NYSE:DAN
DANA Inc
A premier global supplier of heavy-duty suspension and steering components for light vehicles, serving major automotive OEMs with a focus on innovation and manufacturing excellence.
Key Metrics
Investment Thesis
Bull Case
DANA Inc. presents a compelling turnaround story as it transitions from profitability losses to positive net income, demonstrating operational resilience and effective cost discipline. The company's strong balance sheet, evidenced by healthy operating cash flows and significant share buybacks, suggests management confidence in future growth prospects. As an essential supplier of safety-critical components, DANA benefits from long-term structural shifts towards electric vehicles and lightweighting trends that favor its engineering capabilities.
Bear Case
The sharp 26% decline in revenue over the last year raises concerns about weakening demand or a loss of major OEM contracts, which could persist if industry conditions do not improve. Significant non-operating losses totaling $171M and accumulated other comprehensive income deficits highlight potential hidden liabilities or adverse market valuations affecting the company's financial health. With high interest expenses of $181M and substantial debt repayments, the company faces elevated leverage risks that could constrain its ability to invest in R&D or expand capacity during economic recoveries.
About DANA Inc
DANA Inc. is a leading global automotive components manufacturer specializing in suspension and steering systems for light vehicles, serving major OEMs across North America and Europe. The company leverages its extensive manufacturing footprint to provide durable chassis solutions that enhance vehicle safety, handling, and ride comfort. Key products include coil springs, shock absorbers, control arms, and complete suspension assemblies.
Analysis
Management Discussion
Despite a notable contraction in revenue from $10.28B in 2024 to $7.50B in 2025, the company successfully turned its net income positive at $102M, reversing previous losses. This turnaround was driven by significant cash generation of $512M from operations and strategic cost management, though the large cash outflow for share repurchases of $650M indicates a commitment to returning capital to shareholders. The substantial increase in accounts receivable suggests potential inventory build-up or extended payment terms with customers amidst market headwinds.
Industry Overview
The automotive parts industry is characterized by intense consolidation and a shift towards value-added engineering services as OEMs seek cost efficiency. Manufacturers face pressure to innovate rapidly for electric vehicle platforms while managing volatile raw material costs and global supply chain complexities. Success in this sector increasingly depends on securing long-term partnerships with major automakers and adapting production lines for emerging technologies.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $10.16B | $10.55B | $10.28B | $7.50B |
| Cost of Revenue | $9.39B | $9.65B | $9.41B | $6.90B |
| Gross Profit | $763.0M | $900.0M | $876.0M | $602.0M |
| Operating Expenses | $677.0M | $584.0M | $650.0M | $463.0M |
| Operating Income | $86.0M | $316.0M | $226.0M | $139.0M |
| R&D | $201.0M | $237.0M | $229.0M | $105.0M |
| G&A | $495.0M | $549.0M | $524.0M | $387.0M |
| Stock-Based Comp | $19.0M | $26.0M | $30.0M | $40.0M |
| Depreciation | $365.0M | $393.0M | $401.0M | $345.0M |
| Amortization | $23.0M | $23.0M | $21.0M | $12.0M |
| Other OpEx | $-19.0M | $-202.0M | $-103.0M | $-29.0M |
| Non-Operating Income | $-117.0M | $-138.0M | $-146.0M | $-171.0M |
| Interest Expense | $128.0M | $154.0M | $161.0M | $181.0M |
| Interest Income | $11.0M | $17.0M | $15.0M | $10.0M |
| Pre-Tax Income | $-31.0M | $178.0M | $80.0M | $-32.0M |
| Income Tax | $284.0M | $121.0M | $139.0M | $53.0M |
| Continuing Ops | $-315.0M | $57.0M | $-59.0M | $-53.0M |
| Discontinued Ops | $4.0M | $-9.0M | $10.0M | $155.0M |
| Net Income | $-311.0M | $48.0M | $-49.0M | $102.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-311.0M | $48.0M | $-49.0M | $102.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.83B | $4.10B | $3.70B | $3.87B |
