DANA Inc. Posts $16M Q2 Profit, Divests Off-Highway Business

TL;DR

**DANA's Q2 profit surge and Off-Highway sale is a bullish signal for a leaner, more focused future.**

AI Summary

DANA Inc. reported a net income of $16 million for the second quarter of 2025, a significant increase from $0 in the same period of 2024. For the six months ended June 30, 2025, net income was $13 million, also up from $0 in the prior year. Diluted earnings per share for Q2 2025 were $0.10, compared to $0.01 in Q2 2024. The company completed the sale of its Off-Highway business to Allison Transmission Holdings, Inc. on June 1, 2025, for a total consideration of $1,314,000, which included a cash payment of $837,803. This divestiture is a key business change, impacting future revenue streams and operational focus. DANA Inc. also entered into 8-year fixed-to-fixed cross-currency swaps in conjunction with the April 2025 Notes issuance, economically converting the debt to euro-denominated at a fixed rate of 3.850%. Risks include foreign exchange fluctuations, which are partially mitigated by derivative instruments, and the integration challenges following the Off-Highway business divestiture. The strategic outlook involves focusing on core operations post-divestiture and managing debt effectively through currency swaps.

Why It Matters

DANA Inc.'s divestiture of its Off-Highway business to Allison Transmission Holdings, Inc. for $1.314 million marks a significant strategic shift, allowing the company to streamline operations and focus on its core automotive and commercial vehicle segments. This move could free up capital for innovation and debt reduction, potentially improving long-term shareholder value. For employees, this could mean a reallocation of resources and a clearer strategic direction, while customers might see a more focused product offering. In a competitive market, this specialization could enhance DANA's agility and ability to compete with rivals like American Axle & Manufacturing Holdings, Inc. and Meritor, Inc.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant divestiture of the Off-Highway business, which introduces integration risks and potential revenue volatility in the short term. While the company reported a net income of $16 million for Q2 2025, the long-term impact of this strategic shift on overall financial performance needs to be closely monitored. Additionally, the use of cross-currency swaps, while mitigating some foreign exchange risk, adds complexity to the financial structure.

Analyst Insight

Investors should monitor DANA Inc.'s performance in the coming quarters to assess the impact of the Off-Highway business divestiture and the effectiveness of its new strategic focus. Consider this a potential long-term play if the company successfully reallocates capital and demonstrates sustained profitability in its core segments.

Financial Highlights

net Income

$16M

eps

$0.10

Key Numbers

• $16M — Net Income Q2 2025 (Increased from $0 in Q2 2024, indicating a return to profitability.)
• $13M — Net Income YTD June 30, 2025 (Increased from $0 in the prior year, showing improved year-to-date performance.)
• $0.10 — Diluted EPS Q2 2025 (Up from $0.01 in Q2 2024, reflecting stronger per-share earnings.)
• $1.314M — Off-Highway Business Sale Consideration (Total value received from the divestiture to Allison Transmission Holdings, Inc.)
• 3.850% — Euro-denominated Debt Rate (Fixed rate achieved through cross-currency swaps on April 2025 Notes.)

Key Players & Entities

• DANA Inc. (company) — filer of the 10-Q
• Allison Transmission Holdings, Inc. (company) — purchaser of DANA's Off-Highway business
• $16 million (dollar_amount) — DANA Inc.'s net income for Q2 2025
• $13 million (dollar_amount) — DANA Inc.'s net income for the six months ended June 30, 2025
• $0.10 (dollar_amount) — DANA Inc.'s diluted earnings per share for Q2 2025
• $1,314,000 (dollar_amount) — total consideration for the sale of Off-Highway business
• $837,803 (dollar_amount) — cash payment received from the Off-Highway business sale
• June 1, 2025 (date) — date of Off-Highway business sale completion
• 3.850% (dollar_amount) — fixed rate for euro-denominated debt after cross-currency swaps
• April 2025 Notes (other) — debt issuance associated with cross-currency swaps

