Off-Highway Business Sale
Dana announced the sale of its Off-Highway business to Allison for over $2.7 billion, with net cash proceeds expected to be about $2.4 billion. This transaction is expected to close in the fourth quarter of 2025.
Increased Capital Return to Shareholders
Dana increased its capital return to shareholders from $550 million to $600 million due to strong free cash flow and higher guidance for the year. The company bought back over 10% of its shares, returning $257 million to shareholders in the quarter.
Cost Reduction Initiatives
Dana achieved nearly $60 million in cost reductions in the quarter, totaling $110 million to date, and increased its cost reduction goal from $300 million to $310 million by 2026.
Profit Guidance Raised
Dana raised its profit guidance for new Dana by $35 million, and on a total company basis, profit guidance increased by $15 million despite a $20 million reduction for Off-Highway.
Improved Free Cash Flow Guidance
Dana increased its free cash flow target by $50 million to approximately $275 million at the midpoint of guidance.