Dana Incorporated (DAN): History, Ownership, Mission, How It Works & Makes Money

As a global leader in propulsion and energy-management solutions, how is Dana Incorporated (DAN) navigating the high-stakes shift from internal combustion engines (ICE) to electrification while maintaining profitability?

The company, which was recently named one of the World's Most Ethical Companies for 2025, is strategically focusing on its core Light Vehicle and Commercial Vehicle markets, projecting 2025 revenue for continuing operations between $9.53 billion and $10.03 billion, with an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) midpoint of $975 million. This pivot is underpinned by its mission of powering sustainable motion through innovative driveline and e-propulsion technology, but what does this mean for its business model and your investment thesis?

We'll defintely break down how Dana makes money, its ownership structure, and the clear actions it's taking to deliver an expected $225 million in adjusted free cash flow this year.

Dana Incorporated (DAN) History

You're looking at Dana Incorporated (DAN), a company that's been powering the mobility industry for over a century, and you need to know how a universal joint patent from 1904 evolved into a multi-billion-dollar global leader in e-Propulsion. The direct takeaway is that Dana's history is a masterclass in strategic pivot, moving from mechanical components for the Model T to being a key supplier for today's most complex electrified powertrains, with a major divestiture in 2025 to sharpen its focus.

Dana Incorporated's Founding Timeline

The company's origin story starts with a single, crucial invention that literally unchained the early automotive industry.

Year established

1904

Original location

Plainfield, New Jersey

Founding team members

• Clarence W. Spicer (Inventor and Founder)
• Charles A. Dana (Attorney and Financier, joined 1914, became President)

Initial capital/funding

The precise initial capital is not explicitly documented, but the company, then C.W. Spicer, was founded on the strength of Clarence Spicer's patented encased universal joint. Honestly, the real initial funding came in 1914 when attorney Charles A. Dana invested in the financially struggling company and took over leadership.

Dana Incorporated's Evolution Milestones

Dana's trajectory shows a constant adaptation to the shifting demands of vehicle manufacturing, from early mechanical parts to today's complex electrodynamic systems.

Dana Incorporated's Transformative Moments

The most recent transformative decisions revolve around simplifying the business model and aggressively pursuing profitability in the electric vehicle (EV) space. You're seeing a shift from a diversified parts supplier to a focused propulsion and energy-management specialist.

The biggest move in 2025 was the definitive agreement to sell the non-core European Off-Highway hydraulics business and the broader Off-Highway business. This sale is a strategic pivot to concentrate resources on the higher-growth, higher-margin Light- and Commercial-Vehicle markets, especially with the accelerating demand for electric vehicle components. That's a huge decision for a company of this size.

Here's the quick math on their current focus and capital strategy:

• Cost-Savings: Dana is targeting $225 million in cost savings in 2025 alone, as part of a larger plan for $300 million in annualized savings by 2026. This is defintely driving margin improvement.
• Capital Return: The company announced a $1 billion capital return authorization, with over $250 million in share repurchases completed in the second quarter of 2025.
• Financial Health: Third-quarter 2025 sales from continuing operations were $1.9 billion, with Adjusted EBITDA at $162 million, reflecting an 8.5% margin.

This focus is paying off, as evidenced by the company being named one of the 'World's Most Ethical Companies' for 2025 by Ethisphere. To be fair, the market is still challenging, but these actions show clear management intent. You can dive deeper into who's betting on this strategy with Exploring Dana Incorporated (DAN) Investor Profile: Who's Buying and Why?

Dana Incorporated (DAN) Ownership Structure

Dana Incorporated's ownership structure is dominated by institutional investors, a common characteristic of large, publicly traded companies on the New York Stock Exchange (NYSE: DAN). This means that massive asset managers and mutual funds, not individual founders or families, control the majority of the voting power, driving the company's governance and strategic direction.

Dana Incorporated's Current Status

Dana Incorporated is a public company, trading under the ticker DAN on the New York Stock Exchange. As a large accelerated filer with the Securities and Exchange Commission (SEC), it is subject to rigorous financial reporting and transparency requirements. Its market capitalization stood at approximately $2.54 billion as of November 7, 2025. The company's total shares outstanding were around 117 million as of late 2025.

