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Allison Transmission Holdings Inc.

Allison Transmission Reports Record Second Quarter Net Sales

Strategic Insights

— 2 min read

Allison Transmission Holdings Inc. has announced its second quarter financial results, with net sales reaching a record $816 million. This quarterly record was driven by an all-time high in net sales of $456 million in the North America On-Highway end market. The company attributes the success to unprecedented demand for Class 8 vocational vehicles, which propelled second quarter revenue to a company record. Additionally, year-over-year increases in the Defense and Outside North America On-Highway end markets contributed to the company's growth initiatives.

Key Takeaways:

  • Allison Transmission reported second quarter net sales of $816 million, a quarterly record driven by an all-time high in net sales of $456 million in the North America On-Highway end market.
  • Unprecedented demand for Class 8 vocational vehicles drove record quarterly revenue in the North America On-Highway end market.
  • The company raised its full-year 2024 revenue, earnings, and cash flow guidance due to the ongoing strength in the North America On-Highway end market.
  • Allison Transmission returned capital to shareholders through a quarterly dividend of $0.25 per share and repurchased over $31 million of outstanding shares.
  • Net income for the quarter was $187 million and diluted EPS was $2.13.
  • Adjusted EBITDA was $301 million, and net cash provided by operating activities was $171 million.
  • Adjusted free cash flow was $150 million.
  • The company saw a $59 million increase in net sales in the North America On-Highway end market, driven by strength in demand for Class 8 vocational vehicles and medium-duty trucks, as well as price increases on certain products.
  • The Defense end market experienced a $10 million increase in net sales, driven by increased demand for Tracked vehicle applications.
  • The Outside North America On-Highway end market saw a $5 million increase in net sales, with record second quarter net sales of $128 million driven by higher demand in Asia and price increases on certain products.

Statistics:

  • $816 million: Second quarter net sales
  • $456 million: All-time high quarterly net sales in the North America On-Highway end market
  • $59 million: Increase in net sales in the North America On-Highway end market
  • $10 million: Increase in net sales in the Defense end market
  • $5 million: Increase in net sales in the Outside North America On-Highway end market
  • $187 million: Net income for the quarter
  • $2.13: Diluted EPS for the quarter
  • $301 million: Adjusted EBITDA for the quarter
  • $171 million: Net cash provided by operating activities for the quarter
  • $150 million: Adjusted free cash flow for the quarter

Sources:

  • Allison Transmission Holdings Inc. news release, dated [no date provided]

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