Dana Inc Our Take and Model Update Post Announcement to Combine with ETN Mobility; Remain OW, $45 PT

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Dana Inc Our Take and Model Update Post Announcement to Combine with ETN Mobility; Remain OW, $45 PT

Rajat Gupta AC North America Equity Research

(1-212) 622-6382 11 June 2026 J P M O R G A N

rajat.gupta@jpmorgan.com

to be ~58% CV, ~27% LV, and ~16% aftermarket. The deal also brings ETN's existing

JV with CMI within DAN’s portfolio. On product fit, management explicitly stated there

is no meaningful overlap (only some specialty/sports car transmission exposure on the

LV side) and they do not anticipate regulatory divestitures, with DAN axles, driveshafts,

thermal and sealing complementing ETN CV transmissions, clutches, engine and

emissions systems, and a power-distribution-oriented EV product set. ETN Mobility

capex runs slightly higher than DAN, but still expected at <5% of sales, given more

complex products and longer-lived assets.

• On EV specifically. This brings together two subscale EV businesses, as DAN is not

changing its EV strategy or hurdle rates and views the combination as additive scale rather

than a strategic pivot. ETN Mobility's EV business is ~$0.6bn (similar in size to DAN's),

previously loss-making but now operating at single-digit margins after rightsizing.

• Synergies. The deal is expected to deliver $250 mn in annual run-rate cost synergies

within 24 months of close (~$75 mn Year 1, ~$200 mn Year 2, $250 mn Year 3), driven

by corporate/SG&A consolidation, purchasing scale, engineering efficiencies,

manufacturing/footprint rationalization, and aftermarket network optimization.

Management characterized the $250 mn as a firm commitment, pointed to DAN’s track

record on cost programs, and flagged upside as integration progresses. All $250 mn is

cost-side, with cross-sell revenue synergies treated as upside, not embedded in the targets.