Sale of Off-Highway Business
Dana announced the agreement to sell the Off-Highway business to Allison for over $2.7 billion, with net cash proceeds expected to be about $2.4 billion. The closing is anticipated in the fourth quarter.
Increased Capital Return to Shareholders
Dana is increasing the capital return to shareholders from $550 million to $600 million, with a focus on reducing shares outstanding by 25% year-over-year.
Cost Reduction Achievements
Delivered nearly $60 million in cost reductions in the quarter, totaling $110 million year-to-date, with a confident target of $310 million run rate by 2026.
Improved Profit Guidance
Profit guidance for the year is up by $35 million for new Dana and free cash flow guidance increased by $50 million to $275 million.
Positive Margin Improvement
Dana reported a 280 basis points margin improvement in continuing operations, driven by performance and cost saving actions.