DANA Incorporated
05/15/2026 | Press release | Distributed by Public on 05/15/2026 14:38
Quarterly Financial Information and Reconciliations of Non-GAAP Financial Measures (Form 8-K)
Quarterly Financial Information and Reconciliations of Non-GAAP Financial Measures
Non-GAAP Financial Measures
Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) from continuing operations before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefits (OPEB) costs and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for earnings (loss) before income taxes, net income (loss) or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
Adjusted net income (loss) attributable to the parent company is a non-GAAP financial measure which we have defined as net income (loss) attributable to the parent company excluding net income from discontinued operations, discrete income tax items, restructuring charges, amortization expense and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to net income (loss) attributable to the parent company reported by other companies. Adjusted net income (loss) attributable to the parent company is neither intended to represent nor be an alternative measure to net income (loss) attributable to the parent company reported in accordance with GAAP.
Diluted adjusted EPS is a non-GAAP financial measure which we have defined as adjusted net income (loss) attributable to the parent company divided by adjusted diluted shares. We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income (loss) attributable to the parent company. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies. Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported in accordance with GAAP.
Adjusted free cash flow is a non-GAAP financial measure which we have defined as cash provided by (used in) operating activities less purchases of property, plant and equipment plus proceeds from sale of property, plant and equipment plus cash paid for purchases of leased facilities plus cash paid for Off-Highway business divestiture related activities. We believe adjusted free cash flow is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Adjusted free cash flow is not intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported in accordance with GAAP. Adjusted free cash flow may not be comparable to similarly titled measures reported by other companies.
The accompanying financial information provides reconciliations of adjusted EBITDA, diluted adjusted EPS and free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have not provided a reconciliation of our adjusted EBITDA and diluted adjusted EPS outlook to the most comparable GAAP measures of net income (loss) and diluted EPS. Providing net income (loss) and diluted EPS guidance is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items that are included in net income (loss) and diluted EPS, including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance.
DANA INCORPORATED
Consolidated Statement of Operations (Unaudited)
For the Three Months Ended March 31, 2026 and 2025
| Three Months Ended | ||||||||
| (In millions, except per share amounts) | March 31, | |||||||
| 2026 | 2025 | |||||||
|
Net sales |
$ | 1,868 | $ | 1,781 | ||||
|
Costs and expenses |
||||||||
|
Cost of sales |
1,699 | 1,663 | ||||||
|
Selling, general and administrative expenses |
102 | 105 | ||||||
|
Amortization of intangibles |
2 | 2 | ||||||
|
Restructuring charges, net |
6 | 2 | ||||||
|
Other income (expense), net |
(40 | ) | (1 | ) | ||||
|
Earnings from continuing operations before interest and income taxes |
19 | 8 | ||||||
|
Loss on extinguishment of debt |
(7 | ) | ||||||
|
Interest income |
6 | 2 | ||||||
|
Interest expense |
22 | 39 | ||||||
|
Loss from continuing operations before income taxes |
(4 | ) | (29 | ) | ||||
|
Income tax expense (benefit) |
14 | (10 | ) | |||||
|
Equity in earnings of affiliates |
3 | 2 | ||||||
|
Net loss from continuing operations |
(15 | ) | (17 | ) | ||||
|
