Dana completes $2.7B Off-Highway sale, retires $1.4B debt, launches $2B buyback

Filed May 15, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 30, 2025 · ~2 min read

Key Changes

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  Off-Highway business sold to Allison Transmission for $2.7B on Jan 1, 2026, generating a $1.2B pre-tax gain. Proceeds funded $1.4B debt reduction (tender offers, redemptions, Term A repayment) and $125M Q1 buyback (4.4M shares). Board doubled capital-return program to $2B through 2030.

  MD&A: Off-Highway divestiture & capital deployment verify on EDGAR →
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  Net income surged to $1.1B (prior $25M) on the $1.2B divestiture gain, while operating income rose 138% to $19M (prior $8M). The net-income gain came from discontinued operations, not core operations—a one-time event tied to the sale.

  MD&A: Earnings quality & divestiture gain verify on EDGAR →
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  Gross margin improved 240 basis points to 9.0% despite tariff costs jumping 8x to $50M (prior $6M). Cost-reduction initiatives ($33M), material savings ($23M), and operational efficiencies offset escalating trade-policy headwinds.

  MD&A: Margin expansion & tariff impact verify on EDGAR →