Earnings Expectations: Wall Street anticipates an earnings per share (EPS) of $0.40 and revenue of approximately $2.55 billion for Q3 2025, ending September 30, 2025. The exact earnings release date has not been confirmed but is expected around late October to early November 2025, based on Dana’s historical reporting schedule.
Q2 2025 Performance: Dana reported sales of $1.9 billion from continuing operations and an adjusted EBITDA of $145 million for Q2 2025. These figures reflect operational performance after accounting for the divestiture of its Off-Highway business.
Strategic Decisions and Financial Health: The sale of Dana’s Off-Highway business and the implementation of a $1 billion capital return program underscore strategic efforts to focus on core markets and enhance shareholder value. Despite a high debt-to-equity ratio of 2.23, Dana maintains adequate liquidity, supporting its financial stability.
Dana Incorporated (NYSE: DAN) is a leading supplier in the automotive industry, specializing in drivetrain, sealing, and thermal-management technologies. The company serves light vehicle, commercial vehicle, and select off-highway markets. As Dana prepares for its Q3 2025 earnings, expected in late October or early November 2025, analysts project an EPS of $0.40 and revenue of $2.55 billion, reflecting optimism about its core operations.
In its Q2 2025 earnings report, released on August 5, 2025, Dana reported sales of $1.9 billion from continuing operations, impacted by the divestiture of its Off-Highway business. The company recorded a pre-tax loss of $24 million from continuing operations, offset by $77 million in income from discontinued operations, reflecting the financial impact of the Off-Highway sale.
Adjusted EBITDA from continuing operations was $145 million, demonstrating operational efficiency despite the loss. Dana’s strategic focus on light- and commercial-vehicle markets was reinforced by the sale of its Off-Highway business, completed to streamline operations and strengthen its balance sheet. This enabled a $1 billion capital return program, including share repurchases and dividends.
In Q2 2025, Dana repurchased 14.6 million shares for over $250 million and plans to return $100–$150 million to shareholders in Q3 2025, signaling confidence in its financial outlook. Cost-saving initiatives yielded $59 million in Q2, contributing to a cumulative $110 million, with a goal of $310 million by 2026.
Dana’s financial ratios provide insight into its valuation and stability:
- Price-to-Sales (P/S) Ratio: Approximately 0.24, suggesting the stock may be undervalued relative to revenue, appealing to value investors.
- Enterprise Value-to-Sales (EV/S) Ratio: Approximately 0.50, indicating a moderate valuation when factoring in debt and cash.
- Debt-to-Equity (D/E) Ratio: Approximately 2.23, reflecting significant debt reliance, which poses risks but is mitigated by strategic debt reduction efforts post-divestiture.
- Current Ratio: Approximately 1.43, indicating sufficient liquidity to meet short-term obligations.
- Price-to-Earnings (P/E) Ratio: A negative P/E ratio of -68.68 reflects current losses, driven by the pre-tax loss in Q2. However, adjusted earnings metrics and future guidance suggest potential for recovery.
Dana Incorporated (NYSE: DAN) is navigating a transformative period, with the sale of its Off-Highway business and a robust capital return program enhancing its focus on core markets. Dana’s operational efficiency, liquidity, and optimistic guidance position it for potential growth.
