Dana Q3 sales rise 6%, beat analyst expectations

Overview

• U.S. propulsion solutions supplier's Q3 sales rose, beating analyst expectations

• Adjusted net income improved yr/yr

• Company repurchased $200 mln in shares, plans $100 mln more in Q4

Outlook

• Dana raises 2026 sales guidance to $7.75-$7.85 bln from prior outlook

• Company maintains 2026 adj EBITDA guidance at $800-$850 mln

• Company maintains 2026 diluted adj EPS guidance at $1.75-$2.25

Result Drivers

• COMMERCIAL VEHICLE DEMAND - Co said higher Q3 sales were driven by stronger commercial vehicle demand, backlog conversion, and commercial and cost-recovery actions

• COST SAVINGS & EFFICIENCY - Co attributed margin improvement to cost-savings actions, operational efficiency, and commercial initiatives

• STRUCTURAL COST REDUCTIONS - Dana said it achieved $60 mln in cost savings year to date

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"

• Wall Street's median 12-month price target for Dana Inc is $37.41, about 37.5% above its October 27 closing price of $27.20

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 26 - Dorman Products Q3 sales slightly miss estimates on tariff pricing impact

• Oct 28 - Stellantis operating profit rises as cost cuts gain traction

• Oct 27 - Lincoln Electric Q3 sales beat on higher volumes

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)