Raised guidance on sales/EBITDA/FCF is positive, but the diluted EPS cut to ~$2.00 from higher D&A, interest, and lower equity earnings from China JVs is a concrete headwind. Monitor Q3 for the $20M union signing bonus impact and capital allocation updates (buyback pace, post-close dividend/special dividend). The split-off structure and restart of buybacks are incremental positives but do not fully offset the EPS revision uncertainty.
Price Chart
Executive Summary
Dana reported strong Q2 2026 results, with sales up 4% YoY to $2.01B and adjusted EBITDA up 41% to $207M, leading to a raised full-year guidance of ~$7.75B in sales and ~$825M in adjusted EBITDA. Key updates include restarting share repurchases, a split-off structure for the Eaton Mobility transaction, and on-track Q1 2027 close. However, diluted adjusted EPS guidance was cut to ~$2.00 due to higher D&A, interest, and lower China JV equity earnings, tempering the positive operational news.
Key Financial Metrics
Key Facts
- Q2 2026 sales: $2.01 billion, up from $1.94 billion YoY
- Q2 2026 adjusted EBITDA: $207 million, up from $147 million YoY, margin expanded 270 bps to 10.3%
- Q2 2026 adjusted net income: $21 million, up from $4 million YoY; diluted adjusted EPS: $0.19, up from $0.03
- Raised full-year 2026 guidance: sales ~$7.75B midpoint (+$225M), adj. EBITDA ~$825M (+$25M), adj. free cash flow ~$325M (+$25M)
- Diluted adjusted EPS guidance cut to ~$2.00 from prior higher level
- Restarted share repurchase program with $200M expected in H2 2026; $44M in Q2 repurchases (1.2M shares)
- Eaton Mobility transaction structured as split-off; remains on track for Q1 2027 close
- At least $250 million in run-rate cost synergies targeted within 24 months post-close
- Combined 2030 revenue target: $14-$15 billion
- Pro forma synergized 2026 net leverage of ~1.4x expected
Financial Impact
Q2 sales +4% YoY, adjusted EBITDA +41% YoY with 270 bps margin expansion; full-year guidance raised for sales (+$225M), EBITDA (+$25M), and FCF (+$25M); but diluted adj. EPS cut to ~$2.00
Risk Factors
- Lower equity earnings from China JVs and timing of D&A/interest expense may continue to pressure reported EPS
- $20M one-time union signing bonus in Q3 will weigh on H2 EBITDA
- Execution risk on $250M cost synergies and integration with Eaton Mobility
- Potential inability to restart buybacks post-close could delay capital return program
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 425 Filing (Primary) | 0001193125-26-338469 |
| Document: 0001193125-26-338469-index-headers.html | 0001193125-26-338469 |
| Document: 0001193125-26-338469-index.html | 0001193125-26-338469 |
| Document: 0001193125-26-338469.txt | 0001193125-26-338469 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | 425 | $28.44 $32.04 | ▲ +12.66% | ▲ +13.06% | $27.85 (−2.07%) |
Aug 6, 2026 8w ago | 425 | $27.32 $31.52 | ▲ +15.37% | ▲ +14.77% | $27.85 (+1.94%) |
Aug 6, 2026 8w ago | 8-K | $27.32 $31.52 | ▼ −15.37% | ▼ −14.77% | $27.85 (−1.94%) |
Jul 20, 2026 10w ago | Press Release | $26.15 $31.35 | ▼ −19.89% | ▼ −15.76% | $27.85 (−6.50%) |
Jun 11, 2026 16w ago | 425 | $30.81 $27.33 | ▼ −11.29% | ▼ −13.07% | $27.85 (−9.61%) |
Jun 11, 2026 16w ago | 425 | $30.81 $27.33 | ▼ −11.29% | ▼ −13.07% | $27.85 (−9.61%) |
Jun 11, 2026 16w ago | 425 | $30.81 $27.33 | ▼ −11.29% | ▼ −13.07% | $27.85 (−9.61%) |
Jun 11, 2026 16w ago | 425 | $30.81 $27.33 | ▼ −11.29% | ▼ −13.07% | $27.85 (−9.61%) |
Jun 11, 2026 16w ago | 8-K | $30.81 $27.33 | ▼ −11.29% | ▼ −13.07% | $27.85 (−9.61%) |
Jun 11, 2026 16w ago | 425 | $30.11 $26.39 | ▼ −12.35% | ▼ −14.25% | $27.85 (−7.51%) |
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