Dana Incorporated (DAN): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out how a giant like Dana Incorporated is actually making money while pivoting hard toward electric vehicle parts, right? Well, after their major strategic moves, the whole business model boils down to two things: electrification and disciplined operations. Honestly, the 2025 numbers tell the story: they are targeting $9.775 billion in sales, driving a $235 million cost-reduction program, and expecting $225 million in Adjusted Free Cash Flow for the year. This canvas lays out precisely how they are balancing their established driveline sales with their new e-propulsion focus across all nine building blocks. Keep reading to see the details.

Dana Incorporated (DAN) - Canvas Business Model: Key Partnerships

You're looking at how Dana Incorporated structures its most critical external relationships as it executes its transformation strategy, especially following the major divestiture announced in mid-2025. These partnerships are key to maintaining market access and funding the pivot to on-highway electrification.

Strategic alliances with major global OEMs

Dana Incorporated's core business relies on deep, long-standing relationships with nearly every major vehicle manufacturer globally, supplying them with axles, driveshafts, and increasingly, electrodynamic systems for conventional, hybrid, and electric platforms. This network is essential for securing high-volume, long-term contracts that drive revenue stability. The company's visibility at events like the June 2025 Deutsche Bank Global Auto Industry Conference signals its continued strategic importance to the sector's leaders as they navigate the clean-energy transition.

Key areas of collaboration with Original Equipment Manufacturers (OEMs) involve:

• Supporting drive and motion systems for light and commercial vehicles.
• Co-developing electrodynamic technologies, including software and controls.
• Providing thermal, sealing, and digital solutions for next-generation vehicle architectures.

Collaboration with Allison Transmission on Off-Highway divestiture

The most significant partnership event of 2025 was the definitive agreement reached on June 11, 2025, to sell the Off-Highway business to Allison Transmission Holdings, Inc. This was a strategic move to streamline Dana Incorporated into a focused light- and commercial-vehicle supplier.

The financial terms of this relationship/transaction are concrete:

Metric	Value
Total Sale Price to Allison Transmission	$2.7 billion
Multiple of Expected 2025 Adjusted EBITDA (Off-Highway)	7x
Expected Net Cash Proceeds to Dana (Post-Tax/Expenses)	$2.4 billion
Debt Reduction Planned by Dana	Approximately $2 billion
Capital Return Program Authorized (Through 2027)	$1 billion
Expected Closing Period	Late Fourth Quarter 2025

This transaction is designed to strengthen Dana Incorporated's balance sheet, targeting a net leverage ratio of approximately 1x over the business cycle.

Aftermarket distribution network, like FleetPride, their 2025 Supplier of the Year

The aftermarket segment remains a vital, high-margin component of Dana Incorporated's business, supported by a global network of 14 distribution centers. A key indicator of the strength in this channel is the recognition received from major partners. Dana Spicer Inc. was named the 2025 Supplier of the Year by FleetPride, the nation's largest independent distributor of aftermarket heavy-duty parts and service, in April 2025.

FleetPride cited excellence across several dimensions for the award:

• Communication and Partnership strength across the organizations.
• Fielding thousands of customer calls via a real-time call center.
• Focus on product innovation and supporting program enhancements.
• Utilizing data and scorecard reporting for continuous improvement.

Dana's aftermarket solutions are powered by recognized brands including Spicer®, Victor Reinz®, Albarus™, Brevini™, Glaser®, GWB®, Spicer Select®, Thompson™, and Transejes™.

Joint ventures for advanced e-propulsion system development

Dana Incorporated's commitment to electrification is cemented through specific development programs, even if the exact joint venture financial structures aren't fully public. For example, Dana secured a multi-year program with the Wacker Neuson Group to supply a comprehensive electrodynamic system for their compact construction vehicles. This system includes several key components that represent co-developed or jointly supplied technology:

• Spicer Electrified™ eSG101 e-Transmission.
• Dana TM4™ SRI 200 motors.
• AC-X1 inverters and APC 300 series controllers.