You can see the impact of this structure on its financial performance by reading Breaking Down Dana Incorporated (DAN) Financial Health: Key Insights for Investors.

Dana Incorporated's Ownership Breakdown

Institutional shareholders hold the vast majority of Dana Incorporated's stock, reflecting a high level of professional investment management. For instance, the total institutional ownership percentage has been reported to be over 100% (around 103.41%) due to the inclusion of shares held through derivative positions and short interest, but the core holdings of the largest firms are substantial. Here's the quick math on the top holders based on approximately 117 million shares outstanding as of the third quarter of 2025.

What this estimate hides is the sheer concentration of power; over 30% of the company is controlled by just two of the world's largest asset managers, BlackRock, Inc. and The Vanguard Group, Inc..

Dana Incorporated's Leadership

The company is currently undergoing a leadership transition, which is a key risk to monitor. R. Bruce McDonald was appointed as the interim Chairman and Chief Executive Officer (CEO) in November 2024, following the retirement of the previous CEO. The Board is actively searching for a permanent CEO to steer the company through its strategic shift, which includes the proposed sale of its Off-Highway business.

The executive leadership team, which guides the company's day-to-day operations and strategic execution, includes:

• R. Bruce McDonald, Interim Chairman and Chief Executive Officer (since November 2024).
• Timothy R. Kraus, Senior Vice President and Chief Financial Officer (CFO).
• Byron S. Foster, Senior Vice President and President, Light Vehicle Systems.
• Douglas H. Liedberg, Senior Vice President, General Counsel and Secretary, Chief Compliance and Sustainability Officer.

This interim structure defintely requires close attention, as the permanent CEO's vision will shape the company's direction for the next five to ten years. The current leadership is focused on streamlining the business and achieving annualized cost savings of approximately $300 million, a goal announced in January 2025.

Dana Incorporated (DAN) Mission and Values

Dana Incorporated's mission is a clear pivot toward the future of mobility, focusing on Powering Sustainable Motion by delivering innovative driveline and e-propulsion technologies. This purpose is anchored by a set of core values that prioritize people, innovation, and responsible growth, which is defintely the right approach for a company navigating the electric vehicle (EV) transition.

Dana Incorporated's Core Purpose

You're looking for what truly drives a company like Dana Incorporated beyond the quarterly earnings report, and that's where the core purpose comes in. It maps their cultural DNA to their long-term aspirations. For Dana, the purpose is to shape sustainable progress globally, a goal that directly impacts their product mix-which is why 74% of their three-year new business backlog is now tied to clean-energy technologies. Here's the quick math: nearly three-quarters of their future revenue is green, so their purpose isn't just a poster on the wall.

• Value Others: Celebrate diversity, treat people with respect, and put safety and integrity first.
• Inspire Innovation: Reimagine what's possible, acting with creativity and a relentless focus on customer success.
• Grow Responsibly: Advance a safer, more sustainable future for people, products, and the planet.
• Win Together: Pursue quality and excellence by collaborating across a global network of expertise.

Their commitment to this high-performance culture is why they were named a 'World's Most Ethical Companies' for 2025 by Ethisphere. If you want to dig deeper into the market's view of this commitment, you should check out Exploring Dana Incorporated (DAN) Investor Profile: Who's Buying and Why?

Official mission statement

The mission is precise: Powering sustainable motion. Dana Incorporated delivers innovative driveline, e-propulsion, and motion-systems technologies to improve the efficiency, performance, and sustainability of vehicles and machines. It's a clear statement that positions them as a technology provider, not just a parts supplier.

• Deliver innovative driveline, e-propulsion, and motion-systems.
• Improve efficiency, performance, and sustainability of vehicles and machines.

Vision statement

Dana's vision is about being a global leader in power conveyance and energy-management solutions, using their scale and expertise to drive stakeholder value. This is a big promise, but their actions back it up; for instance, a renewable power purchase agreement starting in January 2025 is set to offset 100 percent of the company's purchased electricity emissions in Europe. That is a concrete step toward a sustainable future.

• Showcase expertise in power conveyance and energy-management.
• Shape sustainable progress through invention and execution.
• Make the amazing happen wherever people live, work, and play.

Dana Incorporated slogan/tagline

The company's unifying theme, or slogan, is simple and powerful, embodying their core mission and values.

