DAN

A month has gone by since the last earnings report for Westport Innovations (WPRT). Shares have lost about 0.6% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Westport due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Westport Fuel Systems Inc. before we dive into how investors and analysts have reacted as of late. Westport incurred a loss of 53 cents per share in the second quarter of 2026, wider than the Zacks Consensus Estimate of a loss of 45 cents. The company had incurred a loss of 29 cents a year earlier.WPRT reported revenues of $2.72 million, which declined 78.3% year over year but beat the consensus estimate of $2 million by 44.5%. Bottom-line pressure reflected warrant-liability revaluation, financing costs and foreign exchange losses, while Cespira's quarterly revenues jumped 125% to $27.07 million. The year-over-year top-line comparison reflected the planned end of the Heavy-Duty OEM transitional service agreement with Cespira after the second quarter of 2025, leaving that segment with no sales activity this quarter. Gross profit fell to $0.13 million from $0.84 million, while gross margin slipped to 5% from 7%.Research and development expenses declined to $1.21 million from $1.57 million, while general and administrative expenses edged up to $4.17 million from $4.11 million. The operating loss widened to $7.21 million from $1.01 million. WPRT also recorded a $1.69 million foreign exchange loss, a $1.50 million warrant-liability fair-value loss and $1.09 million of financing transaction costs. Adjusted EBITDA was negative $6.27 million compared with negative $1.02 million. Cespira's product revenues rose 127% to $18.92 million, supported by significantly higher system volumes. Aftermarket revenues increased 108% to $5.52 million, while service revenues climbed 156% to $2.64 million as project milestones were achieved.The mix and higher volumes materially improved profitability. Gross profit reached $3.81 million versus a gross loss of $1.93 million, and gross margin improved to 14% from negative 16%. Cespira's net loss narrowed 65% to $2.38 million as revenues scaled, material costs declined and labor efficiency improved. High-Pressure Controls revenues declined 6% year over year to $2.17 million, mainly because of lower sales volume. Gross profit was $0.13 million compared with $0.11 million, while gross margin improved to 5% from 4%. Westport ended the quarter with customer demand waiting to be fulfilled as output ramps at its Canadian and Chinese plants. The shortfall largely reflected the transfer of equipment from Europe, installation work, facility recertification and workforce training. The company characterized the first half as a transition period and expects the second half to focus on increasing production and filling backlog, with no additional major bottlenecks currently identified. Cash and cash equivalents ended June were $23.95 million, down from $24.50 million as of March 31. Operating activities used $4.56 million of cash, while investing activities used $3.56 million, largely reflecting Cespira funding. Financing activities provided $8.30 million after the June equity and warrant transaction, partly offset by debt repayment.Long-term debt, including the current portion, was $0.97 million. Despite the financing, Westport said projected cash resources are not sufficient to fund operations through the next 12 months, raising substantial doubt about its ability to continue as a going concern. The company is evaluating public-market, debt and other financing alternatives. The company reiterated its expectation that Cespira can reach break-even in 2027. Westport's second-quarter capital contribution to the joint venture fell to $3.51 million from $4.19 million a year earlier, and management expects funding needs to decline as volumes rise because the venture's core overhead base is already in place. The development pipeline adds another layer to the growth case. Volvo is funding Cespira's hydrogen HPDI development program, while on-road testing is underway and a European commercial launch is targeted before 2030. Separately, a significant Cespira engineering project is expected to finish in the fourth quarter of 2026 ahead of the planned Euro 7 product launch. Since the earnings release, investors have witnessed a upward trend in estimates revision. At this time, Westport has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Westport has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Westport is part of the Zacks Automotive - Original Equipment industry. Over the past month, Dana (DAN), a stock from the same industry, has gained 2.5%. The company reported its results for the quarter ended June 2026 more than a month ago. Dana reported revenues of $2.01 billion in the last reported quarter, representing a year-over-year change of +3.9%. EPS of $0.19 for the same period compares with $0.05 a year ago. Dana is expected to post earnings of $0.70 per share for the current quarter, representing a year-over-year change of +311.8%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. Dana has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Westport Fuel Systems Inc. (WPRT) : Free Stock Analysis Report Dana Incorporated (DAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dana Incorporated DAN shares rose 10% since it reported second-quarter 2026 results. It posted adjusted earnings of 19 cents per share in the quarter, which increased 280% from 5 cents a year ago but missed the Zacks Consensus Estimate of 64 cents by 70.3%. Revenues of $2.01 billion rose 3.9% year over year and beat the consensus mark of $1.89 billion by 6.2%.Pricing and recovery actions, operating improvements and cost savings supported profitability, with the adjusted EBITDA margin expanding 270 basis points to 10.3%. Equity earnings from affiliates declined to $6 million from $23 million, weighing on earnings growth. Dana Incorporated price-consensus-eps-surprise-chart | Dana Incorporated Quote Adjusted EBITDA increased to $207 million from $147 million in the year-ago quarter. Performance contributed $29 million to the improvement, while volume and mix added $10 million and cost savings contributed $19 million. Tariffs and foreign currency added $4 million and $2 million, respectively, while commodities were a $3 million headwind.Year-to-date cost savings reached $54 million, keeping DAN on track for its $65 million 2026 target and the $325 million program goal. Net interest expense declined 59% year over year to $17 million following debt repayment after the Off-Highway divestiture. Light Vehicle sales increased 3.3% year over year to $1.38 billion from $1.34 billion. Segment adjusted EBITDA advanced 27.7% to $143 million from $112 million, showing stronger profit conversion than the sales increase.Dana is also preparing for additional Ford Super Duty volume at Oakville. The company expects low-volume ramp-up production to begin during August, with volumes becoming more meaningful toward year-end, while largely using the existing footprint and capacity supporting U.S. Super Duty production. Commercial Vehicle sales rose 5.2% to $631 million from $600 million a year ago. Adjusted EBITDA climbed 44.7% to $68 million from $47 million as stronger demand supported the segment.Dana expects North American Class 8 industry volume of roughly 275,000 units in 2026, followed by a marginal increase in 2027 and an uptick in 2028. Lower Class 5-7 and bus production is offsetting some of that strength. Operating cash flow improved to $109 million from $32 million, while adjusted free cash flow rose to $68 million from negative $7 million. Working capital and other items provided a $79 million year-over-year benefit, driven mainly by favorable accounts payable timing and lower inventories.The company repurchased 1.2 million shares for $44 million in the quarter. Dana plans about $200 million of additional repurchases before year-end and expects to complete its $2 billion authorization by the end of 2029. DAN now expects 2026 sales of $7.65-$7.85 billion compared to the previous estimate of $7.3-$7.7 billion and adjusted EBITDA of $800-$850 million compared to the prior outlook of $750-$850 million. The sales midpoint increased $225 million from the prior outlook, while the adjusted EBITDA midpoint rose $25 million, primarily reflecting stronger commercial vehicle demand.Adjusted free cash flow is now projected at $275-$375 million, up from the previous outlook of $250-$350 million. However, adjusted earnings are now expected in the range of $1.75-$2.25 per share compared with the previous estimate of $2-$3, with the midpoint revised lower to about $2. Higher depreciation, interest expense, lower equity earnings from China joint ventures and taxes are expected to pressure adjusted net income. Dana and Eaton plan to use a split-off structure for the Mobility transaction, which remains on track to close in the first quarter of 2027. Dana expects at least $250 million of run-rate cost synergies within 24 months after closing, including about $75 million in year one and $200 million by year two.The combined company is targeting $14-$15 billion of sales by 2030. Combined 2026 aftermarket sales are expected to total about $1.7 billion, representing roughly 16% of sales and increasing Dana's exposure to a business management views as higher margin and less cyclical. Dana's aftermarket initiatives with AutoZone, Advance and O'Reilly are delivering $40 million of additional sales. A new partnership with VIPAR is expected to add $10-$15 million of aftermarket sales beginning later in 2026 while expanding distribution reach across its heavy-duty network.Applied Technologies is also benefiting from defense demand. Existing programs and higher demand are generating $30 million of new sales, while Dana is working to secure a production order on a major rapid-prototype project by year-end.DAN currently has a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. General Motors Company GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. Strong pricing, lower costs and disciplined incentives supported results. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years. Genuine Parts Company GPC reported second-quarter 2026 adjusted earnings of $2.15 per share, beating the Zacks Consensus Estimate of $2.10 by 2.38%. The bottom line increased 2.4% from $2.10 in the year-ago quarter. Revenues rose 6% year over year to $6.54 billion and surpassed the consensus estimate of $6.39 billion by 2.36%. Genuine Parts reaffirmed its 2026 adjusted earnings guidance of $7.50-$8 per share and total sales growth outlook of 3-5.5%. Genuine Parts ended June with $2.3 billion of liquidity, including $559 million in cash. