Dana Incorporated has reported strong financial results for the full year 2025, with sales reaching $7.5 billion. The company's adjusted EBITDA stood at $610 million, which is $10 million higher than the preliminary estimate. The adjusted EBITDA margin also improved, reaching 8.1%, 10 basis points higher than the preliminary estimate. Moreover, Dana achieved adjusted free cash flow of $331 million, surpassing the preliminary estimate by $16 million.
In 2025, the company completed the sale of its off-highway business and achieved $248 million in cost savings, consistent with the preliminary estimate. Dana also returned $704 million to shareholders, repurchasing 34 million shares, representing 23% of shares outstanding.
Looking ahead to 2026, Dana has completed nearly $2 billion in debt reduction and increased its capital return program from $1 billion to $2 billion. The company has already repurchased $100 million in shares and expects to repurchase up to $300 million worth of shares in 2026. Additionally, Dana announced a $750 million three-year new business backlog, with $200 million incremental in 2026. The company's 2026 margin guidance range sits at a midpoint of 10.7%.
Dana's fourth-quarter 2025 financial results also showed significant improvement, with sales totaling $1.9 billion, compared with $1.8 billion in the same period of 2023. Adjusted EBITDA for the fourth quarter of 2025 reached $208 million, representing an 11.1% margin, compared with $84 million, or 4.7%, for the same period in 2024. Operating cash flow in the fourth quarter of 2025 was $406 million, compared with $302 million in the same period of 2024. Adjusted free cash flow was $324 million, compared with $153 million in the fourth quarter of 2024.
Despite a slight decrease in sales for the full year 2025 compared to 2024, Dana's adjusted EBITDA increased to $610 million from $395 million in 2024. This growth was attributed to cost-savings actions and performance improvements that offset the margin impact of lower sales and tariffs.
Looking toward the future, Dana introduced its long-term financial guidance as part of the company’s Dana 2030 strategy. The company expects to generate approximately $10 billion in sales by 2030, reflecting a 33% increase over its 2026 outlook. The company is also targeting a significant expansion in profitability, with adjusted EBITDA margins projected to reach 14 to 15%, a 45% improvement versus the 2026 guidance.
Dana's 2026 financial targets include sales ranging from $7.30 to $7.70 billion, adjusted EBITDA of $750 to $850 million, an implied adjusted EBITDA margin of 10.0% to 11.0%, diluted adjusted EPS of $2.00 to $3.00, and adjusted free cash flow of $250 to $350 million.
The company will host a capital markets day on March 25, 2026, in New York City to discuss its Dana 2030 strategy in detail. Today the company's shares have moved -0.65% to a price of $27.53. If you want to know more, read the company's complete 8-K report here.
