DAN earnings analysis
What we found in DAN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Dana Incorporated reported its Q1 2026 earnings with total sales of $1.868 billion, marking a 4.9% increase year-over-year, driven by pricing actions and favorable currency effects. The gross margin improved significantly to 9.0%, up from 6.6% in the same quarter last year, contributing to a notable uptick in EBITDA. However, net cash used in operating activities increased to $195 million, reflecting challenges in working capital management and industry headwinds.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Sales Growth Year-Over-Year
- Revenue rose to $1.868 billion in Q1 2026, up 4.9% from $1.781 billion in Q1 2025.
- Improved Gross Margin
- Gross margin improved to 9.0% in Q1 2026 compared to 6.6% in Q1 2025.
- Lower SG&A Expenses
- SG&A decreased to $102 million (5.5% of sales) from $105 million (5.9%) a year earlier.
- Segment EBITDA Increase
- Light Vehicle segment EBITDA rose by $44 million year-over-year, driven by pricing and cost recovery initiatives.
- Successful Off-Highway Divestiture
- Closed the sale of the Off-Highway business providing initial cash proceeds of $2.664 billion.
- Decreased Interest Expense
- Interest expense dropped to $22 million from $39 million year-over-year, indicating reduced debt servicing costs.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Negative Operating Cash Flow
- Cash used in operating activities increased to $195 million from $37 million a year earlier, reflecting operational challenges.
- High Inventory Levels
- Cash used to finance receivables and higher inventories was significant, highlighting working capital issues.
- Weakening Medium/Heavy Truck Market
- Class 8 and Classes 5-7 truck production in North America decreased by 25% and 20% respectively, impacting sales.
What they reported.
What the company itself reported, taken out of the document.
- Gross margin
- 9.0%
- Segment
- Light Vehicle: $1.269B
- Segment
- Commercial Vehicle: $599M
What they said about what is next.
Management expects 2026 sales between $7.3 billion and $7.7 billion, citing currency tailwinds and backlog conversion.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 27, 2026
- Dana completed a strategic repositioning of the company in 2025 by divesting its Off-Highway business (presented as discontinued operations), realizing substantial cost reductions and reallocating capital toward debt…
- 10-Q · April 30, 2025
- Dana reported Q1 2025 revenue of $2,352 million and diluted EPS of $0.17, with operating income of $72 million. Revenue declined versus the prior-year quarter while gross profit, operating margin and attributable net…
- 10-K · February 20, 2025
- Dana positions itself as a global leader in power-conveyance and energy-management solutions with an explicit strategy organized around four operating segments (Light Vehicle, Commercial Vehicle, Off-Highway and Power…
- 10-Q · October 30, 2024
- Dana reported Q3 net sales of $2,476M, down $193M (-7.2%) versus Q3 2023, with diluted EPS declining to $0.03 from $0.13 a year ago. Gross margin expanded modestly to ~9.9% and operating margin held roughly steady at…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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