| Cash & Equivalents | $425.0M | $529.0M | $494.0M | $469.0M |
| Accounts Receivable | $1.37B | $1.37B | $1.20B | $987.0M |
| Inventory | $1.61B | $1.68B | $1.55B | $1.01B |
| Other Current Assets | $421.0M | $527.0M | $467.0M | $1.40B |
| Long-Term Assets | $3.62B | $3.86B | $3.78B | $3.94B |
| Intangibles | $201.0M | $182.0M | $150.0M | $71.0M |
| Goodwill | $259.0M | $263.0M | $250.0M | — |
| Operating Leases | $311.0M | $327.0M | $293.0M | $305.0M |
| Other LT Assets | $2.74B | $2.99B | $2.99B | $3.47B |
| Total Assets | $7.45B | $7.96B | $7.49B | $7.81B |
| Current Liabilities | $2.48B | $2.60B | $2.56B | $3.31B |
| Accounts Payable | $1.84B | $1.76B | $1.52B | $1.15B |
| Current Leases | $36.0M | $42.0M | $44.0M | $41.0M |
| Deferred Revenue | $48.0M | $50.0M | $25.0M | $25.0M |
| Taxes Payable | $54.0M | $86.0M | $69.0M | $75.0M |
| Other Current Liab | $226.0M | $295.0M | $433.0M | $1.52B |
| Long-Term Liabilities | $3.17B | $3.54B | $3.34B | $3.60B |
| LT Operating Leases | $277.0M | $284.0M | $258.0M | $266.0M |
| Other LT Liab | $2.84B | $3.17B | $3.00B | $3.19B |
| Total Liabilities | $5.65B | $6.14B | $5.90B | $6.91B |
| Shareholders' Equity | $1.80B | $1.83B | $1.58B | $899.0M |
| Paid-In Capital | $2.23B | $2.25B | $2.28B | $1.67B |
| Retained Earnings | $321.0M | $317.0M | $204.0M | $235.0M |
| AOCI | $-1.00B | $-990.0M | $-1.14B | $-1.03B |
| Treasury Stock | $0 | — | — | — |
| Total L&E | $7.45B | $7.96B | $7.49B | $7.81B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-311.0M | $48.0M | $-49.0M | $102.0M |
| Non-Cash Adjustments | $390.0M | $431.0M | $941.0M | $320.0M |
| Working Capital Changes | $570.0M | $-3.0M | $-442.0M | $90.0M |
| Cash from Operations | $649.0M | $476.0M | $450.0M | $512.0M |
| Cash from Investing | $-426.0M | $-528.0M | $-352.0M | $-222.0M |
| Debt Issuances | $2.0M | $458.0M | $1.0M | — |
| Debt Repayments | $24.0M | $209.0M | $37.0M | $223.0M |
| Share Buybacks | $25.0M | — | — | $650.0M |
| Dividends Paid | $58.0M | $58.0M | $58.0M | $54.0M |
| Cash from Financing | $-42.0M | $160.0M | $-90.0M | $-371.0M |
| FX Effect | $-26.0M | $13.0M | $-59.0M | $55.0M |
| Net Change in Cash | $181.0M | $108.0M | $8.0M | $-81.0M |
| Beginning Cash | $287.0M | $442.0M | $563.0M | $512.0M |
| Ending Cash | $442.0M | $563.0M | $512.0M | $486.0M |
Frequently Asked Questions
How does DANA Inc make money?
The company operates primarily through two distinct business segments: Suspension Components, which supplies coil springs, shock absorbers, stabilizer bars, and subframes; and Steering Components, providing tie rods, racks, idler arms, and steering columns. Revenue streams are further diversified by vehicle type, covering light trucks, SUVs, crossovers, and passenger cars, with a significant portion of sales derived from original equipment manufacturing (OEM) contracts.
What are the main risks for DAN?
The automotive industry is highly cyclical and sensitive to economic downturns, which can lead to reduced demand for new vehicle sales and delayed production schedules. Fluctuations in raw material costs, particularly steel and aluminum prices, directly impact the company's cost of revenue and gross profit margins. Supply chain disruptions or geopolitical tensions affecting global logistics could impair the timely delivery of components to key markets. Intense competition from other aftermarket and OEM suppliers may pressure pricing power and market share.
What is DAN's competitive advantage?
DANA Inc. maintains a robust competitive moat through its vertically integrated manufacturing ecosystem, allowing for superior cost control and rapid response to market fluctuations. Its extensive global network of facilities ensures proximity to key customer bases in North America, Europe, and Asia, reducing logistics costs and lead times. Additionally, the company's deep engineering expertise enables it to co-develop custom chassis solutions that meet stringent safety and performance standards required by top-tier automotive manufacturers.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.