So you can see here for the fourth quarter, our margins at 11.1%, with $10 million, 40 basis points higher, $10 million higher than the announced pre-announcement numbers. In terms of full-year cash flow, we came in at $331 million, which is $16 million higher. And I'd point out that that cash flow is the highest the company has delivered since 2013. In terms of new business, we shared our backlog a couple weeks ago at $750 million.

So despite, I'd say, the turmoil in the EV side of our business, the teams secured a higher backlog than we had last year, of which $200 million is gonna flow through in 2026. And then I think if you look at our capital return, we returned just over $700 million for our shareholders last year, and we've grown our dividend. Lastly, on the dividend, we upped our dividend by, excuse me, by 20% to $0.12 a quarter. The way we're sort of thinking about this is we're gonna grow our dividend as our share count declines.

So just to cover on page six, a little bit on the market outlook as we look at the 2026 plan. You can see a really dramatic increase in business pursuit activity, kinda in the early 2000s, really dominated by increasing EV activity. So we're encouraged by that, and as we talk about growth going forward, we expect that's really going to play into our ability to capitalize on that opportunity. Please turn with me now to slide nine for a review of our fourth quarter and full year results for 2025.

What went well
  • Fourth quarter adjusted EBITDA margin of 11.1%, a 640 basis point improvement over the prior year, with final results above preliminary estimates
  • Full-year 2025 adjusted free cash flow of $331 million, $16 million above pre-announcement and the highest the company has delivered since 2013
  • Delivered $248 million of cost reduction in the year at a $325 million run rate going into 2026, above the original $200 million commitment
  • Returned just over $700 million to shareholders in 2025, including buying back over 34 million shares at an average cost of $18.96 and growing the dividend by 20%
  • Three-year net backlog of $750 million, higher than the prior year despite EV turmoil, with $200 million flowing through in 2026
  • Completed the Off-Highway sale January 1 and used most of the roughly $2 billion proceeds to pay down debt
What went wrong
  • Full-year 2025 sales of $7.5 billion were down $234 million from 2024, reflecting weakening demand across both light vehicle and commercial vehicle sectors
  • Backlog was impacted by EV program cancellations, deferrals, and lower volumes
  • Interest expense rose; quarterly interest was $49 million (up about $12 million) and full-year was $171 million (up $26 million), tied to accelerated capital return initiatives
  • Approximately $40 million of stranded costs remain post Off-Highway sale that the company aims to substantially eliminate in 2026

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Reported 2026-02-18 · figures from the DANA Inc Q4 2025 earnings call.

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