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dana Incorporated (DAN) : Free Stock Analysis Report Genuine Parts Company (GPC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:00 a.m. ET Senior Director of Investor Relations and Corporate Communications - Craig Barber Chief Executive Officer - Byron Foster Executive Vice President and Chief Financial Officer - Timothy Kraus Operator: Good morning, and welcome to Dana Incorporated's Second Quarter 2026 Financial Webcast and Conference Call. My name is Regina, and I will be your conference facilitator. Please be advised that our meeting today, both the speakers' remarks and Q&A session, will be recorded for replay purposes. For those participants who would like to access the call from the webcast, please reference the URL on our website and sign in as a guest. There will be a question-and-answer period after the speakers' remarks, and we will take questions from the telephone only. [Operator Instructions] At this time, I would like to begin the presentation by turning the call over to Dana's Senior Director of Investor Relations and Corporate Communications, Craig Barber. Please go ahead, Mr. Barber. Craig Barber: Thank you, Regina. Good morning, and welcome, everyone, to our second quarter earnings call for 2026. Today's presentation includes forward-looking statements about our expectations for Dana's future performance. Actual results could differ from what we discuss today. For more details about the factors that may affect future results, please refer to our disclaimer and safe harbor statements found in our public filings and our reports with the SEC. You will find this morning's press release and presentation posted on our investor website. As stated, today's call is being recorded, and the supporting materials are the property of Dana Incorporated. They may not be recorded, copied or rebroadcast without our written consent. With us this morning is Dana's Chief Executive Officer, Byron Foster; and Timothy Kraus, Executive Vice President and Chief Financial Officer. Byron, I'll turn the call over to you. Byron Foster: Okay. Thanks, Craig. Good morning, everyone, and thanks for joining the call. I'd like to start by hitting a few key highlights from the quarter. I'm pleased to report strong second quarter financial results, driven by a continued focus on executing our plan and strategic initiatives. Sales in the quarter came in at $2 billion with adjusted EBITDA of $207 million, which yields a margin of 10.3%, 270 basis points higher than the same period in 2025. Additionally, the team delivered $19 million of cost savings in the quarter. This brings our year-to-date cost savings number to $54 million and keeps us on track to realize the $65 million we've committed to in 2026, achieving our program target of $325 million. We continue to work on efficiency opportunities to chip away at the $40 million of stranded costs from the Off-Highway sale. Next, I'm excited to share that we will be restarting our share repurchase program until the closing of the Eaton Mobility transaction. And we additionally continue to evaluate the possibility of additional share repurchases post-closing. So if you step back in terms of our share repurchase program, in Q2, we repurchased 1.2 million shares, returning $44 million to our shareholders. And year-to-date, that brings our share repurchases to $169 million. We're planning from this point forward an additional $200 million of repurchases in the balance of the calendar year. So program to date, we've repurchased $819 million through Q2, and that will bring us to just over $1 billion with the $200 million incremental for the balance of the year and keeps us on track to complete $2 billion of the authorization by 2029. The Eaton Mobility combination is progressing well. One key update in regards to the transaction is that the separation will be structured as a split-off. I'll add a bit more color to that structure here in the coming slides. And then finally, our Dana 2030 program continues to make significant progress. I'll talk a little bit about some of the customer recognition as well as the new business awards tied to the key growth pillars of the Dana 2030 plan. If we go to Page 5. As mentioned in my opening slide, our team's continued focus on executing and delivering real value for our customers is resulting in great recognition from our customers. We're honored to be recognized by 3 of our largest customers for our performance in quality, delivery, competitiveness and commercial collaboration and data transparency regarding tariff recoveries. These are a small sample of the positive feedback we continue to receive from our customers, and we're proud to continue to work to build their trust and continue to grow in our key markets. Speaking of growth, if we go to Page 6, I want to provide a brief Dana 2030 update. You'll recall during our Capital Markets Day, we showed a road map of how we will grow Dana's top line to $10 billion by 2030. There are 3 key pillars that we highlighted as part of that growth strategy around our traditional products, aftermarket and applied technologies. To highlight the aftermarket piece, our team continues to make great strides in expanding our Victor Reinz branded sealing products with a number of the nation's top retail chains. With AutoZone, we've -- we're working on expanded DC participation. With Advance, we're working on SKU expansion as well as launching new products with O'Reilly. The combination of this effort is delivering $40 million of additional sales from these top national retail chains. And the team is continuing to work on new opportunities across other key customers in this critical channel. If you go to Page 7, another proof point of our aftermarket growth strategy is our new partnership with VIPAR, North America's largest heavy-duty truck parts program group. With VIPAR's 875-plus locations and 430-plus service locations, this partnership expands Dana's distribution reach and will deliver an incremental $10 million to $15 million of aftermarket sales beginning later this year. Moving on to Page 8. The next pillar I want to highlight is Applied Technologies, where our strategy is to leverage Dana's off-the-shelf product and process capabilities for profitable growth. And the defense market is an area where we are getting great traction. Based on demand for the current ISV with GM Defense, we're seeing volume increases in the back half of the year and into next year. Additionally, we're in a rapid prototype phase on a major project with one of our large OEMs where we're working to secure the production order by year-end. But just based on the programs that we participate in today and the increased demand, we're seeing $30 million of new sales in this pillar of our strategy alone. We're looking forward to continuing to see defense -- we continue to see defense as a real opportunity for profitable growth, and we're working with all the key players in the space on new program opportunities. Again, the Dana 2030 program continues to deliver great results, and we're excited about the top line opportunities in aftermarket and defense, and we'll continue to provide updates in future calls. Okay. If we turn to Page 9, turning to the Eaton Mobility transaction, a couple of important updates that we believe strengthen the transaction and directly address shareholder feedback. First, Dana will restart share repurchases immediately with an agreement in place with Eaton that allows us to continue returning capital to shareholders through the closing of the transaction. The transaction economics remain unchanged. The amount of the distribution to Eaton will be adjusted for lower share count. We expect to repurchase an additional $200 million of shares before the end of 2026. And as I mentioned, additionally, we're continuing to evaluate the potential to continue repurchases after closing, which, if successful, will avoid the previously announced 24-month pause. Second, Eaton has elected to separate Mobility through a split-off structure. From Dana's perspective, this is a positive development as the structure remains tax-free to shareholders, and current Eaton shareholders will have the choice to participate in the exchange offer. We believe that choice will support a more orderly distribution of shares to investors who are interested in owning Dana and participating in the value creation opportunity of the combined company. Importantly, we remain highly confident in the strategic and financial merits of the combination. If we move to Page 10, I want to take a minute to reiterate the highlights and strategic rationale of the deal. Eaton Mobility brings a set of complementary products, meaningful commercial vehicle exposure, a strong aftermarket franchise and capabilities that fit naturally with Dana's existing powertrain, thermal, sealing and driveline technologies. Together, the 2 companies create a focused, scaled powertrain leader that accelerates our Dana 2030 plan. The combination gives us a broader, complete system offering, increases our exposure to higher-value commercial vehicle and aftermarket markets and creates a stronger platform for margin expansion and free cash flow growth. Additionally, we have a clear plan to achieve at least $250 million of run rate cost synergies within 24 months after close. These savings are supported by specific work streams across corporate functions, engineering, manufacturing, purchasing, business unit optimization and aftermarket network efficiencies. I'll come back to the synergies point in a couple of slides. Revenue synergies are not included in that cost synergy target, so we view commercial upside from cross-selling and the combined sales force as incremental opportunity. Even with the planned buybacks, the combined company is expected to maintain attractive pro forma synergized 2026 net leverage of approximately 1.4x, with a strong free cash flow profile and a clear path to deleveraging over time. Slide 11 is a good visual to illustrate why the industrial logic of the combination is so compelling. Dana and Eaton Mobility bring together highly complementary product portfolios across the powertrain system that literally fit together and connect to each other. Dana's existing strengths in axles, driveshafts, thermal management and sealing are complemented by Eaton Mobility's commercial vehicle transmissions, engine components, emissions-related products and advanced electrification capabilities. The result is a more complete high-value powertrain offering. These are product categories we know well, and in many cases, they are areas where Dana has historical familiarity and technical depth. By combining the portfolios, we can offer customers a broader system-level solution and create more opportunities for engineering collaboration, product integration and commercial pull-through. This is also why we view the transaction as a continuation of our strategy, not a reversal of the simplification we achieved through the Off-Highway divestiture. We simplified Dana to focus on the core areas where we have scale, capability and margin opportunity. Eaton Mobility deepens that core. Turning to Page 12. We highlight one of the most attractive elements of the deal, creating a scaled global aftermarket leader. On a combined 2026 basis, aftermarket sales are expected to be approximately $1.7 billion, representing approximately 16% of our total sales, which is roughly 4 percentage points higher than Dana on a stand-alone basis. This larger aftermarket platform matters because aftermarket revenue is typically higher margin, less cyclical and more resilient through the cycle. The combination gives us a broader range of genuine and all-makes parts, a larger global distribution network, stronger customer reach and meaningful cross-sell opportunities across the combined channel base. We believe the combined platform gives us additional runway to expand the offering, optimize the network and improve customer satisfaction while capturing margin upside. This also ties directly to the Dana 2030 strategy. Growing aftermarket has been a core pillar of that plan, as I highlighted earlier in the deck, and Eaton Mobility accelerates the opportunity by adding scale, breadth and customer access. Moving to Page 13. As I mentioned, this transaction directly enhances and accelerates the Dana 2030 objectives. It strengthens each of the key growth pillars we discussed at Capital Markets Day, traditional product growth, aftermarket growth, Applied Technologies growth, and it accelerates our efforts in manufacturing excellence and structural cost reduction. In traditional products, the combination broadens the system offering and creates a more complete drivetrain platform. In aftermarket, it meaningfully expands scale, product breadth and distribution reach. In Applied Technologies, it adds complementary capabilities that support continued growth in specialized and emerging applications. Financially, the combination expands the Dana 2030 framework. Our stand-alone target was approximately $10 billion of revenue by 2030. With Eaton Mobility, we are targeting $14 billion to $15 billion of sales by 2030, along with meaningfully higher margins and stronger free cash flow generation. The key point is that this is not simply about getting