Dana Achieves Record $331M Free Cash Flow and 11.1% Q4 EBITDA Margin
Dana’s Q4 sales rose to $1.867 billion, driving adjusted EBITDA of $208 million at an 11.1% margin, a 640-basis-point improvement. The company delivered $248 million in cost savings, exited with a $325 million run rate, generated record $331 million free cash flow and cut debt by $1.9 billion post-Off-Highway sale.
1. Q4 Results and Margin Improvement
Dana posted fourth-quarter 2025 sales of $1.867 billion, up $93 million year-over-year, and achieved adjusted EBITDA of $208 million for an 11.1% margin, reflecting a 640-basis-point uplift. EBIT from continuing operations turned positive at $61 million versus a $117 million loss a year earlier.
2. Cost Savings and Free Cash Flow
The company exceeded its initial cost savings goal by delivering $248 million of run-rate savings in 2025 and exited the year with a $325 million annual run rate. Adjusted free cash flow reached a record $331 million, the highest annual level since 2013, driven by higher profitability and working-capital discipline.
3. Deleveraging via Off-Highway Divestiture
The January 1 divestiture of the Off-Highway business generated roughly $2 billion in proceeds, used primarily to repay $1.9 billion of debt. Post-transaction, Dana ended January with $659 million in cash, $1.8 billion of total liquidity, no near-term maturities and net leverage below 1x, prompting upgrades from Fitch and S&P.
4. Leadership Transition and 2026 Guidance
Chairman and CEO Bruce McDonald announced that Byron Foster will succeed as CEO in a seamless transition by end of Q2 2026. Management reaffirmed 2026 targets of approximately $7.5 billion in sales, $800 million of adjusted EBITDA, $2.50 diluted EPS and $300 million of adjusted free cash flow, while noting a shift in product mix toward traditional powertrains.