What Dana Incorporated told the SEC could break it.

Dana, a global drivetrain supplier with ~43% of sales from operations outside the U.S. and steel/aluminum-intensive products, is materially tariff-exposed. The impact is realized: higher tariff-related costs of $96 million weighed on Light Vehicle segment earnings and tariff-related impacts of $116 million were cited for another segment in 2025. Dana partially offset these through net customer pricing and cost-and-tariff recovery actions (which raised sales by $156M, $46M and up to $202M across segments), but recoveries are often not specifically provided for in current customer contracts, resulting in prolonged negotiations and indeterminate recoveries. Continued tariff escalation on imported steel, aluminum, components and cross-border vehicle parts remains a direct margin risk.

“Partially offsetting these performance-related earnings increases were higher tariff-related costs of $96, inflationary cost increases of $92, commodity cost increases of $13, higher incentive compensation expense of $9, higher warranty expense of $6 and higher program launch costs of $1.”

Dana's axles, driveshafts, transmissions and related metal-intensive drivetrain products make its cost base sensitive to metal prices — it states commodity costs are primarily driven by certain grades of steel and aluminum, with commodity cost increases of $13–$19 million weighing on segment earnings in 2025 (on top of non-material inflation in labor, energy and transportation). Steel/aluminum price volatility and tariffs on those metals directly pressure margins, and contractual pass-through to OEM customers can lag, leaving Dana exposed in the interim.

“Commodity costs are primarily driven by certain grades of steel and aluminum.”

Dana depends on outside suppliers for components used in its products, some of which are sole sources. It warns that a significant or prolonged shortage of critical components from any supplier — particularly sole-source suppliers — that it could not procure elsewhere would leave it unable to meet production schedules for some key products or ship them to customers on time, adversely affecting sales, profitability and customer relationships. Supplier financial distress or collapse could similarly interrupt component supply.

“If we were to experience a significant or prolonged shortage of critical components from any of our suppliers, particularly those who are sole sources, and were unable to procure the components from other sources, we would be unable to meet our production schedules for some of our key products and to ship such products to our customers in a timely fashion, which would adversely affect our sales, profitability and customer relations.”