USA– Chassis components supplier, Dana Incorporated of Maumee, Ohio, USA, announced 2024 sales figures of USD 10.3 billion, a decrease of USD 300 million compared to 2023 figures of USD 10.6 billion. Adjusted EBITA rose by USD 40 million, to USD 885 million in 2024 (2023: USD 845 million). Financially, the company is healthy with an operating cash flow of USD 476 million and a sales backlog of USD 650 million.

Operational Highlights

The big news coming out of Dana’s head office is the plan to split its Power Technology segment into two, by “integrating the OEM-facing businesses into its Light Vehicle Drive Systems segment and the aftermarket business into its Commercial Vehicle Drive and Motion Systems segment.” This decision is part of a broader strategy to focus on Dana's core competencies in light and commercial vehicle markets and save USD 175 million after declining sales figures. According to Dana, this was a result of weakening demand for EVs, trucks and off-highway equipment. This follows the 2024 announcement that Dana plans to sell its Off-Highway business to unlock substantial shareholder value. Currently, both Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are facilitating the sale.

The strategy to streamline operations and enhance shareholder value will fall on the shoulders of new interim Chairman and Chief Executive Officer R. Bruce McDonald, who took over from James Kamsickas late last year. Kamsickas remains an advisor to the company through March 2025 as the company looks for a permanent CEO.

On the product front, Dana debuted the new AdvanTEK 40 Pro axle system, its new generation 40,000-pound 6x4 tandem axle system. This system is tailored for heavy-duty commercial vehicles, particularly those in fleet operations, to enhance fuel economy, reduce maintenance costs, and increase overall vehicle longevity and payload capacity. The AdvanTEK 40 Pro axle system includes the fastest axle ratio at 2.05 for advanced engine downspeeding. This product will be “available for ordering in select original equipment manufacturer (OEM) data books in 2025.”

In 2024, Dana expanded its Certified Reman remanufacturing program to include its Spicer Off-Highway drivetrain components (axles, transmissions, torque converters and gearboxes). Available at Dana facilities across Europe and North America, the Reman program will extend equipment life cycles, improve customer ROI and increase the sustainability of its Spicer products. This program will be rolled out in China and the Middle East by the end of 2025, guaranteeing the same performance as new units from the factory. Furthermore, these remanufactured components are backed by a warranty, ameliorating customer concerns.

2025

Dana expects certain supply chain issues and weak sales to remain in 2025, with overall sales targets of between USD 9.52 billion to USD 10.02 billion, mainly driven by lower demand for off-highway equipment. Projected Adjusted EBITA between USD 925 million to USD 1 billion with operating cash flow between USD 500 million to USD 600 million.

Chairman report

R. Bruce McDonald, Dana chairman and chief executive officer said:

Our 2024 results reflect the initial improvements we've implemented to streamline our cost structure, and we anticipate even greater progress in 2025. Dana continues to execute on our strategy and position the company for profitable growth and value creation. Our cost-savings actions are proceeding on schedule with over USD 100 million run-rate savings in place, and we are well on our way to our 2026 target of USD 300 million. Our 2025 outlook reflects accelerating savings and lower capital expenditures.  We are confident that improving free cash flow generation will continue to create significant value for shareholders.