bigger. It is about creating a stronger, more focused and more cash-generative company with better end market balance, greater aftermarket exposure, broader technology capability and a clearer path to sustained shareholder value creation. If we turn to Page 14, a little bit more on cost synergies. We've identified at least $250 million of cost synergies, and we have a clear plan to achieve that run rate target within 24 months after closing. We expect approximately $75 million of synergies in year 1, approximately $200 million by year 2 and exiting year 2 with a $250 million run rate. The synergy plan is built on specific actionable opportunities. The largest areas include elimination of duplicative corporate structure and functions, IT and back-office integration, engineering consolidation, procurement savings from greater scale, manufacturing efficiency, automation, footprint rationalization, business unit structure optimization and aftermarket network efficiencies. This is not an overreaching assumption. As we close out our $325 million cost reduction initiative, we've demonstrated that Dana has the ability to execute meaningful cost reductions, and we will manage the synergy delivery of this deal much in the same way as a core priority with clear plans and accountability. We expect the total cash cost to achieve these synergies to be less than $250 million with a payback period of less than 2 years. That gives us confidence that the synergy program will not only improve margins but also support stronger free cash flow conversion and shareholder returns over time. Turning to Page 15, just to give you a look at the time line, we remain on track to close the transaction in Q1 of 2027, and we look forward to day 1 of the merger between Dana and Eaton Mobility's business. With that, I'll turn it over to Tim to take us through -- deeper through the financial results. Timothy Kraus: Thanks, Byron, and good morning. Turning to Slide 17, if you would. We delivered another strong quarter with sales increasing to $2 billion and adjusted EBITDA increasing to $207 million, reflecting continued operational execution and favorable market dynamics. Adjusted EBITDA margin expanded 270 basis points to 10.3%. Net interest expense declined 59% on a year-over-year basis to $17 million following debt repayment actions completed after the Off-Highway divestiture, while tax expense was higher on jurisdictional mix and improved earnings. As a result, adjusted net income increased to $21 million from $4 million, while diluted adjusted EPS increased to $0.19 from $0.03. Overall, the quarter reflects continued progress on our strategy with higher sales, stronger margins, improved earnings and a more efficient capital structure. Please turn with me to Slide 18 for the second quarter change in sales and adjusted EBITDA. Starting with sales. Second quarter 2026 sales were $2.01 billion, up from $1.94 billion in the prior period. Volume and mix contributed $6 million, reflecting higher demand in key light vehicle programs and continued conversion of our backlog. Performance added $29 million, primarily from pricing and recovery actions across the business. Cost savings were neutral to sales, while tariff recoveries contributed about $4 million. Foreign currency translation added an additional $24 million, largely driven by the euro and Brazilian real. And recovery of commodities contributed an additional $12 million to the top line of the company. Altogether, these items resulted in a $75 million increase in sales year-over-year. Turning now to adjusted EBITDA. Volume and mix contributed $10 million of incremental profit, reflecting favorable business mix and strong conversion of higher backlog. Performance added $29 million, driven by pricing initiatives, operational improvements and continued manufacturing efficiencies across the organization. Cost savings remained a significant contributor to our profit improvement, adding $19 million as our restructuring and productivity initiatives continue to deliver benefits. To date, our cost-saving initiative has delivered over $310 million towards our improved profit. Tariffs contributed $4 million, while foreign currency added an additional $2 million. Commodity represents a modest $3 million headwind, primarily due to the timing of our recovery mechanism with our customers. Bringing all those factors together, adjusted EBITDA increased to $207 million, representing a 10.3% margin and an improvement of 270 basis points compared with the second quarter of 2025. Overall, the quarter reflects continued execution of our strategy with pricing actions, operational performance and cost savings driving strong profit conversion and meaningful margin expansion. Next, turn with me to Slide 19 for a look at adjusted free cash flow for the second quarter. We generated $68 million of adjusted free cash flow in the second quarter, an improvement of $75 million compared with the prior period, demonstrating the strong conversion of our earnings improvements into cash. The largest driver was the continued improvement in operating performance. Adjusted EBITDA from continuing operations increased to $207 million from $147 million a year ago, reflecting the benefits of our cost reduction initiatives, material cost savings, operational improvements and favorable pricing and recovery actions. As a reminder, the prior year 2025 comparison included $109 million of EBITDA from the Off-Highway business, which is not reflected in our 2026 results following the divestiture. Despite that headwind, the strength of our continuing operation more than offsets the absence of those earnings. Net interest improved by $30 million year-over-year, reflecting the debt reduction actions we completed following the Off-Highway sale earlier this year and resulted in a lower interest burden. Working capital and other items provided a $79 million year-over-year benefit, driven primarily by favorable accounts payable timing and lower inventory levels. These improvements were partially offset by a modest increase in capital spending, which reflects investments in new programs and facility-related projects intended to support future growth and efficiency actions. Overall, the quarter highlights our continued progress in strengthening Dana's earnings quality, improving our balance sheet and converting higher profitability into meaningful cash flow generation. Please turn with me now to Slide 20 for an update of our full year guidance. Based on our strong first half performance and improving demand in the commercial vehicle market, we are raising our full year outlook for sales, adjusted EBITDA and adjusted free cash flow. We now expect approximately $7.75 billion in sales at the midpoint of our range, an increase of $225 million from our prior outlook. This increase is primarily driven by stronger commercial vehicle production and demand, along with continued execution across all of our end markets. We are also raising our adjusted EBITDA guidance by $25 million and now expect approximately $825 million at the midpoint of the range, reflecting the incremental contribution primarily from higher commercial vehicle volumes. Despite the higher sales outlook, our expected adjusted EBITDA margin remains approximately 10.6%, driven by a mix of higher sales in our lower-margin commercial vehicles business. Our diluted adjusted EPS has been revised lower to approximately $2 per share at the midpoint of the range. The lower adjusted net income is driven by higher depreciation expense due to timing of capital investments and higher net interest as we prepare for upcoming Mobility transaction. We are also expecting lower equity earnings from our JVs, primarily in China, which are not consolidated. We are also increasing our outlook for adjusted free cash flow to approximately $325 million at the midpoint of the range, an increase of $25 million from our prior guidance, driven again by higher earnings. Overall, we remain highly confident in the trajectory of the business. The actions we've taken to improve profitability, strengthen the balance sheet and position Dana for sustainable growth continue to deliver results. Our updated guidance reflects that continued momentum and confidence as we move through the remainder of 2026, and we work towards closing the Eaton Mobility transaction early next year. Please turn with me now to Slide 21 for a driver of the sales and profit change for our full year guidance. As discussed on the prior slide, we've increased our 2026 outlook and now expect approximately $7.7 billion of sales and $825 million of adjusted EBITDA at the midpoint of our guidance ranges. Beginning with sales, we now expect approximately $250 million of year-over-year growth compared with an outlook of roughly flat sales in our prior outlook. The largest change versus our prior outlook is stronger demand in the commercial vehicle market, which is reflected in the improved volume and changing mix expectations. We also continue to see a benefit from pricing and recovery actions, favorable foreign currency translation and commodity pass-through recoveries as well as some tariff recoveries. Together, those factors are expected to drive sales to approximately $7.75 billion, an increase of $225 million versus the outlook we provided in the first quarter. Turning to adjusted EBITDA. We continue to expect significant profit improvement in 2026. Starting from the $610 million in 2025, favorable volume and mix are now expected to contribute approximately $45 million, reflecting the stronger commercial vehicle outlook and continued backlog conversion. Performance is expected to contribute approximately $125 million, including the benefits of pricing actions, operational efficiencies and approximately $40 million of stranded cost elimination. Cost savings remain a significant contributor at $65 million. Offsetting a portion of these benefits is a one-time approximately $20 million U.S. union contract signing bonus expected in the third quarter, along with approximately $10 million of commodity related headwinds due primarily to recovery timing. We continue to expect modest benefits from tariff and foreign currency, each contributing approximately $5 million of EBITDA. Bringing all these items together, we now expect adjusted EBITDA of approximately $825 million, which is $25 million higher than our outlook at the end of the first quarter and represents an adjusted EBITDA margin of approximately 10.6%. Overall, the update reflects continued execution against our operational initiatives, incremental strength in the commercial vehicle market and the ongoing benefits of our cost reduction and pricing actions, giving us confidence to increase our outlook for 2026. I will now turn to Slide 22 for details of our adjusted free cash flow outlook for 2026. As a reminder, 2025 adjusted free cash flow included the contributions from both continuing and discontinuing operations. Following the sale of our Off-Highway business, our 2026 outlook reflects only continuing operations. With the stronger earnings outlook we just discussed, we are increasing our adjusted free cash flow guidance to approximately $325 million, up $25 million from our prior outlook of $300 million. Starting at the top, we now expect approximately $825 million of adjusted EBITDA from continuing operations, reflecting the increase in our profit outlook since the first quarter. One-time costs remain substantially below prior year levels at approximately $30 million, while net interest expense is expected to improve by approximately $80 million year-over-year, reflecting the debt reduction actions completed following the Off-Highway divestiture. We also continue to expect meaningful benefits from lower cash taxes and working capital. Working capital is now expected to be a source of cash supported by continued operational improvements and disciplined balance sheet management. We continue to expect about $325 million in net capital spending, which is higher than last year as