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1. Company Snapshot

1.a. Company Description

Dana Incorporated provides power-conveyance and energy-management solutions for vehicles and machinery in North America, Europe, South America, and the Asia Pacific.It operates in four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies.The Light Vehicle Drive Systems segment offers axles, driveshafts, e-axles, electrodynamic and drivetrain components, and transmissions, as well as electric, hybrid, and ICE products for light trucks, sport and crossover utility vehicles, vans, and passenger cars.


The Commercial Vehicle Drive and Motion Systems segment provides axles, driveshafts, e-axles, e-transmissions, electrodynamic and drivetrain components, and electric vehicle integration services, as well as software as a service for medium and heavy duty trucks, buses, and specialty vehicles.The Off-Highway Drive and Motion Systems segment offers axles, driveshafts, transmissions, planetary hub drives, e-axles and e-drives, and helical and bevel-helical gearboxes, as well as electrodynamic, hydraulic, and drivetrain components for construction, earth moving, agricultural, mining, forestry, material handling, and industrial stationary markets.The Power Technologies segment offers gaskets and sealing, cover modules, heat shields, thermal management, e-thermal management, cooling, and bipolar fuel cell plates products for light vehicle, medium/heavy vehicle, and off-highway markets.


The company was formerly known as Dana Holding Corporation and changed its name to Dana Incorporated in August 2016.Dana Incorporated was founded in 1904 and is headquartered in Maumee, Ohio.

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1.b. Last Insights on DAN

The recent 3-month performance of Dana Incorporated was negatively impacted by a disappointing Q1 earnings release. The company's adjusted EBITDA of $188 million fell short of the Zacks Consensus Estimate of $213 million, resulting in an adjusted EBITDA margin of 8.0 percent. Additionally, Dana's net income attributable to the company of $25 million, or $0.17 per share, missed the consensus estimate of $0.17 per share.

1.c. Company Highlights

2. Dana Inc: Q1 2026 Earnings – Strong Margins, New Backlog, and Forward‑Looking Guidance

The first quarter delivered a robust $1.868 billion in sales, a slight $33 million volume‑mix drag offset by a favorable mix and currency headwinds. Adjusted EBITDA rose to $171 million, a 9.2% margin and 400 basis point lift versus 2025. Diluted EPS came in at $0.3999, just below the $0.41 consensus. The company’s EV/EBITDA sits at 15.88, while the dividend yield remains at 1.17%, indicating modest upside potential for income‑oriented investors.

Publication Date: Apr -30

📋 Highlights
  • EBITDA Margin Improvement:: Achieved 9.2% margin, a 400 bps increase YoY, driven by cost reductions and operational efficiency.
  • New Business Award:: Secured $250M annual contract with Stellantis for RAM Dakota Program, boosting 3-year backlog to $950M.
  • Share Repurchases:: Returned $125M to shareholders via share buybacks in Q1 2026, reflecting strong capital allocation discipline.
  • Sales Performance:: Recorded $1.868B in sales, offsetting $33M volume/mix headwind with favorable pricing and cost actions.

Revenue and Margin Performance

Sales growth of 4.3% year‑over‑year reflects a resilient commercial vehicle portfolio and a solid aftermarket presence. EBITDA margin expansion to 9.2% underscores disciplined pricing and cost control, while the 400‑basis‑point improvement signals effective execution of the 2025 cost‑reduction plan.

Backlog Growth and New Contracts

The RAM Dakota Program win with Stellantis adds a $250 million annual contract, and a $950 million three‑year backlog boost signals strong demand. The company’s backlog shift—$200 million moving to 2028 and $50 million from non‑secured to secured—strengthens the pipeline for 2030 targets.

EBITDA and Cash Flow Highlights

Adjusted EBITDA of $171 million translates to a 9.2% margin, while free cash flow of $300 million reflects disciplined working‑capital management. The company’s $125 million share repurchase in Q1 demonstrates a commitment to returning capital to shareholders.

Guidance and 2030 Outlook

2026 guidance remains unchanged: sales near $7.5 billion, adjusted EBITDA $800 million, and diluted EPS $2.50. The 2030 roadmap projects $10 billion in revenue, 14‑15% EBITDA margin, and 6% free‑cash‑flow margin, driven by secured backlog, commercial vehicle recovery, and applied‑technology expansion.

Cost Management and Operational Efficiency

Structural cost cuts of $35 million in Q1 feed into a broader $400 million savings target for the year. Manufacturing excellence, product‑mix discipline, and ongoing process improvements underpin the company’s margin trajectory and free‑cash‑flow acceleration to $600 million by 2030.

Market Dynamics – Commercial Vehicles and EV

North American and South American commercial vehicle markets are rebounding, while European exposure remains modest amid higher energy costs. EV mix gains provide a structural repricing benefit, with the company confident in recovering commodity inflation through indexed programs and commercial negotiations.

Investor Impact – Share Repurchases and Valuation

The $125 million share repurchase program, combined with a 1.17% dividend yield, offers tangible value to shareholders. With an EV/EBITDA of 15.88 and a negative P/E ratio reflecting the company’s high debt load, investors should weigh the upside from margin expansion against the current capital structure.

