Allison Transmission ( (ALSN) ) has released its Q4 earnings. Here is a breakdown of the information Allison Transmission presented to its investors.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Allison Transmission is a leading global manufacturer of propulsion solutions for commercial and defense vehicles, renowned for its fully automatic transmissions used in various applications such as on-highway vehicles, buses, and defense vehicles. The Indianapolis-based company has a strong presence in over 150 countries and is a major player in the automotive industry.
In its latest earnings report, Allison Transmission announced record-breaking financial results for the fourth quarter and the full year 2024, with net sales reaching an all-time high of $3.2 billion, marking a 6% increase from the previous year. The company also achieved a record diluted earnings per share (EPS) of $8.31, reflecting a 12% year-over-year growth.
Key highlights from the earnings report include a significant $223 million increase in net sales in the North America On-Highway end market, bolstered by strong demand for Class 8 vocational and medium-duty trucks. The Defense end market saw a notable 28% increase in net sales due to heightened demand for tracked vehicle applications. The company also returned cash to shareholders through dividends and stock repurchases while reducing debt by $101 million.
Allison Transmission’s financial performance demonstrates its resilience and strategic focus on growth. The company reported a net income of $731 million for the year and an adjusted EBITDA of $1,165 million, with strong cash flow from operations amounting to $801 million. Despite challenges such as higher manufacturing expenses and unfavorable foreign exchange impacts, the company maintained robust profitability and operational efficiency.
Looking ahead, Allison Transmission remains optimistic about its prospects in 2025, projecting another record revenue year driven by price adjustments, increased demand for tracked vehicle applications, and strong vocational demand in North America. The company’s strategic initiatives and market positioning are anticipated to support continued growth and shareholder value.