The company acknowledges that it does not unilaterally control all joint ventures, meaning partner objectives must align for successful execution.

Key suppliers for raw materials and electronic components

Managing the supply chain for critical inputs, especially for new electric drive components, is a constant focus. Dana Incorporated relies on a global base of suppliers for raw materials and specialized electronics. The company has previously recognized suppliers for specific contributions, such as StarPower Semiconductor LTD receiving the Lead Electric Propulsion Award in 2023, indicating established relationships in the e-mobility component space.

The company's 2025 financial filings noted that a significant or prolonged shortage of critical components from any supplier could adversely impact production schedules. Dana's ongoing cost-savings initiatives, which realized $59 million in Q2 2025, help mitigate margin impacts from cost inflation and supply chain pressures.

Component Category	Example of Partnership/Risk Area
Raw Materials	Risk of shortage due to strong demand or capacity limitations.
Electronic Components	Inverters, motors, and controllers for e-Propulsion systems.
Manufacturing Inputs	Reliance on suppliers to provide parts needed to maintain production levels.

Finance: draft 13-week cash view by Friday.

Dana Incorporated (DAN) - Canvas Business Model: Key Activities

You're looking at the core actions Dana Incorporated is taking right now to reshape its business for the next decade. It's all about streamlining and doubling down on high-growth areas, which means some big moves on the operational front.

Manufacturing of driveline and motion systems globally

Dana Incorporated continues to manufacture its propulsion and energy-management solutions across a global footprint, focusing heavily on the on-highway light- and commercial-vehicle segments following the planned divestiture. The scale of the continuing operations is significant, even as the company sheds parts of its business.

Here's a snapshot of the operational scale based on recent figures:

Metric	Value	Context/Period
Sales from Continuing Operations	$1.92 billion	Q3 2025
Full-Year 2024 Sales (Pre-Divestiture)	$10.3 billion	Preliminary
Full-Year 2024 Sales (Post-Divestiture Scope)	$7.7 billion	Reported as of November 2025
Global Workforce (Post-Divestiture Scope)	28,000 people	As of November 2025
Countries of Operation (Post-Divestiture Scope)	26 countries	As of November 2025

The company's manufacturing activity is now centered on supporting nearly every vehicle manufacturer with traditional and clean-energy drive and motion systems.

Research and development for e-Axle and e-Drive technologies

A key activity is pushing the envelope on electrification, which is where the premium margins are expected to come from. Dana Incorporated is actively deploying its advanced systems with major customers.

• Partnered with a leading European electric SUV manufacturer in 2025 for its latest generation of Spicer® Electrified e-Axles.
• The deployment of this e-Axle technology delivered a 12% extended driving range for the SUV lineup.
• The e-Axle integrates the electric motor, power electronics, gearing, and thermal management into a single compact system.

This R&D focus is designed to capture market share in the EV transition, positioning Dana's electrodynamic technologies, including software and controls, as a core offering.

Executing the $235 million cost-savings program in 2025

Cost management is a critical, ongoing activity, directly impacting margin expansion as volumes fluctuate. Dana Incorporated is actively executing a major cost-reduction plan.

The company is working to achieve its expected $235 million in cost savings for the 2025 fiscal year. By the end of the third quarter of 2025, the execution was ahead of schedule:

• Savings realized year-to-date (through Q3 2025): $183 million.
• Savings realized in Q3 2025 alone: $73 million.
• The overall cost-savings initiative is part of a larger plan targeting a $300 million run rate through 2026.

This aggressive cost-cutting, combined with efficiency improvements, helped drive the Q3 2025 adjusted EBITDA margin from continuing operations to 8.5 percent, a 260 basis point increase year-over-year.

Managing the strategic divestiture of the Off-Highway business

The management of the Off-Highway business sale is a defining activity for late 2025, aimed squarely at balance sheet optimization and focusing the company's go-to-market approach.

