DANA Inc 10-K

Item 8. Financial Statements and Supplementary Data Report of Independent Registered Public Accounting Firm To the Board of Directors and Stockholders of Dana Incorporated Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheet of Dana Incorporated and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive income, of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and schedule of valuation and qualifying accounts and reserves for each of the three years in the period ended December 31, 2025 appearing under Item 8 (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s report on internal control over financial reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 31 Table of Contents Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Discontinued Operations - Off-Highway Business As described in Notes 1 and 2 to the consolidated financial statements, in June 2025, the Company entered into a definitive agreement to sell its Off-Highway business for $2.7 billion. Management concluded that their Off-Highway business met the criteria to be classified as held for sale in June 2025. Management analyzed the quantitative and qualitative factors relevant to the pending divestiture of the Off-Highway business and determined that the conditions for discontinued operations presentation have been met. As a result, the Company presented current and noncurrent assets of disposal group held for sale of $2 billion and current and noncurrent liabilities of disposal group held for sale of $871 million as of December 31, 2025 and net income from discontinued operations of $155 million for the year ended December 31, 2025. The principal considerations for our determination that performing procedures related to the discontinued operations of the Off-Highway business is a critical audit matter are a high degree of auditor effort in performing procedures and evaluating audit evidence related to management’s assessment, classification, and disclosure of the discontinued operations. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s discontinued operations assessment, including controls related to management’s classification and disclosure of the discontinued operations in the Company’s consolidated financial statements. These procedures also included, among others (i) evaluating management’s assessment that the Off-Highway business sale was a discontinued operation; (ii) testing the classification of amounts included in discontinued operations, including agreeing such amounts to the Company’s historical accounting records; and (iii) evaluating the sufficiency of the disclosures in the consolidated financial statements. /s/ PricewaterhouseCoopers LLP Toledo, Ohio February 27, 2026 We have served as the Company’s auditor since 1916. 32 Table of Contents Dana Incorporated Consolidated Statement of Operations (In millions, except per share amounts) 2025 2024 2023 Net sales $ 7,500 $ 7,734 $ 7,613 Costs and expenses Cost of sales 6,898 7,356 7,236 Selling, general and administrative expenses 387 429 440 Amortization of intangibles 7 8 8 Restructuring charges, net 23 70 23 Loss on disposal group previously held for sale ( 26 ) Other income (expense), net ( 46 ) ( 21 ) ( 14 ) 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 ) Income tax expense 53 31 7 Equity in earnings (loss) of affiliates 32 10 ( 9 ) Net loss from continuing operations ( 53 ) ( 342 ) ( 262 ) Net income from discontinued operations 155 293 310 Net income (loss) 102 ( 49 ) 48 Less: Noncontrolling interests net income from continuing operations 17 21 22 Less: Redeemable noncontrolling interests net loss from continuing operations ( 13 ) ( 12 ) Net income (loss) attributable to the parent company $ 85 $ ( 57 ) $ 38 Net income (loss) per share available to common stockholders Basic loss per share from continuing operations $ ( 0.52 ) $ ( 2.41 ) $ ( 1.88 ) Basic earnings per share from discontinued operations $ 1.16 $ 2.02 $ 2.14 Basic earnings (loss) per share $ 0.64 $ ( 0.39 ) $ 0.26 Diluted loss per share from continuing operations $ ( 0.52 ) $ ( 2.41 ) $ ( 1.88 ) Diluted earnings per share from discontinued operations $ 1.16 $ 2.02 $ 2.14 Diluted earnings (loss) per share $ 0.64 $ ( 0.39 ) $ 0.26 Weighted-average common shares outstanding Basic 133.7 145.2 144.4 Diluted 133.7 145.2 144.4 The accompanying notes are an integral part of the consolidated financial statements. 33 Table of Contents Dana Incorporated Consolidated Statement of Comprehensive Income (In millions) 2025 2024 2023 Net loss from continuing operations $ ( 53 ) $ ( 342 ) $ ( 262 ) Other comprehensive income (loss) from continuing operations, net of tax: Currency translation adjustments 41 ( 97 ) 38 Hedging gains and losses 48 ( 48 ) Defined benefit plans 8 13 ( 16 ) Other comprehensive income (loss) 97 ( 132 ) 22 Total comprehensive income (loss) from continuing operations 44 ( 474 ) ( 240 ) Net income from discontinued operations 155 293 310 Other comprehensive income (loss) from discontinued operations, net of tax: Currency translation adjustments 6 ( 20 ) ( 8 ) Hedging gains and losses ( 1 ) ( 1 ) Defined benefit plans 9 ( 5 ) Other comprehensive income (loss) from discontinued operations 15 ( 26 ) ( 9 ) Total comprehensive income from discontinued operations 170 267 301 Total comprehensive income (loss) 214 ( 207 ) 61 Less: Comprehensive income attributable to noncontrolling interests ( 19 ) ( 18 ) ( 22 ) Less: Comprehensive loss attributable to redeemable noncontrolling interests 16 10 Comprehensive income (loss) attributable to the parent company $ 195 $ ( 209 ) $ 49 The accompanying notes are an integral part of the consolidated financial statements. 34 Table of Contents Dana Incorporated Consolidated Balance Sheet (In millions, except share and per share amounts) 2025 2024 Assets Current assets Cash and cash equivalents $ 469 $ 494 Accounts receivable Trade, less allowance for doubtful accounts of $ 15 in 2025 and $ 12 in 2024 987 890 Other 254 220 Inventories 1,015 1,047 Other current assets 114 130 Current assets of disposal group held for sale 1,029 923 Total current assets 3,868 3,704 Intangibles 71 80 Deferred tax assets 534 514 Other noncurrent assets 102 118 Investments in affiliates 102 125 Operating lease assets 305 260 Property, plant and equipment, net 1,872 1,830 Noncurrent assets of disposal group held for sale 954 855 Total assets $ 7,808 $ 7,486 Liabilities, redeemable noncontrolling interests and equity Current liabilities Short-term debt $ 615 $ 8 Current portion of long-term debt 30 214 Accounts payable 1,154 1,120 Accrued payroll and employee benefits 210 176 Taxes on income 75 49 Current portion of operating lease liabilities 41 35 Other accrued liabilities 495 314 Current liabilities of disposable group held for sale 688 645 Total current liabilities 3,308 2,561 Long-term debt, less debt issuance costs of $ 16 in 2025 and $ 19 in 2024 2,566 2,387 Noncurrent operating lease liabilities 266 235 Pension and postretirement obligations 249 233 Other noncurrent liabilities 337 322 Noncurrent liabilities of disposal group held for sale 183 163 Total liabilities 6,909 5,901 Commitments and contingencies (Note 15) Redeemable noncontrolling interests 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, 112,284,138 and 144,993,614 shares outstanding 1 2 Additional paid-in capital 1,671 2,282 Retained earnings 235 204 Treasury stock, at cost ( 1,944,700 and 837,803 shares) ( 35 ) ( 13 ) Accumulated other comprehensive loss ( 1,032 ) ( 1,142 ) Total parent company stockholders' equity 840 1,333 Noncontrolling interests 59 63 Total equity 899 1,396 Total liabilities, redeemable noncontrolling interests and equity $ 7,808 $ 7,486 The accompanying notes are an integral part of the consolidated financial statements. 35 Table of Contents Dana Incorporated Consolidated Statement of Cash Flows (In millions) 2025 2024 2023 Operating activities Net income (loss) $ 102 $ ( 49 ) $ 48 Less: Net income from discontinued operations 155 293 310 Net loss from continuing operations ( 53 ) ( 342 ) ( 262 ) Depreciation 345 337 299 Amortization 12 13 16 Amortization of deferred financing charges 5 6 5 Write-off of deferred financing costs 1 Earnings of affiliates, net of dividends received ( 8 ) ( 7 ) 11 Stock compensation expense 40 30 26 Deferred income taxes ( 60 ) ( 76 ) ( 99 ) Pension expense (benefit), net ( 2 ) 7 4 Change in working capital 29 33 15 Loss on disposal group previously held for sale 26 Change in other noncurrent assets and liabilities 1 63 Loss on divestiture of ownership interests ( 12 ) Other, net 32 ( 14 ) ( 11 ) Net cash provided by operating activities from continuing operations 329 76 5 Net cash provided by operating activities from discontinued operations 183 374 471 Net cash provided by operating activities 512 450 476 Investing activities Purchases of property, plant and equipment ( 214 ) ( 312 ) ( 427 ) Proceeds from sale of property, plant and equipment 13 7 2 Settlements of undesignated derivatives ( 25 ) ( 5 ) ( 13 ) Proceeds from sale of investments 57 Other, net 5 1 Net cash used in investing activities from continuing operations ( 169 ) ( 305 ) ( 437 ) Net cash used in investing activities from discontinued operations ( 53 ) ( 47 ) ( 91 ) Net cash used in investing activities ( 222 ) ( 352 ) ( 528 ) Financing activities Net change in short-term debt 607 ( 14 ) ( 30 ) Proceeds from long-term debt 1 458 Repayment of long-term debt ( 223 ) ( 37 ) ( 209 ) Deferred financing payments ( 9 ) Dividends paid to common stockholders ( 54 ) ( 58 ) ( 58 ) Repurchases of common stock ( 650 ) Distributions to noncontrolling interests ( 17 ) ( 20 ) ( 10 ) Collection of note receivable from redeemable noncontrolling interest 11 Contributions from redeemable noncontrolling interests 18 22 Swap settlements ( 14 ) Other, net ( 20 ) 9 ( 4 ) Net cash provided by (used in) financing activities ( 371 ) ( 90 ) 160 Net increase (decrease) in cash, cash equivalents and restricted cash ( 81 ) 8 108 Cash, cash equivalents and restricted cash - beginning of period 512 563 442 Effect of exchange rate changes on cash balances 55 ( 59 ) 13 Cash, cash equivalents and restricted cash - end of period $ 486 $ 512 $ 563 The accompanying notes are an integral part of the consolidated financial statements. 36 Table of Contents Dana Incorporated Consolidated Statement of Stockholders’ Equity (In millions) Parent Company Stockholders' Accumulated Parent Additional Other Company Non- Preferred Common Paid-In Retained Treasury Comprehensive Stockholders' controlling Total Stock Stock Capital Earnings Stock Loss Equity Interests Equity Balance, December 31, 2022 $ — $ 2 $ 2,229 $ 321 $ — $ ( 1,001 ) $ 1,551 $ 52 $ 1,603 Net income 38 38 22 60 Other comprehensive income 11 11 11 Common stock dividends and dividend equivalents ($ 0.40 per share) ( 58 ) ( 58 ) ( 58 ) Distributions to noncontrolling interests — ( 12 ) ( 12 ) Redeemable noncontrolling interests adjustment to redemption value 16 16 16 Stock compensation 26 26 26 Stock withheld for employees taxes ( 9 ) ( 9 ) ( 9 ) Balance, December 31, 2023 — 2 2,255 317 ( 9 ) ( 990 ) 1,575 62 1,637 Net income (loss) ( 57 ) ( 57 ) 21 ( 36 ) Other comprehensive loss ( 152 ) ( 152 ) ( 3 ) ( 155 ) Common stock dividends and dividend equivalents ($ 0.40 per share) ( 60 ) ( 60 ) ( 60 ) Distributions to noncontrolling interests — ( 17 ) ( 17 ) Redeemable noncontrolling interests adjustment to redemption value 4 4 4 Stock compensation 27 27 27 Stock withheld for employees taxes ( 4 ) ( 4 ) ( 4 ) Balance, December 31, 2024 — 2 2,282 204 ( 13 ) ( 1,142 ) 1,333 63 1,396 Net income 85 85 17 102 Other comprehensive income 110 110 2 112 Common stock dividends and dividend equivalents ($ 0.40 per share) ( 55 ) ( 55 ) ( 55 ) Distributions to noncontrolling interests — ( 17 ) ( 17 ) Repurchase and retirement of shares ( 1 ) ( 654 ) ( 655 ) ( 655 ) Redeemable noncontrolling interests adjustments to redemption value 8 1 9 9 Sale of non-wholly-owned subsidiary ( 5 ) ( 5 ) Purchase of noncontrolling interests ( 1 ) ( 1 ) Stock compensation 35 35 35 Stock withheld for employees taxes ( 22 ) ( 22 ) ( 22 ) Balance, December 31, 2025 $ — $ 1 $ 1,671 $ 235 $ ( 35 ) $ ( 1,032 ) $ 840 $ 59 $ 899 The accompanying notes are an integral part of the consolidated financial statements. 37 Table of Contents Dana Incorporated Index to Notes to the Consolidated Financial Statements Page 1. Organization and Summary of Significant Accounting Policies 39 2. Discontinued Operations 43 3. Other Intangible Assets 44 4. Restructuring of Operations 45 5. Inventories 46 6. Supplemental Balance Sheet and Cash Flow Information 46 7. Leases 47 8. Stockholders' Equity 48 9. Redeemable Noncontrolling Interests 50 10. Earnings per Share 50 11. Stock Compensation 51 12. Pension and Postretirement Benefit Plans 52 13. Financing Agreements 58 14. Fair Value Measurements and Derivatives 61 15. Commitments and Contingencies 63 16. Warranty Obligations 64 17. Income Taxes 64 18. Other Income (Expense), Net 68 19. Revenue from Contracts with Customers 68 20. Segments, Geographical Area and Major Customer Information 70 21. Equity Affiliates 73 22. Quarterly Financial Data (Unaudited) 73 38 Table of Contents Notes to the Consolidated Financial Statements (In millions, except share and per share amounts) Note 1. Organization and Summary of Significant Accounting Policies General Dana Incorporated (Dana) is headquartered in Maumee, Ohio, and was incorporated in Delaware in 2007. As a global provider of high technology driveline (axles, driveshafts and transmissions); sealing and thermal-management products; and motors, power inverters, and control systems for electric vehicles, our customer base includes virtually every major on-highway vehicle manufacturer in the world. The terms "Dana," "we," "our" and "us," when used in this report are references to Dana. These references include the subsidiaries of Dana unless otherwise indicated or the context requires otherwise. Summary of significant accounting policies Basis of presentation — Our consolidated financial statements include the accounts of all subsidiaries where we hold a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Investments in 20 to 50 %-owned affiliates, which are not required to be consolidated, are generally accounted for under the equity method. Equity in earnings of these investments is presented separately in the consolidated statement of operations, net of tax. Investments in less-than- 20 %-owned companies are generally included in the financial statements at the cost of our investment. Dividends, royalties and fees from these cost basis affiliates are recorded in income when received. Certain items previously reported in specific financial statement captions have been reclassified to conform to the current presentation. In June 2025, we entered into a definitive agreement to sell our Off-Highway business. We concluded that our Off-Highway business met the criteria to be classified as held for sale in June 2025. We analyzed the quantitative and qualitative factors relevant to the pending divestiture of our Off-Highway business and determined that the conditions for discontinued operations presentation have been met. As such, the financial position, results of operations and cash flows of that business are reported as discontinued operations in the accompanying consolidated financial statements. Prior period amounts have been recast to reflect discontinued operations presentation. On January 1, 2026, we completed the previously announced sale of our Off-Highway business to Allison Transmission Holdings, Inc. The sale was consummated pursuant to the terms and conditions of the definitive agreement to sell that we entered in June 2025. See Note 2 for additional information. Held for sale — We classify long-lived assets or disposal groups as held for sale in the period: management commits to a plan to sell; the long-lived asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such long-lived assets or disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; the sale is probable within one year; the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets and disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less costs to sell. If held for sale criteria is no longer met, assets are reclassified as held and used at the lower of their adjusted carrying value or fair value. Discontinued operations — The results of operations of a component or a group of components that either has been disposed of or is classified as held for sale is reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on operations and financial results. Estimates — Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP), which require the use of estimates, judgments and assumptions that affect the amounts reported in our consolidated financial statements and accompanying disclosures. We believe our assumptions and estimates are reasonable and appropriate. However, due to the inherent uncertainties in making estimates, actual results could differ from those estimates. Fair value measurements — A three -tier fair value hierarchy is used to prioritize the inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows: Level 1 inputs (highest priority) include unadjusted quoted prices in active markets for identical instruments. Level 2 inputs include quoted prices for similar instruments that are observable either directly or indirectly. Level 3 inputs (lowest priority) include unobservable inputs in which there is little or no market data, which require management to develop its own assumptions. Classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The inputs we use in our valuation techniques include market data or assumptions that we believe market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. Our valuation techniques include a combination of observable and unobservable inputs. When available, we use quoted market prices to determine the fair value (market approach). In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data and, in the absence of such data, we consider the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of credit risk that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date (income approach). Fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future. Cash and cash equivalents — Cash and cash equivalents includes cash on hand, demand deposits and short-term cash investments that are highly liquid in nature and have maturities of three months or less when purchased. Inventories — Inventories are valued at the lower of cost or net realizable value. Cost is determined using the average or first -in, first -out (FIFO) cost method. 39 Table of Contents Property, plant and equipment — Property, plant and equipment are recorded at cost. Depreciation is recognized over the estimated useful lives using primarily the straight-line method for financial reporting purposes and accelerated depreciation methods for federal income tax purposes. Useful lives of newly acquired assets are generally twenty to thirty years for buildings and building improvements, five to ten years for machinery and equipment, three to five years for tooling and office equipment and three to ten years for furniture and fixtures. If assets are impaired, their value is reduced via an increase in accumulated depreciation. Leases — Our global lease portfolio represents leases of real estate, including manufacturing, assembly and office facilities, while the remainder represents leases of personal property, including manufacturing, material handling and IT equipment. We have lease agreements with lease and non-lease components, which are accounted for separately. Leases with an initial term of twelve months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term. Generally, we use our incremental borrowing rate in determining the present value of lease payments, unless there is a rate stated in the lease agreement. Pre-production costs related to long-term supply arrangements — The costs of tooling used to make products sold under long-term supply arrangements are capitalized as part of property, plant and equipment and depreciated over their useful lives if we own the tooling or if we fund the purchase but our customer owns the tooling and grants us the irrevocable right to use the tooling over the contract period. If we have a contractual right to bill our customers, costs incurred in connection with the design and development of tooling are carried as a component of other accounts receivable until invoiced. Design and development costs related to customer products are deferred if we have an agreement to collect such costs from the customer; otherwise, they are expensed when incurred. The machinery and equipment component of property, plant and equipment includes $ 20 and $ 22 of our tooling related to long-term supply arrangements at December 31, 2025 and December 31, 2024 . Also, at December 31, 2025 and December 31, 2024 other accounts receivables include $ 52 and $ 57 and other noncurrent assets include $ 40 and $ 32 of costs related to tooling, design and development that we have a contractual right to collect from our customers. Intangible assets — Intangible assets include the value of core technology, trademarks and trade names and customer relationships. Core technology and customer relationships have definite lives while the majority of our trademarks and trade names have indefinite lives. Definite-lived intangible assets are amortized over their useful life using the straight-line method of amortization and are periodically reviewed for impairment indicators. Amortization of core technology is charged to cost of sales. Amortization of trademarks and trade names and customer relationships is charged to amortization of intangibles. Fully amortized intangible assets are retired at the end of their economic useful life. Indefinite-lived intangible assets are tested for impairment annually and more frequently if impairment indicators exist. See Note 3 for more information about intangible assets. Investments in affiliates — Investments in affiliates include investments accounted for under the equity and cost methods. We monitor our investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis in accordance with GAAP. Indicators include, but are not limited to, current economic and market conditions, operating performance of the affiliate, including current earnings trends and undiscounted cash flows, and other affiliate-specific information. If we determine that an other-than-temporary decline in value has occurred, we recognize an impairment loss, which is measured as the excess of the investment's recorded carrying value over its fair value. The fair value determination, particularly for investments in privately-held companies, requires significant judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investments and determination of whether any identified impairment is other than temporary. See Note 21 for further information about our investment in affiliates. Tangible asset impairments — We review the carrying value of depreciable long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the undiscounted future net cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds their fair value. Assets to be disposed of are reported at the lower of their carrying amount or fair value less costs to sell and are no longer depreciated. Other long-lived assets and liabilities — We discount our workers’ compensation obligations by applying blended risk-free rates that are appropriate for the duration of the projected cash flows. The use of risk-free rates is considered appropriate given that other risks affecting the volume and timing of payments have been considered in developing the probability-weighted projected cash flows. The blended risk-free rates are revised annually to consider incremental cash flow projections. Supplier finance programs — We facilitate voluntary supplier finance programs to provide certain suppliers the opportunity to sell their right to Dana payment obligations to participating financial institutions. Under these programs, Dana agrees to pay the participating financial institutions the stated amount of confirmed invoices from its designated suppliers on the original maturity dates of the invoices. Participation by suppliers in these programs have no impact on the payment terms and amounts due from Dana. Dana does not have an economic interest in a supplier's participation in the program and is not a party to the agreement between the supplier and the financial institutions. In connection with these programs, Dana does not pledge assets or other forms of guarantees as security for the committed payment to the participating financial institutions. Confirmed obligations are presented as accounts payable within total current liabilities on the consolidated balance sheet. Financial instruments — The carrying values of cash and cash equivalents, trade receivables, notes receivable and short-term borrowings approximate fair value. Borrowings under our credit facilities are carried at historical cost and adjusted for principal payments and foreign currency fluctuations. Derivative s — Foreign currency forward contracts and currency swaps are carried at fair value. We enter into these contracts to manage our exposure to the impact of currency fluctuations on certain foreign currency-denominated assets and liabilities and on a portion of our forecasted purchase and sale transactions. On occasion, we also enter into net investment hedges to protect the translated U.S. dollar value of our investment in certain foreign subsidiaries. We also periodically enter into fixed-to-fixed cross-currency swaps on foreign currency-denominated external or intercompany debt instruments to reduce our exposure to foreign currency exchange rate risk. We do not use derivatives for trading or speculative purposes and we do not hedge all of our exposures. 40 Table of Contents For derivative instruments designated as cash flow hedges, at the cash flow hedge’s inception and on an ongoing basis, the company formally assesses whether the cash flow hedging instruments have been highly effective in offsetting changes in the cash flows of the hedged transactions and whether those cash flow hedging instruments may be expected to remain highly effective in future periods. Changes in the fair value of currency-related contracts treated as cash flow hedges are deferred and included as a component of other comprehensive income (loss) (OCI). For our fixed-to-fixed cross-currency swaps, a review of critical terms is performed each period to establish that an assumption of effectiveness remains appropriate. Deferred gains and losses are reclassified to earnings in the same periods in which the underlying transactions affect earnings. Changes in the fair value of contracts treated as net investment hedges are recorded in the cumulative translation adjustment (CTA) component of OCI. Amounts recorded in CTA are deferred until such time as the investment in the associated subsidiary is substantially liquidated. Changes in the fair value of contracts not treated as cash flow hedges or as net investment hedges are recognized in other income (expense), net in the period in which those changes occur. We may also use fixed-to-floating or floating-to-fixed interest rate swaps or other similar derivatives to manage exposure to fluctuations in interest rates and to adjust the mix of our fixed-rate and variable-rate debt. As a fair value hedge of the underlying debt, changes in the fair values of the swap and the underlying debt are recorded in interest expense. No such fixed-to-floating or floating-to-fixed swaps were outstanding at December 31, 2025 or December 31, 2024 . See Note 14 for additional information. Cash flows associated with designated derivatives are classified within the same category as the item being hedged on the consolidated statement of cash flows. Cash flows associated with undesignated derivatives are included in the investing category on the consolidated statement of cash flows. Warranty — Costs related to product warranty obligations are estimated and accrued at the time of sale with a charge against cost of sales. Warranty accruals are evaluated and adjusted as appropriate based on occurrences giving rise to potential warranty exposure and associated experience. Warranty accruals and adjustments require significant judgment, including a determination of our involvement in the matter giving rise to the potential warranty issue or claim, our contractual requirements, estimates of units requiring repair and estimates of repair costs. Environmental compliance and remediation — Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to existing conditions caused by past operations that do not contribute to our current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable and the costs can be reasonably estimated. We consider the most probable method of remediation, current laws and regulations and existing technology in determining our environmental liabilities. Pension and other postretirement defined benefits — Net pension and postretirement benefits expenses and the related liabilities are determined on an actuarial basis. These plan expenses and obligations are dependent on management’s assumptions developed in consultation with our actuaries. We review these actuarial assumptions at least annually and make modifications when appropriate. With the input of independent actuaries and other relevant sources, we believe that the assumptions used are reasonable; however, changes in these assumptions, or experience different from that assumed, could impact our financial position, results of operations or cash flows. Postemployment benefits — Costs to provide postemployment benefits to employees are accounted for on an accrual basis. Obligations that do not accumulate or vest are recorded when payment is probable and the amount can be reasonably estimated. For those obligations that accumulate or vest and the amount can be reasonably estimated, expense and the related liability are recorded as service is rendered. Equity-based compensation — We measure compensation cost arising from the grant of share-based awards to employees at fair value. We recognize such costs in income over the period during which the requisite service is provided, usually the vesting period. The grant date fair value is estimated using valuation techniques that require the input of management estimates and assumptions. Government assistance — We account for separate legally enforceable agreements with governments and government agencies where the agreement provides for the government to determine whether Dana will receive assistance and the amount of assistance by applying a contribution accounting model by analogy. The primary forms of government assistance received includes cash grants based on making qualifying capital investments over a specified period of time; cash grants based on creating new jobs, increasing and maintaining qualifying employee headcount over a specified period of time; and cash grants based on investing in specified research and development activities. The agreements include imposed conditions that must be satisfied for us to retain grant proceeds received. Imposed conditions include providing documentation supporting qualified expenditures have been made and may include providing documentation that specified employment levels have been achieved. Imposed conditions related to employment levels typically range from one to five years. Amounts received or receivable from these cash grants are deferred as a liability until such time as we have satisfied all imposed conditions documented in the agreement with the government. Deferred amounts are recorded in other accrued liabilities and other noncurrent liabilities as appropriate. Government assistance received for making qualifying capital investments is realized by reducing the associated fixed assets so long as we have satisfied all imposed conditions by the time the associated fixed assets are placed into service. All other government assistance is realized in other income (expense), net once all imposed conditions have been satisfied. See Notes 6 and 18 for additional information. Revenue recognition — Sales are recognized when products are shipped and risk of loss has transferred to the customer. We accrue for warranty costs, sales returns and other allowances based on experience and other relevant factors when sales are recognized. Adjustments are made as new information becomes available. Shipping and handling fees billed to customers are included in sales, while costs of shipping and handling are included in cost of sales. Taxes collected from customers are excluded from revenues and credited directly to obligations to the appropriate governmental agencies. See Note 19 for additional information. 