Oct 28, 2026 earnings call — Eaton Mobility deal and Q3 results
Q3 sales were $2.04 billion and adjusted EBITDA was $218 million, a $56 million increase.
Revenue $2.0B (est $2.0B) · EPS $0.41 (est $0.70)
Key quotes
"Our target for synergies is $250 million of run rate within 24 months post close."
"We delivered strong third quarter results with sales increasing 121 million to approximately $2 billion"
"As we look into 2027, we have 11 plants that are executing various automation."
Analyst Q&A 6
risk to vehicle production
Q (Thomas Ito · RBC): Analyst asked if cuts to a D3 customer could reduce light vehicle production on key platforms into 2027. He also asked about any incremental costs after the deal close, including restructuring or integration costs.
A: They see some softness on a few North America light-vehicle platforms, but other platforms are strong (Super Duty and Bronco) and commercial vehicles are robust. They will incur about $250 million of transaction costs and expect about $200 million of costs to obtain synergies over 24 months; the combined 2027 view includes these amounts and synergies should net about $75 million next year.
"So yes, I mean, we do see some softness on a couple of the light vehicle platforms in North America, but we are also seeing some strength in a number of other ones." — Timothy R. Kraus (CFO)
inflation effect on EBITDA
Q (JPMorgan): Analyst asked how much inflation and commodity/freight cost hurt Q3 EBITDA and what was dialed into Q4. He also asked about margin expansion for the core Dana business in 2027.
A: Management said commodities are not the largest driver; energy and freight are two of the larger inflation items and they are working to get recovery from customers, which can be delayed. They maintain the midpoint EBITDA view at $8.25, see commercial vehicle recovery supporting 2027 sales, and still target 15% margins by 2030 with another step-up in margin into 2027 (above the current 10.6).
"So think of energy and freight are probably 2 of the larger ones." — Timothy R. Kraus (CFO)
share buyback and synergy split
Q (James Mulholland · Deutsche Bank): Analyst asked what must be done so Dana can resume a tax-free buyback after the sale and what alternatives exist if buybacks cannot restart. He also asked for a breakdown of the anticipated $250 million of synergies and timing.
A: They are working with Eaton on a plan to allow the buyback, and Eaton must be comfortable; discussions are constructive and ongoing, and Dana will update the market. If buybacks cannot restart within 24 months they would use cash to delever and then plan to complete the $2 billion in buybacks in 2029; early synergies are duplicative corporate costs, IT and purchasing, while later opportunities include manufacturing footprint and engineering site consolidation with roughly $75 million targeted in 2027 and the rest in 2028.
"So, in terms of the buyback post sale, so, you know, we are working with Eaton to get a plan that would allow us to do that." — Timothy R. Kraus (CFO)
timing of repurchase and Q4 mix
Q (Joseph Spak · UBS): Analyst asked whether the repurchase go/no-go decision will be announced at close or before, why implied Q4 shows volume/mix to sales but no EBITDA benefit, and whether the $20 million labor charge was recorded in Q3 and where it sits.
A: Timing with Eaton is fluid and the decision could occur at any time while they continue to work with Eaton. The Q4 implied mix/volume vs EBITDA reflects different production schedules, timing of cost pressures and recoveries, and plant efficiency and mix conversion; the $20 million labor charge was recorded in Q3 and is included in performance.
"Yes. It did. It was about 20 million." — Timothy R. Kraus (CFO)
union labor costs and aftermarket sales
Q (James Picariello · BNP Paribas): Analyst asked if the new union contract raises run-rate plant labor costs and how aftermarket revenue is trending this year versus last year.
A: They expect higher plant labor rates, which are built into the 2027 outlook and were needed to keep plants competitive; they have plans to offset those inflationary pressures. Aftermarket revenue is up for the year overall: North America is very strong with some big-box wins, while Europe, Middle East and Asia face headwinds (notably in the Middle East), so the mix is mixed but generally higher.
"North America has been very, very strong. We have talked about a couple of wins with some of the big box retailers which is really, you know, new opportunities that are driving it." — Timothy R. Kraus (CFO)
commodities exposure and revenue synergies
Q (Dan Levy · Barclays): Analyst asked for gross inflation numbers, assumed recoveries, how inflation rolls into 2027, whether Eaton changes commodity exposure or recovery mechanics, and to unpack lower-hanging versus harder revenue synergies and timing.
A: They said Eaton has very similar contracts to Dana for light and commercial vehicles, so they do not expect a material change in recovery approach. Inflation is a large nine-digit issue they must offset through purchasing, operational efficiency, VAVE and automation; revenue synergies include accelerating the commercial field sales force, leveraging Eaton's sales capacity to grow aftermarket sales with big-box retailers, and using combined engineering and data access to expand product offerings—some of these revenue synergies are nearer-term (aftermarket and sales capacity) while others take more time to realize.
"So they are they are they largely have very, like, very similar contracts to us relative to both. Light vehicle and commercial vehicle." — Timothy R. Kraus (CFO)