Net income from discontinued operations |
1,106 | 47 | ||||||
|
Net income |
1,091 | 30 | ||||||
|
Less: Noncontrolling interests net income from continuing operations |
4 | 5 | ||||||
|
Net income attributable to the parent company |
$ | 1,087 | $ | 25 | ||||
|
Net income (loss) per share available to common stockholders |
||||||||
|
Basic loss per share from continuing operations |
$ | (0.17 | ) | $ | (0.15 | ) | ||
|
Basic earnings per share from discontinued operations |
10.06 | 0.32 | ||||||
|
Basic earnings per share |
$ | 9.89 | $ | 0.17 | ||||
|
Diluted loss per share from continuing operations |
$ | (0.17 | ) | $ | (0.15 | ) | ||
|
Diluted earnings per share from discontinued operations |
10.06 | 0.32 | ||||||
|
Diluted earnings per share |
$ | 9.89 | $ | 0.17 | ||||
|
Weighted-average shares outstanding - Basic |
109.9 | 145.6 | ||||||
|
Weighted-average shares outstanding - Diluted |
109.9 | 145.6 | ||||||
2
DANA INCORPORATED
Consolidated Statement of Comprehensive Income (Unaudited)
For the Three Months Ended March 31, 2026 and 2025
| Three Months Ended | ||||||||
| (In millions) | March 31, | |||||||
| 2026 | 2025 | |||||||
|
Net loss from continuing operations |
$ | (15 | ) | $ | (17 | ) | ||
|
Other comprehensive income (loss) from continuing operations, net of tax: |
||||||||
|
Currency translation adjustments |
2 | 12 | ||||||
|
Hedging gains and losses |
(4 | ) | 18 | |||||
|
Defined benefit plans |
(1 | ) | ||||||
|
Other comprehensive income (loss) from continuing operations |
(3 | ) | 30 | |||||
|
Total comprehensive income (loss) from continuing operations |
(18 | ) | 13 | |||||
|
Net income from discontinued operations |
1,106 | 47 | ||||||
|
Other comprehensive income (loss) from discontinued operations, net of tax: |
||||||||
|
Currency translation adjustments |
179 | 2 | ||||||
|
Other comprehensive income from discontinued operations |
179 | 2 | ||||||
|
Total comprehensive income from discontinued operations |
1,285 | 49 | ||||||
|
Total comprehensive income |
1,267 | 62 | ||||||
|
Less: Comprehensive income from continuing operations attributable to noncontrolling interests |
(4 | ) | (5 | ) | ||||
|
Comprehensive income attributable to the parent company |
$ | 1,263 | $ | 57 | ||||
3
DANA INCORPORATED
Consolidated Balance Sheet (Unaudited)
As of March 31, 2026 and December 31, 2025
| (In millions, except share and per share amounts) | March 31, | December 31, | ||||||
| 2026 | 2025 | |||||||
|
Assets |
||||||||
|
Current assets |
||||||||
|
Cash and cash equivalents |
$ | 477 | $ | 469 | ||||
|
Accounts receivable |
||||||||
|
Trade, less allowance for doubtful accounts of $12 in 2026 and $15 in 2025 |
1,257 | 987 | ||||||
|
Other |
278 | 254 | ||||||
|
Inventories |
994 | 1,015 | ||||||
|
Other current assets |
201 | 114 | ||||||
|
Current assets of disposal group held for sale |
32 | 1,029 | ||||||
|
Total current assets |
3,239 | 3,868 | ||||||
|
Intangibles |
61 | 71 | ||||||
|
Deferred tax assets |
499 | 534 | ||||||
|
Other noncurrent assets |
92 | 102 | ||||||
|
Investments in affiliates |
105 | 102 | ||||||
|
Operating lease assets |
279 | 305 | ||||||
|
Property, plant and equipment, net |
1,783 | 1,872 | ||||||
|
Noncurrent assets of disposal group held for sale |
20 | 954 | ||||||
|
Total assets |
$ | 6,078 | $ | 7,808 | ||||
|
Liabilities and equity |
||||||||
|
Current liabilities |
||||||||
|
Short-term debt |
$ | - | $ | 615 | ||||
|
Current portion of long-term debt |
24 | 30 | ||||||
|
Accounts payable |
1,228 | 1,154 | ||||||
|
Accrued payroll and employee benefits |
224 | 210 | ||||||
|
Taxes on income |
73 | 75 | ||||||
|
Current portion of operating lease liabilities |
38 | 41 | ||||||
|
Other accrued liabilities |
469 | 495 | ||||||
|
Current liabilities of disposal group held for sale |
12 | 688 | ||||||
|
Total current liabilities |
2,068 | 3,308 | ||||||
|
Long-term debt, less debt issuance costs of $9 in 2026 and $16 in 2025 |
1,236 | 2,566 | ||||||
|
