- Allison Transmission’s Second Quarter earnings per share (EPS) stood at $2.29, surpassing the previous year’s $2.13 and higher than the estimated $2.20.
- Net sales reached $814 million, a slight decrease of 0.2% year-over-year, but exceeded the estimated $804.5 million.
- North America On-Highway net sales were $417 million, a decrease of 8.6% compared to last year, and below the estimated $443.9 million.
- Defense sales saw a significant increase of 47% year-over-year, totaling $63 million and beating the estimated $50.9 million.
- Outside North America On-Highway net sales increased by 11% year-over-year to $142 million, exceeding the estimation of $129.3 million.
- Service Parts, Support Equipment & Other net sales rose by 6% year-over-year to $176 million, surpassing the estimated $163.8 million.
- Adjusted EBITDA was $313 million, marking a 4% increase year-over-year, and was higher than the estimated $295.7 million.
- Allison now projects 2025 net sales to be between $3,075 and $3,175 million.
- The company expects 2025 net income to range from $640 to $680 million.
- Adjusted EBITDA for 2025 is anticipated to be between $1,130 and $1,180 million.
- Allison projects net cash provided by operating activities to be in the range of $785 to $835 million.
- Capital expenditures are expected to be between $165 and $175 million in 2025.
- Adjusted free cash flow is projected to range from $620 to $660 million.
- Analyst recommendations include 4 buys, 4 holds, and 1 sell.
Allison Transmission Holdings on Smartkarma
Analysts at Baptista Research on Smartkarma have provided detailed insights into Allison Transmission Holdings. In their report titled “Allison Transmission: Growth in International Defense Markets As A Significant Growth Enabler In the Foreseeable Future!”, the analysts acknowledged the company’s first-quarter 2025 financial performance, highlighting a 3% decrease in net sales to $766 million. Despite challenges in the medium-duty truck segment, Allison Transmission saw a 4% sales increase in North America’s on-highway market, supported by pricing strategies and strong sales in the defense market.
In another report titled “Allison Transmission: The Electrification Bet That Could Reshape Its Future!“, Baptista Research discussed the company’s solid performance in the fourth quarter and full year of 2024. With record net sales of $3.2 billion for the year, Allison Transmission’s strategic focus on market expansion and product diversification has yielded positive results. The analysts noted a 15% increase in net sales for the North American on-highway market, primarily driven by the high demand for its 3000 and 4000 Series products.
A look at Allison Transmission Holdings Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Allison Transmission Holdings shows a positive long-term outlook. With strong scores in Growth, Resilience, and Momentum, the company demonstrates promising prospects for future expansion and stability. While the Value and Dividend scores are moderate, the higher ratings in Growth indicate the potential for increased earnings and market performance over time. Allison Transmission Holdings, known for manufacturing automatic transmissions for various commercial and military vehicles, displays a resilient profile amidst market fluctuations.
Allison Transmission Holdings, Inc., a leading manufacturer of automatic transmissions for diverse applications, is positioned well for sustained growth. The company’s emphasis on innovation and product development, particularly in hybrid-propulsion systems, aligns with its high Growth score, reflecting a positive trajectory for the future. With a solid foundation in serving commercial and military vehicle markets, Allison Transmission Holdings showcases continued momentum and resilience, contributing to its overall favorable outlook as indicated by the Smartkarma Smart Scores assessment.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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