Dana Incorporated Reports Q2 2025 Financial Results, Declines in Net Sales but Improved Net Income

Dana Incorporated reported its financial results for the second quarter of 2025, revealing a decline in net sales to $1.935 billion, down 5.5% from $2.047 billion in the same period last year. The company experienced a net loss from continuing operations of $12 million, a significant improvement compared to a loss of $61 million in the prior year. The net income attributable to the parent company was $27 million, compared to $16 million in the second quarter of 2024. The earnings per share for the quarter were $0.19, up from $0.11 a year earlier.

In the first half of 2025, Dana's net sales totaled $3.716 billion, down from $4.062 billion in the first half of 2024. The company reported a net loss from continuing operations of $29 million, an improvement from a loss of $126 million in the same period last year. The net income attributable to the parent company for the first six months was $52 million, compared to $19 million in 2024. The company attributed the decline in sales primarily to lower production volumes in the light and commercial vehicle segments, particularly in North America and Europe.

Strategically, Dana announced a definitive agreement in June 2025 to sell its Off-Highway business to Allison Transmission Holdings, Inc. for $2.732 billion, subject to adjustments based on net working capital and indebtedness. This divestiture is part of Dana's strategy to focus on its core on-highway markets. The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals. Additionally, Dana's board approved a stock repurchase program of up to $1 billion, which will be funded by the proceeds from the Off-Highway business sale.

Operationally, Dana's workforce stood at approximately 28,000 employees across 26 countries as of June 30, 2025. The company has been implementing cost reduction initiatives, aiming for annualized savings of $310 million by 2026, with $235 million expected to be realized in 2025. The restructuring efforts include consolidating facilities and reducing headcount, with approximately 700 employees targeted for reduction over the next year.

Looking ahead, Dana projects sales of approximately $7.4 billion for continuing operations in 2025, with an adjusted EBITDA of around $575 million. The company anticipates adjusted free cash flow of approximately $275 million. However, the outlook remains cautious due to potential market volatility and the ongoing impacts of the global economic environment.