DAN: Dana Combining with Eaton's Mobility Group

研报英文原文证据摘录

DAN: Dana Combining with Eaton's Mobility Group

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Tom Narayan (Analyst)

Thomas Ito, CFA (Senior Associate)

June 11, 2026

Dana Incorporated

Dana Combining with Eaton's Mobility Group

NYSE: DAN | USD 35.47 | Outperform | Price Target USD 41.00

Sentiment: Neutral

What Happened? This morning, Dana announced a combination with Eaton's (covered by RBC Industrials Analyst Deane Dray)

Mobility Business. The combination is being effected through a Reverse Morris Trust transaction resulting in Eaton shareholders

owning at least 50.1% and Dana holders owning 49.9% after the close, which is expected for Q1/27. Eaton Mobility (EM) is

65%/35% Commercial Vehicle/Light Vehicle compared to Dana which is 30%/70%. Additionally, EM is 25% aftermarket sales

exposed. Its '26 Adj. EBITDA margin is ~19%. Finally, it is 50% NA exposed with the remaining regions (Europe, APAC, South America)

relatively evenly split. EM Products sold include CV transmissions/powertrain, engine and emissions systems and EV products.

The combined entity takes Dana from 68%/20%/12% LV/CV/Aftermkt to 59%/27%/16%. Part of the deal dynamics include $250M

in annual Adj. EBITDA synergies, which are to occur over 3 years, with $75M in year 1, $200M in year 2, and $250M in year

3. This includes eliminating duplicative corporate and SG&A functions, CV/LV integration overhead elimination, procurement,

engineering, manufacturing and aftermarket related synergies. Dana is committed to completing the existing $2B of shareholder

return through 2030, but temporarily suspending the buy-back program to preserve tax-free status for the transaction. Excess cash

is going to de-levering near term and credit ratings are expected to remain unchanged.