Dana Incorporated : Non-GAAP Financial Information Q1 2026

About this update from Dana Incorporated

Quarterly Financial Information and Reconciliations of Non-GAAP Financial Measures Non-GAAP Financial Measures Adjusted EBITDA is a non-GAAP financial measure which we have defined as net income (loss) before interest, income taxes, depreciation, amortization, equity grant expense, restructuring expense, non-service cost components of pension and other postretirement benefit costs and other adjustments not related to our core operations (gain/loss on debt extinguishment, pension settlements, divestitures, impairment, etc.). Adjusted EBITDA is a measure of our ability to maintain and continue to invest in our operations and provide shareholder returns. We use adjusted EBITDA in assessing the effectiveness of our business strategies, evaluating and pricing potential acquisitions and as a factor in making incentive compensation decisions. In addition to its use by management, we also believe adjusted EBITDA is a measure widely used by securities analysts, investors and others to evaluate financial performance of our company relative to other Tier 1 automotive suppliers. Adjusted EBITDA should not be considered a substitute for earnings (loss) before income taxes, net income (loss) or other results reported in accordance with GAAP. Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. Adjusted net income (loss) attributable to the parent company is a non-GAAP financial measure which we have defined as net income (loss) attributable to the parent company, excluding any discrete income tax items, restructuring charges, amortization expense and other adjustments not related to our core operations (as used in adjusted EBITDA), net of any associated income tax effects. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to net income (loss) attributable to the parent company reported by other companies. Adjusted net income (loss) attributable to the parent company is neither intended to represent nor be an alternative measure to net income (loss) attributable to the parent company reported in accordance with GAAP. Diluted adjusted EPS is a non-GAAP financial measure which we have defined as adjusted net income (loss) attributable to the parent company divided by adjusted diluted shares. We define adjusted diluted shares as diluted shares as determined in accordance with GAAP based on adjusted net income (loss) attributable to the parent company. This measure is considered useful for purposes of providing investors, analysts and other interested parties with an indicator of ongoing financial performance that provides enhanced comparability to EPS reported by other companies. Diluted adjusted EPS is neither intended to represent nor be an alternative measure to diluted EPS reported in accordance with GAAP. Adjusted free cash flow is a non-GAAP financial measure which we have defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment plus proceeds from sale of property, plant and equipment. We believe adjusted free cash flow is useful to investors in evaluating the operational cash flow of the company inclusive of the spending required to maintain the operations. Adjusted free cash flow is not intended to represent nor be an alternative to the measure of net cash provided by (used in) operating activities reported in accordance with GAAP. Adjusted free cash flow may not be comparable to similarly titled measures reported by other companies. The accompanying financial information provides reconciliations of adjusted EBITDA, diluted adjusted EPS and adjusted free cash flow to the most directly comparable financial measures calculated and presented in accordance with GAAP. We have not provided a reconciliation of our adjusted EBITDA and diluted adjusted EPS outlook to the most comparable GAAP measures of net income (loss) and diluted EPS. Providing net income (loss) and diluted EPS guidance is potentially misleading and not practical given the difficulty of projecting event driven transactional and other non-core operating items that are included in net income (loss) and diluted EPS, including restructuring actions, asset impairments and certain income tax adjustments. The accompanying reconciliations of these non-GAAP measures with the most comparable GAAP measures for the historical periods presented are indicative of the reconciliations that will be prepared upon completion of the periods covered by the non-GAAP guidance. 