Noncurrent operating lease liabilities |
237 | 266 | ||||||
|
Pension and postretirement obligations |
243 | 249 | ||||||
|
Other noncurrent liabilities |
280 | 337 | ||||||
|
Noncurrent liabilities of disposal group held for sale |
183 | |||||||
|
Total liabilities |
4,064 | 6,909 | ||||||
|
Commitments and contingencies |
||||||||
|
Parent company stockholders' equity |
||||||||
|
Preferred stock, 50,000,000 shares authorized, $0.01 par value, no shares outstanding |
- | - | ||||||
|
Common stock, 450,000,000 shares authorized, $0.01 par value, 108,830,193 and 121,284,138 shares outstanding |
1 | 1 | ||||||
|
Additional paid-in capital |
1,554 | 1,671 | ||||||
|
Retained earnings |
1,308 | 235 | ||||||
|
Treasury stock, at cost (2,507,713 and 1,944,700 shares) |
(52 | ) | (35 | ) | ||||
|
Accumulated other comprehensive loss |
(856 | ) | (1,032 | ) | ||||
|
Total parent company stockholders' equity |
1,955 | 840 | ||||||
|
Noncontrolling interests |
59 | 59 | ||||||
|
Total equity |
2,014 | 899 | ||||||
|
Total liabilities and equity |
$ | 6,078 | $ | 7,808 | ||||
4
DANA INCORPORATED
Consolidated Statement of Cash Flows (Unaudited)
For the Three Months Ended March 31, 2026 and 2025
| Three Months Ended | ||||||||
| (In millions) | March 31, | |||||||
| 2026 | 2025 | |||||||
|
Operating activities |
||||||||
|
Net income |
$ | 1,091 | $ | 30 | ||||
|
Less: Net income from discontinued operations |
1,106 | 47 | ||||||
|
Net loss from continuing operations |
(15 | ) | (17 | ) | ||||
|
Depreciation |
84 | 82 | ||||||
|
Amortization |
3 | 3 | ||||||
|
Amortization of deferred financings charges |
(8 | ) | 1 | |||||
|
Earnings of affiliates, net of dividends received |
(3 | ) | (2 | ) | ||||
|
Stock compensation expense |
11 | 13 | ||||||
|
Deferred income taxes |
11 | (18 | ) | |||||
|
Pension expense, net |
(5 | ) | (1 | ) | ||||
|
Change in working capital |
(252 | ) | (418 | ) | ||||
|
Change in other noncurrent assets and liabilities |
11 | (3 | ) | |||||
|
Loss on divestiture of ownership interests |
8 | |||||||
|
Noncash electric vehicle program termination charges |
52 | |||||||
|
Other, net |
(31 | ) | (5 | ) | ||||
|
Net cash used in operating activities from continuing operations |
(134 | ) | (365 | ) | ||||
|
Net cash provided by (used in) operating activities from discontinued operations |
(61 | ) | 328 | |||||
|
Net cash used in operating activities |
(195 | ) | (37 | ) | ||||
|
Investing activities |
||||||||
|
Purchases of property, plant and equipment |
(62 | ) | (67 | ) | ||||
|
Proceeds from sale of property, plant and equipment |
1 | 11 | ||||||
|
Settlements of undesignated derivatives |
(4 | ) | (2 | ) | ||||
|
Other, net |
1 | 1 | ||||||
|
Net cash used in investing activities from continuing operations |
(64 | ) | (57 | ) | ||||
|
Net cash provided by (used) in investing activities from discontinued operations |
2,563 | (8 | ) | |||||
|
Net cash provided by (used in) investing activities |
2,499 | (65 | ) | |||||
|
Financing activities |
||||||||
|
Net change in short-term debt |
(615 | ) | 121 | |||||
|
Repayment of long-term debt |
(1,330 | ) | (4 | ) | ||||
|
Dividends paid to common stockholders |
(13 | ) | (15 | ) | ||||
|
Repurchases of common stock |
(125 | ) | ||||||
|
Distributions to noncontrolling interests |
(1 | ) | (1 | ) | ||||
|
Payment for mandatorily redeemable noncontrolling interest |
(190 | ) | ||||||
|
Swap settlements |
(6 | ) | ||||||
|
Other, net |
(18 | ) | ||||||
|
Net cash provided by (used in) financing activities |
(2,292 | ) | 95 | |||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
12 | (7 | ) | |||||
|
Cash, cash equivalents and restricted cash - beginning of period |
486 | 512 | ||||||
|
Effect of exchange rate changes on cash balances |
(6 | ) | 18 | |||||
|
Cash, cash equivalents and restricted cash - end of period |
$ | 492 | $ | 523 | ||||
5
DANA INCORPORATED
Reconciliation of Net Cash Used In Operating Activities to Adjusted Free Cash Flow (Unaudited)
| Three Months Ended | ||||||||
