dana from $40.00 to $39.00 and set a “buy” rating for the company in a research report on Tuesday, July 7th. JPMorgan Chase & Co. boosted their price objective on Dana from $39.00 to $45.00 and gave the company an “overweight” rating in a research note on Thursday, April 23rd. Finally, Wall Street Zen lowered Dana from a “buy” rating to a “hold” rating in a research report on Sunday, April 19th. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Dana presently has a consensus rating of “Hold” and a consensus target price of $36.67.

Dana Company Profile

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.