Dana Incorporated Reports Q1 2026 Financial Results with $1.868 Billion in Net Sales

Dana Incorporated reported its financial results for the first quarter of 2026, revealing a net sales figure of $1.868 billion, an increase of 4.9% from $1.781 billion in the same period of 2025. The company experienced a significant boost in profitability, with net income attributable to the parent company rising to $1.087 billion, compared to $25 million in the prior year. This surge was largely driven by a pre-tax gain of $1.191 billion from the sale of its Off-Highway business, which was completed on January 1, 2026.

The company's operational performance showed mixed results. While the cost of sales increased to $1.699 billion from $1.663 billion, the gross margin improved to 9.0% from 6.6% year-over-year, reflecting effective cost management and pricing strategies. Selling, general, and administrative expenses decreased slightly to $102 million from $105 million, indicating ongoing efforts to streamline operations. However, Dana reported a net loss from continuing operations of $15 million, an improvement from a loss of $17 million in the previous year, highlighting the challenges faced in its core business segments.

Strategically, Dana has undergone significant changes, including the divestiture of its Off-Highway business to Allison Transmission Holdings, which has allowed the company to focus on its core on-highway markets. The sale generated gross cash proceeds of $2.664 billion, which were utilized to reduce debt and strengthen the company's balance sheet. Additionally, Dana has implemented cost reduction initiatives aimed at achieving annualized savings of $325 million by 2026, with approximately $260 million already realized through 2025.

In terms of operational metrics, Dana's workforce stood at approximately 26,900 employees across 24 countries as of March 31, 2026. The company reported a sales backlog of $950 million for new business expected to launch over the next three years, with $200 million anticipated to be realized in 2026. The geographic distribution of sales showed North America contributing $1.084 billion, Europe $408 million, South America $161 million, and Asia Pacific $215 million, with currency fluctuations positively impacting sales figures.

Looking ahead, Dana has provided a sales outlook for 2026 in the range of $7.3 billion to $7.7 billion, reflecting anticipated challenges in global market demand but also factoring in the benefits of new business backlog and favorable currency movements. The company expects adjusted EBITDA to be between $750 million and $850 million, with a focus on maintaining operational efficiency and enhancing shareholder value through strategic investments and cost management initiatives.