v3.26.1
Note 17 - Segments
6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

Note 17. Segments

 

We are a global provider of high-technology products to virtually every major on-highway vehicle manufacturer in the world. Our technologies include drive systems (axles, driveshafts and transmissions); electrodynamic technologies (motors, inverters, software and control systems, battery-management systems, and fuel cell plates); sealing solutions (gaskets, seals, cam covers, and oil pan modules); thermal-management technologies (transmission and engine oil cooling, battery and electronics cooling, charge air cooling, and thermal-acoustical protective shielding); and digital solutions (active and passive system controls and descriptive and predictive analytics). Effective January 1, 2025, Dana’s chief operating decision maker (CODM) realigned Dana’s operating segments, reflecting Dana’s commitment to streamlining the business, enhancing our go-to market approach, and serving our customers more efficiently. Our former Power Technologies operating segment has been split, integrating the OEM-facing business into our Light Vehicle Systems operating segment and integrating the aftermarket business into our Commercial Vehicle Systems operating segment. In addition, in June 2025 we entered into a definitive agreement to sell our Off-Highway business to Allison Transmission Holdings, Inc. See Note 2 for additional information. Certain operations that fell outside of the sale perimeter, including certain Dana TM4 operations and our European hydraulics business, have been integrated into our Commercial Vehicle Systems and Light Vehicle Systems operating segments, respectively. We now serve our global light vehicle and medium/heavy vehicle markets through two operating segments – Light Vehicle Systems (Light Vehicle) and Commercial Vehicle Systems (Commercial Vehicle). These operating segments have global responsibility and accountability for business commercial activities and financial performance. Amounts presented for prior periods have been recast to align with Dana’s current two operating segments. Dana’s Chief Executive Officer is its CODM.

 

Dana evaluates the performance of its operating segments based on external sales and segment EBITDA. Segment EBITDA is a primary driver of cash flows from operations and a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. Our segments are charged for corporate and other shared administrative costs. Certain corporate and other administrative costs that were historically charged to our Off-Highway business, that are not permitted to be reflected as part of discontinued operations, have been recast and are included within the "corporate expense and other items, net" line of the reconciliation of segment EBITDA to earnings (loss) from continuing operations before income taxes. Segment EBITDA may not be comparable to similarly titled measures reported by other companies.

 

Segment information

 

  

Light

  

Commercial

         

Three months ended June 30, 2026

 

Vehicle

  

Vehicle

  

Corporate

  

Total

 

External sales

 $1,379  $631      $2,010 

Inter-segment sales

  26   17       43 
   1,405   648       2,053 

Reconciliation of sales

                

Elimination of inter-segment sales

              (43)

Total consolidated sales

             $2,010 

Less:

                

Cost of sales

  1,215   538         

Selling, general and administrative expenses

  41   38         

Other segment items (a)

  (6)  (4)        

Segment EBITDA

 $143  $68      $211 
                 

Purchases of property, plant and equipment

 $42  $97  $3  $142 

Segment net assets (b) - June 30, 2026

 $573  $465  $(72) $966 

 

  

Light

  

Commercial

         

Three months ended June 30, 2025

 

Vehicle

  

Vehicle

  

Corporate

  

Total

 

External sales

 $1,335  $600      $1,935 

Inter-segment sales

  35   19       54 
   1,370   619       1,989 

Reconciliation of sales

                

Elimination of inter-segment sales

              (54)

Total consolidated sales

             $1,935 

Less:

                

Cost of sales

  1,218   536         

Selling, general and administrative expenses

  42   34         

Other segment items (a)

  2   (2)        

Segment EBITDA

 $112  $47      $159 
                 

Purchases of property, plant and equipment

 $30  $4  $3  $37 

Segment net assets (b) - December 31, 2025

 $465  $471  $(88) $848 

 

  

Light

  

Commercial

         

Six months ended June 30, 2026

 

Vehicle

  

Vehicle

  

Corporate

  

Total

 

External sales

 $2,648  $1,230      $3,878 

Inter-segment sales

  52   32       84 
   2,700   1,262       3,962 

Reconciliation of sales

                

Elimination of inter-segment sales

              (84)

Total consolidated sales

             $3,878 

Less:

                

Cost of sales

  2,359   1,051         

Selling, general and administrative expenses

  79   74         

Other segment items (a)

  (7)  (6)        

Segment EBITDA

 $255  $131      $386 
                 

Purchases of property, plant and equipment

 $89  $108  $7  $204 

 

  

Light

  

Commercial

         

Six months ended June 30, 2025

 

Vehicle

  

Vehicle

  

Corporate

  

Total

 

External sales

 $2,548  $1,168      $3,716 

Inter-segment sales

  71   42       113 
   2,619   1,210       3,829 

Reconciliation of sales

                

Elimination of inter-segment sales

              (113)

Total consolidated sales

             $3,716 

Less:

                

Cost of sales

  2,356   1,052         

Selling, general and administrative expenses

  85   69         

Other segment items (a)

  2   (1)        

Segment EBITDA

 $180  $88      $268 
                 

Purchases of property, plant and equipment

 $79  $16  $9  $104 

 

(a) Other segment items primarily include foreign exchange gains and losses, government assistance and export incentives.

(b) Segment net assets include accounts receivable - trade, inventories and accounts payable.

 

Reconciliation of segment EBITDA to loss from continuing operations before income taxes 

 

  

Three Months Ended

  

Six Months Ended

 
  

June 30,

  

June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Segment EBITDA

 $211  $159  $386  $268 

Corporate expense and other items, net

  (4)  (12)  (8)  (28)

Depreciation

  (82)  (89)  (166)  (171)

Amortization

  (2)  (3)  (5)  (6)

Non-service cost components of pension and OPEB costs

  (3)  (2)  (4)  (4)

Restructuring charges, net

  (9)  (11)  (15)  (13)

Stock compensation expense

  (8)  (10)  (19)  (23)

Strategic transaction expenses

  (19)  (5)  (20)  (6)

Gain on sale of property, plant and equipment

           1 

Supplier capacity charge adjustment

           19 

Amounts attributable to previously closed/divested operations

  (1)     (1)   

Distressed supplier costs

  (2)     (2)   

Loss on divestiture of ownership interests

     (7)  (8)  (7)

Electric vehicle program termination charges

  (8)     (64)   

Foreign exchange gain on unhedged intercompany loans

  2      23    

Other items

  1   (4)  (2)  (6)

Earnings from continuing operations before interest and income taxes

  76   16   95   24 

Loss on extinguishment of debt

        (7)   

Interest income

  4   3   10   5 

Interest expense

  21   44   43   83 

Earnings (loss) from continuing operations before income taxes

 $59  $(25) $55  $(54)

 

Reconciliation of segment net assets to consolidated total assets 

 

  June 30,   December 31, 
  

2026

  

2025

 

Segment net assets

 $966  $848 

Accounts payable

  1,301   1,154 

Cash and cash equivalents

  331   469 

Accounts receivable - Other

  286   254 

Other current assets

  285   114 

Current assets of disposal group held for sale

  36   1,029 

Intangibles

  58   71 

Deferred tax assets

  495   534 

Other noncurrent assets

  114   102 

Investment in affiliates

  112   102 

Operating lease assets

  166   305 

Property, plant and equipment, net

  1,942   1,872 

Noncurrent assets of disposal group held for sale

  21   954 

Total assets

 $6,113  $7,808