Note 20 - Segments, Geographical Area and Major Customer Information

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 20.  Segments, Geographical Area and Major Customer Information

We are a global provider of high-technology products to virtually every major 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 operating segment and integrating the aftermarket business into our Commercial Vehicle 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 fall outside of the proposed sale perimeter, including certain Dana TM4 joint venture operations and our European hydraulics business, have been integrated into our Commercial Vehicle and Light Vehicle operating segments, respectively. We now serve our global light vehicle and medium/heavy vehicle markets through two operating segments – Light Vehicle and 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 Chairman and Chief Executive Officer is its CODM.

Dana's CODM 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 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
2025	Vehicle			Vehicle			Corporate			Total
External sales	$	5,217		$	2,283					$	7,500
Inter-segment sales		132			80						212
		5,349			2,363						7,712
Reconciliation of sales
Elimination of inter-segment sales											(212	)
Total consolidated sales										$	7,500
Less:
Cost of sales		4,715			2,027
Selling, general and administrative expenses		164			136
Other segment items (a)		(4	)		(1	)
Segment EBITDA	$	466		$	199					$	665
Purchases of property, plant and equipment	$	153		$	47		$	14		$	214
Segment net assets (b)	$	465		$	471		$	(88	)	$	848

	Light		Commercial
2024	Vehicle		Vehicle			Corporate			Total
External sales	$	5,250	$	2,484					$	7,734
Inter-segment sales		149		89						238
		5,399		2,573						7,972
Reconciliation of sales
Elimination of inter-segment sales										(238	)
Total consolidated sales									$	7,734
Less:
Cost of sales		4,890		2,300
Selling, general and administrative expenses		177		136
Other segment items (a)		2		(3	)
Segment EBITDA	$	334	$	134					$	468
Purchases of property, plant and equipment	$	221	$	74		$	17		$	312
Segment net assets (b)	$	463	$	426		$	(72	)	$	817

	Light			Commercial
2023	Vehicle			Vehicle		Corporate			Total
External sales	$	4,989		$	2,624				$	7,613
Inter-segment sales		148			102					250
		5,137			2,726					7,863
Reconciliation of sales
Elimination of inter-segment sales										(250	)
Total consolidated sales									$	7,613
Less:
Cost of sales		4,709			2,427
Selling, general and administrative expenses		184			148
Other segment items (a)		(13	)		10
Segment EBITDA	$	231		$	161				$	392
Purchases of property, plant and equipment	$	265		$	136	$	26		$	427
Segment net assets (b)	$	501		$	440	$	(68	)	$	873

(a) Other segment items primarily include foreign exchange gains and losses, government assistance, export incentives and the benefit of utilizing non-refundable tax credits purchased at a discount.

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

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

	2025			2024			2023
Segment EBITDA	$	665		$	468		$	392
Corporate expense and other items, net		(55	)		(73	)		(75	)
Depreciation		(345	)		(337	)		(299	)
Amortization		(12	)		(13	)		(16	)
Non-service cost components of pension and OPEB costs		(11	)		(17	)		(10	)
Restructuring charges, net		(23	)		(70	)		(23	)
Stock compensation expense		(40	)		(30	)		(26	)
Strategic transaction expenses		(12	)		(3	)		(5	)
Loss on sale of property, plant and equipment					(1	)
Electric vehicle program termination charges		(36	)
Loss on divestiture of ownership interests		(9	)
Supplier capacity charge, net		21			(46	)
Loss on disposal group previously held for sale					(26	)
Amounts attributable to previously closed/divested operations					(9	)
Distressed supplier costs								(44	)
Other items		(4	)		(19	)		(2	)
Earnings (loss) from continuing operations before interest and income taxes		139			(176	)		(108	)
Loss on extinguishment of debt								(1	)
Interest income		10			13			15
Interest expense		181			158			152
Loss from continuing operations before income taxes	$	(32	)	$	(321	)	$	(246	)

Reconciliation of segment net assets to consolidated total assets —

	2025		2024		2023
Segment net assets	$	848	$	817	$	873
Accounts payable		1,154		1,120		1,198
Cash and cash equivalents		469		494		529
Accounts receivable - Other		254		220		191
Other current assets		114		130		200
Current assets of disposal group held for sale		1,029		923		1,095
Intangibles		71		80		100
Deferred tax assets		534		514		440
Other noncurrent assets		102		118		101
Investments in affiliates		102		125		122
Operating lease assets		305		260		286
Property, plant and equipment, net		1,872		1,830		1,899
Noncurrent assets of disposal group held for sale		954		855		914
Total assets	$	7,808	$	7,486	$	7,948

Geographic information — Of our 2025 consolidated net sales, the U.S., Germany and Brazil account for 57%, 6% and 6%, respectively. No other country accounted for 5% or more of our consolidated net sales during the past three years. Sales are attributed to the location of the product entity recording the sale. Long-lived assets represent property, plant and equipment and operating lease assets.

	Net Sales						Long-Lived Assets
	2025		2024		2023		2025		2024		2023
North America
United States	$	4,289	$	4,366	$	4,161	$	963	$	1,100	$	1,154
Other North America		226		291		255		289		211		220
Total		4,515		4,657		4,416		1,252		1,311		1,374
Europe
Germany		434		433		482		101		97		120
Other Europe		1,055		1,056		1,082		475		346		317
Total		1,489		1,489		1,564		576		443		437
South America
Brazil		428		476		427		95		86		113
Other South America		244		252		242		22		24		24
Total		672		728		669		117		110		137
Asia Pacific
Other Asia Pacific		824		860		964		232		226		237
Total		824		860		964		232		226		237
Total	$	7,500	$	7,734	$	7,613	$	2,177	$	2,090	$	2,185

Sales to major customers — Ford Motor Company (Ford) and Stellantis N.V. were the only individual customers to whom sales have exceeded 10% of our consolidated sales in one or more of the past three years. Sales to Ford were $2,395 (32%) in 2025, $2,399 (31%) in 2024 and $2,127 (28%) in 2023. Sales to Stellantis N.V. (including those via a directed supply relationship) were $989 (13%) in 2025, $801 (10%) in 2024 and $922 (12%) in 2023.