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

Dana (NYSE:DAN) issued its earnings results on Thursday. The auto parts company reported $0.19 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.70 by ($0.51), FiscalAI reports. The company had revenue of $2.01 billion during the quarter, compared to analyst estimates of $1.93 billion. Dana had a return on equity of 4.07% and a net margin of 14.55%.The company’s quarterly revenue was up 3.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.13 earnings per share. 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

Shares of Dana stock traded up $1.14 during trading on Friday, reaching $28.46. The company’s stock had a trading volume of 1,009,284 shares, compared to its average volume of 1,332,123. The stock has a 50-day moving average price of $28.92 and a two-hundred day moving average price of $31.97. The stock has a market capitalization of $3.08 billion, a P/E 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. Dana has a one year low of $17.38 and a one year high of $39.56.

Dana Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 7th will be issued 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 Analyst Weigh In

A number of brokerages have issued reports on DAN. Wall Street Zen cut Dana from a “buy” rating to a “hold” rating in a report on Sunday, April 19th. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Dana from $40.00 to $39.00 and set a “buy” rating for the company in a research report on Tuesday, July 7th. Royal Bank Of Canada boosted their price target on shares of Dana from $33.00 to $37.00 and gave the company an “outperform” rating in a research report on Friday. Weiss Ratings cut shares of Dana from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, July 6th. Finally, Wells Fargo & Company dropped their price objective on shares of Dana from $33.00 to $28.00 and set an “equal weight” rating for the company in a report on Friday. Four equities research 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. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $36.67.

Hedge Funds Weigh In On Dana

Institutional investors have recently modified their holdings of the stock. Tudor Investment Corp ET AL grew its stake in shares of Dana by 28.4% during the fourth quarter. Tudor Investment Corp ET AL now owns 273,631 shares of the auto parts company’s stock valued at $6,501,000 after purchasing an additional 60,487 shares during the last quarter. Loomis Sayles & Co. L P lifted its holdings in Dana by 61.2% during the 4th quarter. Loomis Sayles & Co. L P now owns 1,591,768 shares of the auto parts company’s stock worth $37,820,000 after buying an additional 604,246 shares in the last quarter. Horizon Investments LLC bought a new position in Dana in the 3rd quarter valued at $553,000. Entropy Technologies LP increased its stake in shares of Dana by 266.2% in the 3rd quarter. Entropy Technologies LP now owns 37,303 shares of the auto parts company’s stock valued at $748,000 after buying an additional 27,116 shares during the period. Finally, Russell Investments Group Ltd. lifted its stake in shares of Dana by 3.1% during the third quarter. Russell Investments Group Ltd. now owns 927,987 shares of the auto parts company’s stock valued at $18,597,000 after acquiring an additional 27,712 shares during the period. 96.79% of the stock is owned by institutional investors.

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.