Dana Inc Q4 sales beat on light truck demand

Overview

• Propulsion solutions firm's Q4 sales rose, beating analyst expectations

• Adjusted EBITDA for Q4 improved significantly from previous year

• Company repurchased 34 mln shares, 23% of shares outstanding

Outlook

• Dana expects 2026 sales between $7.30 bln and $7.70 bln

• Company projects 2026 adjusted EBITDA between $750 mln and $850 mln

• Dana anticipates $200 mln incremental new business growth in 2026

Result Drivers

• LIGHT TRUCK DEMAND - Increased demand for light truck programs offset lower commercial truck demand, driving Q4 sales growth

• COST SAVINGS - Cost-savings actions and efficiency improvements were primary drivers of Q4 adjusted EBITDA margin improvement

• STRATEGIC INITIATIVES - Sale of Off-Highway business supported debt reduction and capital returns

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Dana Inc is $32.00, about 2.6% below its February 17 closing price of $32.87

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn32YRb1a

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