Dana Reports 5% Q1 Sales Growth, 9.2% EBITDA Margin and $950M Backlog Win
Dana Incorporated posted Q1 sales of $1.87 billion, a 5% increase, and adjusted EBITDA of $171 million, driving margin to 9.2%, a 400 bp improvement year-over-year. The company completed its Off-Highway sale, secured $35 million in cost savings, repurchased 4.4 million shares for $125 million and added $950 million to its new business backlog.
1. First-Quarter Financial Performance
Dana achieved Q1 sales of $1.87 billion, up 5% year-over-year, and delivered adjusted EBITDA of $171 million, pushing margins to 9.2%—400 basis points above last year—driven by customer recoveries, currency translation and $35 million in cost savings.
2. Capital Allocation and Divestiture
The company completed the sale of its Off-Highway business, secured $35 million in additional cost savings, and repurchased 4.4 million shares for $125 million, reflecting disciplined capital allocation despite an adjusted free cash flow use of $195 million.
3. New Business Award and Backlog Expansion
Dana won a new business award with Stellantis for the RAM Dakota program, supplying front drive units and rear axles for the compact truck platform, increasing its three-year net new sales backlog by approximately $950 million with production slated to begin in early 2028.
4. Maintained Full-Year Guidance
The company reaffirmed its full-year targets, projecting sales of $7.30 to $7.70 billion, adjusted EBITDA of $750 to $850 million (10.0% to 11.0% margin), diluted adjusted EPS of $2.00 to $3.00, and adjusted free cash flow of $250 to $350 million.