Dana Incorporated (DAN, Financials) saw its stock price climb 15.27% to $15.25 as of 11:38 a.m. EST on Friday following the announcement of its preliminary 2024 financial results and an increased cost savings target of $300 million through 2026.
Along with adjusted EBITDA of $885 million, which reflects a better margin of 8.6%, up from 8.0% in 2023, the business revealed unaudited sales of $10.3 billion for 2024 down from $10.6 billion in 2023.
The findings underline Dana's emphasis on operational efficiency and cost-cutting strategies, thereby countering reduced revenues resulting from declining demand for commercial trucks, electric cars, and off-highway equipment.
Beginning in the first quarter of 2025, Dana also announced intentions to simplify its organizational structure into two business segments: Light Vehicle Systems and Commercial Vehicle Systems. In line with its aim to improve customer service and operational focus, the restructure included the merging of its Power Technology business into these divisions.
The business changed EBITDA from $925 million to $1.025 billion and confirmed its financial target for 2025, forecasting revenues between $9.525 billion and $10.025 billion. Free cash flow is projected to be between $175 million and $275 million.
Dana is also pushing up its sales of its Off-Highway company, which it thinks would lower debt and release shareholder value. The schedule is still unknown even if the business expects an agreement by the first quarter of 2025.
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