Dana Incorporated Reports Q2 2026 Financial Results with Increased Net Sales and Strategic Acquisitions

Dana Incorporated reported its financial results for the second quarter and first half of 2026, showing a notable increase in net sales and a shift in profitability compared to the previous year. For the three months ended June 30, 2026, the company achieved net sales of $2.01 billion, a 3.9% increase from $1.94 billion in the same period of 2025. The gross margin improved significantly to 10.4%, up from 7.1% a year earlier, reflecting effective cost management and pricing strategies. However, the company reported a net loss attributable to the parent company of $5 million for the quarter, compared to a profit of $27 million in the prior year.

The financial performance for the first half of 2026 also showed improvement, with net sales rising to $3.88 billion from $3.72 billion in the first half of 2025. The company reported a net income of $1.09 billion, largely due to a gain from the sale of its Off-Highway business, which closed on January 1, 2026. This divestiture generated gross cash proceeds of $2.66 billion, allowing Dana to reduce its debt significantly and improve its liquidity position.

Strategically, Dana has been focusing on its core on-highway markets, which has led to the divestiture of its Off-Highway business. The company is also in the process of acquiring Eaton Corporation's Vehicle and eMobility business segments, a transaction expected to close in the first quarter of 2027. This acquisition is structured as a Reverse Morris Trust and aims to enhance Dana's capabilities in electric vehicle technologies. The company has secured a $2.6 billion bridge facility to support this acquisition.

Operationally, Dana reported a workforce of approximately 27,300 employees across 24 countries as of June 30, 2026. The company has seen a positive trend in customer engagement, with a sales backlog of $950 million for new business expected to launch over the next three years. The company anticipates realizing $200 million of this backlog in 2026, contributing to its revenue growth.

Looking ahead, Dana has provided an optimistic outlook for 2026, projecting sales between $7.65 billion and $7.85 billion, with adjusted EBITDA expected to range from $800 million to $850 million. The company aims to leverage its recent strategic initiatives, including cost reduction measures and enhanced operational efficiencies, to achieve these targets while navigating the challenges posed by fluctuating commodity prices and market conditions.