Dana (NYSE:DAN) Posts Earnings Results, Misses Estimates By $0.51 EPS

Dana (NYSE:DAN) announced 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 net margin of 14.55% and a return on equity of 4.07%. The business had revenue of $2.01 billion for the quarter, compared to analyst estimates of $1.93 billion. During the same period in the prior year, the business earned $0.13 EPS. The company’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 Trading Up 4.2%

Shares of Dana stock traded up $1.14 on Friday, hitting $28.46. 1,009,284 shares of the company’s stock traded hands, compared to its average volume of 1,332,123. Dana has a one year low of $17.38 and a one year high of $39.56. 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 fifty day moving average of $28.92 and a two-hundred day moving average of $31.97. The company has a market capitalization of $3.08 billion, a price-to-earnings ratio of 2.83 and a beta of 1.99.

Dana Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Zacks Research cut shares of Dana from a “hold” rating to a “strong sell” rating in a report on Tuesday, June 16th. UBS Group decreased their target price on shares of Dana from $39.00 to $38.00 and set a “buy” rating on the stock in a research report on Friday. Wall Street Zen downgraded shares of Dana from a “buy” rating to a “hold” rating in a research report on Sunday, April 19th. Barclays lowered Dana from an “overweight” rating to an “equal weight” rating and reduced their target price for the stock from $41.00 to $33.00 in a report on Thursday, July 2nd. Finally, JPMorgan Chase & Co. boosted their price target on Dana from $39.00 to $45.00 and gave the company an “overweight” rating in a research note on Thursday, April 23rd. Four research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $36.67.

Hedge Funds Weigh In On Dana

Institutional investors have recently added to or reduced their stakes in the business. Loomis Sayles & Co. L P grew its holdings in Dana by 61.2% in the fourth 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 during the period. Tudor Investment Corp ET AL boosted its position in shares of Dana by 28.4% during the 4th quarter. Tudor Investment Corp ET AL now owns 273,631 shares of the auto parts company’s stock worth $6,501,000 after purchasing an additional 60,487 shares in the last quarter. Entropy Technologies LP boosted its position in shares of Dana by 266.2% during the 3rd quarter. Entropy Technologies LP now owns 37,303 shares of the auto parts company’s stock worth $748,000 after purchasing an additional 27,116 shares in the last quarter. Russell Investments Group Ltd. grew its stake in shares of 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 buying an additional 27,712 shares during the period. Finally, State of Tennessee Department of Treasury grew its stake in shares of Dana by 10.7% in the 2nd quarter. State of Tennessee Department of Treasury now owns 55,842 shares of the auto parts company’s stock valued at $958,000 after buying an additional 5,405 shares during the period. 96.79% of the stock is owned by institutional investors and hedge funds.

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.