Dana Incorporated (NYSE:DAN) reported second-quarter results on Thursday that topped revenue expectations and prompted management to lift its full-year revenue and adjusted EBITDA guidance. Investors welcomed the update, sending the automotive supplier’s shares about 4% higher in after-hours trading.
While earnings per share fell short of Wall Street estimates, stronger sales and improved profitability supported sentiment.
Revenue beats forecasts despite EPS miss
Dana posted adjusted earnings per share of $0.19 for the quarter, below analysts’ expectations of $0.66.
Revenue reached $2.01 billion, surpassing the consensus estimate of $1.94 billion and increasing 4% from $1.94 billion in the same period last year. The growth was driven by stronger customer demand across multiple end markets, pricing improvements and favourable foreign exchange movements.
Company lifts full-year guidance
Following the stronger revenue performance, Dana increased its full-year 2026 revenue forecast to between $7.65 billion and $7.85 billion. The midpoint of $7.75 billion is above the previous analyst consensus of $7.65 billion.
The company also raised its adjusted EBITDA outlook by approximately $25 million, now expecting between $800 million and $850 million for the year.
However, adjusted earnings per share guidance of $1.75 to $2.25 remains below the current Wall Street consensus of $2.44, with the midpoint standing at $2.00.
Margin expansion continues
Chief Executive Officer Byron Foster said: “Dana continues to execute our strategy with discipline and consistency, delivering another quarter of strong margin expansion while advancing our long-term growth initiatives.”
Adjusted EBITDA increased to $207 million during the quarter, compared with $147 million a year earlier.
The adjusted EBITDA margin improved to 10.3% from 7.6%, reflecting ongoing cost-saving measures, operational improvements and pricing initiatives.
Share buybacks and Eaton transaction remain on schedule
During the quarter, Dana repurchased 1.2 million shares, returning approximately $44 million to shareholders.
Management also intends to complete an additional $200 million of share repurchases before the end of the year.
Meanwhile, the planned combination of Dana with Eaton’s Mobility business continues to progress as scheduled, with completion still expected during the first quarter of 2027.