we support new program launches, automation initiatives and other operational improvement projects across the business. We now expect to generate approximately $325 million of adjusted free cash flow in 2026, representing a $25 million increase versus the outlook we provided at the end of the first quarter. I'll turn it back over to Byron for the last slide. Byron? Byron Foster: Okay. Thanks, Tim. So to recap, it's really all about creating value through execution and preparing for our strategic transformation. I want to thank the team for staying focused on executing our base plan. This has allowed us to deliver profitable growth and expanded margins. Our operational execution remains very high, driving higher earnings and cash generation, and as Tim just mentioned, delivered strong free cash flow while strengthening the balance sheet. We gave you a little bit of a look at Dana 2030, and we remain excited about the strategic growth opportunities as part of that program, today highlighting aftermarket and defense, where we continue to make great progress. In terms of the combination with Eaton Mobility, several enhancements that we were excited to announce today. First, the share repurchases being restarted and the split-off structure of the transaction. We remain on track to close the deal in Q1 of 2027 and look forward to positioning Dana as a leading global powertrain systems provider. In closing, I want to take the opportunity to thank our customers for the trust they place in Dana and thank our Dana team around the world for their dedication and hard work and strong results in the second quarter. So with that, Regina, we'll turn it back over to you and happy to take questions. Operator: [Operator Instructions] Our first question will come from the line of Tom Narayan with RBC Capital Markets. Gautam Narayan: My first one has to do with the share buyback plan. My understanding with the Reverse Morris Trust was the restriction on what you could buy back into the deal close. And it sounds like you've remedied that by doing the $200 million and then increasing the cash to Eaton. But the question has to do with post close. It sounds like you're exploring the possibility to continue it after the close. I guess what could that mean? Are you still expecting the bulk of the incremental $1 billion to happen later in the planning period? Or maybe do you need some of that cash for the cost to achieve synergies? I know a lot of that might be headcount anyway. That's the first question. And a really quick follow-up. Timothy Kraus: Yes. Tom, this is Tim. Thanks for the question. So yes, we continue to work or explore with Eaton the possibility of how we could restart the buybacks in that 24-month post-closing period. We're hopeful, but obviously, we've got some work to do to put it back in. But to your point, we actually see the Eaton transaction allowing us to really accelerate that last $1 billion worth of buyback. So even if we're not able to restart the buyback in the post 24-month period, we do now believe we will be able to complete the $2 billion buyback before the end of 2029 versus 2030, which is where we were prior to announcing the Eaton transaction, largely because once we integrate Eaton, we'll have a lot more earnings and free cash flow that we'll be able to put towards the stock buyback. Gautam Narayan: Got it. That's very helpful. And then just real quick, Tim, I don't know if you mentioned this in the free cash flow guidance, but the reason why there's a big uplift in H2 versus H1. Just wondering if you could run that real quick. Timothy Kraus: Yes. I mean I think one is obviously the earnings that we had coming in. The other is interest, right? So we've got $30 million lower interest, and we also have lower taxes coming in terms of -- from a cash perspective. Those are the big drivers as well as working capital. Operator: Our next question will come from the line of Colin Langan with Wells Fargo. Colin Langan: I just wanted to follow up on the comments on the adjusted EPS cut. It's kind of unusual that you cut sort of midyear on D&A and interest. Are there other factors? Because I'm surprised those would be a surprise in the quarter, and it released in the middle of the year. And then any color on tax? I kind of assumed given -- I think it was something like a 75% rate in Q2. Was that a factor in the EPS revision? And how should we think about tax through the rest of the year? Timothy Kraus: Yes. So Colin, thanks for the question. So yes, we've got higher D&A. When we built the plan and came out, we were expecting -- we had assumed a level of in-service assets that were actually accelerating. So we've got higher D&A than we were expecting. So that's a headwind. Higher interest expense, largely due to the fact that we're refinancing the '21s a little bit differently as well as we will be having a little less cash on the books because we'll be spending money upfront related to the Eaton transaction. And then probably the other big one other than just also taxes given the jurisdictional mix we're seeing is the lower equity earnings that we're seeing -- that we had assumed from our China JVs, which is the single largest one of the change. Colin Langan: Okay. And the tax was not an impact in the... Timothy Kraus: No, tax is an additional impact as well. It's a little bit smaller than the equity earnings, but still a headwind for us. Colin Langan: Got it. Okay. And then if I just look half-over-half, adjusted EBITDA is up $70 million. Sales are actually flat. And then you actually indicated $20 million of a signing bonus in Q3. That actually implies a pretty substantial underlying improvement on flat sales. What is driving that? Because I mean, if I look at costs, you've gotten most of that. It looks like it's all performance and... Timothy Kraus: Yes, it's largely performance and mix, Colin. So yes, we continue to see benefits on the performance side of the business. We talked at our Capital Markets Day regarding the automation and the plant-level floor improvement that we're going after, and we're starting to see that come through, and we expect to see that in -- some more of that come through in the back half of the year. We're also seeing -- we'll also see the bulk of the $40 million of improvement coming through in the back half of the year. So that's what you're seeing in improvement when you think about the half over the half. Operator: Our next question will come from the line of Joe Spak with UBS. Joseph Spak: Just going back to working on more buybacks in the future. I just -- is that something that's straight negotiated with Eaton? Because I thought that was sort of more of a tax authority consideration. And then like if for some reason you can't come to an agreement, is there -- are there other mechanisms to get cash back to shareholders such as either higher dividends or a special dividend or something like that? Timothy Kraus: Yes. So I'll take your second part first, if we're not able to solve the buyback issue. Yes, the answer is we're not in any way restricted from either raising the dividend or paying a special. So that would be -- those 2 options are absolutely available to us in order to return additional amounts to shareholders within that 24-month period. On your first question, I don't want to get into too many details, but obviously, the tax code is pretty complicated, and we're working through how to think through that with Eaton. But we're working on that together. And obviously, it's in our -- all of our best interest to try to find the best way to solve it that allows us to restart it. So we'll continue to work on that. And as soon as we have an update, we'll certainly share that with the market. Joseph Spak: Okay. I appreciate that, Tim. Second one is just the $20 million union bonus, just a couple of points on that because, one, like I want to make sure that wasn't in the prior guide. So really, this is more like a $45 million raise at the midpoint. And then -- I want to confirm that. And then also, that's just a one-time cash bonus. I'm assuming there's also some ongoing wage increase, but was that already considered in the outlook? And then finally, I also just want to make sure that, that $20 million is also included in the free cash flow guidance. Timothy Kraus: So yes, it's one-time. We do have wage increases, but we had those considered in both the back half of '26 and in our long-term view that we shared at the Capital Markets Day. So that is largely in line. No, we did not expect to pay a ratification bonus. So your view on, "Hey, is this incremental $45 million?" yes, that's how to think about it. And I'm sorry, yes, the cash is in the adjusted free cash flow as well. Operator: Our next question will come from the line of Winnie Dong with Deutsche Bank. Yan Dong: On the guide raise, it looks like most of the guide is driven by improved CV volume, which have been particularly low in the past few years. We're seeing ACT data, and it looks like this is sort of like the start of some improvements. So I wanted to hear what you're seeing there and if there could be room for further upside in the guide as we get through 3Q. Byron Foster: Winnie, thanks for the question. Yes, for sure, we're definitely seeing an increase in demand from our CV customers, particularly in the Class 8 segment. And so we've been working to react to that and support that volume increase, and we expect that to continue on into next year. In terms of further upside to that, it's a bit early to say, but I would just tell you that as we look at kind of our midterm outlook in terms of releases that we continue to see good robust volume in the CV market for sure. Yan Dong: And then I wanted to focus on the defense component of the Applied Technologies. You've touched on that a little bit. We know that you're on GM Defense, but Ford also recently announced that it will be developing a few heavy-duty tactical truck prototype. Could you share any insights into this process? And if any of this is sort of included in that $400 million target by 2030? Byron Foster: Yes. I would say, much like with the GM Defense opportunity, we were able to leverage our position on their light vehicle program and take that product line, if you will, and upfit it for the ISV vehicle with GM Defense. It's early days, but we're obviously working the Ford opportunity as well, and we see the same type of opportunity to leverage our position on the Ford light vehicle truck, if you will, and also provide an upfitted proposal for that product. So it's still early days, more to come. But I would say more broadly in the Applied Technologies bucket, you might recall that there are several end markets that we're pursuing as part of that strategy, defense being one of them, powersports is another example. So don't think about us needing to fill that entire bucket with defense, but we do see that market as maybe even more robust and opportunistic than maybe we first contemplated when we put the Dana 2030 plan together. Operator: Our next question comes from the line of Dan Levy with Barclays. Jinsoo Cho: Josh Cho on for Dan Levy. So I just wanted to ask how much of a look have you had so far at the assets for Eaton? And how much work do you expect of modifying the systems footprint, things like that in order to be in line with what you need? Byron Foster: Yes. So we obviously have done a fair amount of due diligence as part of the process, and we've visited many of the sites. And I would say we're familiar with their manufacturing footprint and their process technology. When we look at the combined footprint, there will obviously, as part of our synergies, be opportunities to combine facilities where we have duplicative capacity in place, et cetera. So we're working that part of the plan. But I would say from a asset base, process technology, very much in line with what we would expect and very comparable to the Dana asset base and technologies. Jinsoo Cho: Great. And then as a follow-up, could you walk us through