41 Table of Contents Foreign currency translation — The financial statements of subsidiaries and equity affiliates outside the U.S. located in non-highly inflationary economies are measured using the currency of the primary economic environment in which they operate as the functional currency, which typically is the local currency. Transaction gains and losses resulting from translating assets and liabilities of these entities into the functional currency are included in other income (expense), net or in equity in earnings of affiliates. When translating into U.S. dollars, income and expense items are translated at average monthly rates of exchange, while assets and liabilities are translated at the rates of exchange at the balance sheet date. Translation adjustments resulting from translating the functional currency into U.S. dollars are deferred and included as a component of accumulated other comprehensive income (loss) (AOCI) in stockholders’ equity. For operations whose functional currency is the U.S. dollar, nonmonetary assets are translated into U.S. dollars at historical exchange rates and monetary assets are translated at current exchange rates with translation gains and losses included in other income (expense), net. We continue to account for Argentina as a highly inflationary economy and remeasure the financial statements of our Argentine subsidiaries as if their functional currency was the U.S. dollar. Income taxes — In the ordinary course of business there is inherent uncertainty in quantifying our income tax positions. We assess our income tax positions and record tax assets or liabilities for all years subject to examination based upon management’s evaluation of the facts and circumstances and information available at the reporting dates. For those tax positions where it is more likely than not that a tax benefit will be sustained, we have recorded the largest amount of tax benefit with a greater than 50 % likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where it is not more likely than not that a tax benefit will be sustained, no tax benefit has been recognized in the financial statements. Where applicable, the related interest cost has also been recognized as a component of the income tax provision. A valuation allowance is provided when, in our judgment based upon available information, it is more likely than not that a portion of such deferred tax assets will not be realized. To make this assessment, we consider the historical and projected future taxable income or loss by tax jurisdiction. We consider all components of comprehensive income and weigh the positive and negative evidence, putting greater reliance on objectively verifiable historical evidence than on projections of future profitability that are dependent on actions that have not taken place as of the assessment date. We also consider changes to historical profitability of actions that occurred through the date of assessment and objectively verifiable effects of material forecasted events that would have a sustained effect on future profitability, as well as the effect on historical profits of nonrecurring events. We also incorporate the changes to historical and prospective income from tax planning strategies that are prudent and feasible. Research and development — Research and development costs include expenditures for research activities relating to product development and improvement. Salaries, fringes and occupancy costs, including building, utility and overhead costs, comprise the vast majority of these expenses and are expensed as incurred. Research and development expenses were $ 105 , $ 184 and $ 196 in 2025, 2024 and 2023, respectively. Recently adopted accounting pronouncements On December 31, 2025, we adopted Accounting Standards Update (ASU) 2023 - 09, Improvements to Income Tax Disclosures . This guidance requires disaggregated income tax disclosures on the rate reconciliation and income taxes paid. See Note 17 for more information. Recently issued accounting pronouncements In December 2025, the Financial Accounting Standards Board (FASB) issued ASU 2025 - 10, Government Grants (Topic 832 ) , which addresses the recognition, measurement, presentation and disclosure of government grants, including grants related to income and grants related to assets. The new guidance leverages the principles in the accounting framework for government assistance in IFRS, specifically IAS 20, with certain targeted improvements. This ASU requires entities to recognize government grants only when it is probable that the entity will meet the stipulated grant conditions and ultimately receive the grant funds. This ASU provides two acceptable methods for accounting for grants related to assets: the grant may be initially recognized as deferred income, or it may be recorded as an adjustment to reduce the cost basis of the related asset. For grants related to income, the standard mandates that these shall be consistently recognized as deferred income. Deferred grants should be recognized in earnings on a systematic and rational basis either under a general heading such as other income or deducted from the related expense. The guidance is effective for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods; early adoption is permitted. We do not expect this guidance to have a material impact on our consolidated financial statements and related disclosures. In November 2025, the FASB issued ASU 2025 - 09, Derivatives and Hedging (Topic 815 ), which provides targeted amendments to better align U.S. GAAP with common risk management practices. The guidance simplifies cash flow hedge accounting for forecasted transactions primarily by allowing entities to hedge a broader group of risks using a single derivative. Additionally, the ASU expands the scope of qualifying hedged items to include certain nonfinancial components, creates an optional accounting model for "choose-your-rate" debt instruments, and eliminates the recognition mismatch for dual-hedge strategies. The guidance is effective for annual reporting periods beginning after December 15, 2026; early adoption is permitted. We do not expect this guidance to have a material impact on our consolidated financial statements and related disclosures. In September 2025, the FASB issued ASU 2025 - 06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350 - 40 ): Targeted Improvements to the Accounting for Internal-Use Software , which eliminates the sequential software development-stage model and requires capitalization when management authorizes and commits to funding a software project and determines it is probable of completion. In evaluating whether it is probable the project will be completed, management is required to consider whether there is significant uncertainty associated with the development activities of the software. The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods, with early adoption permitted. We are currently evaluating the impact of the guidance on the consolidated financial statements and related disclosures. In July 2025, the FASB issued ASU 2025 - 05, Financial Instruments-Credit Losses (Topic 326 ): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which introduces a practical expedient that allows entities to assume conditions existing at the balance-sheet date will remain constant over the remaining life of current accounts receivable and contract assets arising from revenue transactions. The guidance is effective prospectively for annual reporting periods beginning after December 15, 2025, including interim periods within those annual reporting periods, with early adoption permitted. We do not expect this guidance to have a material impact on our consolidated financial statements and related disclosures. In November 2024, the FASB issued ASU 2024 - 03, Disaggregation of Income Statement Expenses (Subtopic 220 - 40 ), which requires public entities to disclose detailed components of income statement expenses, such as inventory purchases, employee compensation, depreciation and amortization within relevant expense captions. Companies are also required to explain amounts not disaggregated and define and disclose total selling expenses. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027. We are currently evaluating the impact of the guidance on our financial statement disclosures. 42 Table of Contents Note 2. Discontinued Operations In June 2025, we entered into a definitive agreement to sell our Off-Highway business to Allison Transmission Holdings, Inc. (Allison). The transaction closed on January 1, 2026, with Dana receiving gross cash proceeds of $ 2,664 . The sale price is subject to adjustment based on net working capital and net indebtedness balances as of the closing date. We expect to recognize a gain on the sale within our financial statements for the first quarter of 2026. The initial accounting for the sale is in process, including the effect of working capital and net indebtedness adjustments and the recognition of foreign currency translation adjustments included in accumulated other comprehensive loss. As such, the gain on sale cannot be estimated at this time. At closing, Dana entered into a transition services agreement, engineering services agreement, intellectual property and trademark license agreements, and certain supply agreements with Allison. Services to be provided by Dana under the transition services agreement include finance, information technology, human resources and certain other administrative services for periods up to 24 months. The major classes of line items included in net income from discontinued operations are as follows: 2025 2024 2023 Net sales $ 2,498 $ 2,696 $ 3,085 Cost of sales 2,039 2,198 2,562 Selling, general and administrative expenses 108 95 109 Amortization of intangibles 2 5 5 Restructuring charges, net 2 6 2 Other income (expense), net ( 63 ) 10 17 Earnings from discontinued operations before interest and income taxes 284 402 424 Interest income 3 2 2 Interest expense 3 3 2 Earnings from discontinued operations before income taxes 284 401 424 Income tax expense 129 108 114 Net income from discontinued operations $ 155 $ 293 $ 310 During 2025, we incurred $ 84 of Off-Highway business divestiture transaction related costs. These costs were attributed to discontinued operations and included in other income (expense), net in the table above. The carrying amounts of the major classes of assets and liabilities of our Off-Highway business are as follows: 2025 2024 Accounts receivable - Trade $ 360 $ 305 Accounts receivable - Other 39 41 Inventories 533 500 Other current assets 97 77 Current assets of disposal group held for sale $ 1,029 $ 923 Goodwill $ 270 $ 250 Intangibles 72 70 Deferred tax assets 49 46 Other noncurrent assets 44 72 Operating lease assets 39 33 Property, plant and equipment, net 480 384 Noncurrent assets of disposal group held for sale $ 954 $ 855 Current portion of long-term debt $ 2 $ — Accounts payable 425 402 Accrued payroll and employee benefits 72 60 Taxes on income 11 20 Current portion of operating lease liabilities 9 9 Other accrued liabilities 169 154 Current liabilities of disposal group held for sale $ 688 $ 645 Long-term debt $ 33 $ 2 Noncurrent operating lease liabilities 30 23 Pension and postretirement obligations 48 62 Other noncurrent liabilities 72 76 Noncurrent liabilities of disposal group held for sale $ 183 $ 163 43 Table of Contents Note 3. Other Intangible Assets Non-amortizable intangible assets — Our non-amortizable intangible assets include a portion of our trademarks and trade names. Non-amortizable trademarks and trade names consist of the Dana®, Spicer® and TM4® trademarks and trade names utilized in our Commercial Vehicle segment. We value trademarks and trade names using a relief from royalty method which is based on revenue streams. No impairment was recorded during the three years ended December 31, 2025 in connection with the required annual assessment for trademarks and trade names. Amortizable intangible assets — Our amortizable intangible assets include core technology and customer relationships. Core technology includes the proprietary know-how and expertise that is inherent in our products and manufacturing processes. Customer relationships include the established relationships with our customers and the related ability of these customers to continue to generate future recurring revenue and income. These assets are tested for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. We group the assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and evaluate the asset group against the undiscounted future cash flows. We use our internal forecasts, which we update quarterly, to develop our cash flow projections. These forecasts are based on our knowledge of our customers’ production forecasts, our assessment of market growth rates, net new business, material and labor cost estimates, cost recovery agreements with customers and our estimate of savings expected from our restructuring activities. The most likely factors that would significantly impact our forecasts are changes in customer production levels and loss of significant portions of our business. Our valuation is applied over the life of the primary assets within the asset groups. If the undiscounted cash flows do not indicate that the carrying amount of the asset group is recoverable, an impairment charge is recorded if the carrying amount of the asset group exceeds its fair value based on discounted cash flow analyses or appraisals. There were no impairments recorded during the three years ended December 31, 2025 . 44 Table of Contents Components of other intangible assets (excluding fully-amortized other intangible assets) — December 31, 2025 December 31, 2024 Weighted Average Gross Accumulated Net Gross Accumulated Net Useful Life Carrying Impairment and Carrying Carrying Impairment and Carrying (years) Amount Amortization Amount Amount Amortization Amount Amortizable intangible assets Core technology 11 $ 50 $ ( 32 ) $ 18 $ 47 $ ( 25 ) $ 22 Customer relationships 10 67 ( 53 ) 14 65 ( 45 ) 20 Non-amortizable intangible assets Trademarks and trade names 39 39 38 38 $ 156 $ ( 85 ) $ 71 $ 150 $ ( 70 ) $ 80 The net carrying amounts of intangible assets attributable to each of our operating segments at December 31, 2025 were as follows: Light Vehicle Systems (Light Vehicle) – $ 8 and Commercial Vehicle Systems (Commercial Vehicle) – $ 63 . Amortization expense related to amortizable intangible assets — 2025 2024 2023 Charged to cost of sales $ 5 $ 5 $ 8 Charged to amortization of intangibles 7 8 8 Total amortization $ 12 $ 13 $ 16 The following table provides the estimated aggregate pre-tax amortization expense related to intangible assets for each of the next five years based on December 31, 2025 exchange rates. Actual amounts may differ from these estimates due to such factors as currency translation, customer turnover, impairments, additional intangible asset acquisitions and other events. 