Dana Incorporated (DAN) Bundle
A Brief History of Dana Incorporated
Dana Incorporated, a leading global supplier of drivetrain and sealing technologies, has established a significant presence in the automotive and commercial vehicle sectors. As of 2024, the company continues to navigate challenges and opportunities within the industry.
Financial Performance Overview
In the third quarter of 2024, Dana reported total sales of $2.476 billion, a decrease from $2.669 billion in the same quarter of 2023. For the nine months ended September 30, 2024, total sales reached $7.949 billion, down from $8.061 billion in 2023.
| Period | Sales ($ billions) | EBITDA ($ millions) | EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 2.476 | 245 | 9.9 |
| Q3 2023 | 2.669 | 236 | 8.8 |
| 9M 2024 | 7.949 | 744 | 9.4 |
| 9M 2023 | 8.061 | 736 | 9.1 |
Segment Performance
Dana operates through various segments, including Light Vehicle, Commercial Vehicle, and Off-Highway. In the third quarter of 2024, the Light Vehicle segment reported sales of $1.033 billion, a decrease from $1.084 billion in 2023, with an EBITDA of $78 million.
The Commercial Vehicle segment experienced a decline in sales to $494 million in Q3 2024 from $535 million in the previous year, with an EBITDA of $26 million. The Off-Highway segment also saw a decrease in sales to $627 million from $739 million, with an EBITDA of $103 million.
| Segment | Q3 2024 Sales ($ millions) | Q3 2023 Sales ($ millions) | Q3 2024 EBITDA ($ millions) | Q3 2023 EBITDA ($ millions) |
|---|---|---|---|---|
| Light Vehicle | 1,033 | 1,084 | 78 | 75 |
| Commercial Vehicle | 494 | 535 | 26 | 29 |
| Off-Highway | 627 | 739 | 103 | 110 |
Market Conditions and Challenges
The global market for automotive and commercial vehicles has faced headwinds, with production declines noted in both North America and Europe. For instance, Class 8 truck production in North America was down 12% in Q3 2024 compared to 2023. Additionally, challenges related to inflationary pressures and commodity costs have impacted profit margins across all segments.
Outlook for 2024
Looking ahead, Dana has projected sales for 2024 to be between $10.2 billion and $10.4 billion, with an adjusted EBITDA of $855 million to $895 million. The company anticipates free cash flow in the range of $90 million to $110 million, reflecting a strategic focus on operational efficiencies and cost management.
| Outlook Metric | 2024 Estimate | 2023 Actual |
|---|---|---|
| Sales ($ billions) | 10.2 - 10.4 | 10.555 |
| Adjusted EBITDA ($ millions) | 855 - 895 | 845 |
| Free Cash Flow ($ millions) | 90 - 110 | (25) |
A Who Owns Dana Incorporated (DAN)
Major Shareholders
As of 2024, Dana Incorporated (DAN) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage (%) |
|---|---|
| BlackRock Inc. | 10.5 |
| The Vanguard Group, Inc. | 9.8 |
| State Street Corporation | 6.7 |
| Invesco Ltd. | 5.3 |
| Dimensional Fund Advisors LP | 4.1 |
| Other Institutional Investors | 63.6 |
Insider Holdings
Insider ownership also plays a role in the company's governance. As of 2024, the following individuals hold significant stakes in Dana Incorporated:
| Insider | Position | Shares Owned |
|---|---|---|
| James K. Kamsickas | Chairman & CEO | 250,000 |
| Michael J. McGarry | Director | 100,000 |
| Other Executives | Various | 300,000 |
Institutional Ownership Trends
As of the latest reports, institutional ownership of Dana Incorporated stands at approximately 70%. This indicates a strong confidence from institutional investors in the company's long-term strategy and financial performance.
Recent Market Activity
In 2024, Dana's stock price has shown fluctuations, with a year-to-date performance reflecting a decline of approximately 15%. The following table summarizes the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $15.30 |
| 52-Week High | $20.50 |
| 52-Week Low | $12.75 |
| Market Capitalization | $2.2 billion |
| Dividend Yield | 2.1% |
Summary of Ownership Structure
In summary, Dana Incorporated's ownership structure is primarily characterized by significant institutional ownership, alongside key insider participation. This combination reflects a stable governance framework that supports the company's strategic initiatives and operational goals.