why mix is so strong? Particularly with Q2, you have the volume and mix, $10 million of EBITDA, $6 million of revenue? Timothy Kraus: Yes. I mean, obviously, there's a lot of moving parts, but we continue to see a lot of the backlog that's coming on that runs through that line coming on at better margins versus the prior program. So there's that mix element that's flowing through there. And then, of course, you have the better volume coming through on CV. So there's a pretty sizable mix element. If you just think about sort of what we're showing overall in the back half of the year, we really are -- we'll see a more normalized volume and mix conversion, we think in -- at least that's what we're planning for in the back half. But it's mostly mix-driven. Operator: Our final question will come from the line of James Picariello with BNP Paribas. James Picariello: Just curious on any progress update regarding the Ford's new Super Duty capacity in Oakville and how Dana is preparing for that and just the magnitude of that capacity that can come online through next year. Because whatever that number is, right, that's embedded in your new business backlog for next year, if I'm not mistaken. So curious first on the progress update. Byron Foster: James, it's Byron. Yes, we're excited about that opportunity. We actually are -- we will start kind of low-volume ramp-up production here within the month and expect the volumes to be more meaningful kind of towards the end of the calendar year. The good news there is that we'll be able to leverage -- largely leverage the footprint and capacity we have in place for the U.S. Super Duty volume. So looking forward to taking advantage of kind of the added contribution from the volume. But as we look at the releases, let's say, from here to the end of the year, they are very much in line with the added volumes that Ford has committed to in Oakville. So from a launch readiness standpoint, all the prep work is done, and we're ready to roll. James Picariello: Yes. And then just on the North America truck market, we've got the dynamic of new emission standards coming in next year. I think we've got an aggressive prebuy, and preordering taking place now. Yes, I would be interested to get your thoughts on what you're assuming for the North America truck market this year and how -- in a preliminary fashion, how you're thinking about next year? Is there a fade of the prebuying? Or is there [indiscernible]. Byron Foster: Yes, yes. Thanks for the question. So we're actually seeing the prebuy get pushed out given that the regulation changes are not anticipated kind of in the near term. So we're seeing that prebuy pent-up demand kind of getting pushed out. As we look at this year, we're seeing -- for the Class 8, we're seeing the volume roughly to be 275,000. And as we look ahead into '27 and beyond, we see it increasing from that point, kind of marginally in '27, with a nice uptick in '28. Timothy Kraus: Yes. We are seeing a little bit of down volume in the North American Class 5 to 7 in the bus production. So that's offsetting some of the good news on the Class 8. And we're also less -- our Class 8 business is a little less of our total than medium-duty. So keep that in mind. Byron Foster: Yes. But a different story, obviously, for the EV piece as that comes online in '27, where Class 8 is a bigger mix. Timothy Kraus: Correct. Byron Foster: Okay. Thank you. Thanks, everyone, for joining the call, and thanks for your questions and continued interest in Dana. Hopefully, you pick up from the call that we're excited about the performance that the team continues to deliver, expecting that strong performance to be maintained throughout the balance of the year as well as getting ready for the combination with Eaton and doing so in such a way that allows us to reengage on the share repurchase for the balance of the year and more to come for repurchase opportunities post-close. Okay. Thanks, everybody, for joining. Have a good rest of the day. Timothy Kraus: Thanks, guys. Operator: This concludes today's call. Thank you again for joining. You may now disconnect. Before you buy stock in Dana, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dana wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* Now, it’s worth noting Stock Advisor’s total average return is 964% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Dana (DAN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Dana Incorporated? Here are five stocks we like better. Strong second-quarter performance: Dana’s sales increased to $2.01 billion, while adjusted EBITDA rose 41% to $207 million and the margin expanded to 10.3%. Adjusted free cash flow improved by $75 million year over year to $68 million. 2026 outlook raised: Dana lifted its sales forecast to approximately $7.75 billion, adjusted EBITDA to $825 million and adjusted free cash flow to $325 million. However, adjusted EPS guidance was reduced to about $2 due to higher depreciation and interest expenses, lower joint-venture earnings and tax effects. Capital returns and Eaton deal remain key priorities: Dana plans to repurchase another $200 million of shares in 2026 and expects the Eaton Mobility transaction to close in the first quarter of 2027. The combination is expected to generate at least $250 million in annual cost synergies within 24 months. Yield Generators: 3 Stocks Enhancing Shareholder Value Dana (NYSE:DAN) reported higher second-quarter sales, earnings and cash flow, citing pricing actions, cost savings, favorable mix and improving commercial-vehicle demand. The company also raised its full-year outlook and said it would resume share repurchases before the expected close of its Eaton Mobility transaction in the first quarter of 2027. Second-quarter sales totaled $2.01 billion, up from $1.94 billion a year earlier, while adjusted EBITDA rose to $207 million from $147 million. Adjusted EBITDA margin expanded 270 basis points year over year to 10.3%. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Is Adient’s guidance cut a positive sign for the auto suppliers? Chief Executive Officer Byron Foster said the quarter reflected continued execution of Dana’s operational and strategic plans. The company generated $19 million in cost savings during the quarter, bringing year-to-date savings to $54 million and keeping it on track for its $65 million cost-savings target for 2026. Dana said its broader cost-reduction program is targeting $325 million. Adjusted net income increased to $21 million from $4 million in the prior-year quarter, while diluted adjusted earnings per share rose to $0.19 from $0.03. Net interest expense declined 59% year over year to $17 million following debt repayment actions undertaken after the company’s off-highway divestiture. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Chief Financial Officer Timothy Kraus said the $75 million year-over-year sales increase included $29 million from performance, primarily pricing and recovery actions; $24 million from foreign currency translation; $12 million from commodity recoveries; and about $4 million from tariff recoveries. Volume and mix added $6 million. On the profit side, volume and mix added $10 million of adjusted EBITDA, performance added $29 million, and cost savings contributed $19 million. Tariffs added $4 million and foreign exchange contributed $2 million, while commodities represented a $3 million headwind due largely to the timing of customer recovery mechanisms, Kraus said. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Dana generated $68 million of adjusted free cash flow in the second quarter, a $75 million improvement from the prior-year period. Kraus attributed the increase to improved earnings, lower interest expense and a $79 million benefit from working capital and other items, including favorable accounts-payable timing and lower inventory. Higher capital spending partially offset those gains. Based on first-half performance and strengthening demand in commercial vehicles, Dana raised its 2026 outlook. The company now expects approximately $7.75 billion in sales at the midpoint, up $225 million from its previous forecast, and adjusted EBITDA of approximately $825 million at the midpoint, an increase of $25 million. The company continues to expect an adjusted EBITDA margin of about 10.6%, noting that higher sales in its lower-margin commercial-vehicle business limit the margin benefit. It raised its adjusted free-cash-flow outlook by $25 million to approximately $325 million. Dana reduced its midpoint diluted adjusted EPS outlook to approximately $2. Kraus cited higher depreciation expense associated with the timing of capital investments, higher interest expense as the company prepares for the Eaton Mobility transaction, lower equity earnings from Chinese joint ventures, and tax effects related to jurisdictional mix. The updated outlook includes an approximately $20 million one-time U.S. union contract signing bonus expected in the third quarter. Kraus said wage increases were already included in Dana’s outlook and long-term plan, while the ratification bonus had not been anticipated in prior guidance. For the second half, Dana expects operational performance and mix to improve further, including benefits from automation, plant-floor improvement initiatives and the anticipated elimination of about $40 million in stranded costs related to the off-highway sale. Dana repurchased 1.2 million shares for $44 million during the second quarter, bringing year-to-date repurchases to $169 million. Foster said the company plans an additional $200 million of repurchases during the remainder of 2026. Program-to-date repurchases totaled $819 million through the second quarter, and the planned purchases would bring that figure to more than $1 billion. The company said its agreement with Eaton allows it to restart repurchases before the transaction closes. Dana is also evaluating whether it can continue repurchases after closing, potentially avoiding a previously announced 24-month pause. Kraus said that if buybacks cannot resume during that period, Dana could consider increasing its dividend or paying a special dividend. Eaton has elected to separate its Mobility business through a split-off structure. Foster said the transaction is expected to remain tax-free to shareholders, while Eaton shareholders will have the option to participate in the exchange offer. Dana reiterated its expectation that the transaction will close in the first quarter of 2027. The company expects the combination to generate at least $250 million of run-rate cost synergies within 24 months after closing, including about $75 million in the first year and roughly $200 million by the second year. Dana expects total cash costs to achieve those synergies to be less than $250 million, with a payback period of less than two years. Dana highlighted progress under its Dana 2030 plan, which includes growth through traditional products, aftermarket and Applied Technologies. The company said expanded distribution, product and SKU initiatives with AutoZone, Advance and O’Reilly are expected to deliver $40 million in additional sales from those retail chains. A new partnership with heavy-duty truck parts group VIPAR is expected to add $10 million to $15 million in aftermarket sales beginning later this year, according to Foster. The company also cited increased defense-related demand, including on GM Defense’s ISV program, and said current demand and programs are expected to contribute $30 million in new sales. Foster said Dana remains focused on reaching approximately $10 billion in standalone revenue by 2030. With Eaton Mobility, the company is targeting $14 billion to $15 billion in 2030 sales, along with higher margins and stronger free-cash-flow generation. Dana Incorporated is a global leader in the design and manufacture of drivetrain, sealing, and thermal-management technologies for the automotive, commercial vehicle, off-highway and industrial markets. The company's product portfolio includes axles, driveshafts, transmissions, e-Propulsion systems and thermal-management assemblies that help improve fuel efficiency, reduce emissions and enhance vehicle performance. Dana's expertise spans internal combustion and electrified powertrains, positioning it to support both traditional and next-generation mobility solutions. Founded in 1904 by Clarence W. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Dana Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Dana Incorporated recently reported past second-quarter 2026 results showing sales of US$2,010 million, up from US$1,935 million a year earlier, but shifting from net income of US$27 million to a net loss of US$5 million. Despite the quarterly loss, Dana lifted its full-year 2026 sales guidance to a range of US$7.65 billion to US$7.85 billion and continued share buybacks, signaling management’s confidence in current operating momentum. We’ll now examine how Dana’s upgraded full-year sales guidance reshapes its investment narrative and context for future performance expectations. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. To own Dana today, you need to believe its pivot toward higher value light vehicle and electrified driveline content can ultimately translate into more resilient earnings, even through patchy quarters. The raised 2026 sales guidance supports the near term catalyst of stronger revenue throughput, but the swing to a small quarterly loss keeps the biggest risk front and center: whether management can actually convert volume and backlog into durable margin improvement. The most relevant update here is Dana’s higher full year 2026 sales outlook of US$7.65 billion to US$7.85 billion, which sits squarely against that margin execution question. Better top line expectations can help support the cost reduction and efficiency story, but they do not yet resolve risks around North American commercial vehicle softness, sales mix, or the complexity of delivering deeper, structural cost savings beyond the initial programs. However, investors should also be aware that a key concern now is whether cost savings can keep pace with... Read the full narrative on Dana (it's free!) Dana’s narrative projects $12.2 billion revenue and $1.0 billion earnings by 2029. Uncover how Dana's forecasts yield a $37.57 fair value, a 32% upside to its current price. Some of the most optimistic analysts, who were already assuming revenue could reach about US$13.2 billion and earnings US$1.2 billion by 2029, see the cost reduction and manufacturing efficiency program as a powerful upside catalyst, but this latest quarter is a reminder that those expectations are far more ambitious than the baseline view and may need to be revisited as new data comes in. Explore 4 other fair value estimates on Dana - why the stock might be worth over 4x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Dana research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Dana research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Dana's overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DAN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance in Q2 was driven by strong operational execution and favorable market dynamics, resulting in a 270-basis-point margin expansion year-over-year. The company achieved $19 million in cost savings during the quarter, maintaining the trajectory to reach a $325 million program target while addressing stranded costs from the Off-Highway divestiture. Management is leveraging the Dana 2030 framework to drive growth in high-margin segments, specifically targeting $40 million in new sales from national retail aftermarket chains. The Applied Technologies pillar is gaining significant traction in the defense sector, with volume increases in the ISV program and rapid prototyping for major OEM projects. The Eaton Mobility transaction is framed as a deepening of Dana's core powertrain capabilities, rather than a reversal of previous simplification efforts, by adding complementary engine and transmission technologies. Strategic rationale for the Eaton combination centers on creating a scaled global aftermarket leader, with pro forma aftermarket sales expected to reach approximately 16% of total revenue. Full-year sales guidance was raised to $7.75 billion, primarily reflecting stronger-than-anticipated demand in the commercial vehicle market and continued backlog conversion. Management expects to achieve at least $250 million in run-rate cost synergies within 24 months of the Eaton closing, with $75 million realized in the first year. The Eaton Mobility separation will be structured as a split-off, which management believes will support a more orderly distribution of shares to long-term investors. Capital allocation plans include repurchasing an additional $200 million in shares through the end of 2026, with a goal to complete $2 billion in total buybacks by 2029. The 2030 revenue target has been upwardly revised to a range of $14 billion to $15 billion following the integration of Eaton Mobility assets. Adjusted EPS guidance was revised lower due to higher depreciation from accelerated asset in-service timing and lower equity earnings from joint ventures in China. A one-time $20 million U.S. union contract signing bonus is expected to impact third-quarter results, though ongoing wage increases were already factored into long-term plans. Net interest expense is projected to improve by approximately $80 million year-over-year following debt reduction actions taken after the Off-Highway sale. Management identified approximately $40 million in stranded costs following the Off-Highway divestiture that they are actively working to eliminate through efficiency initiatives. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is exploring ways to restart buybacks during the 24-month post-closing period despite complex tax code considerations. If a buyback agreement cannot be reached, Dana remains unrestricted in its ability to raise dividends or pay special dividends to return cash to shareholders. The EPS cut was driven by higher depreciation, increased interest from refinancing, and a significant decline in expected equity earnings from China JVs. Jurisdictional tax mix also presented a headwind, though it was a smaller factor than the equity earnings decline. Management noted that the anticipated Class 8 prebuy is being pushed out as regulation changes are not imminent, with a significant volume uptick now expected in 2028. Current Class 8 volume for the year is projected at approximately 275,000 units, partially offset by softness in medium-duty and bus production.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong Q2 2026 results with sales of $2 billion and adjusted EBITDA margin expanding 270 basis points to 10.3%. Cost savings program on track, delivering $19 million in Q2 and $54 million year-to-date, with a target of $65 million for 2026. Restarting share repurchase program with $200 million planned for the remainder of 2026, bringing total to over $1 billion. Eaton Mobility transaction progressing well, with a split-off structure that is tax-free and expected to close in Q1 2027. Raising full-year 2026 guidance for sales, adjusted EBITDA, and adjusted free cash flow due to stronger commercial vehicle demand. New aftermarket partnerships (e.g., Viper) and defense program wins are driving incremental sales growth. Adjusted free cash flow improved significantly to $68 million in Q2, up $75 million year-over-year. Net interest expense declined 59% year-over-year due to debt reduction actions. Strong customer recognition for quality, delivery, and competitiveness from major OEMs. Clear plan for at least $250 million in cost synergies from Eaton Mobility, with a payback period of less than two years. Adjusted EPS guidance lowered to approximately $2.00 per share due to higher depreciation, interest, and lower equity earnings from China JVs. Expecting a one-time $20 million US union contract signing bonus in Q3 2026, which will impact profitability. Commodity-related headwinds of approximately $10 million due to recovery timing. Lower equity earnings from China joint ventures are a headwind to net income. Higher depreciation expense and net interest costs are pressuring earnings despite improved operational performance. Commercial vehicle market mix is dilutive to overall adjusted EBITDA margin, keeping margin at 10.6% despite higher sales. North American Class 5-7 and bus production volumes are weaker, offsetting some Class 8 strength. Stranded costs of $40 million from the off-highway divestiture remain a drag on profitability. Potential 24-month pause in share repurchases post-Eaton closing if not resolved, limiting capital returns. Tax expense is higher due to jurisdictional mix and improved earnings, impacting net income. Warning! GuruFocus has detected 6 Warning Signs with DAN. Is DAN fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the share repurchase plan, particularly regarding the post-close restrictions and the possibility of continuing buybacks after the Eaton Mobility transaction closes?A: Tim Krauss (CFO): We are working with Eaton to explore restarting buybacks in the 24-month post-closing period. Even if we cannot restart during that window, we now believe we can complete the $2 billion buyback before the end of 2029 (versus 2030 previously) due to the increased earnings and free cash flow from the Eaton integration. We are also evaluating alternative methods to return capital, such as raising the dividend or paying a special dividend, if the buyback cannot be restarted. Q: Can you explain the factors behind the revised adjusted EPS guidance, which was lowered despite raising the sales and EBITDA outlook?A: Tim Krauss (CFO): The lower adjusted EPS is driven by several factors: higher depreciation expense due to accelerated capital investments, higher net interest expense from refinancing the '21s and having less cash on hand due to upfront Eaton transaction costs, lower equity earnings from our China JVs (the single largest change), and a higher tax rate due to jurisdictional mix. Q: The second half EBITDA improvement on flat sales seems substantial. What is driving the underlying improvement, especially with the $20 million union signing bonus expected in Q3?A: Tim Krauss (CFO): The improvement is largely driven by performance and mix. We are seeing benefits from automation and plant-level improvements, which we expect to continue in the back half. Additionally, the bulk of the $40 million in stranded cost elimination from the off-highway divestiture will come through in the second half. The $20 million union bonus is a one-time cost that was not in the prior guidance, so the underlying improvement is even stronger. Q: Regarding the guide raise, most of it seems driven by improved commercial vehicle volume. What are you seeing in the market, and is there potential for further upside?A: Byron Foster (CEO): We are definitely seeing increased demand from our CV customers, particularly in the Class 8 segment. We have been working to support this volume increase and expect it to continue into next year. It is a bit early to say if there is further upside, but the midterm outlook and releases continue to show robust volume in the CV market. Q: Can you provide insights into the defense component of the Applied Technologies pillar, particularly regarding the Ford heavy-duty tactical truck opportunity?A: Byron Foster (CEO): Similar to the GM Defense opportunity, we are leveraging our position on Ford's light vehicle truck program to provide an upfitted proposal for the heavy-duty tactical truck. It is still early days, but we see the same type of opportunity. More broadly, defense is one of several markets in the Applied Technologies bucket, and we see it as potentially more robust than initially contemplated in the DANA 2030 plan. Q: How much due diligence have you done on Eaton Mobility's assets, and how much work do you expect to modify the combined footprint?A: Byron Foster (CEO): We have done