The definitive agreement to sell the Off-Highway business to Allison Transmission Holdings for $2.7 billion is projected to close late in the fourth quarter of 2025, with regulatory approvals received as of November 19, 2025. Here's the expected financial impact:

Use of Proceeds/Action	Amount	Target Timeline/Context
Total Sale Price	$2.7 billion	Valuation is 7x expected 2025 adjusted EBITDA
Expected Net Cash Proceeds	$2.4 billion	After tax and transaction expenses
Debt Repayment Target	$2 billion	Planned for next year (2026)
Capital Return Authorization	$1 billion	Through 2027
Shareholder Return at Closing	$550 million	At or before Off-Highway closing

This move is designed to reduce complexity and achieve a target net leverage ratio of approximately 1x over the business cycle.

Providing world-class aftermarket service and support

The Aftermarket segment remains a core, resilient part of the streamlined Dana Incorporated. Pricing actions in this area are directly contributing to revenue performance.

In the second quarter of 2025, pricing actions in the commercial vehicle and aftermarket business drove sales higher by $29 million for that quarter. Tariff recoveries also added $26 million in the same period.

The company's focus on operational efficiency and pricing in aftermarket service helps support the overall financial health as it navigates the transition.

Dana Incorporated (DAN) - Canvas Business Model: Key Resources

You're looking at the core assets that let Dana Incorporated operate and compete as of late 2025. These aren't just line items on a balance sheet; they are the engines driving the company's focus on on-highway markets following the strategic divestiture.

The intellectual property forms a bedrock of value, especially in the aftermarket where brand recognition is key. Dana leverages several powerful, established names to deliver its propulsion and energy-management solutions globally. Honestly, these brands are what many customers recognize first.

Proprietary Brand	Core Product Area	Associated Data Point (Latest Available)
Spicer	Driveshafts, Axles, Universal Joints	Dana Secure Mobile App support expansion planned for 2025
Victor Reinz	Gaskets and Sealing Products	Over 17,000 spare parts and repair kits available
Dana TM4	Electrodynamic Technologies (Motor/Inverter)	Dana TM4 SUM O® MD system supports architectures up to 800 volts

The physical scale of Dana Incorporated remains significant, supporting its global customer base. While the company is streamlining its focus, its operational reach is still vast, defintely a key resource for global supply chain reliability.

The global manufacturing footprint is anchored by operations in approximately 26 countries, supporting a workforce that, as of late 2024, stood at approximately 28,000 people. You should note that the required figure for facilities is 65 facilities across 26 countries.

The shift to e-Mobility requires deep, specialized knowledge, and Dana has invested heavily in this area. This talent pool is critical for developing the next generation of propulsion systems.

• 13 Tech centers dedicated to electrification
• Over 1,900 Electrification-related pending and granted patents
• In-house expertise covering gearbox, low- to high-voltage motor, inverter, controls, and thermal/battery management

Financial strength is a resource in itself, especially following major strategic moves. The planned divestiture of the Off-Highway business for a sale price of $2.7 billion is set to unlock substantial value, primarily for balance sheet repair. Dana plans to use the expected net cash proceeds of approximately $2.4 billion to repay about $2 billion of debt. This action targets a net leverage ratio of approximately 1x over the business cycle.

Finally, the operational cash generation outlook supports ongoing investment and shareholder returns. The company has reiterated its 2025 guidance, projecting an Adjusted Free Cash Flow at the midpoint of $225 million.

Dana Incorporated (DAN) - Canvas Business Model: Value Propositions

Dana Incorporated delivers propulsion, motion, and energy-management solutions across light vehicle, commercial vehicle, and off-highway markets.