Dana Incorporated (DAN) Mission Statement
Dana Incorporated's mission statement emphasizes its commitment to innovation, sustainability, and customer satisfaction in the mobility market. The company aims to deliver high-quality, reliable products and services that enhance the performance and efficiency of vehicles and machinery globally.
Financial Performance Overview
As of 2024, Dana Incorporated reported the following financial metrics:
| Metric | 2024 (Projected) | 2023 | 2022 |
|---|---|---|---|
| Sales | $10,200 - $10,400 million | $10,555 million | $10,156 million |
| Adjusted EBITDA | $855 - $895 million | $845 million | $700 million |
| Net Cash from Operating Activities | $465 - $485 million | $476 million | $649 million |
| Free Cash Flow | $90 - $110 million | $(25) million | $209 million |
Segment Performance
Dana's operations are divided into several segments, with the following performance metrics:
| Segment | Sales (Q3 2024) | Segment EBITDA (Q3 2024) | EBITDA Margin (Q3 2024) |
|---|---|---|---|
| Light Vehicle | $1,033 million | $78 million | 7.6% |
| Commercial Vehicle | $494 million | $26 million | 5.3% |
| Off-Highway | $627 million | $103 million | 16.4% |
| Power Technologies | $322 million | $26 million | 8.1% |
Market Trends and Challenges
In 2024, Dana faces several market challenges, including:
- Decreased global demand in the commercial vehicle sector, with a 12% year-over-year decline in Class 8 production in North America.
- Inflationary pressures impacting raw material costs, with a total increase of $112 million in inflation-related expenses reported.
- Fluctuations in currency affecting sales, with international currencies weakening against the U.S. dollar, decreasing sales by $34 million.
Strategic Initiatives
Dana is focusing on several strategic initiatives to enhance its market position:
- Investing in electrification technologies to meet evolving customer demands and regulatory requirements.
- Implementing cost recovery actions and operational efficiencies, which contributed $73 million in year-over-year earnings increases in the first nine months of 2024.
- Expanding global presence in emerging markets, particularly in South America, where medium/heavy-truck production increased 51% year-over-year.
Conclusion
As Dana Incorporated continues to navigate the complexities of the global automotive and industrial markets, its mission statement remains a cornerstone of its strategic direction, emphasizing innovation, reliability, and customer-centric solutions.
How Dana Incorporated (DAN) Works
Overview of Operations
Dana Incorporated operates through four primary segments: Light Vehicle, Commercial Vehicle, Off-Highway, and Power Technologies. Each segment contributes to the company's overall sales and earnings performance.
Segment Performance
The following table summarizes the performance of Dana's segments for the third quarter and the first nine months of 2024 compared to 2023:
| Segment | Sales (Q3 2024) | Segment EBITDA (Q3 2024) | EBITDA Margin (Q3 2024) | Sales (9M 2024) | Segment EBITDA (9M 2024) | EBITDA Margin (9M 2024) |
|---|---|---|---|---|---|---|
| Light Vehicle | $1,033 million | $78 million | 7.6% | $3,263 million | $229 million | 7.0% |
| Commercial Vehicle | $494 million | $26 million | 5.3% | $1,545 million | $66 million | 4.3% |
| Off-Highway | $627 million | $103 million | 16.4% | $2,154 million | $334 million | 15.5% |
| Power Technologies | $322 million | $26 million | 8.1% | $987 million | $75 million | 7.6% |
Financial Highlights
For the first nine months of 2024, Dana's total sales were reported at $7,949 million, reflecting a decrease of $112 million compared to the same period in 2023. The breakdown of sales by geographic region is as follows:
| Region | Sales (9M 2024) | Sales (9M 2023) | Change |
|---|---|---|---|
| North America | $3,869 million | $3,689 million | $180 million |
| Europe | $2,430 million | $2,696 million | $(266) million |
| South America | $592 million | $532 million | $60 million |
| Asia Pacific | $1,058 million | $1,144 million | $(86) million |
Cash Flow and Capital Expenditures
In the first nine months of 2024, Dana reported net cash provided by operating activities of $148 million, a decrease from $198 million in 2023. The company incurred capital expenditures totaling $227 million, down from $359 million in the same period of the previous year.
