Our full-year charge in terms of tariffs is lower than we thought a quarter ago. Cost savings, we're on track to deliver the $310 million we talked about last quarter, but we are realizing those quicker, and that's helping us with some of the uplift to our outlook here. In terms of our capital returns, you'll see in our note we talked about buying between $100 million and $150 million of shares in the third quarter. We continue to make progress getting USMCA compliance, which reduces the sort of headwind both from an on-charge point of view, but also the margin deterioration that we see.

Our outlook, our recovery rate is now up in the upper 80%. Lastly, in terms of the balance of the year outlook, I'd say the light demand or the light truck demand remains relatively stable. Nonetheless, the fact that we've got a better outlook in terms of tariffs, quicker realization of cost recovery, we are taking our full-year guide up $15 million at the midpoint. I would note that within our guidance, we do have some volume catch-up factored in here, JLR.

We factored in the lower commercial vehicle outlook here in North America in line with estimates out there. This reflects recoveries in currency benefits, offsetting the impact of lower demand. Adjusted EBITDA came in at $162 million, an improvement of $51 million year over year. Our margin expanded by 260 basis points to 8.5%, driven by cost-saving actions and operational efficiencies that help mitigate the profit impact of lower sales and tariffs.

What went well
  • Adjusted EBITDA improved $51 million year-over-year to $162 million, with margin expanding 260 basis points to 8.5%
  • EBIT improved significantly to $53 million from a loss of $8 million in the prior period, and net income attributable to Dana was $13 million versus a $21 million loss
  • Cost savings reached $73 million in the quarter (nearly the full-year run rate) and $183 million year-to-date, on track for the increased $235 million full-year target
  • Adjusted free cash flow of $101 million, a $109 million improvement versus the prior year, driven by higher profitability and lower working capital
  • Repurchased 9.5 million shares (7% of shares outstanding) in the quarter and nearly 30 million shares (over 20%) year-to-date
  • Raised full-year guidance by $15 million at the midpoint on accelerated cost savings and a better tariff outlook, with recovery rate now in the upper 80% range
What went wrong
  • Continued commercial vehicle deterioration in North America (running around a 200,000 unit annualized run rate) and to a lesser extent Brazil, with no light at the end of the tunnel seen into mid-2026
  • JLR was down for about five weeks in the quarter, a headwind
  • Took roughly $8-$10 million in charges related to EV program cancellations across multiple OEMs, expected to be recovered in Q4
  • Volume and mix lowered EBITDA by $35 million, a roughly 50% decremental margin, reflecting mix changes and operational impacts in thermal products including battery cooling
  • Magnet supply constraints in China, India, and Europe limited high-margin orders during the quarter

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Reported 2025-10-29 · figures from the DANA Inc Q3 2025 earnings call.

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