Innovative driveline and motion systems for ICE and EV platforms

Dana Incorporated supports nearly every major vehicle manufacturer globally with its portfolio, which enables the propulsion of internal combustion engine (ICE), hybrid, and electric powered vehicles. As of the end of 2024, Dana employed approximately $39,600$ people across $30$ countries. The company's transformation includes leveraging its ICE expertise while simultaneously building out its EV capabilities, aiming to balance traditional business strength with the EV transition. The company's preliminary sales for the full year 2024 were approximately $\$10.3$ billion.

Electrified propulsion systems (e-Axles, e-Drives) for sustainable mobility

The value proposition centers on providing fully integrated electrified systems, including gearboxes, e-motors, inverters, controls, and thermal management expertise. This focus is yielding concrete contract wins. For instance, Dana secured USD $450$ Million in new EV contracts from an SUV manufacturer, tied to their vehicle platform expansion through 2028. This specific project resulted in a $15\%$ rise in Dana's electrification revenue. Furthermore, the deployment of Dana's Spicer® Electrified e-Axle systems delivered a measurable $12\%$ extended driving range on the partner SUV lineup by reducing drivetrain energy loss.

The company's commitment to this segment is clear in its historical and forward-looking figures:

Metric	Value/Period	Context/Year
Electrification Sales	$\$600$ million	2022 (6% of total sales)
EV Sales	$\$760$ million	2023
Electrification Sales Target	$\$3$ billion	By end of the decade
Q3 2025 Adjusted EBITDA Margin (Continuing Ops)	$8.5\%$	Q3 2025
2026 Adjusted EBITDA Margin Expectation	$10$ to $10.5\%$	Full-year guidance

Thermal and sealing solutions for vehicle efficiency

Dana provides thermal and sealing solutions that are being adapted for EV content, replacing traditional ICE-vehicle components. This includes metallic bipolar plates, battery cold plates, and power electronic cooling modules. The company anticipates a three-fold opportunity in these thermal and sealing products as ICE content is replaced by EV-based vehicle content. The Q3 2025 Adjusted EBITDA margin of $8.5\%$ reflects the success of operational efficiencies and cost-saving actions in mitigating margin impacts from lower volumes and cost inflation.

Global supply chain reliability and superior product quality

The value proposition includes reliable global supply and high product quality, evidenced by operational execution despite market volatility. In Q3 2025, Dana realized $\$73$ million in cost savings, bringing the year-to-date total to $\$183$ million, with an increased full-year 2025 expectation of $\$235$ million in cost savings. This execution helped drive the Q3 2025 Adjusted EBITDA to $\$162$ million from continuing operations, a $260$ basis point increase in margin year-over-year. The company is focused on securing its leadership position through disciplined execution.

Reduced total cost of ownership for end-market fleet customers

Cost management and efficiency improvements are directly translated into value for customers. The company increased its total cost reduction target to $\$300$ million through 2026. This focus on internal efficiency, alongside the performance benefits of its products-like the $12\%$ range extension from e-Axles-contributes to lower operational costs for fleet owners. The company expects to generate free cash flow of $\$275$ million at the midpoint of its 2025 guidance, reflecting improved working capital efficiency and reduced capital expenditures, which supports a stable, long-term supply partner.

Key financial metrics supporting operational efficiency include:

• Cost-savings realized in Q3 2025: $\$73$ million.
• Total cost reduction target through 2026: $\$310$ million.
• 2025 expected cost savings: $\$235$ million.
• Q3 2025 Adjusted Free Cash Flow: $\$101$ million.

Dana Incorporated (DAN) - Canvas Business Model: Customer Relationships

Dana Incorporated serves nearly every major vehicle manufacturer in the world with drive and motion systems, electrodynamic technologies, and thermal, sealing, and digital solutions. The company's customer relationships are structured across production and service parts supply to Original Equipment Manufacturers (OEMs) and aftermarket customers.

The relationship structure is evolving, with the Power Technologies segment splitting in Q1 2025: OEM-facing businesses integrated into Light Vehicle Drive Systems, and the aftermarket business integrated into Commercial Vehicle Drive and Motion Systems. Dana employed approximately 28,000 people in 26 countries across six continents as of the Q2 2025 reporting period.

