Dana Posts Adjusted EBITDA of $218 Million and Raises Sales Outlook by $50 Million
Key Facts
Dana reported third-quarter 2026 results on October 28, with sales of $2.04 billion and adjusted EBITDA of $218 million, at a margin of 10.7%. The company raised its full-year sales outlook by about $50 million, attributing the adjustment to higher demand and commercial recoveries. Sales topped analysts’ estimate of $1.97 billion, while adjusted diluted earnings per share were $0.41, compared with an estimate of $0.71. The stock closed at $27.2 on October 27, one day before the results were announced. Dana said improved operating performance supported its adjusted results, while other items weighed on net income from continuing operations.
Sales rose from $1.92 billion in the third quarter of 2025 to $2.04 billion in the corresponding period of 2026. The company attributed the increase to stronger demand for commercial vehicles, the conversion of backlog into sales, as well as commercial actions and cost recoveries. Dana said, "Sales in the third quarter of 2026 were $2.04 billion, compared with $1.92 billion in the same period of 2025." It said these factors also contributed to the higher full-year sales outlook. The adjustment reflects improving demand and commercial recoveries, while the company left its estimates for the other key metrics unchanged.
Adjusted EBITDA rose to $218 million from $162 million a year earlier, and the margin increased to 10.7% from 8.5%. Dana attributed the improvement to cost savings, operating efficiency and commercial initiatives. The company said, "Third-quarter adjusted EBITDA was $218 million, with a margin of 10.7%, compared with $162 million and a margin of 8.5% in the same period of 2025." Adjusted net income also improved to $44 million, after the company posted an adjusted loss of $5 million in the comparable period. Adjusted diluted earnings per share rose to $0.41 from a loss of $0.04 per share, highlighting the improvement in adjusted metrics despite lower net income from continuing operations.
Continuing operations posted a net loss of $10 million in the third quarter, compared with net income of $13 million a year earlier. Dana said improved operating performance and lower net interest expense were not enough to offset a $24 million debt extinguishment loss and higher income tax expense. The company said, "Improved operating performance and lower net interest expense were more than offset by the impact of a $24 million loss on debt extinguishment." The results show a divergence between growth in adjusted profitability and a loss on a continuing-operations basis, due to the impact of debt and tax items. The disclosure did not provide a comparison between reported earnings per share and analysts’ estimates beyond the estimate cited ahead of the announcement.
Operating cash flow fell to $102 million from $111 million in the third quarter of 2025, while adjusted free cash flow declined to $66 million from $101 million. The company attributed the changes to the absence of cash flows from the sold Off-Highway business, higher capital spending and the timing of working capital. Dana said these factors partly offset the effects of improved earnings and lower costs in some areas. Adjusted EBITDA and profitability improved alongside a year-over-year decline in adjusted free cash flow. The company left its full-year adjusted free cash flow outlook unchanged despite raising its sales estimate.
Dana left its full-year outlook for adjusted EBITDA, adjusted diluted earnings per share and adjusted free cash flow unchanged, despite raising its sales outlook by about $50 million. It also said it repurchased about 6.6 million shares for $200 million during the third quarter and plans to buy an additional $100 million of shares in the fourth quarter of 2026. Regarding the deal with Eaton Mobility, the company said it still targets closing near the end of the first quarter of 2027. It added that nearly all regulatory approvals had been received, with one approval still pending. The disclosure identifies that approval and the targeted closing date as upcoming developments announced by the company.