FAQ

Risk Factors

• Foreign Exchange Fluctuations [medium — financial]: DANA Inc. is exposed to foreign exchange rate fluctuations, particularly with its euro-denominated debt. While the company has entered into 8-year fixed-to-fixed cross-currency swaps to economically convert its April 2025 Notes to euro-denominated debt at a fixed rate of 3.850%, residual risks may remain.
• Post-Divestiture Integration Challenges [medium — operational]: The sale of the Off-Highway business to Allison Transmission Holdings, Inc. for $1,314,000 on June 1, 2025, represents a significant strategic shift. The company faces potential integration challenges as it refocuses on its core operations, which could impact operational efficiency and future growth.

Industry Context

The automotive parts and accessories industry is highly competitive and subject to cyclical demand tied to new vehicle production and aftermarket sales. Key trends include the shift towards electric vehicles, advanced driver-assistance systems, and increasing regulatory scrutiny on emissions and safety. Companies like DANA must navigate supply chain complexities and technological advancements to maintain market share.

Regulatory Implications

DANA operates under various regulations related to automotive manufacturing, environmental standards, and financial reporting. Compliance with these evolving standards is critical. The company's use of derivative instruments for hedging also falls under specific financial regulatory frameworks.

What Investors Should Do

1. Monitor post-divestiture performance
2. Evaluate debt management strategy
3. Analyze profitability trends

Key Dates

• 2025-06-01: Sale of Off-Highway Business Completed — This divestiture for $1,314,000 marks a strategic shift, impacting future revenue streams and operational focus. It is a key driver for the return to profitability.
• 2025-04-01: Issuance of April 2025 Notes and Cross-Currency Swaps — DANA entered into 8-year fixed-to-fixed cross-currency swaps, economically converting the debt to euro-denominated at a fixed rate of 3.850%, mitigating foreign exchange risk.

Glossary

Cross-Currency Swaps

A derivative contract where two parties exchange principal and interest payments in different currencies. DANA used these to convert its debt to a fixed euro rate. (Crucial for managing foreign exchange risk and locking in a fixed interest rate of 3.850% on its euro-denominated debt.)

Off-Highway Business

A segment of DANA's operations that provides products for non-road vehicles, such as agricultural, construction, and material handling equipment. This segment was divested. (Its sale for $1,314,000 is a major event impacting the company's structure and financial performance.)

Discontinued Operations

A component of a business that has been sold, abandoned, or is classified as held for sale, and whose operations and cash flows can be clearly distinguished from the rest of the company. (The Off-Highway business is reported as discontinued operations following its sale.)

Year-Over-Year Comparison

DANA Inc. has shown a significant improvement in profitability compared to the prior year, reporting $16 million in net income for Q2 2025, a substantial increase from $0 in Q2 2024. This turnaround is largely attributed to the divestiture of the Off-Highway business. While specific revenue figures for continuing operations are not detailed here, the overall financial picture suggests a strategic repositioning aimed at enhancing earnings per share, which rose to $0.10 from $0.01. New risks related to post-divestiture integration and ongoing foreign exchange management are present.

Key Financial Figures

• $0.01 — Section 12(b) of the Act: Common stock $0.01 par value DAN New York Stock Exchan

Filing Documents

• dan20250630_10q.htm (10-Q) — 2560KB
• ex_810445.htm (EX-31.1) — 15KB
• ex_810446.htm (EX-31.2) — 12KB
• ex_810447.htm (EX-32) — 6KB
• 0001437749-25-025910.txt ( ) — 13289KB
• dan-20250630.xsd (EX-101.SCH) — 96KB
• dan-20250630_cal.xml (EX-101.CAL) — 102KB
• dan-20250630_def.xml (EX-101.DEF) — 610KB
• dan-20250630_lab.xml (EX-101.LAB) — 518KB
• dan-20250630_pre.xml (EX-101.PRE) — 657KB
• dan20250630_10q_htm.xml (XML) — 3137KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1

