Note 17 - Segments

3 Months Ended

Mar. 31, 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 Chairman and 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 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 March 31, 2026	Vehicle			Vehicle			Corporate			Total
External sales	$	1,269		$	599					$	1,868
Inter-segment sales		26			15						41
		1,295			614						1,909
Reconciliation of sales
Elimination of inter-segment sales											(41	)
Total consolidated sales										$	1,868
Less:
Cost of sales		1,144			513
Selling, general and administrative expenses		38			36
Other segment items (a)		(1	)		(2	)
Segment EBITDA	$	112		$	63					$	175
Purchases of property, plant and equipment	$	47		$	11		$	4		$	62
Segment net assets (b) - March 31, 2026	$	580		$	516		$	(73	)	$	1,023

	Light		Commercial
Three months ended March 31, 2025	Vehicle		Vehicle		Corporate			Total
External sales	$	1,213	$	568				$	1,781
Inter-segment sales		36		23					59
		1,249		591					1,840
Reconciliation of sales
Elimination of inter-segment sales									(59	)
Total consolidated sales								$	1,781
Less:
Cost of sales		1,138		516
Selling, general and administrative expenses		43		35
Other segment items (a)		—		1
Segment EBITDA	$	68	$	41				$	109
Purchases of property, plant and equipment	$	49	$	12	$	6		$	67
Segment net assets (b) - December 31, 2025	$	465	$	471	$	(88	)	$	848

(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
	March 31,
	2026			2025
Segment EBITDA	$	175		$	109
Corporate expense and other items, net		(4	)		(16	)
Depreciation		(84	)		(82	)
Amortization		(3	)		(3	)
Non-service cost components of pension and OPEB costs		(1	)		(2	)
Restructuring charges, net		(6	)		(2	)
Stock compensation expense		(11	)		(13	)
Strategic transaction expenses		(1	)		(1	)
Gain on sale of property, plant and equipment					1
Supplier capacity charge adjustment					19
Loss on divestiture of ownership interests		(8	)
Electric vehicle program termination charges		(56	)
Foreign exchange gain on unhedged intercompany loans		21
Other items		(3	)		(2	)
Earnings from continuing operations before interest and income taxes		19			8
Loss on extinguishment of debt		(7	)
Interest income		6			2
Interest expense		22			39
Loss from continuing operations before income taxes	$	(4	)	$	(29	)

Reconciliation of segment net assets to consolidated total assets —

		March 31,		December 31,
	2026		2025
Segment net assets	$	1,023	$	848
Accounts payable		1,228		1,154
Cash and cash equivalents		477		469
Accounts receivable - Other		278		254
Other current assets		201		114
Current assets of disposal group held for sale		32		1,029
Intangibles		61		71
Deferred tax assets		499		534
Other noncurrent assets		92		102
Investment in affiliates		105		102
Operating lease assets		279		305
Property, plant and equipment, net		1,783		1,872
Noncurrent assets of disposal group held for sale		20		954
Total assets	$	6,078	$	7,808