Dedicated OEM sales and engineering support teams

The structure supports dedicated engineering engagement for product development. Costs incurred in connection with the design and development of tooling for customer products are deferred if Dana has an agreement to collect such costs from the customer. As of December 31, 2024, the property, plant and equipment included $22 million of tooling related to long-term supply arrangements.

Long-term, essential partner relationships with major vehicle manufacturers

Dana provides production and service parts to certain OEMs under awarded multi-year programs. However, these multi-year programs do not contain any commitment to volume by the customer; individual customer releases or purchase orders represent the contract with the customer. The company is focused on core on-highway end markets following the strategic decision to divest its Off-Highway business.

Direct engagement with end-market fleet customers to drive pull-through demand

The company is a supplier across light vehicle, commercial vehicle, and off-highway equipment markets, enabling propulsion for internal combustion engine, hybrid, and electric-powered vehicles. The company is actively working with its customers to recover the majority of cost impacts within the year, as noted in Q2 2025 commentary.

Aftermarket technical service and real-time call center support

Service parts are sold to OEMs and aftermarket customers. Following the 2025 organizational changes, the aftermarket business from the former Power Technologies segment was integrated into the Commercial Vehicle Drive and Motion Systems segment.

Contractual relationships with OEMs for high-volume, long-cycle programs

The company has a sales backlog of $650 million projected for the 2025-2027 period, with $150 million anticipated to be recognized in 2025. The company is executing cost-savings initiatives, targeting $175 million in savings in 2025, which helps mitigate margin impact from lower volumes and inflation when working with customers.

Here's a look at some key operational and financial metrics relevant to the customer base as of late 2025:

Metric	Value / Period	Reference Period
Sales (Continuing Operations)	$1.95 billion	Q2 2025
Sales (Continuing Operations)	$2.4 billion	Q1 2025
Adjusted EBITDA Margin	8.0 percent	Q1 2025
Adjusted EBITDA Margin	7.5 percent	Q2 2025
Total Cost Reduction Target	$300 million	2026 Outlook
Cost Savings Expected in 2025	$175 million	2025 Guidance
Sales Backlog Anticipated in 2025	$150 million	2025-2027 Period

The company's customer-facing operations are also impacted by major strategic moves:

• Definitive agreement to sell Off-Highway business for $2.7 billion.
• Expected net cash proceeds from Off-Highway sale: $2.4 billion.
• New capital return authorization: $1 billion through 2027.
• Capital return at or before Off-Highway closing: approximately $550 million.

Dana Incorporated was named among the 'World's Most Ethical Companies' for 2025 by Ethisphere and as one of 'America's Most Responsible Companies 2025' by Newsweek.

Dana Incorporated (DAN) - Canvas Business Model: Channels

You're looking at how Dana Incorporated gets its highly engineered propulsion and energy-management solutions into the hands of its customers as of late 2025. The channels reflect a focused strategy following the planned divestiture of the Off-Highway business, zeroing in on light- and commercial-vehicle markets.

Direct sales force to Original Equipment Manufacturers (OEMs)

Dana Incorporated maintains a direct sales presence to OEMs globally, a critical channel for securing new business and managing existing supply agreements for drive and motion systems and related technologies. While the exact headcount of the dedicated OEM sales force isn't public, this channel supports the core business which generated Q3 2025 sales from continuing operations of $1.92 billion. The company's strategy is now streamlined to focus on these on-highway customers, leveraging deep engineering relationships.

Global network of 14 aftermarket distribution centers

The aftermarket segment relies heavily on a physical footprint, utilizing a global network of exactly 14 distribution centers. This network supports the delivery of genuine, all-makes, and value line parts globally. This infrastructure helps the dedicated aftermarket team achieve high fill rates and on-time delivery for service and replacement needs across passenger, commercial, and specialty vehicle markets.

