Dana Incorporated Reports Q1 2025 Financial Results with Decline in Net Sales but Increased Net Income

Dana Incorporated reported its financial results for the first quarter of 2025, revealing a decline in net sales to $2.352 billion, down from $2.735 billion in the same period last year. The company's cost of sales also decreased to $2.132 billion from $2.491 billion, resulting in a gross margin of $220 million, which represents 9.4% of net sales. The net income attributable to the parent company was $25 million, a significant increase from $3 million in the first quarter of 2024, translating to earnings per share of $0.17, compared to $0.02 in the prior year.

The financial performance reflects a strategic response to market conditions, including a 12% organic sales decline primarily driven by reduced production volumes in the light-truck and medium/heavy-truck segments in North America and Europe. The company noted that currency fluctuations negatively impacted sales by $53 million, with the euro, Brazilian real, and Indian rupee contributing to this decline. Despite these challenges, Dana's gross margin improved by 50 basis points year-over-year, attributed to cost reduction initiatives and operational efficiencies.

In terms of operational developments, Dana has been actively restructuring its operations, including a realignment of its business segments effective January 1, 2025. The former Power Technologies segment has been integrated into the Light Vehicle and Commercial Vehicle segments to enhance efficiency and streamline operations. Additionally, the company is exploring the divestiture of its Off-Highway business, which is expected to further focus its core on-highway markets. As of March 31, 2025, Dana employed approximately 39,300 people across 31 countries.

Looking ahead, Dana has provided a sales outlook for 2025 in the range of $9.525 billion to $10.025 billion, reflecting anticipated challenges from declining global market demand and currency headwinds. The company expects adjusted EBITDA to be between $925 million and $1.025 billion, with a projected adjusted free cash flow of $175 million to $275 million. Dana's management remains focused on improving its cost structure and operational efficiency to navigate the current economic landscape and capitalize on future growth opportunities.