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

Dana (NYSE:DAN) issued its earnings results on Thursday. The auto parts company reported $0.19 EPS for the quarter, missing the consensus estimate of $0.70 by ($0.51), FiscalAI reports. Dana had a return on equity of 4.07% and a net margin of 14.55%.The business had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $1.93 billion. During the same quarter in the prior year, the firm posted $0.13 earnings per share. The business’s revenue 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 Price Performance

NYSE DAN traded up $1.14 during midday trading on Friday, hitting $28.46. The company had a trading volume of 1,009,284 shares, compared to its average volume of 1,332,123. The company has a market capitalization of $3.08 billion, a PE ratio of 2.83 and a beta of 1.99. The company has a current ratio of 1.49, a quick ratio of 1.09 and a debt-to-equity ratio of 0.66. The firm has a 50-day moving average price of $28.92 and a 200-day moving average price of $31.97. Dana has a twelve month low of $17.38 and a twelve month high of $39.56.

Dana Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 7th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Friday, August 7th. Dana’s dividend payout ratio (DPR) is 4.66%.

Institutional Trading of Dana

Several large investors have recently modified their holdings of DAN. Captrust Financial Advisors bought a new stake in Dana during the second quarter worth about $176,000. State of Tennessee Department of Treasury boosted its holdings 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 purchasing an additional 5,405 shares in the last quarter. Russell Investments Group Ltd. boosted its holdings 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 purchasing an additional 27,712 shares in the last quarter. Entropy Technologies LP raised its holdings 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 buying an additional 27,116 shares in the last quarter. Finally, Horizon Investments LLC acquired a new position in shares of Dana during the 3rd quarter worth $553,000. 96.79% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

DAN has been the topic of several research analyst reports. Barclays lowered shares of Dana from an “overweight” rating to an “equal weight” rating and dropped their price objective for the company from $41.00 to $33.00 in a research report on Thursday, July 2nd. Zacks Research cut shares of Dana from a “hold” rating to a “strong sell” rating in a report on Tuesday, June 16th. JPMorgan Chase & Co. raised their price objective on shares of Dana from $39.00 to $45.00 and gave the stock an “overweight” rating in a research report on Thursday, April 23rd. Royal Bank Of Canada boosted their price objective on Dana from $33.00 to $37.00 and gave the stock an “outperform” rating in a report on Friday. Finally, Wells Fargo & Company lowered their target price on Dana from $33.00 to $28.00 and set an “equal weight” rating on the stock in a research note on Friday. Four analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $36.67.

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.