2026 2027 2028 2029 2030 Amortization expense $ 11 $ 10 $ 6 $ 3 $ 2 Note 4. Restructuring of Operations Our restructuring activities include rationalizing our operating footprint by consolidating facilities, positioning operations in lower cost locations, and headcount reduction initiatives focused on reducing operating and overhead costs. Restructuring expense includes costs associated with current and previously announced actions and is comprised of contractual and noncontractual separation costs and exit costs, including certain operating costs of facilities that we are in the process of closing. During 2024, we announced actions to consolidate certain manufacturing facilities along with global headcount reductions focused on reducing engineering and overhead costs in response to market dynamics, including delays in the adoption of electric vehicles. During 2025, we continued to execute on these initiatives. Accrued restructuring costs and activity — Employee Termination Exit Benefits Costs Total Balance, December 31, 2022 $ 1 $ — $ 1 Charges to restructuring 15 8 23 Cash payments ( 8 ) ( 8 ) ( 16 ) Balance, December 31, 2023 8 — 8 Charges to restructuring 59 13 72 Adjustments of accruals ( 2 ) ( 2 ) Cash payments ( 20 ) ( 12 ) ( 32 ) Currency impact ( 1 ) ( 1 ) Balance, December 31, 2024 44 1 45 Charges to restructuring 21 10 31 Adjustments of accruals ( 8 ) ( 8 ) Cash payments ( 39 ) ( 9 ) ( 48 ) Currency impact 3 3 Balance, December 31, 2025 $ 21 $ 2 $ 23 At December 31, 2025 , accrued employee termination benefits include costs to reduce approximately 400 employees to be completed over the next year. 45 Table of Contents Note 5. Inventories Inventory components at December 31 — 2025 2024 Raw materials $ 458 $ 456 Work in process and finished goods 557 591 Total $ 1,015 $ 1,047 Note 6. Supplemental Balance Sheet and Cash Flow Information Supplemental balance sheet information at December 31 — 2025 2024 Other current assets: Prepaid expenses $ 96 $ 109 Restricted cash 7 9 Other 11 12 Total $ 114 $ 130 Other noncurrent assets: Deferred customer incentives $ 15 $ 27 Pre-production costs receivable 40 32 Pension assets, net of related obligations 16 11 Restricted cash 10 9 Deferred financing costs 3 4 Other 18 35 Total $ 102 $ 118 Property, plant and equipment, net: Land and improvements to land $ 144 $ 132 Buildings and building fixtures 445 388 Machinery and equipment 3,393 3,160 Software and hardware 334 323 Construction in progress 356 423 Finance lease right-of-use assets 169 86 Total cost 4,841 4,512 Less: accumulated depreciation ( 2,969 ) ( 2,682 ) Net $ 1,872 $ 1,830 Other accrued liabilities (current): Mandatorily redeemable noncontrolling interest $ 190 $ — Non-income taxes payable 29 27 Warranty reserves 18 25 Contract liabilities 25 6 Accrued interest 47 43 Accrued customer rebates 24 20 Payable under forward contracts 7 40 Restructuring costs 23 45 Environmental 4 2 Deferred government assistance 3 Other expense accruals 128 103 Total $ 495 $ 314 Other noncurrent liabilities: Income tax liability $ 85 $ 80 Interest rate swap market valuation 26 5 Deferred income tax liability 19 51 Workplace injury costs 7 13 Warranty reserves 53 64 Deferred government assistance 21 17 Other noncurrent liabilities 126 92 Total $ 337 $ 322 46 Table of Contents Cash, cash equivalents and restricted cash at — December 31, 2025 December 31, 2024 December 31, 2023 December 31, 2022 Cash and cash equivalents $ 469 $ 494 $ 529 $ 425 Restricted cash included in other current assets 7 9 23 7 Restricted cash included in other noncurrent assets 10 9 11 10 Total cash, cash equivalents and restricted cash $ 486 $ 512 $ 563 $ 442 Supplemental cash flow information — 2025 2024 2023 Change in working capital: Change in accounts receivable $ ( 47 ) $ ( 14 ) $ ( 63 ) Change in inventories 78 ( 11 ) ( 37 ) Change in accounts payable ( 13 ) ( 5 ) ( 80 ) Change in accrued payroll and employee benefits 26 ( 25 ) 58 Change in accrued income taxes 47 23 28 Change in other current assets and liabilities ( 62 ) 65 109 Net $ 29 $ 33 $ 15 Cash paid during the period for: Interest $ 170 $ 156 $ 126 Noncash investing and financing activities: Purchases of property, plant and equipment held in accounts payable $ 33 $ 43 $ 45 Stock compensation plans 35 27 26 Noncash dividends declared 1 1 1 Supplier finance programs information — 2025 2024 Confirmed obligations outstanding at the beginning of the year $ 46 $ 50 Invoices confirmed during the year 207 189 Confirmed invoices paid during the year ( 194 ) ( 193 ) Confirmed obligations outstanding at the end of the year $ 59 $ 46 Note 7. Leases Our leases generally have remaining lease terms of one year to twenty years, some of which include options to extend the leases for up to forty years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table provides a summary of the location and amounts related to finance leases recognized in the consolidated balance sheet. Short-term and variable lease costs were insignificant as o f December 31, 2025 , 2024 , and 2023 . Classification 2025 2024 Finance lease right-of-use assets Property, plant and equipment, net $ 169 $ 86 Finance lease liabilities Current portion of long-term debt 29 14 Finance lease liabilities Long-term debt 148 78 Components of lease expense — 2025 2024 2023 Operating lease cost $ 64 $ 57 $ 56 Finance lease cost: Amortization of right-of-use assets $ 23 $ 10 $ 6 Interest on lease liabilities 7 3 2 Total finance lease cost $ 30 $ 13 $ 8 47 Table of Contents Supplemental cash flow information related to leases — 2025 2024 2023 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 63 $ 56 $ 53 Operating cash flows from finance leases 7 3 2 Financing cash flows from finance leases 19 9 6 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 74 $ 28 $ 48 Finance leases 100 53 5 Supplemental balance sheet information related to leases — 2025 2024 Weighted-average remaining lease term (years): Operating leases 10 10 Finance leases 9 8 Weighted-average discount rate: Operating leases 6.6 % 7.0 % Finance leases 4.8 % 5.8 % Maturities — Operating Leases Finance Leases 2026 $ 60 $ 37 2027 54 33 2028 47 27 2029 41 25 2030 36 19 Thereafter 195 74 Total lease payments 433 215 Less: interest 126 38 Present value of lease liabilities $ 307 $ 177 Note 8. Stockholders' Equity Preferred Stock We are authorized to issue 50,000,000 shares of Dana preferred stock, par value $ 0.01 per share. There were no preferred shares outstanding at December 31, 2025 or 2024 . Common Stock We are authorized to issue 450,000,000 shares of Dana common stock, par value $ 0.01 per share. At December 31, 2025 , there were 114,228,838 shares of our common stock issued and 112,284,138 shares outstanding, net of 1,944,700 in treasury shares. Treasury shares include those shares withheld at cost to satisfy tax obligations from stock awards issued under our stock compensation plan in addition to shares repurchased through share repurchase programs. Our Board of Directors declared a cash dividend of ten cents per share of common stock in all four quarters of 2025 . Aggregate 2025 cash dividends paid totaled $ 54 . Dividends accrue on restricted stock units (RSUs) granted under our stock compensation program and will be paid in cash or additional units when the underlying units vest. 48 Table of Contents Changes in each component of AOCI of the parent — Parent Company Stockholders Accumulated Foreign Defined Other Currency Benefit Comprehensive Translation Hedging Plans Loss Balance, December 31, 2022 $ ( 895 ) $ 21 $ ( 127 ) $ ( 1,001 ) Other comprehensive income (loss): Currency translation adjustments 27 27 Holding gains and losses 22 22 Reclassification of amount to net income (a) ( 23 ) ( 23 ) Net actuarial losses ( 25 ) ( 25 ) Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b) 3 3 Tax benefit 7 7 Other comprehensive income (loss) 27 ( 1 ) ( 15 ) 11 Balance, December 31, 2023 ( 868 ) 20 ( 142 ) ( 990 ) Other comprehensive income (loss): Currency translation adjustments ( 110 ) ( 110 ) Holding gains and losses ( 28 ) ( 28 ) Reclassification of amount to net income (a) ( 31 ) ( 31 ) Net actuarial gains 4 4 Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b) 6 6 Tax benefit (expense) 1 10 ( 4 ) 7 Other comprehensive income (loss) ( 109 ) ( 49 ) 6 ( 152 ) Balance, December 31, 2024 ( 977 ) ( 29 ) ( 136 ) ( 1,142 ) Other comprehensive income (loss): Currency translation adjustments 45 45 Holding gains and losses 14 14 Reclassification of amount to net income (a) 47 47 Net actuarial gains 20 20 Reclassification adjustment for net actuarial losses included in net periodic benefit cost (b) 3 3 Tax expense ( 13 ) ( 6 ) ( 19 ) Other comprehensive income 45 48 17 110 Balance, December 31, 2025 $ ( 932 ) $ 19 $ ( 119 ) $ ( 1,032 ) ___________________________________________________ Notes: (a) Realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments treated as cash flow hedges are reclassified from AOCI into the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded. See Note 14 for additional details. (b) See Note 12 for additional details. 49 Table of Contents Note 9. Redeemable Noncontrolling Interests Hydro-Québec owned a 45 % redeemable noncontrolling interest in Dana TM4 Inc., Dana TM4 Electric Holdings BV and Dana TM4 USA, LLC. The terms of the joint venture agreement provide Hydro-Québec with the right to put all, and not less than all, of its ownership interests in Dana TM4 Inc., Dana TM4 Electric Holdings BV and Dana TM4 USA, LLC to Dana at fair value. Redeemable noncontrolling interests reflected as of the balance sheet date are the greater of the redeemable noncontrolling interest balances adjusted for comprehensive income (loss) items and distributions or the redemption values. Redeemable noncontrolling interest adjustments of redemption value are recorded in retained earnings. We estimate the fair value of the redemption value using an income based approach based on discounted cash flow projections. In determining fair value using discounted cash flow projections, we make significant assumptions and estimates about the extent and timing of future cash flows, including revenue growth rates, projected EBITDA, discount rate, capital expenditures and terminal growth rate. On May 6, 2024, Hydro‑Québec delivered its put notice to Dana. Following this notice, Dana ceased attributing net income (loss) and other comprehensive income (loss) of Dana TM4 Inc., Dana TM4 Electric Holdings BV, and Dana TM4 USA, LLC to Hydro‑Québec’s redeemable noncontrolling interest. During the fourth quarter of 2025, we finalized the purchase price with Hydro‑Québec resulting in the redeemable noncontrolling interest becoming mandatorily redeemable and reclassified the redemption value to other current liabilities. As of December 31, 2025, the liability was remeasured to reflect the final purchase price of $ 190 , resulting in an incremental charge of $ 2 , which was recorded in other income (expense), net. The purchase agreement with Hydro‑Québec includes a contingent earnout provision that may require additional consideration if a cumulative sales threshold is achieved over the three‑year period ending December 31, 2028. The maximum potential earnout payment is $ 266 . We determined that it is not probable the minimum sales threshold will be met and therefore no liability has been recorded. On January 20, 2026, the transaction was completed and we paid Hydro‑Québec the full purchase price of $ 190 . Reconciliation of changes in redeemable noncontrolling interests — 2025 2024 Balance, beginning of period $ 189 $ 191 Capital contribution from redeemable noncontrolling interest 18 Adjustment to redemption value ( 1 ) ( 4 ) Reclassification to other liabilities ( 188 ) Comprehensive income (loss) adjustments: Net loss attributable to redeemable noncontrolling interests ( 13 ) Other comprehensive income (loss) attributable to redeemable noncontrolling interests ( 3 ) Balance, end of period $ — $ 189 Note 10. Earnings per Share Reconciliation of the numerators and denominators of the earnings per share calculations — 2025 2024 2023 Net loss from continuing operations ( 53 ) ( 342 ) ( 262 ) Less: Noncontrolling interests net income from continuing operations 17 21 22 Less: Redeemable noncontrolling interest net loss from continuing operations ( 13 ) ( 12 ) Net loss from continuing operations attributable to the parent company ( 70 ) ( 350 ) ( 272 ) Net income from discontinued operations 155 293 310 Net income (loss) attributable to the parent company $ 85 $ ( 57 ) $ 38 Denominator: Weighted-average common shares outstanding - Basic 133.7 145.2 144.4 Employee compensation-related shares, including stock options Weighted-average common shares outstanding - Diluted 133.7 145.2 144.4 The share count for diluted earnings per share is computed on the basis of the weighted-average number of common shares outstanding plus the effects of dilutive common stock equivalents (CSEs) outstanding during the period. We excluded 0.1 million CSEs from the calculations of diluted earnings per share for the year 2023 as the effect of including them would have been anti-dilutive. In addition, we excluded CSEs that satisfied the definition of potentially dilutive shares of 1.8 million, 0.2 million, and 0.2 million for 2025, 2024, and 2023 as a result of the loss from continuing operations for these periods. 50 Table of Contents Note 11. Stock Compensation 2021 Omnibus Incentive Plan The 2021 Omnibus Incentive Plan (the Plan) authorizes the grant of stock options, stock appreciation rights (SARs), RSUs and performance share units (PSUs) through April 2031. Cash-settled awards do not count against the number of shares available for award under the Plan. At December 31, 2025 , there were 4.9 million shares available for future grants. Shares of common stock to be issued under the Plan are made available from authorized and unissued Dana common stock. Award activity — (shares in millions) RSUs PSUs Grant-Date Grant-Date Shares Fair Value* Shares Fair Value* December 31, 2024 3.2 $ 12.76 0.8 $ 19.53 Granted 1.2 17.20 0.3 18.70 Vested ( 2.5 ) 12.44 ( 0.6 ) 18.56 Forfeited ( 0.2 ) 15.05 — — December 31, 2025 1.7 16.20 0.5 19.67 * Weighted-average per share 2025 2024 2023 Total stock compensation expense $ 40 $ 30 $ 26 Total grant-date fair value of awards vested 42 31 33 Cash received from exercise of stock options 3 Cash paid to settle RSUs 4 4 5 Intrinsic value of stock options exercised 1 Intrinsic value of RSUs and PSUs vested 61 21 30 During the year ended 2025, the Company amended the PSU awards to accrue dividends, which are subject to the same vesting and forfeiture conditions as the original award. The incremental compensation cost resulting from this modification is not material. The weighted-average fair values presented above, including the beginning-of-year values, reflect the impact of this modification. Compensation expense is generally measured based on the fair value at the date of grant and is recognized on a straight-line basis over the vesting period. For RSUs and PSUs, the fair value is based on the closing market price of our common stock at the date of grant. Awards that are settled in cash are subject to liability accounting. Accordingly, the fair value of such awards is remeasured at the end of each reporting period until settled or expired. We had accrued $ 2 for cash-settled awards at both December 31, 2025 and 2024 . During 2025 we issued 2.5 million and 0.2 million shares of common stock based on vesting of RSUs and PSUs, respectively. At December 31, 2025 , the total unrecognized compensation cost related to the nonvested awards granted and expected to vest was $ 22 . This cost is expected to be recognized over a weighted-average period of 1.6 years. Stock options and stock appreciation rights — The exercise price of each option or SAR equals the closing market price of our common stock on the date of grant. SARs are settled in cash for the difference between the market price on the date of exercise and the exercise price. We have not granted stock options or SARs since 2013. At December 31, 2025 , there were no outstanding stock options or SARs as they have all been exercised or expired. Restricted stock units and performance shares units — Each RSU or PSU granted represents the right to receive one share of Dana common stock or, at the election of Dana (for units awarded to board members) or for employees located outside the U.S. (for employee awarded units), cash equal to the market value per share. All RSUs contain forfeitable dividend equivalent rights. RSUs granted to non-employee directors vest on the first anniversary date of the grant and those granted to employees p ro-rata vest over three years. PSUs granted to employees vest if specified performance goals are achieved during the respective performance period, generally three years. Under the 2025 , 2024 , and 2023 stock compensation award programs, the number of PSUs that ultimately vest is contingent on achieving specified financial targets and specified total shareholder return targets relative to peer companies. For the portions of the awards based on financial metrics, we estimated the fair value at grant date based on the closing market price of our common stock at the date of grant. The estimated grant date value is accrued over the performance period and adjusted as appropriate based on performance relative to the target. For the portion of the PSU award based on shareholder returns, we estimated the fair value at grant date using various assumptions as part of a Monte Carlo simulation. The expected term represents the period from the grant date to the end of the performance period. The risk-free interest rate was based on U.S. Treasury constant maturity rates at the grant date. The estimated volatility was based on observed historical volatility of daily stock returns for the 3 -year period preceding the grant date. PSUs 2025 2024 Expect term (in years) 3.0 3.0 Risk-free interest rate 4.23 % 4.39 % Expected volatility 49.1 % 47.7 % Cash incentive awards — Our 2021 Omnibus Incentive Plan provides for cash incentive awards. We make awards annually to certain eligible employees designated by Dana, including certain executive officers. Awards under the plan are primarily based on achieving certain financial performance goals. The financial performance goals of the plan are established annually by the Board of Directors. Under the 2025 annual incentive program, participants were eligible to receive cash awards based on achieving earnings, net new business and cash flow performance goals. Under the 2024 and 2023 annual incentive programs, participants were eligible to receive cash awards based on achieving earnings, sales and cash flow performance goals. We recognized $ 72 , $ 49 and $ 85 of expense in 2025 , 2024 and 2023 for the expected cash payments under these programs. 