- Revenue: $2.74 billion, slightly below analyst estimates of $2.77 billion and down from $2.75 billion in the same period of 2023.
- Net Income: $16 million, or $0.11 per share, compared to $30 million, or $0.21 per share, in the second quarter of 2023.
- Adjusted EBITDA: $244 million, representing 8.9% of sales, up from $243 million or 8.8% of sales in the same period of 2023.
- Operating Cash Flow: $215 million, down from $256 million in the same period of 2023.
- Free Cash Flow: $104 million, $30 million lower than the second quarter of 2022 due to the timing of working capital requirements.
- Full-Year Guidance: Raised free cash flow guidance despite lower sales outlook due to weakening demand for electric vehicles and some traditional markets.
On July 31, 2024, Dana Inc (DAN, Financial) released its 8-K filing for the second quarter of 2024. Dana Inc is engaged in the designing and manufacturing of efficient propulsion and energy-management solutions that power vehicles and machines in all mobility markets across the globe. The company has four operating segments: Light Vehicles, Power Technologies, Commercial Vehicle, and Off-Highway. The Light Vehicles segment generates the majority portion of revenue by providing products to support light vehicle OEMs. Its products are designed for light trucks, SUVs, CUVs, vans, and passenger cars.
Performance Overview
In the second quarter of 2024, Dana Inc reported sales of $2.74 billion, slightly below the $2.75 billion reported in the same period of 2023. Despite this minor decline, the company achieved an adjusted EBITDA of $244 million, representing 8.9% of sales, compared to $243 million or 8.8% of sales in Q2 2023. This improvement in EBITDA margin highlights the company's efficiency in managing costs and optimizing asset utilization.
Financial Achievements
Dana Inc's net income attributable to the parent company was $16 million, or $0.11 per share, down from $30 million, or $0.21 per share, in Q2 2023. However, the adjusted net income attributable to Dana was $45 million, with diluted adjusted earnings per share of $0.31, surpassing the analyst estimate of $0.24 per share. This performance underscores the company's ability to maintain profitability despite market challenges.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $2.74 billion | $2.75 billion |
| Adjusted EBITDA | $244 million | $243 million |
| Net Income | $16 million | $30 million |
| Adjusted Net Income | $45 million | $54 million |
| Operating Cash Flow | $215 million | $256 million |
| Free Cash Flow | $104 million | $134 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Dana Inc reported total assets of $7.81 billion, slightly down from $7.97 billion at the end of 2023. The company's cash and cash equivalents stood at $419 million, compared to $529 million at the end of 2023. Operating cash flow for Q2 2024 was $215 million, down from $256 million in Q2 2023, while free cash flow was $104 million, $30 million lower than the same period last year due to the timing of working capital requirements.
Commentary and Outlook
“While our outlook for sales is lower due to weakening demand for electric vehicles and in some of our traditional markets, Dana is maintaining guidance for Adjusted EBITDA, while raising profit margin and again increasing the free-cash-flow range,” said Timothy Kraus, Senior Vice President and Chief Financial Officer.
The company has revised its full-year financial targets, maintaining its adjusted EBITDA guidance while raising its profit margin and free cash flow outlook. This adjustment reflects Dana Inc's confidence in its cost management and production efficiencies to offset the impact of softer end-market demand.
Analysis
Dana Inc's performance in Q2 2024 demonstrates its resilience in a challenging market environment. The company's ability to improve its EBITDA margin and exceed earnings estimates despite a slight decline in sales is noteworthy. The raised free cash flow guidance further underscores Dana Inc's effective cost management and operational efficiency. However, the decline in net income and operating cash flow indicates potential challenges ahead, particularly with weakening demand in certain markets.
Overall, Dana Inc's strategic focus on efficiency and cost management positions it well to navigate market volatility and continue delivering value to shareholders.
Explore the complete 8-K earnings release (here) from Dana Inc for further details.
