Allison Transmission Reports Record Second Quarter Net Sales of $816 Million

Strategic Insights -

Allison Transmission Holdings Inc., a leading global designer and manufacturer of commercial vehicle transmission systems, announced its second quarter financial results, exceeding expectations with a quarterly record of $816 million in net sales. The increase was primarily driven by strong demand for Class 8 vocational vehicles and medium-duty trucks in the North America On-Highway end market, as well as price increases on certain products. The company also reported an all-time high quarterly net sales of $456 million in the North America On-Highway end market.

Key Takeaways:

  • Second quarter net sales reached a record $816 million, driven by strong demand for Class 8 vocational vehicles and medium-duty trucks in the North America On-Highway end market.
  • Allison Transmission reported an all-time high quarterly net sales of $456 million in the North America On-Highway end market.
  • The company increased its full-year 2024 revenue, earnings, and cash flow guidance due to strong first-half results and positive end-market conditions.
  • Net income for the quarter was $187 million, with diluted EPS of $2.13.
  • Adjusted EBITDA for the quarter was $301 million, an increase of $13 million from the previous year.
  • Net cash provided by operating activities was $171 million, an increase of $30 million from the same period in 2023.

Statistics:

  • Second quarter net sales: $816 million (up $33 million from $783 million in Q2 2023)
  • North America On-Highway end market net sales: $456 million (up $59 million from $397 million in Q2 2023)
  • Defense end market net sales: $43 million (up $10 million from $33 million in Q2 2023)
  • Outside North America On-Highway end market net sales: $128 million (up $5 million from $123 million in Q2 2023)
  • Gross profit: $394 million (up $13 million from $381 million in Q2 2023)
  • Selling, general, and administrative expenses: $82 million (down $10 million from $92 million in Q2 2023)
  • Engineering-research and development expenses: $49 million (up $2 million from $47 million in Q2 2023)
  • Net income: $187 million (up $12 million from $175 million in Q2 2023)
  • Net cash provided by operating activities: $171 million (up $30 million from $141 million in Q2 2023)
  • Adjusted EBITDA: $301 million (up $13 million from $288 million in Q2 2023)
  • Adjusted free cash flow: $150 million (up $28 million from $122 million in Q2 2023)

Sources:

  • Allison Transmission Holdings Inc. (2024). Allison Transmission Reports Second Quarter Financial Results.
  • Allison Transmission Holdings Inc. (2024). Second Quarter 2024 Financial Highlights.