Dana (NYSE:DAN) Issues Earnings Results, Misses Expectations By $0.51 EPS

Dana (NYSE:DAN) released its earnings results on Thursday. The auto parts company reported $0.19 earnings per share for the quarter, missing the consensus estimate 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 net margin of 14.55% and a return on equity of 4.07%. The company’s quarterly revenue was up 3.9% compared to the same quarter last year. During the same period in the previous year, the company posted $0.13 EPS. 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 Stock Up 4.2%

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

Dana Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 7th will be given a $0.12 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 1.7%. Dana’s payout ratio is currently 4.66%.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on DAN. Deutsche Bank Aktiengesellschaft cut their price objective on Dana from $40.00 to $39.00 and set a “buy” rating on the stock in a report on Tuesday, July 7th. Barclays lowered shares of Dana from an “overweight” rating to an “equal weight” rating and reduced their target price for the stock from $41.00 to $33.00 in a research note on Thursday, July 2nd. Zacks Research cut Dana from a “hold” rating to a “strong sell” rating in a research report on Tuesday, June 16th. Royal Bank Of Canada lifted their target price on Dana from $33.00 to $37.00 and gave the company an “outperform” rating in a research report on Friday. Finally, Wells Fargo & Company reduced their price target on Dana from $33.00 to $28.00 and set an “equal weight” rating for the company in a research report on Friday. Four research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $36.67.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Captrust Financial Advisors bought a new stake in shares of Dana during the 2nd quarter worth approximately $176,000. Horizon Investments LLC bought a new position in shares of Dana in the third quarter valued at $553,000. Entropy Technologies LP increased its holdings in Dana by 266.2% during the third 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 during the last quarter. State of Tennessee Department of Treasury increased its holdings in Dana by 10.7% during the second quarter. State of Tennessee Department of Treasury now owns 55,842 shares of the auto parts company’s stock worth $958,000 after buying an additional 5,405 shares during the last quarter. Finally, Tudor Investment Corp ET AL raised its position in 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 worth $6,501,000 after acquiring an additional 60,487 shares in the last quarter. 96.79% of the stock is currently 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.