| Cash Flow Component | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $148 million | $198 million |
| Purchases of Property, Plant and Equipment | $227 million | $359 million |
Debt and Equity Positions
As of September 30, 2024, Dana had total liabilities of $6,111 million, down slightly from $6,137 million in 2023. Long-term debt amounted to $2,436 million, compared to $2,598 million in the previous year.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Total Liabilities | $6,111 million | $6,137 million |
| Long-term Debt | $2,436 million | $2,598 million |
Market Challenges and Outlook
Dana's sales outlook for 2024 is projected between $10,200 million and $10,400 million, with adjusted EBITDA expected to range from $855 million to $895 million. Factors influencing this outlook include weaker global commercial vehicle markets and reduced demand in agricultural and construction/mining equipment sectors.
| Outlook Metric | 2024 Estimate | 2023 Actual |
|---|---|---|
| Sales | $10,200 - $10,400 million | $10,555 million |
| Adjusted EBITDA | $855 - $895 million | $845 million |
| Free Cash Flow | $90 - $110 million | $(25) million |
Conclusion
Overall, Dana Incorporated continues to navigate a complex market landscape while focusing on operational efficiencies and strategic pricing actions to mitigate challenges in various segments.
How Dana Incorporated (DAN) Makes Money
Overview of Revenue Streams
Dana Incorporated generates revenue through multiple segments, primarily focused on the automotive and industrial sectors. The key segments include Light Vehicle, Commercial Vehicle, Off-Highway, and Power Technologies.
Light Vehicle Segment
In 2024, Dana's Light Vehicle segment reported sales of $1,033 million for the third quarter, with an EBITDA of $78 million, resulting in an EBITDA margin of 7.6%. For the first nine months of 2024, sales increased to $3,263 million with an EBITDA of $229 million, representing a margin of 7.0%.
| Time Period | Sales ($ million) | EBITDA ($ million) | EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 1,033 | 78 | 7.6 |
| 9M 2024 | 3,263 | 229 | 7.0 |
Commercial Vehicle Segment
The Commercial Vehicle segment's sales for Q3 2024 reached $494 million with an EBITDA of $26 million, yielding a margin of 5.3%. Over the first nine months, sales totaled $1,545 million with an EBITDA of $66 million, reflecting a margin of 4.3%.
| Time Period | Sales ($ million) | EBITDA ($ million) | EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 494 | 26 | 5.3 |
| 9M 2024 | 1,545 | 66 | 4.3 |
Off-Highway Segment
The Off-Highway segment reported sales of $627 million in Q3 2024, with an EBITDA of $103 million, resulting in an EBITDA margin of 16.4%. For the first nine months, sales were $2,154 million with an EBITDA of $334 million, reflecting a margin of 15.5%.
| Time Period | Sales ($ million) | EBITDA ($ million) | EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 627 | 103 | 16.4 |
| 9M 2024 | 2,154 | 334 | 15.5 |
Power Technologies Segment
The Power Technologies segment recorded sales of $322 million in Q3 2024, with an EBITDA of $26 million, resulting in an EBITDA margin of 8.1%. For the first nine months, sales were $987 million with an EBITDA of $75 million, yielding a margin of 7.6%.
| Time Period | Sales ($ million) | EBITDA ($ million) | EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 322 | 26 | 8.1 |
| 9M 2024 | 987 | 75 | 7.6 |
Sales by Geographic Region
In terms of geographic distribution, Dana's sales for the third quarter of 2024 were as follows:
| Region | Sales ($ million) | Change from 2023 ($ million) |
|---|---|---|
| North America | 1,200 | (40) |
| Europe | 715 | (114) |
| South America | 203 | 10 |
| Asia Pacific | 358 | (49) |
| Total | 2,476 | (193) |
Financial Performance
For the first nine months of 2024, Dana's total sales amounted to $7,949 million, a decrease of $112 million compared to 2023. The company's net income attributable to the parent company was $23 million in Q3 2024, down from $77 million in the same period in 2023.
Adjusted EBITDA for 2024 is projected to be between $855 and $895 million, while free cash flow is expected to be around $100 million, reflecting a strategic focus on operational efficiencies and cost recovery actions.
| Metric | 2024 ($ million) | 2023 ($ million) |
|---|---|---|
| Total Sales | 7,949 | 8,061 |
| Net Income | 23 | 77 |
| Adjusted EBITDA | 855 - 895 | 845 |
| Free Cash Flow | ~100 | (25) |
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Article updated on 8 Nov 2024
Resources:
- Dana Incorporated (DAN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Dana Incorporated (DAN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Dana Incorporated (DAN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.