51 Table of Contents Note 12. Pension and Postretirement Benefit Plans We sponsor various defined benefit, qualified and nonqualified, pension plans covering eligible employees. Other postretirement benefits (OPEB), including medical and life insurance, are provided for certain employees upon retirement. We also sponsor various defined contribution plans that cover the majority of our employees. Under the terms of the qualified defined contribution retirement plans, employee and employer contributions may be directed into a number of diverse investments. None of these qualified defined contribution plans allow direct investment in our stock. Components of net periodic benefit cost (credit) and other amounts recognized in OCI — Pension Benefits 2025 2024 2023 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Interest cost $ 19 $ 11 $ 20 $ 11 $ 21 $ 11 Expected return on plan assets ( 22 ) ( 2 ) ( 23 ) ( 2 ) ( 25 ) ( 2 ) Service cost 4 4 4 Amortization of net actuarial loss 5 1 7 1 7 Settlements 3 Curtailment Net periodic benefit cost 2 14 7 14 3 13 Recognized in OCI: Amount due to net actuarial (gains) losses ( 1 ) ( 8 ) 3 ( 9 ) ( 1 ) 16 Reclassification adjustment for net actuarial losses in net periodic benefit cost ( 5 ) ( 1 ) ( 7 ) ( 1 ) ( 7 ) Other ( 4 ) ( 6 ) 3 3 Total recognized in OCI ( 10 ) ( 15 ) ( 1 ) ( 10 ) ( 5 ) 16 Net recognized in benefit cost (credit) and OCI $ ( 8 ) $ ( 1 ) $ 6 $ 4 $ ( 2 ) $ 29 OPEB 2025 2024 2023 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Interest cost $ — $ 2 $ — $ 2 $ — $ 2 Amortization of net actuarial gain ( 3 ) ( 2 ) ( 4 ) Net periodic benefit credit — ( 1 ) — — — ( 2 ) Recognized in OCI: Amount due to net actuarial (gains) losses ( 1 ) 8 Reclassification adjustment for net actuarial gain in net periodic benefit cost 3 2 4 Total recognized in OCI — 2 — 2 — 12 Net recognized in benefit credit and OCI $ — $ 1 $ — $ 2 $ — $ 10 52 Table of Contents Our U.S. defined benefit pension plans are frozen and no additional service cost is being accrued. The service cost component for international plans is included in cost of sales and selling, general and administrative expenses. Other components of net periodic benefit cost (credit) are included in other income (expense), net in our consolidated income statement. Actuarial gains and losses resulting from plan remeasurement are recognized in AOCI in the period of remeasurement. We use the corridor approach for purposes of systematically amortizing deferred gains or losses as a component of net periodic benefit cost into the income statement in future reporting periods. The amortization period used is generally the average remaining service period of active participants in the plan unless almost all of the plan’s participants are inactive, in which case we use the average remaining life expectancy of the inactive participants. Funded status — The following tables provide reconciliations of the changes in benefit obligations, plan assets and funded status. Pension Benefits OPEB 2025 2024 2025 2024 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Reconciliation of benefit obligation: Obligation at beginning of period $ 385 $ 223 $ 416 $ 252 $ — $ 47 $ — $ 55 Interest cost 19 11 20 11 2 2 Service cost 4 4 Actuarial (gain) loss 11 ( 8 ) ( 16 ) ( 9 ) ( 1 ) Benefit payments ( 37 ) ( 14 ) ( 38 ) ( 12 ) ( 4 ) ( 4 ) Divestitures ( 4 ) Amendments 1 ( 2 ) Settlements ( 1 ) 3 ( 2 ) Translation adjustments 26 ( 21 ) 3 ( 4 ) Obligation at end of period $ 378 $ 238 $ 385 $ 223 $ — $ 47 $ — $ 47 Pension Benefits OPEB 2025 2024 2025 2024 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Reconciliation of fair value of plan assets: Fair value at beginning of period $ 394 $ 24 $ 427 $ 29 $ — $ — $ — $ — Actual return on plan assets 34 2 4 2 Employer contributions 14 1 12 5 4 Benefit payments ( 37 ) ( 14 ) ( 38 ) ( 12 ) ( 4 ) ( 4 ) Settlements ( 1 ) ( 2 ) Divestitures ( 5 ) Translation adjustments 1 ( 5 ) Fair value at end of period $ 391 $ 21 $ 394 $ 24 $ — $ 1 $ — $ — Funded status at end of period $ 13 $ ( 217 ) $ 9 $ ( 199 ) $ — $ ( 46 ) $ — $ ( 47 ) 53 Table of Contents Amounts recognized in the balance sheet — Pension Benefits OPEB 2025 2024 2025 2024 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Amounts recognized in the consolidated balance sheet: Noncurrent assets $ 13 $ 3 $ 9 $ 2 $ — $ — $ — $ — Current liabilities ( 14 ) ( 12 ) ( 4 ) ( 4 ) Noncurrent liabilities ( 206 ) ( 189 ) ( 42 ) ( 43 ) Net amount recognized $ 13 $ ( 217 ) $ 9 $ ( 199 ) $ — $ ( 46 ) $ — $ ( 47 ) Amounts recognized in AOCI — Pension Benefits OPEB 2025 2024 2025 2024 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Amounts recognized in AOCI: Net actuarial loss (gain) $ 125 $ ( 6 ) $ 135 $ 9 $ — $ ( 29 ) $ — $ ( 31 ) AOCI before tax 125 ( 6 ) 135 9 — ( 29 ) — ( 31 ) Deferred taxes 21 2 19 ( 3 ) ( 1 ) 7 8 Net $ 146 $ ( 4 ) $ 154 $ 6 $ ( 1 ) $ ( 22 ) $ — $ ( 23 ) The net actuarial gain for U.S. pension plans for 2025 was primarily due to the actual return on assets exceeding the expected asset return, partially offset by a decrease in discount rates. The actuarial gain for non-U.S. plans was due to an increase in discount rates. The net actuarial loss for U.S. pension plans for 2024 was primarily due to the actual return on assets underperforming the expected asset return, partially offset by an increase in discount rates. The actuarial gain for non-U.S. plans was due to an increase in discount rates. Aggregate funding levels — The following table presents information regarding the aggregate funding levels of our defined benefit pension plans at December 31: 2025 2024 U.S. Non-U.S. U.S. Non-U.S. Plans with fair value of plan assets in excess of obligations: Accumulated benefit obligation $ 378 $ 12 $ 385 $ 11 Projected benefit obligation 378 12 385 11 Fair value of plan assets 391 14 394 13 Plans with obligations in excess of fair value of plan assets: Accumulated benefit obligation $ — $ 207 $ — $ 195 Projected benefit obligation — 226 — 212 Fair value of plan assets — 7 — 11 54 Table of Contents Fair value of pension plan assets — Fair Value Measurements at December 31, 2025 U.S. Non-U.S. Asset Category Total Level 1 Level 2 Level 3 NAV (a) Level 1 Level 2 Level 3 Equity securities: All World Equity $ 44 $ — $ — $ — $ 44 $ — $ — $ — Fixed income securities: Corporate bonds 264 146 118 U.S. Treasury strips 11 11 Non-U.S. government securities 18 3 15 Collateralized mortgage obligations 11 11 Alternative investments: Insurance contracts (c) 3 3 Real estate 6 6 Other 5 2 3 Cash and cash equivalents 50 50 Total $ 412 $ — $ 223 $ — $ 168 $ — $ 18 $ 3 Fair Value Measurements at December 31, 2024 U.S. Non-U.S. Asset Category Total Level 1 Level 2 Level 3 NAV (a) Level 1 Level 2 Level 3 Equity securities: U.S. all cap (b) $ 14 $ 14 $ — $ — $ — $ — $ — $ — U.S. large cap 15 15 EAFE composite 8 8 Emerging markets 5 5 Fixed income securities: Corporate bonds 307 177 130 U.S. Treasury strips 5 5 Non-U.S. government securities 16 3 13 Emerging market debt 4 4 Collateralized mortgage obligations 9 9 Alternative investments: Insurance contracts (c) 8 8 Real estate 6 6 Other 3 3 Cash and cash equivalents 18 18 Total $ 418 $ 14 $ 212 $ — $ 168 $ — $ 16 $ 8 ________________________________ Notes: (a) Certain assets are measured at fair value using the net asset value (NAV) per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. (b) This category comprises a combination of small-, mid- and large-cap equity stocks that are allocated at the investment manager's discretion. Investments include common and preferred securities as well as equity funds that invest in these instruments. (c) This category comprises contracts placed with insurance companies where the underlying assets are invested in fixed interest securities. 55 Table of Contents 2025 2024 U.S. Non-U.S. U.S. Non-U.S. Insurance Insurance Insurance Insurance Reconciliation of Level 3 Assets Contracts Contracts Contracts Contracts Fair value at beginning of period $ — $ 8 $ — $ 9 Purchases, sales and settlements ( 5 ) ( 1 ) Fair value at end of period $ — $ 3 $ — $ 8 Valuation Methods Equity securities — The fair value of equity securities held directly by the trust is based on quoted market prices. When the equity securities are held in commingled funds that are not publicly traded, the fair value of our interest in the fund is its NAV as determined by quoted market prices for the underlying holdings. Fixed income securities — The fair value of fixed income securities held directly by the trust is based on a bid evaluation process with input from independent pricing sources. When the fixed income securities are held in commingled funds that are not publicly traded, the fair value of our interest in the fund is its NAV as determined by a similar valuation of the underlying holdings. Insurance contracts — The values shown for insurance contracts are the amounts reported by the insurance company and approximate the fair values of the underlying investments. Real estate — The investments in real estate represent ownership interests in commingled funds and partnerships that invest in real estate. The investment managers determine the NAV of these ownership interests using the fair value of the underlying real estate which is obtained via independent third party appraisals prepared on a periodic basis. Assumptions used to value the properties are updated quarterly. For the component of the real estate portfolio under development, the investments are carried at cost until they are completed and valued by a third party appraiser. Cash and cash equivalents — The fair value of cash and cash equivalents is set equal to its amortized cost. The methods described above may produce a fair value that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Investment policy — Target asset allocations of U.S. pension plans are established through an investment policy, which is updated periodically and reviewed by an Investment Committee, comprised of certain company officers. The investment policy allows for a flexible asset allocation mix which is intended to provide appropriate diversification to lessen market volatility while assuming a reasonable level of economic risk. Our policy recognizes that properly managing the relationship between pension assets and pension liabilities serves to mitigate the impact of market volatility on our funding levels. The investment policy permits plan assets to be invested in a number of diverse categories, including a Growth Portfolio, an Immunizing Portfolio and a Liquidity Portfolio. These sub-portfolios are intended to balance the generation of incremental returns with the management of overall risk. The Growth Portfolio is invested in a diversified pool of assets in order to generate an incremental return with an acceptable level of risk. The Immunizing Portfolio is a hedging portfolio that may be comprised of fixed income securities and overlay positions. This portfolio is designed to offset changes in the value of the pension liability due to changes in interest rates. The Liquidity Portfolio is a cash portfolio designed to meet short-term liquidity needs and reduce the plans’ overall risk. As a result of our diversification strategies, there are no significant concentrations of risk within the portfolio of investments. The allocations among portfolios are adjusted as needed to meet changing objectives and constraints and to manage the risk of adverse changes in the unfunded positions of our plans. At December 31, 2025 , the U.S. plans had targets of 20 % for t he Growth Portfolio (U.S. and non-U.S. equities, high-yield fixed income, real estate, emerging market debt and cas h), 75 % for the I mmunizing Portfolio (long duration U.S. Treasury strips, corporate bonds and cash ) and 5 % for t he Liquidity Portfolio (cash and short-term securities). The assets held at December 31, 2025 by the U.S. plans were invested 20 % in the Growth Portfolio, 75 % in the Immunizing Portfolio and 5 % in the Liquidity Portfolio. 