Allison Transmission Reports Record Financial Results for 2024

Allison Transmission Holdings Inc. has released its latest SEC 8-K filing, showcasing record financial results for the fourth quarter and full year of 2024. The company, a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles, reported significant growth across various financial metrics, reflecting robust demand and strategic initiatives.

Financial Highlights

For the full year 2024, Allison Transmission achieved record net sales of $3.2 billion, marking a 6% increase from 2023. The company also reported a record diluted EPS of $8.31, up 12% year over year. Net income for the year was $731 million, and adjusted EBITDA reached $1.165 billion. In the fourth quarter alone, net sales were $796 million, with a net income of $175 million and a diluted EPS of $2.01.

Business and Operational Highlights

Allison Transmission's performance was driven by strong demand in several key markets. The North America On-Highway end market saw a $223 million increase in net sales, primarily due to the demand for Class 8 vocational and medium-duty trucks. The Defense end market experienced a 28% increase in net sales, driven by higher demand for tracked vehicle applications. Additionally, the Outside North America On-Highway end market saw a $16 million increase in net sales, with higher demand in Asia partially offset by lower demand in Europe.

Strategic Initiatives and Corporate Developments

In 2024, Allison Transmission continued to return cash to shareholders by increasing its quarterly dividend for the fifth consecutive year and repurchasing over $250 million of common stock, representing over 3% of outstanding shares. The company also paid down $101 million of existing term loan debt. These actions reflect Allison's commitment to enhancing shareholder value and maintaining a strong financial position.

Management's Perspective

David S. Graziosi, Chair and Chief Executive Officer of Allison Transmission, highlighted the company's strong performance across multiple end markets. He noted the unprecedented demand for Class 8 vocational vehicles and the realization of growth initiatives as key drivers of the record results. Graziosi also emphasized the company's efforts to return cash to shareholders and reduce debt, positioning Allison for continued success in 2025.

Future Outlook

Looking ahead to 2025, Allison Transmission expects net sales to be in the range of $3.2 to $3.3 billion, with net income projected between $735 and $785 million. The company also anticipates adjusted EBITDA to be between $1.170 and $1.230 billion, and adjusted free cash flow to range from $635 to $685 million. These projections are based on expected price increases on certain products, increased demand for tracked vehicle applications, and robust North America vocational demand.

SEC Filing: Allison Transmission Holdings Inc [ ALSN ] - 8-K - Feb. 11, 2025