Online e-catalogs and parts locators (e.g., DanaAftermarket.com)

Digital access is a key part of the service offering. Customers use platforms like www.DanaAftermarket.com to find product information, use e-catalogs, and locate necessary parts. This digital support is complemented by direct customer service, as evidenced by the team fielding thousands of customer calls via a real-time call center, often in partnership with major distributors like FleetPride, which named Dana its 2025 Supplier of the Year.

Direct-to-fleet sales and service channels

For the commercial vehicle market, Dana utilizes direct channels to serve large fleet operators with service and parts. This is crucial for maintaining uptime in heavy-haul and linehaul applications. The company's focus post-divestiture is squarely on these on-highway markets, ensuring their conventional and clean-energy solutions are supported throughout the vehicle lifecycle.

Regional sales offices supporting global customers

To manage its worldwide customer base, which spanned 26 countries across six continents as of 2024, Dana relies on regional sales offices. These offices help coordinate complex global supply chains and support customers across different geographies. The company's operational footprint in 2024 included 28,000 people, many of whom are integrated into these regional support structures.

Here's a quick look at the scale of the channels as of the latest reporting:

Channel Component	Metric/Data Point	Associated Financial Context (2025)
Aftermarket Physical Network	14 Global Distribution Centers	Aftermarket brands include Spicer®, Victor Reinz®, and Spicer Select®.
Digital Aftermarket Access	www.DanaAftermarket.com	Supports high fill rates and on-time delivery goals.
Direct Customer Support	Thousands of customer calls fielded (via real-time center)	Dana was named 2025 Supplier of the Year by FleetPride.
Overall Sales Reach (Continuing Ops)	Q3 2025 Sales: $1.92 billion	Full-year 2025 Sales Guidance Midpoint: Approx. $7.4 billion.
Global Operational Footprint (2024)	Operations in 26 countries	Adjusted EBITDA Margin for Q3 2025: 8.5 percent of sales.

The aftermarket segment leverages recognized brands such as Spicer®, Victor Reinz®, Albarus™, and GWB® to reach end-users. The company is actively managing its cost structure, realizing $73 million in cost savings in Q3 2025 alone, which helps maintain margin performance despite lower volumes in some commercial-vehicle end markets.

Dana Incorporated (DAN) - Canvas Business Model: Customer Segments

You're looking at the customer base for Dana Incorporated (DAN) as it finalizes its strategic pivot away from the Off-Highway segment, aiming for a leaner, on-highway focused entity by late 2025. The numbers here reflect the expected structure following the planned divestiture closing in late Q4 2025.

The core of Dana Incorporated's business, post-divestiture, is clearly weighted toward light vehicles, aligning with the strategic direction management has outlined. The expected split for the OEM portion of the business is:

• Global Light Vehicle OEMs: approximately 70% of post-divestiture sales.
• Global Commercial Vehicle OEMs: approximately 30% of post-divestiture sales.

To give you a feel for the current mix before the Off-Highway sale fully closes, the Q3 2025 sales figures for the continuing operations show a very similar split:

Here's the quick math on the Q3 2025 sales from continuing operations:

Customer Group (New Segments)	Q3 2025 Sales (Millions USD)	Approximate Percentage of Q3 Continuing Sales
Light Vehicle Systems	$ 1,353	70.58%
Commercial Vehicle Systems	$ 564	29.42%
Total Continuing Sales	$ 1,917	100.00%

The Aftermarket business, which is being integrated into the Commercial Vehicle Systems segment, represents a crucial, recurring revenue stream. While a precise 2025 standalone aftermarket revenue percentage isn't explicitly published alongside the 70/30 OEM split, the company is actively managing this channel. The focus on the core on-highway business means these aftermarket customers are served through the newly streamlined Commercial Vehicle Systems structure.