3. NewsRoom

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Dana Incorporated (DAN) Q1 2026 Earnings Call Transcript

Apr -29

Source: seekingalpha.com

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Dana Incorporated Reports Strong First-Quarter Results; Maintains Full-Year Guidance; Announces New Business Win

Apr -29

Source: prnewswire.com

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Dana to Pay Dividend on Common Stock

Apr -21

Source: prnewswire.com

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Dana-Farber Cancer Institute Study Demonstrates Predictive Value of Ignite Proteomics' RPPA Platform for T-DXd (Enhertu®) Therapy in Metastatic Breast Cancer Patients

Apr -20

Source: businesswire.com

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Dana Inc (DAN) Stock Down 3.4% but Still Overvalued -- GF Score: 64/100

Apr -15

Source: gurufocus.com

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Dana Incorporated to Announce 2026 First-quarter Financial Results, Host Conference Call and Webcast on Apr. 29

Apr -14

Source: prnewswire.com

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5 Value Stocks to Buy Amid Geopolitical and Fed Uncertainty

Apr -09

Source: zacks.com

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Dana (NYSE:DAN) Stock Price Crosses Above 200 Day Moving Average – Here’s What Happened

Apr -07

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.12%)

6. Segments

Light Vehicle

Expected Growth: 5.22%

Dana Incorporated's Light Vehicle segment growth of 5.22% is driven by increasing demand for electric and hybrid vehicles, rising adoption of advanced drivetrain technologies, and growing need for fuel efficiency and emission reduction. Additionally, expansion in emerging markets and strategic partnerships with OEMs contribute to the segment's growth.

Off-Highway

Expected Growth: 4.65%

Dana Incorporated's Off-Highway segment growth of 4.65% is driven by increasing demand for construction and agricultural equipment, driven by infrastructure development and agricultural mechanization. Additionally, the adoption of electric and hybrid vehicles, as well as the need for emission reduction, are contributing to the segment's growth.

Commercial Vehicle

Expected Growth: 5.45%

Dana Incorporated's Commercial Vehicle segment growth of 5.45% is driven by increasing demand for medium and heavy-duty trucks, growth in construction and infrastructure spending, and rising adoption of electric and hybrid vehicles. Additionally, Dana's strategic acquisitions and partnerships, such as the purchase of TM4, have expanded its electric propulsion capabilities, further contributing to growth.

Power Technologies

Expected Growth: 13.93%

Dana Incorporated's Power Technologies segment growth of 13.93% is driven by increasing demand for electric vehicles, rising adoption of hybrid and electric powertrains, and growing need for energy-efficient solutions. Additionally, the segment benefits from Dana's strategic acquisitions, expanding product portfolio, and strong relationships with major OEMs.

7. Detailed Products

Axles

Dana's axles are designed to provide improved efficiency, reliability, and performance for commercial vehicles, including trucks, buses, and coaches.

Driveline Components

Dana's driveline components, including driveshafts, universal joints, and yokes, are engineered to provide reliable and efficient power transmission.

Electrification Solutions

Dana's electrification solutions, including electric motors, inverters, and gearboxes, are designed to support the transition to electric and hybrid vehicles.

Sealing Solutions

Dana's sealing solutions, including seals, gaskets, and O-rings, are designed to provide a tight seal in a variety of applications.

Thermal Management Solutions

Dana's thermal management solutions, including heat exchangers, radiators, and cooling fans, are designed to manage temperature in a variety of applications.

Brevini Motion Systems

Dana's Brevini motion systems, including gearmotors, winches, and hoists, are designed to provide reliable and efficient motion control.

Spicer Aftermarket Parts

Dana's Spicer aftermarket parts, including driveline components, axles, and brakes, are designed to provide reliable and efficient replacement parts.

8. Dana Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Dana Incorporated's products are moderately substitutable, as customers have some alternatives, but they are not easily replaceable.

Bargaining Power Of Customers

Dana Incorporated's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Dana Incorporated's suppliers have moderate bargaining power, as the company relies on a few key suppliers, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants is low for Dana Incorporated, as the company has established a strong market presence and has significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry in the industry is high, with many established players competing for market share, but Dana Incorporated's strong brand and diversified product offerings help it maintain a competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 65.43%
Debt Cost 16.13%
Equity Weight 34.57%
Equity Cost 16.26%
WACC 16.18%
Leverage 189.27%

11. Quality Control: Dana Incorporated passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dana

A-Score: 5.3/10

Value: 6.0

Growth: 3.3

Quality: 3.1

Yield: 5.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Monro

A-Score: 4.2/10

Value: 7.0

Growth: 2.4

Quality: 2.9

Yield: 8.0

Momentum: 2.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Holley

A-Score: 4.1/10

Value: 6.5

Growth: 5.9

Quality: 2.6

Yield: 0.0

Momentum: 8.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
American Axle

A-Score: 4.0/10

Value: 8.2

Growth: 3.9

Quality: 3.0

Yield: 0.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Superior Industries International

A-Score: 3.2/10

Value: 10.0

Growth: 1.9

Quality: 5.4

Yield: 0.0

Momentum: 1.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Commercial Vehicle Group

A-Score: 3.1/10

Value: 9.2

Growth: 1.0

Quality: 2.9

Yield: 0.0

Momentum: 3.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.87$

Current Price

35.87$

Potential

-0.00%

Expected Cash-Flows