Dana reported higher third-quarter sales and a sharp improvement in adjusted profitability, while a debt-extinguishment loss and tax charges pushed continuing operations to a loss. The auto and commercial-vehicle supplier also raised its 2026 sales outlook, stepped up planned share repurchases and said its Eaton Mobility transaction remains on track to close around the end of the first quarter of 2027.
Third-quarter performance
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Sales rose to $2.04 billion from $1.92 billion a year earlier. Dana attributed the increase mainly to stronger commercial-vehicle demand, conversion of its backlog, and commercial and cost-recovery actions.
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Adjusted EBITDA increased to $218 million from $162 million, and the adjusted margin expanded to 10.7% from 8.5%. Dana cited cost savings, operating-efficiency gains and commercial initiatives. The company said it had achieved $60 million in cost savings year to date.
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Dana reported a $10 million loss from continuing operations, compared with $13 million of income a year earlier. The loss included a $24 million charge for extinguishing debt and higher income-tax expense. The tax effects included a $29 million charge tied to settling a foreign income-tax matter, partly offset by a $12 million benefit related to restructuring after the sale of its Off-Highway business.
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Net income was $15 million, including $29 million from discontinued operations. Adjusted net income, which excludes specified items, was $44 million, versus an adjusted loss of $5 million a year earlier. Adjusted diluted earnings per share were 41 cents, compared with an adjusted loss of 4 cents.
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Operating cash flow was $102 million, down from $111 million. Adjusted free cash flow fell to $66 million from $101 million. Higher earnings and lower interest expense and cash taxes helped, but were more than offset by the loss of cash generation from the divested Off-Highway business, higher capital spending and working-capital timing.
Outlook, buybacks and Eaton transaction
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Dana raised its 2026 sales outlook by about $50 million, citing stronger demand and recoveries. It now expects sales of $7.75 billion to $7.85 billion.
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The company left its other full-year targets unchanged: adjusted EBITDA of $800 million to $850 million, an implied adjusted EBITDA margin of about 10.6%, adjusted diluted earnings per share of $1.75 to $2.25, and adjusted free cash flow of $275 million to $375 million.
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Dana repurchased about 6.6 million shares for $200 million during the third quarter. That brought year-to-date repurchases to $369 million. It plans to buy back approximately another $100 million of shares in the fourth quarter.
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The Eaton Mobility transaction remains on schedule to close around the end of the first quarter of 2027. Dana said it has received nearly all required regulatory approvals, with one still pending.
What changes for investors
Dana’s sales outlook is higher, but its profitability and cash-flow targets are unchanged. The gap between continuing-operations results and adjusted earnings reflects the impact of debt and tax charges, while the year-over-year decline in cash flow also reflects the absence of the sold Off-Highway business. The planned fourth-quarter buyback adds to the capital Dana intends to return before the Eaton Mobility transaction closes.