56 Table of Contents Significant assumptions — The significant weighted-average assumptions used in the measurement of pension benefit obligations at December 31 of each year and the net periodic benefit cost for each year are as follows: 2025 2024 2023 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Pension benefit obligations: Discount rate 5.19 % 5.25 % 5.56 % 4.71 % 5.12 % 4.39 % Net periodic benefit cost: Discount rate 5.28 % 4.96 % 5.07 % 4.82 % 5.36 % 5.13 % Rate of compensation increase N/A 3.59 % N/A 3.59 % N/A 3.52 % Expected return on plan assets 6.00 % 7.25 % 5.75 % 7.26 % 6.00 % 6.90 % The pension plan discount rate assumptions are evaluated annually in consultation with our outside actuarial advisers. Long-term interest rates on high quality corporate debt instruments are used to determine the discount rate. For our largest plans, discount rates are developed using a discounted bond portfolio analysis, with appropriate consideration given to defined benefit payment terms and duration of the liabilities. For pension and other postretirement benefit plans that utilize a full yield curve approach to estimate the interest and service components of net periodic benefit cost, we apply the specific spot rates along the yield curve used in the most recent remeasurement of the benefit obligation to the relevant projected cash flows. We believe this method improves the correlation between the projected cash flows and the corresponding interest rates and provides a more precise measurement of interest and service costs. Since the remeasurement of total benefit obligations is not affected, the resulting reduction in periodic benefit cost is offset by an increase in the actuarial loss. The expected rate of return on plan assets was selected on the basis of our long-term view of return and risk assumptions for major asset classes. We define long-term as forecasts that span at least the next ten years. Our long-term outlook is influenced by a combination of return expectations by individual asset class, actual historical experience and our diversified investment strategy. We consult with and consider the opinions of financial professionals in developing appropriate capital market assumptions. Return projections are also validated using a simulation model that incorporates yield curves, credit spreads and risk premiums to project long-term prospective returns. The appropriateness of the expected rate of return is assessed on an annual basis and revised if necessary. We have a high percentage of total assets in fixed income securities since the benefit accruals are frozen for all of our U.S. pension plans. Based on this assessment, we have selected a 5.75 % expected return on asset assumption for 2026 for our U.S. plans. The significant weighted-average assumptions used in the measurement of OPEB obligations at December 31 of each year and the net periodic benefit cost for each year are as follows: 2025 2024 2023 U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. OPEB benefit obligations: Discount rate N/A 4.73 % N/A 4.99 % N/A 5.01 % Net periodic benefit cost: Discount rate N/A 5.43 % N/A 5.32 % N/A 5.64 % Initial health care cost trend rate N/A 2.94 % N/A 2.91 % N/A 2.76 % Ultimate health care cost trend rate N/A 4.11 % N/A 4.17 % N/A 4.19 % Year ultimate reached N/A 2032 N/A 2032 N/A 2032 The discount rate selection process was similar to the process used for the pension plans. Assumed health care cost trend rates have a significant effect on the health care obligation. To determine the trend rates, consideration is given to the plan design, recent experience and health care economics. Estimated future benefit payments and contributions — Expected benefit payments by our pension and OPEB plans for each of the next five years and for the following five -year period are as follows: Pension Benefits OPEB Year U.S. Non-U.S. U.S. Non-U.S. 2026 $ 37 $ 17 $ — $ 4 2027 36 16 4 2028 35 16 4 2029 34 19 4 2030 33 19 4 2031 to 2035 147 104 17 Total $ 322 $ 191 $ — $ 37 Pension benefits are funded through deposits with trustees that satisfy, at a minimum, the applicable funding regulations. OPEB benefits are funded as they become due. There are projected contributions of $ 1 and $ 17 to be made during 2026 for our U.S. pension plans and non-U.S. pension plans, respectively. 57 Table of Contents Multi-employer pension plans — We participate in the Steelworkers Pension Trust (SPT) multi-employer pension plan which provides pension benefits to certain of our U.S. employees represented by the United Steelworkers and United Automobile Workers unions. Contributions are made in accordance with our collective bargaining agreements and rates are generally based on hours worked. The collective bargaining agreements expire May 22, 2026. The trustees of the SPT have provided us with the latest data available for the plan year ended December 31, 2025 . As of that date, the plan is not fully funded. We could be held liable to the plan for our obligations as well as those of other employers as a result of our participation in the plan. Contribution rates could increase if the plan is required to adopt a funding improvement plan or a rehabilitation plan, if the performance of plan assets does not meet expectations or as a result of future collectively bargained wage and benefit agreements. If we choose to stop participating in the plan, we may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The Pension Protection Act (PPA) defines a zone status for each plan. Plans in the green zone are at least 80 % funded, plans in the yellow zone are at least 65 % funded and plans in the red zone are generally less than 65 % funded. The SPT plan has utilized extended amortization provisions to amortize its losses from 2008. The plan recertified its zone status after using the extended amortization provisions as allowed by law. The SPT plan has not implemented a funding improvement or rehabilitation plan, nor are such plans pending. Our contributions to the SPT exceeded 5 % of the total contributions to the plan. Employer PPA Identification Zone Status Funding Plan Contributions by Dana Pension Number/ Pending/ Surcharge Fund Plan Number 2025 2024 Implemented 2025 2024 2023 Imposed SPT 23-6648508 / 499 Green Green No $ 18 $ 16 $ 17 No Note 13. Financing Agreements Long-term debt at December 31 — Interest Rate 2025 2024 Senior Notes due April 15, 2025 5.750 % * $ — $ 200 Senior Notes due November 15, 2027 5.375 % 400 400 Senior Notes due June 15, 2028 5.625 % 400 400 Senior Euro Notes due July 15, 2029 3.000 % 382 337 Senior Notes due September 1, 2030 4.250 % 400 400 Senior Euro Notes due July 15, 2031 8.500 % 499 440 Senior Notes due February 15, 2032 4.500 % 350 350 Other indebtedness 181 93 Debt issuance costs ( 16 ) ( 19 ) 2,596 2,601 Less: Current portion of long-term debt 30 214 Long-term debt, less debt issuance costs $ 2,566 $ 2,387 * In conjunction with the issuance of the April 2025 Notes we entered into 8 -year fixed-to-fixed cross-currency swaps which have the effect of economically converting the April 2025 Notes to euro-denominated debt at a fixed rate of 3.850 %. See Note 14 for additional information. Interest on the senior notes is payable semi-annually. Other indebtedness includes borrowings from various financial institutions and finance lease obligations. Scheduled principal payments on long-term debt, excluding finance leases at December 31, 2025 — 2026 2027 2028 2029 2030 Maturities $ 1 $ 400 $ 401 $ 382 $ 401 Senior notes activity — On May 24, 2023, Dana Financing Luxembourg S.à.r.l. (Dana Financing), a wholly-owned subsidiary of Dana, completed the sale of €425 ($ 458 as of May 24, 2023) in senior unsecured notes ( July 2031 Notes) at 8.500 %. The July 2031 Notes are fully and unconditionally guaranteed by Dana. The July 2031 Notes were issued through a private placement and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act). The July 2031 Notes were offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act and, outside the United States, only to non-U.S. investors in reliance on Regulation S under the Securities Act. The July 2031 Notes rank equally with Dana's other unsecured senior notes. Interest on the notes is payable on January 15 and July 15 of each year, beginning on January 15, 2024. The July 2031 Notes will mature on July 15, 2031. Net proceeds of the offering totaled €419 ($ 451 as of May 24, 2023). Financing costs of €6 ($ 7 as of May 24, 2023) were recorded as deferred costs and are being amortized to interest expense over the life of the notes. The proceeds from the offering were used to redeem $ 200 of our April 2025 Notes and to make payments against borrowings on our Revolving Facility. On June 9, 2023 we redeemed $ 200 of our April 2025 Notes at a price equal to 100.00 % plus accrued and unpaid interest. The $ 1 loss on extinguishment of debt is comprised of the write-off of previously deferred financing costs associated with the April 2025 Notes. On April 15, 2025, Dana retired its remaining April 2025 Notes. 58 Table of Contents Senior notes redemption provisions — We may redeem some or all of the senior notes at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest to the redemption date, if redeemed during the 12 -month period commencing on the anniversary date of the senior notes in the year set forth below: Redemption Price November June July September July February Year 2027 Notes 2028 Notes 2029 Notes 2030 Notes 2031 Notes 2032 Notes 2025 100.000 % 100.000 % 100.750 % 2026 100.000 % 100.000 % 100.000 % 102.125 % 104.250 % 2027 100.000 % 100.000 % 101.417 % 102.125 % 102.250 % 2028 100.000 % 100.708 % 100.000 % 101.500 % 2029 100.000 % 100.000 % 100.750 % 2030 100.000 % 100.000 % 2031 100.000 % Prior to May 1, 2026, we may redeem some or all of the September 2030 Notes at a redemption price equal to 100 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a “make-whole” premium. We have not separated the make-whole premium from the underlying debt instrument to account for it as a derivative instrument as the economic characteristics and the risks of this embedded derivative are clearly and closely related to the economic characteristics and risks of the underlying debt. At any time prior to July 15, 2026, we may redeem up to 40% of the aggregate principal amount of the July 2031 Notes in an amount not to exceed the amount of proceeds of one or more equity offerings, at a price equal to 108.500 % of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date, provided that at least 50 % of the aggregate principal amount of the July 2031 Notes remain outstanding after the redemption. Prior to July 15, 2026, we may also redeem some or all of the July 2031 Notes at a redemption price equal to 100 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a “make-whole” premium. We have not separated the make-whole premium from the underlying debt instrument to account for it as a derivative instrument as the economic characteristics and the risks of this embedded derivative are clearly and closely related to the economic characteristics and risks of the underlying debt. Prior to February 15, 2027, we may redeem some or all of the February 2032 Notes at a redemption price equal to 100 % of the aggregate principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a “make-whole” premium. We have not separated the make-whole premium from the underlying debt instrument to account for it as a derivative instrument as the economic characteristics and the risks of this embedded derivative are clearly and closely related to the economic characteristics and risks of the underlying debt. On December 4, 2025, we offered as part of a net proceeds tender offer to purchase at a price equal to 100.00 % plus accrued and unpaid interest up to $ 173 of our November 2027 Notes, up to $ 173 of our June 2028 Notes, up to €141 of our July 2029 Notes, up to $ 173 of our September 2030 Notes, up to €184 of our July 2031 Notes and up to $ 152 of our February 2032 Notes. The offers were conditioned on Dana receiving proceeds from the sale of its Off-Highway business and other customary conditions. In addition, on December 4, 2025, we issued notices of conditional full redemption with a redemption date of January 8, 2026 for all of our outstanding November 2027 Notes and June 2028 Notes at a redemption price equal to 100.00 % plus accrued and unpaid interest. The redemptions were conditioned on Dana receiving proceeds from the sales of its Off-Highway business. On January 1, 2026, Dana completed the sale of its Off-Highway business. See Note 2 for additional information. On January 7, 2026, we purchased $ 138 of our November 2027 Notes, $ 142 of our June 2028 Notes, €141 of our July 2029 Notes ($ 164 as of January 7, 2026), $ 173 of our September 2030 Notes, €9 of our 2031 Notes ($ 10 as of January 7, 2026) and $ 152 of our February 2032 Notes at prices equal to 100.00 % plus accrued and unpaid interest. On January 8, 2026, we redeemed the remaining $ 262 of our November 2027 Notes and the remaining $ 258 of our June 2028 Notes at prices equal to 100.00 % plus accrued and unpaid interest. During the first quarter of 2026, we will recognize a $ 6 loss on extinguishment of debt comprised of the write-off of previously deferred financing costs associated with the redeemed senior notes. 59 Table of Contents Credit agreement — On March 14, 2023, we amended our credit and guaranty agreement, extending its maturity to March 14, 2028. We recorded deferred fees of $ 2 related to the amendment. On July 31, 2025, we amended our credit and guaranty agreement to include a $ 250 Term A Facility. Borrowings under the Term A Facility bear interest at a floating rate based on Term Secured Overnight Financing Rate (SOFR) (as described in the credit agreement) plus a margin. The Term A Facility matures at the earlier of five business days after the consummation of the Off-Highway business sale or July 30, 2026. We are required to make quarterly installments on the Term A Facility on the last day of each quarter commencing on December 31, 2025 in an amount equal to 10 % of the original amount borrowed adjusted for any prepayments. On July 31, 2025, we fully drew the Term A Facility and used the proceeds to pay down outstanding borrowings on our Revolving Facility. On December 31, 2025, we made the required $ 25 payment on the Term A Facility. Deferred financing costs on our Revolving Facility are included in other noncurrent assets and are being amortized over the life of the Revolving Facility. Each the Revolving Facility and Term A Facility is guaranteed by all of our wholly-owned domestic subsidiaries subject to certain exceptions (the guarantors) and are secured by a first -priority lien on substantially all of the assets of Dana and the guarantors, subject to certain exceptions. Advances under the Revolving Facility bear interest at a floating rate based on, at our option, the base rate or SOFR (each as described in the credit and guaranty agreement) plus a margin as set forth below: Margin Total Net Leverage Ratio Base Rate SOFR Rate Less than or equal to 1.00:1.00 0.25 % 1.25 % Greater than 1.00:1.00 but less than or equal to 2.00:1.00 0.50 % 1.50 % Greater than 2.00:1.00 0.75 % 1.75 % Commitment fees are applied based on the average daily unused portion of the available amounts under the Revolving Facility as set forth below: Total Net Leverage Ratio Commitment Fee Less than or equal to 1.00:1.00 0.250 % Greater than 1.00:1.00 but less than or equal to 2.00:1.00 0.375 % Greater than 2.00:1.00 0.500 % Up to $ 275 of the Revolving Facility may be applied to letters of credit, which reduces availability. We pay a fee for issued and undrawn letters of credit in an amount per annum equal to the applicable margin for SOFR rate advances based on a quarterly average availability under issued and undrawn letters of credit under the Revolving Facility and a per annum fronting fee of 0.125 %, payable quarterly. At December 31, 2025 , we had $ 390 of outstanding borrowings under the Revolving Facility and had utilized $ 10 for letters of credit. We had availability at December 31, 2025 under the Revolving Facility of $ 750 after deducting the letters of credit. On January 1, 2026, Dana completed the sale of its Off-Highway business. See Note 2 for additional information. On January 2, 2026, we repaid the $ 225 outstanding balance on the Term A Facility. Debt covenants — At December 31, 2025 , we were in compliance with the covenants of our financing agreements. Under the Revolving Facility and the senior notes, we are required to comply with certain incurrence-based covenants customary for facilities of these types and, in the case of the Revolving Facility, a maintenance covenant tested on the last day of each fiscal quarter requiring us to maintain a first lien net leverage ratio not to exceed 2.00 to 1.00. 