• People Finding a Better Way.

This focus on continuous improvement is what keeps them competitive. Even with a challenging market, their adjusted EBITDA for the second quarter of 2025 stood at $145 million, or 7.5 percent of sales, showing that operational efficiency is still a key driver.

Dana Incorporated (DAN) How It Works

Dana Incorporated is a global supplier of highly efficient propulsion and energy-management solutions, creating value by designing and manufacturing critical drivetrain and thermal components for vehicle manufacturers. The company makes money by integrating its conventional and clean-energy technologies-from axles and driveshafts to electric motors and inverters-into light vehicles and commercial trucks worldwide.

Dana Incorporated's Product/Service Portfolio

Following the strategic divestiture of its Off-Highway business for $2.7 billion to Allison Transmission, Dana is now focused on two core segments: Light Vehicle Systems and Commercial Vehicle Systems, which collectively represent the continuing operations with a projected 2025 sales midpoint of approximately $7.4 billion.

Dana Incorporated's Operational Framework

The company's operational value creation in 2025 centers on a strategic pivot toward a leaner, more focused enterprise that prioritizes high-growth on-highway markets and electrification. This pivot is supported by a rigorous cost-reduction program and a streamlined structure, which you can read more about in Breaking Down Dana Incorporated (DAN) Financial Health: Key Insights for Investors.

One of the most immediate actions is the accelerated cost-savings initiative, which is targeting a total of $310 million in annualized savings through 2026, with $235 million of that expected to be realized in fiscal year 2025 alone.

• Streamline Operations: Consolidating from four to two primary business segments (Light Vehicle Systems and Commercial Vehicle Systems) by integrating the former Power Technologies segment to enhance customer service and go-to-market efficiency.
• Manufacturing Rationalization: Actively streamlining the global manufacturing footprint and increasing factory automation to improve cost structure and operational efficiencies.
• Disciplined EV Investment: Focusing research and development (R&D) on lower-risk electrification programs with existing internal combustion engine (ICE) customers, ensuring a measured and profitable transition.

Dana Incorporated's Strategic Advantages

Dana's market success is defintely driven by its deep technological expertise and its timely, decisive strategic restructuring, which is creating a more financially resilient business. The company expects to achieve an adjusted EBITDA margin of 10% at the midpoint of its 2025 guidance, a significant improvement over prior years.

• Electrification Leadership: Possessing a robust portfolio of electrodynamic technologies-e-axles, motors, and inverters-positions Dana as a critical partner in the industry's shift to electric vehicles.
• Global Scale and Customer Intimacy: Operating 65 major manufacturing facilities across 26 countries, the company maintains a physical presence close to nearly every major vehicle manufacturer, strengthening customer relationships and supply chain resilience.
• Financial Deleveraging: The $2.7 billion Off-Highway sale proceeds are being used to substantially reduce debt and fund a $1 billion capital return program, targeting a net debt neutral position post-sale and creating a much stronger balance sheet.

Dana Incorporated (DAN) How It Makes Money

Dana Incorporated makes money primarily by designing, engineering, and manufacturing highly-engineered driveline, sealing, and thermal-management technologies for the global vehicle and machinery markets. Its revenue engine is driven by sales of components like axles, driveshafts, and electrodynamic systems to major Original Equipment Manufacturers (OEMs) in the light vehicle and commercial vehicle sectors, essentially serving as a critical Tier 1 supplier.

Dana Incorporated's Revenue Breakdown

Following the strategic divestiture of its Off-Highway business, Dana's revenue is now concentrated in its two core on-highway segments. Based on the full-year 2025 sales guidance midpoint of $7.4 billion for continuing operations, the revenue is split as follows (using the Q1 2025 mix as the basis for the full-year estimate).

The Light Vehicle Systems segment, which includes driveline and thermal solutions for light trucks and SUVs, is the largest revenue source, estimated to generate approximately $5.0 billion of the 2025 continuing operations sales. The Commercial Vehicle Systems segment, supplying axles and driveshafts for medium- and heavy-duty trucks, is facing softening demand, which is reflected in its decreasing trend.

Business Economics

Dana's profitability hinges on managing high fixed costs associated with global manufacturing and offsetting raw material and tariff inflation through pricing power and aggressive cost-reduction programs. You're operating in a capital-intensive industry, so efficiency is everything.