| (In millions) | March 31, | |||||||
| 2026 | 2025 | |||||||
|
Net cash used in operating activities |
$ | (195 | ) | $ | (37 | ) | ||
|
Purchases of property, plant and equipment - Continuing operations |
(62 | ) | (67 | ) | ||||
|
Purchases of property, plant and equipment - Discontinued operations |
(8 | ) | ||||||
|
Proceeds from sale of property, plant and equipment - Continuing operations |
1 | 11 | ||||||
|
Cash paid for Off-Highway business divestiture related activities |
61 | |||||||
|
Adjusted free cash flow |
$ | (195 | ) | $ | (101 | ) | ||
6
DANA INCORPORATED
Segment Sales and Adjusted EBITDA (Unaudited)
For the Three Months Ended March 31, 2026 and 2025
| Three Months Ended | ||||||||
| (In millions) | March 31, | |||||||
| 2025 | 2024 | |||||||
|
Sales |
||||||||
|
Light Vehicle |
$ | 1,269 | $ | 1,213 | ||||
|
Commercial Vehicle |
599 | 568 | ||||||
|
Total Sales |
$ | 1,868 | $ | 1,781 | ||||
|
Adjusted EBITDA |
||||||||
|
Light Vehicle |
$ | 112 | $ | 68 | ||||
|
Commercial Vehicle |
63 | 41 | ||||||
|
Corporate expense and other items, net |
(4 | ) | (16 | ) | ||||
|
Adjusted EBITDA |
$ | 171 | $ | 93 | ||||
7
DANA INCORPORATED
Reconciliation of Loss From Continuing Operations Before Income Taxes to Adjusted EBITDA (Unaudited)
For the Three Months Ended March 31, 2026 and 2025
| Three Months Ended | ||||||||
| (In millions) | March 31, | |||||||
| 2026 | 2025 | |||||||
|
Loss from continuing operations before income taxes |
$ | (4 | ) | $ | (29 | ) | ||
|
Adjustments related to continuing operations |
||||||||
|
Loss on extinguishment of debt |
7 | |||||||
|
Interest income |
(6 | ) | (2 | ) | ||||
|
Interest expense |
22 | 39 | ||||||
|
Depreciation |
84 | 82 | ||||||
|
Amortization |
3 | 3 | ||||||
|
Non-service cost components of pension and OPEB costs |
1 | 2 | ||||||
|
Restructuring charges, net |
6 | 2 | ||||||
|
Stock compensation expense |
11 | 13 | ||||||
|
Strategic transaction expenses |
1 | 1 | ||||||
|
Gain on sale of property, plant and equipment |
(1 | ) | ||||||
|
Supplier capacity charge adjustment |
(19 | ) | ||||||
|
Loss on divestiture of ownership interests |
8 | |||||||
|
Electric vehicle program termination charges |
56 | |||||||
|
Foreign exchange gain on unhedged intercompany loans |
(21 | ) | ||||||
|
Other items |
3 | 2 | ||||||
|
Adjusted EBITDA |
$ | 171 | $ | 93 | ||||
8
DANA INCORPORATED
Reconciliation of Net Income Attributable to the Parent Company to Adjusted Net Income Attributable to the Parent Company and Diluted Adjusted EPS (Unaudited)
For the Three Months Ended March 31, 2026 and 2025
| (In millions, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2026 | 2025 | |||||||
|
Net income attributable to the parent company |
$ | 1,087 | $ | 25 | ||||
|
Items impacting income before income taxes: |
||||||||
|
Amortization |
3 | 3 | ||||||
|
Restructuring charges, net |
6 | 2 | ||||||
|
Strategic transaction expenses |
1 | 1 | ||||||
|
Supplier capacity commitment charge adjustment |
(19 | ) | ||||||
|
Loss on divestiture of ownership interests |
8 | |||||||
|
Electric vehicle program termination charges |
56 | |||||||
|
Loss on extinguishment of debt |
7 | |||||||
|
Foreign exchange gain on unhedged intercompany loans |
(21 | ) | ||||||
|
Net income from discontinued operations |
(1,106 | ) | (47 | ) | ||||
|
Items impacting income taxes: |
||||||||
|
Net income tax expense (benefit) on items above |
(37 | ) | 6 | |||||
|
Income tax expense (benefit) attributable to various discrete tax matters |
12 | (10 | ) | |||||
|
Adjusted net income (loss) attributable to the parent company |
$ | 16 | $ | (39 | ) | |||
|
Diluted shares - as reported |
109.9 | 145.6 | ||||||
|
Adjusted diluted shares |
111.1 | 145.6 | ||||||
|
Diluted adjusted EPS |
$ | 0.14 | $ | (0.27 | ) | |||
9
DANA Incorporated published this content on May 15, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 15, 2026 at 20:38 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]