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Dana Sells Off-Highway Unit to Refocus Business

Story Highlights
  • Dana completed the $2.7 billion sale of its Off-Highway business to Allison on January 1, 2026.
  • The divestiture refocuses Dana on core vehicle systems while funding debt reduction and $1 billion in shareholder returns.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Dana Sells Off-Highway Unit to Refocus Business

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Dana Incorporated ( (DAN) ) has provided an update.

On January 1, 2026, Dana Incorporated completed the previously announced sale of its Off-Highway business to Allison Transmission Holdings for approximately $2.7 billion in cash, a deal valued at 7.5 times the unit’s expected 2025 adjusted EBITDA. The divestiture marks a major step in Dana’s ongoing transformation to concentrate on light- and commercial-vehicle customers with traditional and electrified systems, with management highlighting that the proceeds will be used to cut debt by about $2 billion to reach a target net leverage of 1x over the business cycle and to return $1 billion to shareholders through 2027, moves expected to strengthen the balance sheet, improve margins, simplify operations, and support accelerated innovation and growth in the company’s core markets.

The most recent analyst rating on (DAN) stock is a Hold with a $23.00 price target. To see the full list of analyst forecasts on Dana Incorporated stock, see the DAN Stock Forecast page.

Spark’s Take on DAN Stock

According to Spark, TipRanks’ AI Analyst, DAN is a Neutral.

Dana Incorporated’s overall stock score reflects a mix of financial challenges and strategic improvements. The most significant factors are the financial performance struggles, particularly in cash flow, and the positive impact of recent corporate events. Technical analysis and valuation present a neutral to slightly positive outlook, while the earnings call provides cautious optimism for future performance.

To see Spark’s full report on DAN stock, click here.

More about Dana Incorporated

Dana Incorporated is a Maumee, Ohio-based leader in the design and manufacture of propulsion and energy-management solutions for global mobility markets, supplying nearly every major vehicle manufacturer with drive and motion systems, electrodynamic technologies including software and controls, and thermal, sealing, and digital solutions. The company, which generated about $7.7 billion in sales in 2024 and employs 28,000 people in 22 countries, focuses on both conventional and clean-energy systems and has been recognized among the World’s Most Ethical Companies and America’s Most Responsible Companies for 2025.

Average Trading Volume: 2,011,276

Technical Sentiment Signal: Buy

Current Market Cap: $2.78B

Learn more about DAN stock on TipRanks’ Stock Analysis page.

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