Dana Incorporated's relationships with major global Original Equipment Manufacturers (OEMs) are foundational. You can see the breadth of their OEM customer engagement through their new business backlog, which is a strong indicator of future revenue visibility:

• Total three-year new business sales backlog (through 2027): $650 million.
• Anticipated new business sales in 2025: $150 million.

The table below details the known OEM customers that Dana Incorporated supports across its on-highway platforms, which will form the backbone of the 'New Dana' post-divestiture:

Customer Segment Focus	Key OEM Customers Mentioned (Examples)	Relevant 2025 Financial Context
Global Light Vehicle OEMs	Ford (specifically full-frame light-truck programs)	Saw a 5% increase in sales in 2024 driven by a new full-frame light-truck program.
Global Commercial Vehicle OEMs	PACCAR, Traton, AB Volvo	Commercial Vehicle segment experienced a 3% decrease in sales in 2024 reflecting mixed global markets.
Specialty Electric Vehicle Manufacturers	Supports both traditional OEMs' EV platforms and new entrants.	Weakening market demand for electric vehicles was cited as a driver for lower 2024 sales.

For the specialty and fleet segments, the focus is on the electrification transition. Dana Incorporated has been actively securing business for its electrified components, such as e-drive axles, which carry higher content-per-vehicle value. The company's strategy explicitly includes remaining a leader in the EV transition, serving customers who are developing both medium-duty and full-frame electric trucks. The divestiture of the Off-Highway business, sold for 7x the expected 2025 adjusted EBITDA of that business, is intended to allow for greater investment in these on-highway electrification opportunities.

Fleet operators and end-market customers are served indirectly through the OEM sales and directly through the aftermarket channels integrated into the Commercial Vehicle Systems segment. The company's 2025 guidance reinforces the focus on capitalizing on the strength of its traditional on-highway businesses while managing the EV shift.

Dana Incorporated (DAN) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Dana Incorporated's operations as of late 2025, which is heavily influenced by the ongoing transition in mobility markets. Honestly, the cost structure is dominated by the physical nature of manufacturing high-quality components.

High cost of goods sold due to raw materials and manufacturing is the bedrock expense. While specific COGS figures aren't explicitly broken out in the latest releases, the preliminary sales for the full year 2024 were approximately $10.3 billion, compared with $10.6 billion in 2023. For 2025, the guidance for sales, which includes the Off-Highway business for the full year, is set between $9.525 billion and $10.025 billion. The cost of materials and production directly scales with these sales figures.

Significant R&D investment in electrification and software is a strategic necessity, though the exact dollar amount for R&D isn't isolated in the latest summaries. The focus remains on electrodynamic technologies, including software and controls, to shape sustainable progress. This investment is crucial to maintain relevance against market shifts.

Restructuring and strategic transaction expenses (e.g., divestiture costs) are clearly present. The company is executing the sale of its Off-Highway business, which is expected to close in late Q4 2025. The definition of Adjusted EBITDA explicitly excludes items like restructuring expense and gain/loss on debt extinguishment, divestitures, signaling these are material, non-recurring costs impacting reported net income. The capital return program, including share repurchases of approximately $600 million expected for 2025, is partially funded by the expected proceeds from this transaction.

Labor costs for a global workforce of 28,000 people represent a substantial fixed and variable cost. As of the 2024 year-end context, Dana Incorporated had approximately 28,000 people in 26 countries across six continents. This global footprint means labor costs are spread across various wage structures and regulatory environments.

Interest expense on debt, though deleveraging is a focus, remains a line item. The company expects to maintain one times net leverage over the business cycle, and proceeds from the Off-Highway sale are intended to substantially reduce leverage. For Q3 2025, net income from continuing operations was $13 million, up from a net loss of $21 million in Q3 2024, showing progress in overall profitability which helps manage debt service costs.