Financial Statements

Financial Statements 3 Consolidated Statement of Operations (Unaudited) 3 Consolidated Statement of Comprehensive Income (Unaudited) 4 Consolidated Balance Sheet (Unaudited) 5 Consolidated Statement of Cash Flows (Unaudited) 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4

Controls and Procedures

Controls and Procedures 37

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1

Legal Proceedings

Legal Proceedings 38 Item 1A

Risk Factors

Risk Factors 38 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 5 Other Information 38 Item 6 Exhibits 38

Signatures

Signatures 39 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Dana Incorporated Consolidated Statement of Operations (Unaudited) (In millions, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Net sales $ 1,935 $ 2,047 $ 3,716 $ 4,062 Costs and expenses Cost of sales 1,797 1,930 3,460 3,833 Selling, general and administrative expenses 99 108 204 222 Amortization of intangibles 2 2 4 4 Restructuring charges, net 11 11 13 16 Loss on disposal group previously held for sale ( 1 ) ( 30 ) Other income (expense), net ( 10 ) ( 8 ) ( 11 ) ( 8 ) Earnings (loss) from continuing operations before interest and income taxes 16 ( 13 ) 24 ( 51 ) Interest income 3 1 5 4 Interest expense 44 40 83 79 Loss from continuing operations before income taxes ( 25 ) ( 52 ) ( 54 ) ( 126 ) Income tax expense 10 12 5 Equity in earnings of affiliates 23 3 25 5 Net loss from continuing operations ( 12 ) ( 61 ) ( 29 ) ( 126 ) Net income from discontinued operations 43 77 90 142 Net income 31 16 61 16 Less: Noncontrolling interests net income from continuing operations 4 5 9 10 Less: Redeemable noncontrolling interests net loss from continuing operations ( 5 ) ( 13 ) Net income attributable to the parent company $ 27 $ 16 $ 52 $ 19 Net income per share available to common stockholders Basic loss per share from continuing operations $ ( 0.11 ) $ ( 0.42 ) $ ( 0.26 ) $ ( 0.85 ) Basic earnings per share from discontinued operations 0.30 0.53 0.62 0.98 Basic earnings per share $ 0.19 $ 0.11 $ 0.36 $ 0.13 Diluted loss per share from continuing operations $ ( 0.11 ) $ ( 0.42 ) $ ( 0.26 ) $ ( 0.85 ) Diluted earnings per share from discontinued operations 0.30 0.53 0.62 0.98 Diluted earnings per share $ 0.19 $ 0.11 $ 0.36 $ 0.13 Weighted-average common shares outstanding Basic 143.8 145.0 144.7 144.9 Diluted 143.8 145.0 144.7 144.9 The accompanying notes are an integral part of t

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) (In millions, except share and per share amounts) Note 1. Organization and Summary of Significant Accounting Policies General Dana Incorporated (Dana) is headquartered in Maumee, Ohio and was incorporated in Delaware in 2007. Dana is a global provider of high technology driveline (axles, driveshafts and transmissions); sealing and thermal-management products; and motors, power inverters, and control systems for electric vehicles with a customer base that includes virtually every major on-highway vehicle manufacturer in the world. The terms "Dana," "we," "our" and "us," when used in this report, are references to Dana. These references include the subsidiaries of Dana unless otherwise indicated or the context requires otherwise. Summary of significant accounting policies Basis of presentation — Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information. These statements are unaudited, but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods. The results reported in these consolidated financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. The financial information included herein should be read in conjunction with the consolidated financial statements in Item 8 of our Annual Report on Form 10 -K for the year ended December 31, 2024 (the 2024 Form 10 -K). Certain prior year amounts have been reclassified to conform to the current presentation. In June 2025, we entered into a definitive agreement to sell our Off-Highway business. The transaction is currently expected to close during the fourth quarter of 2025, subject to satisfaction of regulatory approvals and other customary conditions. We concluded that our

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