• Pricing Power: The company has demonstrated the ability to secure customer recoveries and implement pricing improvements, which contributed to an $11 million increase in profit in Q3 2025.
• Cost Structure: A major focus is the company-wide cost-savings initiative, which is on track to realize $235 million in savings for the full year 2025. This is a defintely a game-changer for margins.
• Strategic Pivot: The sale of the Off-Highway business for $2.7 billion is a move to reduce exposure to cyclical construction and mining markets and focus on the higher-growth, higher-margin on-highway segments, particularly those tied to vehicle electrification.
• Electrification Tailwinds: Dana is positioning itself as a leader in clean-energy solutions, including e-Axles and thermal-management systems, which typically command a higher price point and margin than traditional components. You can read more about the strategic direction here: Mission Statement, Vision, & Core Values of Dana Incorporated (DAN).

Dana Incorporated's Financial Performance

The company's financial health in 2025 reflects the positive impact of its restructuring and cost-saving measures, even amid mixed end-market demand. Here's the quick math on profitability and cash flow for the continuing operations:

• Adjusted EBITDA: Full-year 2025 Adjusted EBITDA guidance was raised to a midpoint of approximately $590 million, a solid increase driven by accelerated cost savings. This implies an Adjusted EBITDA margin in the range of 7.4% to 8.1% for continuing operations.
• Net Income: Q3 2025 net income from continuing operations was $13 million, a significant turnaround from a net loss in the prior year period.
• Cash Flow: Adjusted Free Cash Flow (FCF) for the full year 2025 is projected to be approximately $275 million at the midpoint, a substantial improvement driven by higher profitability and better working capital management.
• Liquidity: Operating cash flow in Q3 2025 was $111 million, an increase of $76 million compared to the prior year, demonstrating improved liquidity.

What this estimate hides is the one-time costs of about $30 million related to the cost-saving programs and restructuring, which are necessary investments for future margin expansion. The clear action for investors is to monitor the progress toward the 2026 target of 10% to 10.5% Adjusted EBITDA margins, which is the true measure of success for this strategic pivot.

Dana Incorporated (DAN) Market Position & Future Outlook

Dana Incorporated is aggressively pivoting to become a focused leader in electrified propulsion, shedding its cyclical Off-Highway business to fund high-growth on-highway and e-Propulsion segments. This strategic shift, backed by a significant cost-reduction plan, positions the company for margin expansion despite near-term market softness in light vehicle demand.

Competitive Landscape

The global driveline and e-Propulsion market is highly competitive, dominated by a few large, diversified suppliers. Dana's focused strategy targets the most profitable segments, but it contends with rivals who have greater scale and broader product portfolios.

Estimated share in core driveline/propulsion systems, reflecting Dana's smaller size post-divestiture compared to rivals. AAM's share is the projected size of the combined AAM/Dowlais driveline entity by Q4 2025.

Opportunities & Challenges

You need to see the clear map of where Dana is going and what could trip it up. The sale of the Off-Highway business for $2.7 billion to Allison Transmission is the single biggest catalyst, reshaping the entire risk/reward profile.

Industry Position

Dana is transforming from a diversified industrial supplier to a focused technology partner in the mobility transition. The divestiture of the Off-Highway segment, expected to close in late Q4 2025, is the critical step here.

The company's focus is now on being a leader in the Light Vehicle and Commercial Vehicle segments, especially in complex, high-value-add components like thermal management and integrated e-Axles. They are not just selling parts; they are selling fully integrated systems. That's a defintely higher-margin business.

• Full-Year 2025 Adjusted EBITDA is guided to a midpoint of $975 million, reinforcing the impact of cost actions.
• The $1 billion capital return program through 2027, including $600 million in share repurchases expected by the end of 2025, signals management's confidence in the new, streamlined business model.
• Dana maintains a strong global footprint, with 52% of 2024 sales coming from international operations, providing a geographic hedge against regional market volatility.

For a detailed breakdown of the financial health supporting this pivot, take a look at Breaking Down Dana Incorporated (DAN) Financial Health: Key Insights for Investors. They are betting big on content-per-vehicle growth in the EV space, which is where the real money is moving.