MAUMEE, Ohio – October 29, 2026 -- Dana Incorporated (NYSE: DAN) raised third-quarter adjusted EBITDA by $56 million to $218 million, lifting its margin 220 basis points to 10.7 percent. The supplier also announced an additional $100 million of share repurchases for the fourth quarter of 2026.
Sales rise $121 million on commercial vehicle demand
Third-quarter sales reached $2.04 billion, compared with $1.92 billion a year earlier. Dana attributed the increase mainly to stronger commercial vehicle demand, backlog conversion, and commercial and cost-recovery actions.
Adjusted EBITDA compares with $162 million and an 8.5 percent margin in the prior-year quarter. Cost savings, operational efficiency gains, and commercial initiatives drove the improvement. Dana has booked $60 million in cost savings year to date.
Debt and tax charges push continuing operations to a $10 million loss
Net loss from continuing operations was $10 million, or $0.13 per diluted share, against net income of $13 million, or $0.07 per share, in the third quarter of 2025. Stronger operating performance and lower net interest expense were more than offset by a $24 million loss on debt extinguishment and higher income tax expense. That tax expense includes a $29 million charge for settling a foreign income tax matter, partly offset by a $12 million benefit from restructuring after the Off-Highway sale.
Total net income was $15 million, including $29 million from discontinued operations and $41 million of debt-extinguishment and net tax charges.
Adjusted net income was $44 million, compared with an adjusted net loss of $5 million a year earlier. Diluted adjusted earnings per share were $0.41, against an adjusted loss of $0.04.
Adjusted free cash flow falls to $66 million from $101 million
Operating cash flow was $102 million, down from $111 million. Adjusted free cash flow declined to $66 million from $101 million. Higher earnings from continuing operations, lower one-time costs, lower net interest and lower cash taxes only partly offset three drags: the absence of cash from the divested Off-Highway business, higher capital spending, and working capital timing.
Dana repurchases 6.6 million shares for $200 million in the quarter
Year-to-date buybacks total $369 million. Dana plans roughly $100 million more in the fourth quarter, ahead of the Eaton Mobility transaction closing. CEO Byron Foster said the larger repurchase plan reflects confidence in the company and a commitment to shareholder value.
Eaton Mobility deal remains on track for close around end of Q1 2027
Nearly all regulatory approvals have been obtained, with one still pending. Dana expects the transaction to close around the end of the first quarter of 2027.
The company raised its full-year sales outlook by approximately $50 million, citing higher demand and recoveries. It maintained its guidance for adjusted EBITDA, diluted adjusted EPS, and adjusted free cash flow.