Dana Incorporated released preliminary results for its fourth quarter of fiscal 2025, showing revenue of $1.9 billion and adjusted EBITDA of $200 million, translating to a 10.7% margin. The quarter’s performance beat consensus revenue estimates by $100 million and adjusted EBITDA by $20 million, driven largely by a 3% volume increase in the light‑vehicle segment and disciplined cost control that offset higher raw‑material costs.
The company’s earnings per share of $0.21 surpassed the consensus estimate of $0.17, a beat of $0.04 or 24%. The lift came from a combination of higher operating income and a $5 million non‑cash asset write‑down that was partially offset by a $3 million tax benefit. Management attributed the margin expansion to the ongoing $325 million cost‑reduction program, which has already delivered $73 million in savings and is expected to reach $235 million for the year.
Revenue growth was uneven across segments. Light‑vehicle sales rose 4% to $1.3 billion, supported by strong demand for electrified powertrains, while commercial‑vehicle revenue fell 2% to $600 million as the aftermarket segment continued to expand to 12% of total sales. The company’s aftermarket business, now generating roughly $900 million in revenue, helped cushion the impact of lower volumes in legacy platforms.
Looking ahead, Dana raised its 2026 adjusted EBITDA margin guidance to a range of 10.0%–11.0%, up from the previous 9.5%–10.5% band. The adjustment reflects confidence that the cost‑reduction plan will continue to deliver savings and that the company’s focus on high‑margin light‑ and commercial‑vehicle customers will drive profitability. The company also reiterated its full‑year 2025 revenue outlook of $7.5 billion, a beat of $200 million versus the prior estimate.
The results come after the completion of the Off‑Highway business sale to Allison Transmission for $2.7 billion, which closed on January 2, 2026. CEO R. Bruce McDonald said the divestiture “marks an important step in Dana’s evolution,” noting that the transaction has strengthened the balance sheet and freed management to concentrate on core markets. CFO Timothy Kraus highlighted the company’s 60% North‑American focus and a three‑year backlog of $750 million, underscoring the upside potential in the coming years.
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