2025 2024 Net sales Costs and expenses Cost of sales $ 2,352 2,132 $ 2,735 2,491 Selling, general and administrative expenses 132 139 Amortization of intangibles 3 3 Restructuring charges, net 5 5 Loss on disposal group previously held for sale (29) Other income (expense), net (8) 2 Earnings before interest and income taxes 72 70 Interest income 3 4 Interest expense 39 39 Earnings before income taxes 36 35 Income tax expense 8 37 Equity in earnings of affiliates 2 2 Net income 30 - Less: Noncontrolling interests net income 5 5 Less: Redeemable noncontrolling interests net loss (8) Net income attributable to the parent company $ 25 $ 3 Net income per share available to common stockholders Basic $ 0.17 $ 0.02 Diluted $ 0.17 $ 0.02 Weighted-average shares outstanding - Basic 145.6 144.8 Weighted-average shares outstanding - Diluted 147.0 144.8 (In millions, except per share amounts) Three Months Ended March 31, Consolidated Statement of Comprehensive Income (Unaudited) For the Three Months Ended March 31, 2025 and 2024 2025 2024 Net income Other comprehensive income (loss), net of tax: Currency translation adjustments $ 30 14 $ - (20) Hedging gains and losses 18 (2) Defined benefit plans 1 Other comprehensive income (loss) 32 (21) Total comprehensive income (loss) 62 (21) Less: Comprehensive income attributable to noncontrolling interests (5) (4) Less: Comprehensive loss attributable to redeemable noncontrolling interests 11 Comprehensive income (loss) attributable to the parent company $ 57 $ (14) (In millions) Three Months Ended March 31, Consolidated Balance Sheet (Unaudited) As of March 31, 2025 and December 31, 2024 (In millions, except share and per share amounts) March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 507 $ 494 Accounts receivable Trade, less allowance for doubtful accounts of $17 in 2025 and $15 in 2024 1,425 1,195 Other 236 261 Inventories 1,617 1,547 Other current assets 246 206 Total current assets 4,031 3,703 Goodwill 257 250 Intangibles 148 150 Deferred tax assets 579 560 Other noncurrent assets 137 189 Investments in affiliates 127 126 Operating lease assets 299 293 Property, plant and equipment, net 2,222 2,214 Total assets $ 7,800 $ 7,485 Liabilities, redeemable noncontrolling interests and equity Current liabilities Short-term debt $ 130 $ 8 Current portion of long-term debt 215 214 Accounts payable 1,659 1,522 Accrued payroll and employee benefits 273 236 Taxes on income 90 69 Current portion of operating lease liabilities 46 44 Other accrued liabilities 415 468 Total current liabilities 2,828 2,561 Long-term debt, less debt issuance costs of $18 in 2025 and $19 in 2024 2,428 2,389 Noncurrent operating lease liabilities 262 258 Pension and postretirement obligations 304 295 Other noncurrent liabilities 343 397 Total liabilities 6,165 5,900 Commitments and contingencies Redeemable noncontrolling interests 189 189 Parent company stockholders' equity Preferred stock, 50,000,000 shares authorized, $0.01 par value, no shares outstanding - - Common stock, 450,000,000 shares authorized, $0.01 par value, 145,726,212 and 144,993,614 shares outstanding 2 2 Additional paid-in capital 2,294 2,282 Retained earnings 214 204 Treasury stock, at cost (1,304,731 and 837,803 shares) (21) (13) Accumulated other comprehensive loss (1,110) (1,142) Total parent company stockholders' equity 1,379 1,333 Noncontrolling interests 67 63 Total equity 1,446 1,396 Total liabilities, redeemable noncontrolling interests and equity $ 7,800 $ 7,485 Consolidated Statement of Cash Flows (Unaudited) For the Three Months Ended March 31, 2025 and 2024 2025 2024 Operating activities Net income $ 30 $ - Depreciation 96 101 Amortization 5 5 Amortization of deferred financing charges 1 1 Earnings of affiliates, net of dividends received (2) (2) Stock compensation expense 13 6 Deferred income taxes (20) 2 Pension expense, net (7) Change in working capital (141) (251) Change in other noncurrent assets and liabilities (15) (4) Loss on disposal group previously held for sale 29 Other, net (4) 18 Net cash used in operating activities (37) (102) Investing activities Purchases of property, plant and equipment (75) (70) Proceeds from sale of property, plant and equipment 11 4 Settlements of undesignated derivatives (1) (1) Other, net 4 Net cash used in investing activities (65) (63) Financing activities Net change in short-term debt 121 17 Repayment of long-term debt (4) (27) Dividends paid to common stockholders (15) (15) Distributions to noncontrolling interests (1) (3) Collection of note receivable from noncontrolling interest 11 Contributions from redeemable noncontrolling interests 9 Other, net (6) 9 Net cash provided by financing activities 95 1 Net decrease in cash, cash equivalents and restricted cash (7) (164) Cash, cash equivalents and restricted cash − beginning of period 512 563 Effect of exchange rate changes on cash balances 18 (12) Cash, cash equivalents and restricted cash − end of period $ 523 $ 387 (In millions) Three Months Ended March 31, Reconciliation of Net Cash Used In Operating Activities to Adjusted Free Cash Flow (Unaudited) 2025 2024 Net cash used in operating activities $ (37) $ (102) Purchases of property, plant and equipment (75) (70) Proceeds from sale of property, plant and equipment 11 4 Adjusted free cash flow $ (101) $ (168) (In millions) Three Months Ended March 31, Segment Sales and Adjusted EBITDA (Unaudited) For the Three Months Ended March 31, 2025 and 2024 Three Months Ended (In millions) Sales March 31, 2025 2024 Light Vehicle $ 1,180 $ 1,324 Commercial Vehicle 568 653 Off-Highway 604 758 Total Sales $ 2,352 $ 2,735 Adjusted EBITDA Light Vehicle $ 68 $ 78 Commercial Vehicle 44 33 Off-Highway 79 115 Corporate expenses and other net (3) (3) Adjusted EBITDA $ 188 $ 223 2025 2024 Earnings before income taxes $ 36 $ 35 Interest income (3) (4) Interest expense 39 39 Earnings before interest and income taxes 72 70 Depreciation 96 101 Amortization 5 5 Non-service cost components of pension and OPEB costs 2 4 Restructuring charges, net 5 5 Stock compensation expense 13 6 Strategic transaction expenses 15 2 (Gain) loss on sale of property, plant and equipment (1) 5 Supplier capacity charge adjustment (19) Loss on disposal group previously held for sale 29 Other items (4) Adjusted EBITDA $ 188 $ 223 (In millions) Three Months Ended March 31, Diluted Adjusted EPS (Unaudited) For the Three Months Ended March 31, 2025 and 2024 (In millions, except per share amounts) 2025 2024 Net income attributable to the parent company Items impacting income before income taxes: Amortization $ 25 5 $ 3 5 Restructuring charges, net 5 5 Strategic transaction expenses 15 2 Supplier capacity commitment charge adjustment Loss on disposal group previously held for sale (19) 29 Other items Items impacting income taxes: (3) Net income tax expense on items above (2) (13) Income tax expense (benefit) attributable to various discrete tax matters (10) 9 Adjusted net income attributable to the parent company $ 19 $ 37 Diluted shares - as reported 147.0 144.8 Adjusted diluted shares 147.0 144.8 Diluted adjusted EPS $ 0.13 $ 0.26 Three Months Ended March 31, 2024 Segment Sales and Adjusted EBITDA Recast for Segment Realignment (Unaudited) (In millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Sales Light Vehicle $ 1,324 $ 1,366 $ 1,253 $ 1,168 $ 5,111 Commercial Vehicle 653 645 612 570 2,480 Off-Highway 758 727 611 597 2,693 Total Sales $ 2,735 $ 2,738 $ 2,476 $ 2,335 $ 10,284 Adjusted EBITDA Light Vehicle $ 78 $ 89 $ 83 $ 83 $ 333 Commercial Vehicle 33 40 47 17 137 Off-Highway 115 116 103 88 422 Corporate expenses and other net (3) (1) (1) (2) (7) Adjusted EBITDA $ 223 $ 244 $ 232 $ 186 $ 885 Earnings (loss) before income taxes $ 35 $ 67 $ 52 $ (74) $ 80 Interest income (4) (2) (4) (5) (15) Interest expense 39 39 40 43 161 Earnings (loss) before interest and income taxes 70 104 88 (36) 226 Depreciation 101 106 97 97 401 Amortization 5 6 5 5 21 Non-service cost components of pension and OPEB costs 4 2 8 4 18 Restructuring charges, net 5 12 24 35 76 Stock compensation expense 6 8 7 9 30 Strategic transaction expenses 2 2 1 4 9 Loss on sale of property, plant and equipment 5 1 6 Supplier capacity charge 46 46 Amounts attributable to previously divested/closed operations 9 9 Loss on disposal group previously held for sale 29 1 (4) 26 Other items (4) 3 6 12 17 Adjusted EBITDA $ 223 $ 244 $ 232 $ 186 $ 885 of 10

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