a fair amount of due diligence and visited many of the sites. We are familiar with their manufacturing footprint and process technology, which is very comparable to Dana's. As part of the synergy plan, we will look at opportunities to combine facilities where there is duplicative capacity, but the asset base and technologies are very much in line with our expectations. Q: Can you walk us through why the volume and mix contribution was so strong in Q2, with $10 million of EBITDA on just $6 million of revenue?A: Tim Krauss (CFO): There are a lot of moving parts, but we continue to see new backlog coming on at better margins than prior programs. Additionally, there is a favorable mix element from better volume coming through on commercial vehicles. In the back half, we expect a more normalized volume and mix conversion, but the Q2 strength was mostly mix-driven. Q: What is the progress update on Ford's new Super Duty capacity in Oakville, and how is Dana preparing for that launch?A: Byron Foster (CEO): We are excited about the opportunity. We will start low-volume ramp-up production within the month, with volumes becoming more meaningful towards the end of the calendar year. We will leverage our existing footprint and capacity for US Super Duty volume. The releases from here to year-end are in line with Ford's committed volumes in Oakville, and all launch prep work is complete. Q: How are you thinking about the North America truck market this year and next, given the new emission standards and potential pre-buy dynamics?A: Byron Foster (CEO): We are seeing the pre-buy get pushed out given that regulation changes are not anticipated in the near term. For this year, we see Class 8 volumes at roughly 275,000 units. Looking ahead to 2027 and beyond, we see volumes increasing marginally in 2027 with a nice uptick in 2028. Tim Krauss (CFO) added that there is some down volume in Class 5-7 and bus production, which offsets some of the Class 8 strength, and noted that Dana's Class 8 business is a smaller portion of total than medium duty. Q: Is the $20 million union signing bonus included in the free cash flow guidance, and was it part of the prior outlook?A: Tim Krauss (CFO): Yes, the cash is included in the adjusted free cash flow guidance. It was not in the prior outlook, so the effective raise at the midpoint is more like $45 million. The ongoing wage increases were already considered in the back half of 2026 and in our long-term view, so the bonus is the only incremental item. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Second-Quarter Highlights: Sales of $2.0 billion, up 4 percent versus the second quarter of 2025 Adjusted EBITDA of $207 million; $60 million higher than second quarter of 2025 10.3 percent adjusted EBITDA margin; 270 basis points higher than prior year Achieved $19 million in additional cost savings Repurchased 1.2 million shares, returning $44 million to shareholders Year-to-date shareholder returns of $169 million Planning an additional ~$200 million of repurchases in 2026 Eaton Mobility transaction remains on track for first-quarter of 2027 close MAUMEE, Ohio, Aug. 6, 2026 /PRNewswire/ -- Dana Incorporated (NYSE: DAN) today announced its second-quarter 2026 financial results, delivering strong performance, expanding margins, and increasing its full-year outlook. "Dana continues to execute our strategy with discipline and consistency, delivering another quarter of strong margin expansion while advancing our long-term growth initiatives," said Byron Foster, Chief Executive Officer. "Our performance reflects the benefits of pricing actions, operational improvements, and continued cost-savings initiatives, while demand has improved across our end markets. We have also announced that we are restarting our share repurchase program to continue until the closing of the Eaton Mobility transaction and remain committed to returning meaningful capital to shareholders. Combined with the strategic value creation opportunities associated with the planned Eaton Mobility transaction, we believe Dana is well positioned to deliver sustainable growth and increased shareholder value." Sales in the second quarter of 2026 totaled $2.01 billion, compared with $1.94 billion in the same period of 2025. The increase was primarily driven by higher demand across end markets, pricing actions, and favorable currency translation. Adjusted EBITDA for the second quarter was $207 million, representing a 10.3 percent margin, compared with $147 million, or 7.6 percent, for the same period in 2025. Cost-savings actions, operational efficiency improvements, and pricing initiatives were the primary drivers of the improvement. Net income from continuing operations was $11 million in the second quarter of 2026, compared with a loss of $12 million, in the second quarter of 2025. Diluted earnings per share from continuing operations were $0.06 in the second quarter of 2026 compared to a loss of $0.11 last year. The second quarter of 2026 benefited from significantly improved operating performance, reflecting cost-reduction initiatives, material cost savings, operational improvements, and lower net interest expense associated with debt repayment following the Off-Highway divestiture. Adjusted net income was $21 million in the second quarter of 2026, compared with $4 million in the prior-year period, while diluted adjusted earnings per share increased to $0.19 from $0.03 Operating cash flow in the second quarter of 2026 was $109 million, compared with $32 million in the same period of 2025. Adjusted free cash flow was $68 million, compared with a use of $7 million in the second quarter of 2025. Higher profitability, lower one-time costs, lower taxes, and improved working capital performance more than offset the loss of discontinued operations following the Off-Highway divestiture. Dana today announced the restart of its share repurchase program, which had been suspended following the announcement of the proposed Eaton Mobility transaction. During the second quarter, the company repurchased approximately 1.2 million shares, returning $44 million to shareholders. Year-to-date, Dana has returned $169 million to shareholders and expects to repurchase an additional $200 million of shares before the end of 2026. Dana and Eaton are evaluating the possibility of additional share repurchases following the closing of the transaction. Dana also has continued to make progress on its announced combination with Eaton's Mobility business. The companies now expect to utilize a split-off structure for the transaction, which is intended to be tax-free to shareholders and provides for an orderly distribution of shares. The transaction remains on track to close during the first quarter of 2027, subject to approval by Dana shareholders, receipt of regulatory approvals, and customary closing conditions. "The planned combination with Eaton Mobility remains a highly strategic opportunity that accelerates our Dana 2030 objectives and creates a stronger, more diversified global powertrain leader," Foster added. "At the same time, we remain focused on executing the initiatives within our control—improving our cost structure, enhancing manufacturing performance, generating strong cash flow, and returning capital to shareholders." Dana has revised its full-year financial guidance upward, increasing its sales outlook by approximately $225 million and its adjusted EBITDA outlook by approximately $25 million. The higher guidance reflects stronger market conditions, favorable commercial-vehicle demand, ongoing cost-reduction actions, and favorable currency translation. Revised 2026 Financial Targets Dana to Host Conference Call at 9 a.m. Thursday, August 6Dana will discuss its second quarter 2026 results in a conference call at 9 a.m. EDT on Thursday, August 6. The conference call can be accessed by telephone from both domestic and international locations using the information provided below: Conference ID: 9943139Participant Toll-Free Dial-In Number: (888) 440-5873Participant Toll Dial-In Number: +1 (646) 960-0319 Audio streaming and slides will be available online via a link provided on the Dana investor website: www.dana.com/investors. Phone registration will be available beginning at 8:30 a.m. EDT. A webcast replay can be accessed via Dana's investor website following the call. Cautionary Notes on Forward-Looking StatementsThis communication includes "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995, including statements regarding the proposed transaction between Eaton Corporation plc ("Eaton"), Dana Incorporated ("Dana") and Mobility (USA) Corporation ("SpinCo"), as well as statements regarding Dana's business, financial condition and results of operations more generally. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "forecast," "outlook," "target," "endeavor," "seek," "predict," "intend," "strategy," "plan," "may," "could," "should," "will," "would," "potential," "continue," "ongoing," or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements, other than historical facts, including, but not limited to, statements regarding Dana's current expectations, estimates and projections about its industry and business, the expected timing and structure of the proposed transaction and financing of the transaction, the ability of the parties to complete the proposed transaction, the expected benefits of the proposed transaction, including future financial and operating results and strategic and synergistic benefits, the tax consequences of the proposed transaction and the combined company's plans, objectives, expectations and intentions, legal, economic and regulatory conditions, and any assumptions underlying any of the foregoing, are forward-looking statements. These forward-looking statements are based on Dana's current expectations and are subject to risks and uncertainties and are not guarantees of future results. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, the ability to complete the proposed transaction on the timeframe or on the terms currently anticipated or at all, including due to a failure to obtain requisite stockholder and/or regulatory approvals; risks related to difficulties, inabilities or delays in integrating the businesses of Dana and SpinCo; the ability to realize the anticipated benefits of the proposed transaction, including estimated combined EBITDA, estimated combined revenue and estimated run-rate cost synergies; potential impact of the proposed transaction on Dana's stock price; restrictions on the conduct of Dana's business prior to and after closing and on its ability to pursue alternatives to the proposed transaction; the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events, or unforeseen or unknown liabilities; the ability of the combined company to implement its business strategy; the inability of the combined company to retain and hire key personnel; the occurrence of any event that could give rise to termination of the proposed transaction; the risk that stockholder litigation in connection with the proposed transaction or other litigation, settlements or investigations may affect the timing or occurrence of the proposed transaction or result in significant costs of defense, indemnification and liability; risks relating to the ability to obtain financing for the transaction upon acceptable terms or at all; evolving legal, regulatory and tax regimes; changes in general economic and/or industry specific conditions; global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; the risks that the anticipated tax treatment of the proposed transaction is not obtained; the risk of greater than expected difficulty in separating the business of SpinCo from the other businesses of Eaton; risks related to the disruption of management time from ongoing business operations due to the pendency of the proposed transaction, or other effects of the pendency of the proposed transaction on the relationship of any of the parties to the transaction with their employees, customers, suppliers or