Dana Inc: Buyback Resumption with Possibility of Continuation Post-Transaction; 2Q Results Mixed on EBITDA with FY Guide on EBITDA/FCF Raise; Expect +ve Reaction

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

06 August 2026

Dana Inc

Buyback Resumption with Possibility of Continuation

Post-Transaction; 2Q Results Mixed on EBITDA with FY

Guide on EBITDA/FCF Raise; Expect +ve Reaction

Overweight

DAN, DAN US

Price (05 Aug 26):$28.02

Autos & Auto Parts

Quick take: A beat on sales though mixed on EBITDA (ahead of consensus, below

JPMe), with full year guidance raised due to CV trends, implying 2H revenue ~1%

ahead of JPMe/consensus and 2H EBITDA in line. 3Q26 also includes an expected

~$20 mn of one-time US union contract renewal costs, suggesting stronger core

performance vs. prior. Organic growth was +3% in the quarter vs. peer average of

+2% in 2Q26, with strong y/y margin expansion driven by performance and cost

savings as well as mix. Step-up in buyback near-term is a positive,

demonstrating commitment to capital return, with management suggesting

the possibility of continued buybacks post-close (vs. prior commentary of 2-yr

pause). Overall, in context of weakness in shares since the acquisition, and

shares at ~20% discount on EBITDA/FCF, the raise in guidance and

encouraging buyback outlook (incl. beyond acquisition) is likely to drive

outperformance today.

See Table 1 and Table 2 for results vs. JPMe/consensus and implied 2H

guidance.

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Other Key Takeaways: Commercial Vehicle was the standout, with margin

expanding to 10.8% (from 7.8% in 2Q25) on +5% sales growth, while Light

Vehicle improved to 10.3% (from 8.4% in 2Q25). Cost savings of $19 mn in the

quarter took the YTD total to $54 mn vs. full year 2026 target of ~$65 mn. FCF

guidance was raised to ~$325 mn, and includes a 3Q26 one-time ~$20 mn signing

bonus tied to US union contract renewal. On the transaction, DAN reiterated at

least $250 mn of run-rate cost synergies within 24 months at ~$200 mn cash cost,

pro forma synergized 2026 net leverage of ~1.4x, and a 2030 sales target of $14-15

bn for the combined company. Growth initiatives included a VIPAR distribution

agreement worth ~$40 mn of additional aftermarket sales and ~$30 mn of new

defense sales in applied technologies.

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