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Allison Transmission Holdings (ALSN - Free Report) delivered fourth-quarter 2024 earnings of $2.01 per share, which beat the Zacks Consensus Estimate of $1.93 and rose 5.2% year over year. Record quarterly revenues of $796 million grew 2.7% from the year-ago period's level and outpaced the Zacks Consensus Estimate of $791 million.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Allison Transmission Holdings, Inc. Price, Consensus and EPS Surprise
Allison segregates revenues in terms of end markets served, which are as follows:
In the reported quarter, net sales in the North America On-Highway end market rose 10.2% year over year to $419 million and surpassed the Zacks Consensus Estimate of $395 million. High demand for Class 8 vocational and price increases on certain products resulted in sales growth.
Net sales in the North America Off-Highway end market plunged to $2 million from $5 million reported in the year-ago period but came ahead of the Zacks Consensus Estimate of $1.57 million.
In the reported quarter, net sales in the Defense end market rose 7.9% year over year to $68 million, which was in line with the Zacks Consensus Estimate, driven by higher demand for Tracked vehicle applications.
The Outside North America On-Highway end market’s net sales of $124 million decreased from $128 million generated in the corresponding quarter of 2023. The metric also missed the Zacks Consensus Estimate of $136 million.
Net sales in the Outside North America Off-Highway end market fell 63.2% to $14 million and missed the Zacks Consensus Estimate of $37.05 million.
Net sales in the Service Parts, Support Equipment & Other end markets rose 4.9% year over year to $169 million in the quarter due to price increases on certain products and also topped the Zacks Consensus Estimate of $158 million.
Financial Position
Allison saw a gross profit of $373 million, which increased from $371 million reported in the year-ago quarter, mainly driven by price increases in certain products.
Adjusted EBITDA in the quarter came in at $270 million, which declined from $277 million reported a year ago.
Selling, general and administrative expenses in the quarter were $84 million compared with $92 million in the year-ago period. Engineering – research and development expenses remained flat year over year at $54 million.
Allison had cash and cash equivalents of $781 million as of Dec. 31, 2024, up from $555 million recorded as of Dec. 31, 2023. Long-term debt amounted to $2.39 billion compared with $2.49 billion as of Dec. 31, 2023.
Net cash provided by operating activities totaled $211 million. Adjusted free cash flow in the reported quarter totaled $136 million, down from $186 million generated in the year-ago period.
ALSN Provides 2025 Outlook
Allison expects full-year 2025 net sales in the band of $3.2-$3.3 billion compared with $3.23 billion reported in 2024. Net income is expected in the band of $735-$785 million, up from $731 million reported in 2024. Adjusted EBITDA is estimated in the range of $1.17-$1.23 billion, up from $1,165 million reported in 2024.
ALSN expects net cash provided by operating activities between $800 million and $860 million, up from $801 million reported in 2024. Capex is expected in the band of $165-$175 million. Adjusted free cash flow is estimated between $635 million and $685 million compared with $658 million reported in 2024.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 79.17%. EPS estimates for 2025 have improved by 20 cents in the past 30 days.
The Zacks Consensus Estimate for GTX’s 2025 sales and earnings indicates year-over-year growth of 2.16% and 17.92%, respectively. EPS estimates for 2025 have improved by a penny in the past 30 days.
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Allison Q4 Earnings Surpass Expectations, Revenues Rise Y/Y
Allison Transmission Holdings (ALSN - Free Report) delivered fourth-quarter 2024 earnings of $2.01 per share, which beat the Zacks Consensus Estimate of $1.93 and rose 5.2% year over year. Record quarterly revenues of $796 million grew 2.7% from the year-ago period's level and outpaced the Zacks Consensus Estimate of $791 million.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Allison Transmission Holdings, Inc. Price, Consensus and EPS Surprise
Allison Transmission Holdings, Inc. price-consensus-eps-surprise-chart | Allison Transmission Holdings, Inc. Quote
Segmental Performance
Allison segregates revenues in terms of end markets served, which are as follows:
In the reported quarter, net sales in the North America On-Highway end market rose 10.2% year over year to $419 million and surpassed the Zacks Consensus Estimate of $395 million. High demand for Class 8 vocational and price increases on certain products resulted in sales growth.
Net sales in the North America Off-Highway end market plunged to $2 million from $5 million reported in the year-ago period but came ahead of the Zacks Consensus Estimate of $1.57 million.
In the reported quarter, net sales in the Defense end market rose 7.9% year over year to $68 million, which was in line with the Zacks Consensus Estimate, driven by higher demand for Tracked vehicle applications.
The Outside North America On-Highway end market’s net sales of $124 million decreased from $128 million generated in the corresponding quarter of 2023. The metric also missed the Zacks Consensus Estimate of $136 million.
Net sales in the Outside North America Off-Highway end market fell 63.2% to $14 million and missed the Zacks Consensus Estimate of $37.05 million.
Net sales in the Service Parts, Support Equipment & Other end markets rose 4.9% year over year to $169 million in the quarter due to price increases on certain products and also topped the Zacks Consensus Estimate of $158 million.
Financial Position
Allison saw a gross profit of $373 million, which increased from $371 million reported in the year-ago quarter, mainly driven by price increases in certain products.
Adjusted EBITDA in the quarter came in at $270 million, which declined from $277 million reported a year ago.
Selling, general and administrative expenses in the quarter were $84 million compared with $92 million in the year-ago period. Engineering – research and development expenses remained flat year over year at $54 million.
Allison had cash and cash equivalents of $781 million as of Dec. 31, 2024, up from $555 million recorded as of Dec. 31, 2023. Long-term debt amounted to $2.39 billion compared with $2.49 billion as of Dec. 31, 2023.
Net cash provided by operating activities totaled $211 million. Adjusted free cash flow in the reported quarter totaled $136 million, down from $186 million generated in the year-ago period.
ALSN Provides 2025 Outlook
Allison expects full-year 2025 net sales in the band of $3.2-$3.3 billion compared with $3.23 billion reported in 2024. Net income is expected in the band of $735-$785 million, up from $731 million reported in 2024. Adjusted EBITDA is estimated in the range of $1.17-$1.23 billion, up from $1,165 million reported in 2024.
ALSN expects net cash provided by operating activities between $800 million and $860 million, up from $801 million reported in 2024. Capex is expected in the band of $165-$175 million. Adjusted free cash flow is estimated between $635 million and $685 million compared with $658 million reported in 2024.
Allison’s Zacks Rank & Other Key Picks
ALSN carries a Zacks Rank #2 (Buy) at present.
Some other top-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Dana Incorporated (DAN - Free Report) and Garrett Motion Inc. (GTX - Free Report) . While GELYY & DAN sport a Zacks Rank #1 (Strong Buy) each, GTX carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings indicates year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for DAN’s 2025 earnings implies year-over-year growth of 79.17%. EPS estimates for 2025 have improved by 20 cents in the past 30 days.
The Zacks Consensus Estimate for GTX’s 2025 sales and earnings indicates year-over-year growth of 2.16% and 17.92%, respectively. EPS estimates for 2025 have improved by a penny in the past 30 days.