60 Table of Contents Note 14. Fair Value Measurements and Derivatives In measuring the fair value of our assets and liabilities, we use market data or assumptions that we believe market participants would use in pricing an asset or liability including assumptions about risk when appropriate. Our valuation techniques include a combination of observable and unobservable inputs. Fair value measurements on a recurring basis — Assets and liabilities that are carried in our balance sheet at fair value are as follows: Fair Value Category Balance Sheet Location Fair Value Level December 31, 2025 December 31, 2024 Currency forward contracts Cash flow hedges Accounts receivable - Other 2 $ 21 $ 9 Cash flow hedges Other accrued liabilities 2 1 27 Undesignated Accounts receivable - Other 2 4 8 Undesignated Other accrued liabilities 2 7 13 Currency swaps Cash flow hedges Other noncurrent assets 2 23 Cash flow hedges Other noncurrent liabilities 2 25 Undesignated Other noncurrent liabilities 2 2 5 Fair Value Level 1 assets and liabilities reflect quoted prices in active markets. Fair Value Level 2 assets and liabilities reflect the use of significant other observable inputs. Fair value of financial instruments — The financial instruments that are not carried in our balance sheet at fair value are as follows: 2025 2024 Fair Value Level Carrying Value Fair Value Carrying Value Fair Value Long-term debt 2 $ 2,418 $ 2,444 $ 2,510 $ 2,492 Foreign currency derivatives — Our foreign currency derivatives include forward contracts associated with forecasted transactions, primarily involving the purchases and sales of inventory through the next fifteen months, as well as currency swaps associated with certain recorded external notes payable and intercompany loans receivable and payable. Periodically, our foreign currency derivatives also include net investment hedges of certain of our investments in foreign operations. We have executed fixed-to-fixed cross-currency swaps in conjunction with the issuance of certain notes to eliminate the variability in the functional-currency-equivalent cash flows due to changes in exchange rates associated with the forecasted principal and interest payments. All of the underlying designated financial instruments, and any subsequent replacement debt, have been designated as the hedged items in each respective cash flow hedge relationship, as shown in the table below. Designated as cash flow hedges of the forecasted principal and interest payments of the underlying designated financial instruments, or subsequent replacement debt, all of the swaps economically convert the underlying designated financial instruments into the functional currency of each respective holder. The impact of the interest rate differential between the inflow and outflow rates on all fixed-to-fixed cross-currency swaps is recognized during each period as a component of interest expense. The following fixed-to-fixed cross-currency swaps were outstanding at December 31, 2025 : Underlying Financial Instrument Derivative Financial Instrument Description Type Face Amount Rate Notional Amount Traded Amount Inflow Rate Outflow Rate Luxembourg Intercompany Notes Receivable € 278 3.70 % € 278 $ 300 5.38 % 3.70 % Undesignated 2026 Swap $ 188 € 169 6.50 % 5.14 % Undesignated Offset 2026 Swap € 169 $ 188 3.13 % 6.50 % 61 Table of Contents The designated swaps are expected to be highly effective in offsetting the corresponding currency-based changes in cash outflows related to the underlying designated financial instruments. Based on our qualitative assessment that the critical terms of all of the underlying designated financial instruments and all of the associated swaps match and that all other required criteria have been met, we do not expect to incur any ineffectiveness. As effective cash flow hedges, changes in the fair value of the swaps will be recorded in OCI during each period. Additionally, to the extent the swaps remain effective, the appropriate portion of AOCI will be reclassified to earnings each period as an offset to the foreign exchange gain or loss resulting from the remeasurement of the underlying designated financial instruments. See Note 13 for additional information about the April 2025 Notes. To the extent the swaps are no longer effective, changes in their fair values will be recorded in earnings. The total notional amount of outstanding foreign currency forward contracts, involving the exchange of various currencies, was $ 898 at December 31, 2025 and $ 1,147 at December 31, 2024 . The total notional amount of outstanding foreign currency swaps, including the fixed-to-fixed cross-currency swaps, was $ 712 at December 31, 2025 and $ 951 at December 31, 2024 . The following currency derivatives were outstanding at December 31, 2025 : Notional Amount (U.S. Dollar Equivalent) Functional Currency Traded Currency Designated Undesignated Total Maturity U.S. dollar Canadian dollar, Mexican peso $ 254 $ 77 $ 331 Dec-2026 Euro U.S. dollar, Australian dollar, British pound, Hungarian forint, Mexican peso, Swedish krona 311 8 319 Sep-2027 British pound U.S. dollar, euro 26 21 47 Sep-2026 South African rand U.S. dollar, euro, Thai baht 35 35 May-2026 Thai baht U.S. dollar 15 15 Jan-2026 Canadian dollar U.S. dollar 21 11 32 Aug-2026 Brazilian real U.S. dollar, euro 30 14 44 Jun-2026 Indian rupee U.S. dollar, euro, British pound 69 69 Dec-2026 Mexican peso U.S. dollar 5 5 Jan-2026 Australian dollar U.S. dollar, euro 1 1 Jan-2026 Total forward contracts 642 256 898 U.S. dollar euro 326 198 524 Nov-2027 Euro U.S. dollar 188 188 Jun-2026 Total currency swaps 326 386 712 Total currency derivatives $ 968 $ 642 $ 1,610 Designated cash flow hedges — With respect to contracts designated as cash flow hedges, changes in fair value during the period in which the contracts remain outstanding are reported in OCI to the extent such contracts remain effective. Effectiveness is measured by using regression analysis to determine the degree of correlation between the change in the fair value of the derivative instrument and the change in the associated foreign currency exchange rates. Changes in fair value of contracts not designated as cash flow hedges or as net investment hedges are recognized in other income (expense), net in the period in which the changes occur. Realized gains and losses from currency-related forward contracts associated with forecasted transactions or from other derivative instruments, including those that have been designated as cash flow hedges and those that have not been designated, are recognized in the same line item in the consolidated statement of operations in which the underlying forecasted transaction or other hedged item is recorded. Accordingly, amounts are potentially recorded in sales, cost of sales or, in certain circumstances, other income (expense), net. The following table provides a summary of deferred gains (losses) reported in AOCI as well as the amount expected to be reclassified to income in one year or less: Deferred Gain (Loss) in AOCI December 31, 2025 December 31, 2024 Gain (loss) expected to be reclassified into income in one year or less Forward Contracts $ 20 $ ( 35 ) $ 20 Cross-Currency Swaps 2 ( 3 ) Total $ 22 $ ( 38 ) $ 20 62 Table of Contents The following table provides a summary of the location and amount of gains or losses recognized in the consolidated statement of operations associated with cash flow hedging relationships: Derivatives Designated as Cash Flow Hedges 2025 2024 2023 Total amounts of income and expense line items presented in the consolidated statement of operations in which the effects of cash flow hedges are recorded Net sales $ 7,500 $ 7,734 $ 7,613 Cost of sales 6,898 7,356 7,236 Other income (expense), net ( 46 ) ( 21 ) ( 14 ) (Gain) or loss on cash flow hedging relationships Foreign currency forwards Amount of (gain) loss reclassified from AOCI into income Cost of sales 2 ( 11 ) ( 34 ) Other income (expense), net ( 6 ) 18 ( 8 ) Cross-currency swaps Amount of (gain) loss reclassified from AOCI into income Other income (expense), net 51 ( 37 ) 19 The amounts reclassified from AOCI into income for the cross-currency swaps represent an offset to a foreign exchange loss on our foreign currency-denominated intercompany and external debt instruments. Certain of our hedges of forecasted transactions have not formally been designated as cash flow hedges. As undesignated forward contracts, the changes in the fair value of such contracts are included in earnings for the duration of the outstanding forward contract. Any realized gain or loss on the settlement of such contracts is recognized in the same period and in the same line item in the consolidated statement of operations as the underlying transaction. The following table provides a summary of the location and amount of gains or losses recognized in the consolidated statement of operations associated with undesignated hedging relationships. Derivatives Not Designated as Hedging Instruments 2025 2024 2023 Gain or (loss) recognized in income Foreign currency forward contracts Cost of sales $ 3 $ 3 $ ( 2 ) Other income (expense), net ( 36 ) 3 ( 9 ) Net investment hedges — We periodically designate derivative contracts or underlying non-derivative financial instruments as net investment hedges. With respect to contracts designated as net investment hedges, we apply the forward method, but for non-derivative financial instruments designated as net investment hedges, we apply the spot method. Under both methods, we report changes in fair value in the CTA component of OCI during the period in which the contracts remain outstanding to the extent such contracts and non-derivative financial instruments remain effective. During the second quarter of 2024, we entered into foreign currency forwards with a notional value of $ 100 that we designated as a net investment hedge of the foreign currency exposure related to a China renminbi denominated subsidiary. These forwards matured in September 2025. During the third quarter of 2024, we entered into foreign currency forwards with a notional value of $ 122 that we designated as a net investment hedge of the foreign currency exposure related to a euro denominated subsidiary. These forwards matured in November 2025. Note 15. Commitments and Contingencies Environmental liabilities — Accrued environmental liabilities were $ 14 and $ 15 at December 31, 2025 and 2024 . We consider the most probable method of remediation, current laws and regulations and existing technology in estimating our environmental liabilities. Other legal matters — We are subject to various pending or threatened legal proceedings arising out of the normal course of business or operations. In view of the inherent difficulty of predicting the outcome of such matters, we cannot state what the eventual outcome of these matters will be. However, based on current knowledge and after consultation with legal counsel, we believe that any liabilities that may result from these proceedings will not have a material adverse effect on our liquidity, financial condition or results of operations. 63 Table of Contents Note 16. Warranty Obligations We record a liability for estimated warranty obligations at the dates our products are sold. We record the liability based on our estimate of costs to settle future claims. Adjustments to our estimated costs at time of sale are made as claim experience and other new information becomes available. Obligations for service campaigns and other occurrences are recognized as adjustments to prior estimates when the obligation is probable and can be reasonably estimated. Changes in warranty liabilities — 2025 2024 2023 Balance, beginning of period $ 89 $ 87 $ 87 Amounts accrued for current period sales 41 35 33 Adjustments of prior estimates 8 17 13 Settlements of warranty claims ( 68 ) ( 49 ) ( 45 ) Currency impact 1 ( 1 ) ( 1 ) Balance, end of period $ 71 $ 89 $ 87 Note 17. Income Taxes Income tax expense — 2025 2024 2023 Current tax expense (benefit) U.S. federal $ 5 $ 2 $ 26 U.S. state and local 2 1 Non-U.S. 106 104 80 Total current 113 107 106 Deferred tax expense (benefit) U.S. federal ( 38 ) ( 63 ) ( 100 ) U.S. state and local ( 3 ) ( 6 ) ( 3 ) Non-U.S. ( 19 ) ( 7 ) 4 Total deferred ( 60 ) ( 76 ) ( 99 ) Total income tax expense $ 53 $ 31 $ 7 We record interest and penalties related to uncertain tax positions as a component of income tax expense or benefit. Net interest expense for the periods presented herein is not significant. Income before income taxes — 2025 2024 2023 U.S. operations $ ( 171 ) $ ( 350 ) $ ( 280 ) Non-U.S. operations 139 29 34 Loss from continuing operations before income taxes $ ( 32 ) $ ( 321 ) $ ( 246 ) Income tax audits — We conduct business globally and, as a result, file income tax returns in multiple jurisdictions that are subject to examination by taxing authorities throughout the world. With few exceptions, we are no longer subject to U.S. federal, state and local or foreign income tax examinations for years before 2008. We are currently under audit by U.S. and foreign authorities for certain taxation years. When the issues related to these periods are settled, the total amounts of unrecognized tax benefits for all open tax years may be modified. Audit outcomes and the timing of the audit settlements are subject to uncertainty and we cannot make an estimate of the impact on our financial position at this time. GILTI Policy Elections — The SEC staff has indicated that a company should make and disclose certain policy elections related to accounting for global intangible low-taxed income (GILTI). As to whether we will recognize deferred taxes for basis differences expected to reverse as GILTI or account for the effect of GILTI as a period cost when incurred, we intend to account for the tax effect of GILTI as a period cost. As to the realizability of the tax benefit provided by net operating losses, we are electing to utilize the tax law ordering approach. Recent macroeconomic factors have resulted in losses in the United States. A valuation allowance has been provided for deferred tax assets where GILTI is not a source of income; however, the GILTI tax law ordering approach provides positive evidence for certain other deferred tax assets without a valuation allowance. Foreign income repatriation — We continue to analyze and adjust the estimated impact of the non-U.S. income and withholding tax liabilities based on the amount and source of these earnings, as well as the expected means through which those earnings may be taxed. We recognized net expense of $ 1 in 2025 , $ 7 in 2024 and $ 6 in 2023 , related to future income taxes and non-U.S. withholding taxes on repatriations from operations that are not permanently reinvested. We also paid withholding taxes of $ 12 , $ 9 and $ 5 during 2025 , 2024 and 2023 related to the actual transfer of funds to the U.S. The unrecognized tax liability associated with the operations in which we are permanently reinvested is $ 15 at December 31, 2025 . 64 Table of Contents Effective tax rate reconciliation — 2025 2024 2023 $ % $ % $ % U.S. federal income tax rate ( 7 ) 21 ( 67 ) 21 ( 52 ) 21 Adjustments resulting from (a) : U.S. state and local income taxes, net of federal income tax effect (b) ( 1 ) 3 ( 4 ) 1 5 ( 2 ) Non-U.S. tax effects France Changes in valuation allowances 6 ( 2 ) Hungary Statutory tax rate difference 7 ( 21 ) Other 1 ( 3 ) 6 ( 2 ) 2 ( 1 ) Italy Non-taxable income/loss ( 5 ) 2 Luxembourg Changes in valuation allowances ( 15 ) 47 9 ( 3 ) Adjustments to deferred tax balances 16 ( 50 ) Statutory tax rate difference 7 ( 3 ) Other 2 ( 6 ) 4 ( 1 ) South Africa Changes in valuation allowances ( 8 ) 25 Other ( 1 ) 3 Switzerland Statutory tax rate difference 13 ( 5 ) Other ( 3 ) 1 United Kingdom Capital loss 9 ( 3 ) Other 2 ( 1 ) 3 ( 1 ) Brazil Statutory tax rate difference 5 ( 2 ) Tax on remittance of foreign earnings ( 6 ) 19 ( 8 ) 3 Other 6 ( 19 ) China Tax on remittance of foreign earnings 7 ( 2 ) Other 3 ( 9 ) 3 ( 1 ) 4 ( 2 ) India Non-taxable income/loss 12 ( 5 ) Tax on remittance of foreign earnings 10 ( 31 ) 11 ( 3 ) Other 6 ( 19 ) 6 ( 2 ) 6 ( 2 ) Thailand Tax on remittance of foreign earnings 9 ( 28 ) Other ( 1 ) 3 ( 4 ) 2 1 — Canada Changes in valuation allowances 17 ( 53 ) 10 ( 3 ) 16 ( 7 ) Other ( 8 ) 25 8 ( 2 ) ( 4 ) 2 Mexico Statutory tax rate difference 5 ( 16 ) Other ( 5 ) 16 4 ( 1 ) 6 ( 2 ) Other foreign jurisdictions 9 ( 28 ) 7 ( 3 ) Effects of changes in tax laws or rates enacted in the current period ( 48 ) 150 Effects of cross-border tax laws Foreign tax credits and associated impacts ( 19 ) 59 ( 25 ) 8 ( 8 ) 3 Global intangible low-taxed income 25 ( 78 ) 15 ( 5 ) 22 ( 9 ) U.S. branch income 21 ( 66 ) 6 ( 2 ) 2 ( 1 ) Tax credits Research and development tax credits ( 12 ) 37 ( 10 ) 3 ( 5 ) 2 Changes in valuation allowances 24 ( 75 ) 16 ( 5 ) 20 ( 8 ) Nontaxable or nondeductible items Executive compensation 10 ( 31 ) 2 ( 1 ) 2 ( 1 ) Other 1 ( 3 ) 3 ( 1 ) 1 — Changes in unrecognized tax benefits 16 ( 50 ) 9 ( 3 ) 17 ( 7 ) Other adjustments Sale of certain operating assets 5 ( 16 ) ( 1 ) 1 Intercompany sale of intangible assets to the U.S. ( 57 ) 23 Basis difference in foreign subsidiary ( 7 ) 22 Other ( 2 ) 6 4 ( 2 ) Income tax expense 53 ( 166 ) 31 ( 10 ) 7 ( 3 ) (a) The disclosure threshold was applied separately to each year; thus unlisted amounts were not subject to the threshold in that year. (b) States taxes comprise the majority of this category: 2025 - Illinois, Kentucky and Texas; 2024 - Kentucky and Texas; and 2023 - Kentucky, Michigan and Texas. 