Dana Incorporated (NYSE:DAN) is surging by nearly 15% this afternoon, hitting a fresh 52-week high at $15.16, and investors are taking notice. The company's latest movesslashing costs, restructuring operations, and potentially offloading its Off-Highway businessare reshaping its future. Despite market softness in EVs and commercial trucks, Dana pulled in $885 million in adjusted EBITDA for 2024, up from the prior year. Now, with a leaner two-segment structure and an ambitious $300 million cost-cutting plan through 2026, the company is signaling it's playing for the long game. The pending sale of its Off-Highway division is the wild card, with analysts betting it could unlock significant shareholder value and bolster Dana's financial flexibility.

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Wall Street is warming up to the transformation. Dana expects 2025 sales between $9.525 billion and $10.025 billion, with adjusted EBITDA potentially topping $1.025 billion. Free cash flow is set to climb, fueled by smarter working capital moves and tighter cost controls. Analysts at UBS, Deutsche Bank, and Barclays have upgraded the stock, pointing to its improving margins and focused execution. Even JPMorgan, while lowering its price target, remains bullish with an Overweight rating. The stock has already surged over 31% over the past six months, reflecting growing investor confidence in Dana's ability to navigate a shifting automotive landscape.

But the real test is ahead. Can Dana execute on its aggressive turnaround strategy while managing industry headwinds? The pending Off-Highway divestiture, expected to close in early 2025, could be a game-changerfreeing up capital for reinvestment and shareholder returns. The market is watching closely, but so far, Dana's cost discipline and restructuring push are setting the stage for a more profitable, more agile business. Investors looking for an under-the-radar turnaround story might want to keep this one on their radar.