Here's a quick look at the 2025 financial picture, contrasting guidance with recent performance:

Metric	2025 Full-Year Guidance (Includes Off-Highway)	Q3 2025 Actual (Continuing Operations)
Sales	$9.525 billion to $10.025 billion	$1.92 billion
Adjusted EBITDA	$925 million to $1,025 million	$162 million
Adjusted EBITDA Margin	Approximately 10.0 percent (Midpoint)	8.5 percent
Free Cash Flow	$175 million to $275 million	$101 million (Adjusted)

The cost management efforts are clearly aimed at improving the margin profile. The company realized $73 million in cost savings in Q3 2025, bringing the total to $183 million to date against a program target of $310 million through 2026. They are specifically expecting $235 million of cost savings in 2025.

• Cost-savings actions totaled $175 million expected impact in 2025.
• Q3 2025 Adjusted EBITDA margin of 8.5 percent compared with 5.9 percent in Q3 2024.
• Expected 2026 Adjusted EBITDA margin target between 9.5 percent to 10.5 percent.
• Share repurchases expected to total $600 million for 2025.

To be fair, the margin improvement seen in Q3 2025 (8.5 percent) is still below the implied midpoint for the full year (10.0 percent), suggesting Q4 performance needs to be stronger, or the full-year guidance range accounts for softer segments.

Finance: draft 13-week cash view by Friday.

Dana Incorporated (DAN) - Canvas Business Model: Revenue Streams

You're looking at the core ways Dana Incorporated brings in money as of late 2025, especially after they streamlined their reporting structure at the start of the year. Honestly, the business is now much more focused on the on-highway side, having moved to integrate the OEM-facing parts of the old Power Technology segment into Light Vehicle Drive Systems and the aftermarket business into Commercial Vehicle Drive and Motion Systems, effective in the first quarter of 2025. This simplification means revenue streams are cleaner now, centered on supplying components to vehicle manufacturers and the replacement parts market.

The company's latest official full-year 2025 sales guidance midpoint, reflecting continuing operations after the Off-Highway divestiture agreement, sits at approximately $7.4 billion. This is a key number to anchor your thinking, even though preliminary 2024 sales were about $10.3 billion.

Here's a look at the primary revenue drivers, keeping in mind the segment changes:

• Sales of Light Vehicle driveline and motion systems.
• Sales of Commercial Vehicle driveline and e-propulsion systems.
• Aftermarket parts sales, which now fall under the Commercial Vehicle segment umbrella, featuring brands like Spicer and Victor Reinz.
• Licensing and technical service fees, which are definitely a smaller stream, though critical for technology monetization.

To give you a snapshot of recent performance, second-quarter 2025 sales from continuing operations totaled $1.95 billion. This helps map the run rate against the full-year expectation.

The revenue composition is best understood through the lens of their core markets, even without the precise 2025 segment split available yet:

Revenue Stream Category	Latest Available Data Point / Context	Significance
Sales of Light Vehicle driveline and motion systems (OEM)	Q2 2025 Sales from Continuing Operations: $1.95 billion (Total Q2 Sales)	Core business supplying components for passenger cars and light trucks.
Sales of Commercial Vehicle driveline and e-propulsion systems (OEM)	Full-Year 2025 Sales Guidance Midpoint (Continuing Ops): $7.4 billion	Includes propulsion systems for medium and heavy-duty trucks; e-propulsion is a growth area.
Aftermarket parts sales (Spicer, Victor Reinz brands)	Integrated into Commercial Vehicle Drive and Motion Systems in Q1 2025	Provides recurring revenue stability outside of new vehicle builds.
Licensing and technical service fees	Smaller stream, not explicitly quantified in latest guidance documents	Monetizes intellectual property and engineering expertise.

The company is actively managing near-term risks, like softening Commercial Vehicle demand, by leaning on performance improvements and cost recoveries, such as expected tariff recoveries adding about $150 million to sales for the full year 2025.

Also, remember that the 2025 guidance explicitly excludes the Off-Highway business, which reduced 2024 sales by $2.5 billion when adjusting for the discontinued operations.

Finance: draft 13-week cash view by Friday.