other counterparties; and other risk factors detailed from time to time in Dana's reports filed with the Securities and Exchange Commission (the "SEC"), including Dana's annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other documents filed with the SEC, including documents that will be filed with the SEC in connection with the proposed transaction. The foregoing list of important factors is not exclusive. Any forward-looking statements speak only as of the date of this communication. Dana does not undertake, and expressly disclaims, any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements. It should also be noted that projected financial information for the combined company is based on management's estimates, assumptions and projections and has not been prepared in conformance with the applicable accounting requirements of Regulation S-X relating to pro forma financial information, and the required pro forma adjustments have not been applied and are not reflected therein. None of this information should be considered in isolation from, or as a substitute for, the historical financial statements of Dana or SpinCo. Important Information About the Transaction and Where to Find It In connection with the proposed transaction, SpinCo may file with the SEC an information statement on Form 10 ("Form 10") or a registration statement on Form S-1/S-4 (the "Form S-1/S-4") that constitutes a prospectus with respect to the shares of common stock, par value $0.01 per share, of SpinCo (the "SpinCo shares") to be issued to Eaton shareholders in the proposed exchange offer (the "prospectus/offer to exchange"). Eaton may also file with the SEC a tender offer statement (the "Schedule TO") with respect to the offer by Eaton to exchange all SpinCo shares for ordinary shares, par value $0.01 per share, of Eaton that are validly tendered and not properly withdrawn prior to the expiration of the exchange offer (if any). In addition, SpinCo intends to file with the SEC a registration statement on Form S-4 (the "Form S-4") that will include a proxy statement of Dana and that also constitutes a prospectus of SpinCo with respect to the SpinCo shares to be issued in the proposed merger (the "proxy statement/prospectus"). Each of Eaton, SpinCo and Dana may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the Form 10, Form S-1/S-4, Schedule TO, Form S-4, prospectus/offer to exchange, proxy statement/prospectus or any other document that Eaton, SpinCo or Dana may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENTS, THE SCHEDULE TO; THE PROSPECTUS/OFFER TO EXCHANGE, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT EATON, DANA, SPINCO AND THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the Form 10, Form S-1/S-4, Schedule TO, Form S-4, the prospectus/offer to exchange and the proxy statement/prospectus (if and when available) and other documents containing important information about Eaton, Dana and SpinCo and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by Eaton and SpinCo will be available free of charge on Eaton's website at https://www.eaton.com/us/en-us/company/investor-relations.html. Copies of the documents filed with, or furnished to, the SEC by Dana will be available free of charge on Dana's website at https://danaincorporated.gcs-web.com/. The information included on, or accessible through, Eaton or Dana's website is not incorporated by reference into this communication. Participants in the Solicitation Eaton, Dana, SpinCo and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Eaton, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Eaton's proxy statement for its 2026 Annual General Meeting of Shareholders, which was filed with the SEC on March 13, 2026. Information about the directors and executive officers of Dana, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Dana's proxy statement for its 2026 Annual Meeting of Stockholders, which was filed with the SEC on March 13, 2026. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Form S-4 and the proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors should read the Form 10, Form S-1/S-4, Schedule TO, Form S-4, the prospectus/offer to exchange and the proxy statement/prospectus carefully if and when available before making any voting or investment decisions. You may obtain free copies of these documents from Eaton or Dana using the sources indicated above. No Offer or Solicitation This communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy or exchange any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act or in a transaction exempt from the registration requirements of the Securities Act. Note Regarding Use of Non-GAAP Financial MeasuresIn addition to the financial measures presented in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"), this communication includes certain non-GAAP financial measures (collectively, the "Non-GAAP Measures"), such as adjusted EBITDA, adjusted EBITDA margin, adjusted net income (loss) attributable to the parent company, diluted adjusted EPS, adjusted free cash flow and adjusted free cash flow margin. Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit 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 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 any 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 net 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 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. These Non-GAAP Measures should not be used in isolation or as a substitute or alternative to results determined in accordance with U.S. GAAP. In addition, Dana's and Eaton's definitions of these Non-GAAP Measures may not be comparable to similarly titled non-GAAP financial measures reported by other companies. A reconciliation of these Non-GAAP Measures to the most directly comparable financial measures calculated and reported in accordance with U.S. GAAP can be found in Dana's filings with the SEC and/or the accompanying financial information, except for financial guidance and other forward-looking information since such a reconciliation is not practicable without unreasonable effort as Dana is unable to reasonably forecast certain amounts that are necessary for such reconciliation. We have not provided a reconciliation of our adjusted EBITDA outlook to the most comparable GAAP measures of net income (loss). Providing net income (loss) 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), 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. About Dana IncorporatedDana Incorporated (NYSE: DAN) is a global leader in the design and manufacture of highly efficient propulsion solutions for the light- and commercial‑vehicle markets. Guided by its vision to be the world's best powertrain company, Dana delivers advanced conventional and clean‑energy technologies that help customers improve the performance, efficiency, and durability of their vehicles. The company supplies leading vehicle manufacturers and related aftermarkets with industry‑defining drive systems, electrodynamic technologies, and thermal and sealing solutions. Headquartered in Maumee, Ohio, USA, Dana reported sales of $7.5 billion in 2025. With a history dating to 1904, the company employs 27,000 people in 24 countries across six continents. Learn more at dana.com 19 Net cash used in investing activities from discontinued operations (35)(14) Net cash provided by (used in) investing activities (178)5 Financing activities  Net change in short-term debt (3)401 Repayment of long-term debt (8)(206) Dividends paid to common stockholders (13)(14) Repurchases of common stock (44)(257) Distributions to noncontrolling interests (1)(2) Swap settlements -(8) Other, net (7)(8) Net cash used in financing activities (76)(94) Net decrease in cash, cash equivalents and restricted cash (145)(57) Cash, cash equivalents and restricted cash − beginning of period 492523 Effect of exchange rate changes on cash balances 235 Cash, cash equivalents and restricted cash − end of period $ 349$ 501 DANA INCORPORATED  Consolidated Statement of Cash Flows (Unaudited)  For the Six Months Ended June 30, 2026 and 2025 Six Months Ended (In millions) June 30,20262025 Operating activities  Net income $ 1,091$ 61 Less: Net income from discontinued operations 1,09590 Net loss from continuing operations (4)(29) Depreciation 166171 Amortization 56 Amortization of deferred financings charges 23 Earnings of affiliates, net of dividends received (8)(25) Stock compensation expense 1923 Deferred income taxes 30(26) Pension expense, net (4)- Change in working capital (221)(202) Change in other noncurrent assets and liabilities (23)(13) Loss on divestiture of ownership interests 87 Noncash electric vehicle program termination charges 59- Other, net (39)54 Net cash used in operating activities from continuing operations (10)(31) Net cash provided by (used in) operating activities from discontinued operations (76)26 Net cash used in operating activities (86)(5) Investing activities  Purchases of property, plant and equipment (204)(104) Proceeds from sale of property, plant and equipment 211 Proceeds from sales of investments 157 Settlements of undesignated derivatives (6)(6) Other, net -4 Net cash used in investing activities from continuing operations (207)(38) Net cash provided by (used) in investing activities from discontinued operations 2,528(22) Net cash provided by (used in) investing activities 2,321(60) Financing activities  Net change in short-term debt (618)522 Repayment of long-term debt (1,338)(210) Dividends paid to common stockholders (26)(29) Repurchases of common stock (169)(257) Distributions to noncontrolling interests (2)(3) Payment for mandatorily redeemable noncontrolling interest (190)- Swap settlements -(14) Other, net (25)(8) Net cash provided by (used in) financing activities (2,368)1 Net decrease in cash, cash equivalents and restricted cash (133)(64) Cash, cash equivalents and restricted cash − beginning of period 486512 Effect of exchange rate changes on cash balances (4)53 Cash, cash equivalents and restricted cash − end of period $ 349$ 501 View original content to download multimedia:https://www.prnewswire.com/news-releases/dana-incorporated-reports-strong-second-quarter-results-increases-full-year-guidance-restarts-share-repurchase-program-302844727.html

Autoliv, Inc. (ALV) came out with quarterly earnings of $2.43 per share, beating the Zacks Consensus Estimate of $2.34 per share. This compares to earnings of $2.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.85%. A quarter ago, it was expected that this company would post earnings of $1.77 per share when it actually produced earnings of $2.05, delivering a surprise of +15.82%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Autoliv, which belongs to the Zacks Automotive - Original Equipment industry, posted revenues of $2.8 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.45%. This compares to year-ago revenues of $2.71 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Autoliv shares have added about 5.3% since the beginning of the year versus the S&P 500's gain of 10.1%. While Autoliv has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Autoliv was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.72 on $2.75 billion in revenues for the coming quarter and $10.52 on $11.15 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Original Equipment is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Dana (DAN), another stock in the same industry, has yet to report results for the quarter ended June 2026. This automotive equipment supplier is expected to post quarterly earnings of $0.64 per share in its upcoming report, which represents a year-over-year change of +1180%. The consensus EPS estimate for the quarter has been revised 1.4% lower over the last 30 days to the current level. Dana's revenues are expected to be $1.89 billion, down 2.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Autoliv, Inc. (ALV) : Free Stock Analysis Report Dana Incorporated (DAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research