65 Table of Contents During 2025 , we recorded a tax benefit of $ 48 to release valuation allowance on certain U.S. federal attributes, $ 7 of tax benefit due to basis difference in a foreign subsidiary as a result of a change in tax status, $ 9 of tax expense for income tax reserves associated with prior tax years in a foreign jurisdiction and $ 6 of tax expense resulting from the sale of Dana's ownership interest in an equity method investment. During 2024 , we recorded tax expense of $ 21 for valuation allowances related to foreign jurisdictions and tax expense of $ 11 due to revisions in our assertions on unremitted earnings in foreign jurisdictions. During 2023 , we recorded tax expense of $ 14 for income tax reserves associated with prior tax years in foreign jurisdictions. In addition, we recorded net benefit of $ 55 on the intercompany sale of intangible assets to the U.S. Cash paid for income taxes, net of refunds — Cash paid for income taxes, net of refunds, for the years ended December 31, 2025, 2024, and 2023 were as follows: 2025 2024 2023 U.S. federal $ — $ ( 1 ) $ 2 U.S. state and local 2 1 1 Total U.S. 2 — 3 Non-U.S. Germany ( 5 ) 8 18 Ireland 5 * * Italy ( 5 ) * * Argentina 6 * * Brazil 9 7 * China 15 18 21 India 28 27 25 Thailand 13 10 * Mexico 19 18 17 Other 9 12 8 Total Non-U.S. 94 100 89 Total $ 96 $ 100 $ 92 * Jurisdiction below the threshold for the period presented. Deferred tax assets and liabilities — Temporary differences and carryforwards give rise to the following deferred tax assets and liabilities. 2025 2024 Net operating loss carryforwards $ 279 $ 248 Postretirement benefits, including pensions 40 34 Research and development costs 248 256 Expense accruals 96 89 Other tax credits recoverable 222 209 Capital loss carryforwards 46 43 Inventory reserves 37 32 Postemployment and other benefits 5 4 Intangibles 47 64 Leasing activities 115 78 Other 69 109 Total 1,204 1,166 Valuation allowances ( 631 ) ( 639 ) Deferred tax assets 573 527 Unremitted earnings ( 5 ) ( 35 ) Depreciation ( 54 ) ( 29 ) Deferred tax liabilities ( 59 ) ( 64 ) Net deferred tax assets $ 514 $ 463 66 Table of Contents We have generated deferred tax assets in foreign jurisdictions where realization of the future economic benefits were, in previous reporting periods, considered so remote that the benefits were not recognized. As of December 31, 2024 the unrecognized deferred tax asset was $ 88 . In 2024, we concluded that the future economic benefits of the tax assets are no longer remote and therefore, deferred tax assets of $ 96 were recognized as of December 31, 2024. We also concluded that it is not more likely than not that the tax benefits associated with the deferred tax assets will be realized; therefore, offsetting valuation allowances were recognized. Carryforwards — Our deferred tax assets include benefits expected from the utilization of net operating loss (NOL), capital loss and credit carryforwards in the future. The following table identifies the net operating loss deferred tax asset components and the related allowances that existed at December 31, 2025 . Due to time limitations on the ability to realize the benefit of the carryforwards, additional portions of these deferred tax assets may become unrealizable in the future. Deferred Earliest Tax Valuation Carryforward Year of Asset Allowance Period Expiration Net operating losses U.S. state $ 43 $ ( 43 ) Various 2026 Brazil 10 ( 4 ) Unlimited France 7 ( 7 ) Unlimited Australia 13 Unlimited Italy 2 Unlimited Sweden 12 ( 12 ) Unlimited South Africa 8 Unlimited U.K. 22 ( 22 ) Unlimited Luxembourg 78 ( 78 ) Various 2035 Canada 79 ( 75 ) 20 2026 Argentina 1 5 2030 Hungary 1 5 2030 China 3 ( 2 ) 5 2029 Total $ 279 $ ( 243 ) In addition to the NOL carryforwards listed in the table above, we have deferred tax assets related to capital loss carryforwards of $ 46 which are fully offset with valuation allowances at December 31, 2025 . We also have deferred tax assets of $ 236 related to other credit carryforwards which are largely offset with valuation allowances of $ 233 at December 31, 2025 . The capital losses can generally be carried forward indefinitely while the other credits are generally available for 10 to 20 years. Unrecognized tax benefits — Unrecognized tax benefits are the difference between a tax position taken, or expected to be taken, in a tax return and the benefit recognized for accounting purposes. Interest income or expense, as well as penalties relating to income tax audit adjustments and settlements, are recognized as components of income tax expense or benefit. Interest of $ 23 and $ 20 was accrued on the uncertain tax positions at December 31, 2025 and 2024 . Reconciliation of gross unrecognized tax benefits — 2025 2024 2023 Balance, beginning of period $ 112 $ 112 $ 102 Decrease related to expiration of statute of limitations ( 5 ) ( 7 ) ( 8 ) Decrease related to prior years tax positions ( 6 ) ( 5 ) Increase related to prior years tax positions 10 4 5 Increase related to current year tax positions 14 13 18 Decrease related to settlements ( 4 ) Balance, end of period $ 131 $ 112 $ 112 Gross unrecognized tax benefits of $ 101 would impact the effective tax rate if recognized. If other open matters are settled with the IRS or other taxing jurisdictions, the total amounts of unrecognized tax benefits for open tax years may be modified. 67 Table of Contents Note 18. Other Income (Expense), Net 2025 2024 2023 Non-service cost components of pension and OPEB costs $ ( 11 ) $ ( 17 ) $ ( 10 ) Government assistance 5 10 15 Foreign exchange gain (loss) ( 8 ) ( 15 ) ( 17 ) Strategic transaction expenses ( 12 ) ( 3 ) ( 5 ) Loss on sale of property, plant and equipment ( 1 ) Loss on divestiture of ownership interests ( 9 ) Impairment of electric vehicle program property, plant and equipment ( 16 ) Other, net 5 5 3 Other income (expense), net $ ( 46 ) $ ( 21 ) $ ( 14 ) Foreign exchange gains and losses on cross-currency intercompany loan balances that are not of a long-term investment nature are included above. Foreign exchange gains and losses on intercompany loans that are permanently invested are reported in OCI. We continue to account for Argentina as a highly inflationary economy and remeasure the financial statements of our Argentine subsidiaries as if their functional currency was the U.S. dollar. The foreign exchange loss in 2023 was primarily due to the Argentine government significantly devaluing the Argentine peso during the fourth quarter of 2023. Continued devaluation of the Argentine peso was the primary driver of the foreign exchange loss in 2024 and 2025. Strategic transaction expenses relate primarily to costs incurred in connection with acquisition and divestiture related activities, including costs to complete the transaction and post-closing integration costs. Strategic transaction expenses in 2025 , 2024 and 2023 were primarily attributable to investigating potential acquisitions and business ventures, divestitures and other strategic initiatives. On June 6, 2025, we sold our ownership interest in Switch Mobility Limited, recognizing an $ 8 pre-tax loss on the transaction. See Note 21 for additional information. During the fourth quarter of 2025, we recorded an impairment charge associated with machinery and equipment, including construction in progress, of certain electric vehicle programs that were either cancelled by the customer or that have experienced a precipitous decline in program volumes. Note 19. Revenue from Contracts with Customers We generate revenue from selling production parts to original equipment manufacturers (OEMs) and service parts to OEMs and aftermarket customers. While we provide production and service parts to certain OEMs under awarded multi-year programs, these multi-year programs do not contain any commitment to volume by the customer. As such, individual customer releases or purchase orders represent the contract with the customer. Our customer contracts do not provide us with an enforceable right to payment for performance completed to date throughout the contract term. As such, we recognize part sales revenue at the point in time when the parts are shipped, and risk of loss has transferred to the customer. We have elected to continue to include shipping and handling fees billed to customers in revenue, while including costs of shipping and handling in costs of sales. Taxes collected from customers are excluded from revenues and credited directly to obligations to the appropriate government agencies. Payment terms with our customers are established based on industry and regional practices and generally do not exceed 180 days. 68 Table of Contents We continually seek new business opportunities and at times provide incentives to our customers for new program awards. We evaluate the underlying economics of each payment made to our customers to determine the proper accounting by understanding the nature of the payment, the rights and obligations in the contract, and other relevant facts and circumstances. Upfront payments to our customers are capitalized if we determine that the payments are incremental and incurred only if the new business is obtained and we expect to recover these amounts from the customer over the term of the new business program. We recognize a reduction to revenue as products that the upfront payments are related to are transferred to the customer, based on the total amount of products expected to be sold over the term of the program. We evaluate the amounts capitalized each period for recoverability and expense any amounts that are no longer expected to be recovered. We had $ 6 and $ 4 recorded in other current assets and $ 15 and $ 27 recorded in other noncurrent assets at December 31, 2025 and December 31, 2024 . Certain of our customer contracts include rebate incentives. We estimate expected rebates and accrue the corresponding refund liability, as a reduction of revenue, at the time covered product is sold to the customer based on anticipated customer purchases during the rebate period and contractual rebate percentages. Refund liabilities are included in other accrued liabilities on our consolidated balance sheet. We provide standard fitness for use warranties on the products we sell, accruing for estimated costs related to product warranty obligations at time of sale. See Note 16 for additional information. Contract liabilities are primarily comprised of cash deposits made by customers with cash in advance payment terms and upfront payments from customers related to multi-year programs. We had $ 25 and $ 6 recorded in other accrued liabilities and $ 59 and $ 1 recorded in other noncurrent liabilities at December 31, 2025 and December 31, 2024 . Disaggregation of revenue — The following table disaggregates revenue for each of our operating segments by geographical market: 2025 2024 2023 Light Vehicle North America $ 3,621 $ 3,537 $ 3,266 Europe 741 763 762 South America 224 265 244 Asia Pacific 631 685 717 Total $ 5,217 $ 5,250 $ 4,989 Commercial Vehicle North America $ 894 $ 1,120 $ 1,150 Europe 748 726 802 South America 448 463 425 Asia Pacific 193 175 247 Total $ 2,283 $ 2,484 $ 2,624 Total North America $ 4,515 $ 4,657 $ 4,416 Europe 1,489 1,489 1,564 South America 672 728 669 Asia Pacific 824 860 964 Total $ 7,500 $ 7,734 $ 7,613 69 Table of Contents 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 70 Table of Contents 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 ) 71 Table of Contents 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 . 72 Table of Contents Note 21. Equity Affiliates We have a number of investments in entities that engage in the manufacture and supply of vehicular parts (primarily axles and driveshafts). Dividends received from equity affiliate s were $ 5 , $ 3 and $ 3 in 2025 , 2024 and 2023 . Equity method investments exceeding $5 at December 31, 2025 — Ownership Percentage Investment Dongfeng Dana Axle Co., Ltd. (DDAC) 50 % $ 62 ROC-Spicer, Ltd. (ROC-Spicer) 50 % 23 Tai Ya Investment (HK) Co., Limited (Tai Ya) 50 % 5 All others as a group 6 Investments in equity affiliates 96 Investments in affiliates carried at cost 6 Investments in affiliates $ 102 On April 25, 2025, we sold our 48 % ownership interest in Axles India Limited for $ 43 in cash. The $ 19 pre-tax gain on the transaction is included in equity in earnings of affiliates. On June 6, 2025, we sold our ownership interest in Switch Mobility Limited for $ 10 . The $ 8 pre-tax loss on the transaction is included in other income (expense), net. The carrying value of our equity method investments at December 31, 2025, was $ 5 more than our share of the affiliates' book values. The basis difference relate to our DDAC and ROC-Spicer investments and are primarily attributable to goodwill and property, plant and equipment. Note 22. Quarterly Financial Data (Unaudited) Quarter Ended March 31, June 30, September 30, December 31, 2025 2025 2025 2025 Net sales $ 1,781 $ 1,935 $ 1,917 $ 1,867 Cost of sales 1,663 1,797 1,751 1,687 Net income (loss) from continuing operations ( 17 ) ( 12 ) 13 ( 37 ) Net income (loss) from continuing operations attributable to parent company ( 22 ) ( 16 ) 9 ( 41 ) Net income (loss) from discontinued operations 47 43 74 ( 9 ) Net income (loss) attributable to the parent company 25 27 83 ( 50 ) Basic earnings (loss) per share from continuing operations ( 0.15 ) ( 0.11 ) 0.07 ( 0.35 ) Basic earning (loss) per share from discontinued operations 0.32 0.30 0.58 ( 0.08 ) Basic earnings (loss) per share 0.17 0.19 0.65 ( 0.43 ) Diluted earnings (loss) per share from continuing operations ( 0.15 ) ( 0.11 ) 0.07 ( 0.35 ) Diluted earning (loss) per share from discontinued operations 0.32 0.30 0.57 ( 0.08 ) Diluted earnings (loss) per share 0.17 0.19 0.64 ( 0.43 ) Weighted-average common shares outstanding - Basic 145.6 143.8 128.4 115.6 Weighted-average common shares outstanding - Diluted 145.6 143.8 130.8 115.6 Quarter Ended March 31, June 30, September 30, December 31, 2024 2024 2024 2024 Net sales $ 2,015 $ 2,047 $ 1,897 $ 1,775 Cost of sales 1,903 1,930 1,775 1,748 Net loss from continuing operations ( 65 ) ( 61 ) ( 21 ) ( 195 ) Net loss from continuing operations attributable to parent company ( 62 ) ( 61 ) ( 28 ) ( 199 ) Net income from discontinued operations 65 77 32 119 Net income (loss) attributable to the parent company 3 16 4 ( 80 ) Basic loss per share from continuing operations ( 0.43 ) ( 0.42 ) ( 0.19 ) ( 1.37 ) Basic earning per share from discontinued operations 0.45 0.53 0.22 0.82 Basic earnings (loss) per share 0.02 0.11 0.03 ( 0.55 ) Diluted loss per share from continuing operations ( 0.43 ) ( 0.42 ) ( 0.19 ) ( 1.37 ) Diluted earning per share from discontinued operations 0.45 0.53 0.22 0.82 Diluted earnings (loss) per share 0.02 0.11 0.03 ( 0.55 ) Weighted-average common shares outstanding - Basic 144.8 145.0 145.0 145.3 Weighted-average common shares outstanding - Diluted 144.8 145.0 145.0 145.3 73 Table of Contents Dana Incorporated Schedule II Valuation and Qualifying Accounts and Reserves (In millions) Amounts deducted from assets in the balance sheets — Balance at beginning of period Amounts charged (credited) to income Allowance utilized Adjustments arising from change in currency exchange rates and other items Balance at end of period Accounts Receivable - Allowance for Doubtful Accounts 2025 $ 12 $ 3 $ — $ 15 2024 $ 11 $ 2 $ ( 1 ) $ — $ 12 2023 $ 8 $ 5 $ ( 2 ) $ — $ 11 Deferred Tax Assets - Valuation Allowance 2025 $ 639 $ ( 34 ) $ — $ 26 $ 631 2024 $ 530 $ 26 $ — $ 83 $ 639 2023 $ 491 $ 30 $ — $ 9 $ 530 74 Table of Contents Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure None.