Dana forecasts improved margins despite sales di

Looking ahead, Dana provided its 2025 financial targets, including sales projections of $9.525 to $10.025 billion and adjusted EBITDA of $925 to $1,025 million, which would result in an approximate margin of 10.0% at the midpoint. The company also anticipates free cash flow of $175 to $275 million for 2025, driven by cost-saving actions totaling $175 million and increased operational efficiency. Based on current trading levels and InvestingPro's Fair Value analysis, Dana's stock appears fairly valued. A detailed assessment of the company's growth potential and comprehensive financial analysis is available in InvestingPro's Research Report, part of their coverage of over 1,400 US equities. Based on current trading levels and InvestingPro's Fair Value analysis, Dana's stock appears fairly valued. A detailed assessment of the company's growth potential and comprehensive financial analysis is available in InvestingPro's Research Report, part of their coverage of over 1,400 US equities.

Looking ahead, Dana provided its 2025 financial targets, including sales projections of $9.525 to $10.025 billion and adjusted EBITDA of $925 to $1,025 million, which would result in an approximate margin of 10.0% at the midpoint. The company also anticipates free cash flow of $175 to $275 million for 2025, driven by cost-saving actions totaling $175 million and increased operational efficiency. Based on current trading levels and InvestingPro's Fair Value analysis, Dana's stock appears fairly valued. A detailed assessment of the company's growth potential and comprehensive financial analysis is available in InvestingPro's Research Report, part of their coverage of over 1,400 US equities.

Dana's free cash flow for 2024 stood at around $70 million, a positive swing from a $25 million use in 2023, although fourth-quarter working capital requirements tempered the cash flow figures.

In line with its strategic plan, Dana is simplifying its organizational structure into two segments: Light Vehicle Systems and Commercial Vehicle Systems. This change follows the company's announcement on November 25, 2024, regarding the proposed sale of its Off-Highway business, which is expected to reduce leverage and return capital to shareholders. However, there is no guarantee that the sale will occur.

Looking ahead, Dana provided its 2025 financial targets, including sales projections of $9.525 to $10.025 billion and adjusted EBITDA of $925 to $1,025 million, which would result in an approximate margin of 10.0% at the midpoint. The company also anticipates free cash flow of $175 to $275 million for 2025, driven by cost-saving actions totaling $175 million and increased operational efficiency.

These projections and business updates were released ahead of Dana's conference call to discuss third-quarter results, which was scheduled for today at 9 a.m. EST.

The information in this article is based on a press release statement from Dana Incorporated.

In other recent news, Dana Inc. reported a third-quarter revenue of $2.476 billion. The company also announced significant board changes, appointing Brett Icahn and Christian Garcia as new directors, replacing Gary Hu and Steven Miller. The firm has outlined a cost-saving plan aiming to save approximately $200 million by 2026. Analyst firms UBS, Deutsche Bank (ETR:DBKGn), and Barclays (LON:BARC) have upgraded Dana's stock from Neutral to Buy, with UBS and Deutsche Bank setting price targets of $18 and $19 respectively. These upgrades are in response to Dana's strategic decision to sell its Off-Highway business, a move expected to generate substantial proceeds for debt reduction. However, JPMorgan has reduced its price target for Dana, while maintaining an Overweight rating on the stock. These are recent developments that investors should consider.

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