Allison Transmission Announces Q1 2024 Results

Allison Transmission Announces Q1 2024 Results

The company reported record net sales of $789 million.

Allison Transmission Holdings Inc. reported first quarter net sales of $789 million and first quarter diluted EPS of $1.90, which includes a $0.13 impact from $14 million of non-recurring UAW contract signing incentives incurred in the quarter.

Chair and Chief Executive Officer David S. Graziosi commented, “In the first quarter we generated record net sales, driven by strong Global On-Highway demand and strength in our Outside North America Off-Highway and Defense end markets. Robust demand for Class 8 vocational and medium-duty trucks drove record revenue in our North America On-Highway end market, while strength in Asia drove record first quarter revenue in our Outside North America On-Highway end market.”

First Quarter Financial Highlights:

Net sales for the quarter were an all-time high of $789 million. Year over year results were led by:

  • A $44 million increase in net sales in the North America On-Highway end market, leading to record net sales of $420 million, principally driven by strength in demand for Class 8 vocational and medium-duty trucks and price increases on certain products,
  • A $21 million increase in net sales in the Defense end market principally driven by increased demand for Tracked vehicle applications,
  • A $19 million increase in net sales in the Outside North America Off-Highway end market principally driven by strength in demand from the energy, mining and construction sectors, and
  • A $7 million increase in net sales in the Outside North America On-Highway end market, leading to record first quarter net sales of $115 million, principally driven by higher demand in Asia and price increases on certain products, partially offset by lower demand in Europe.

Net income for the quarter was $169 million, according to Allison Transmission. Diluted EPS for the quarter was $1.90. Adjusted EBITDA, a non-GAAP financial measure, for the quarter was $289 million. Net cash provided by operating activities for the quarter was $173 million. Adjusted free cash flow, a non-GAAP financial measure, for the quarter was $162 million.

Gross profit for the quarter was $366 million, an increase of $5 million from $361 million for the same period in 2023, Allison Transmission said. The increase in gross profit was principally driven by increased net sales and price increases on certain products, partially offset by higher manufacturing expense, including $13 million of non-recurring UAW contract signing incentives, and higher direct material costs.

Graziosi continued, “During the first quarter, in support of our long-standing commitment to prudent balance sheet management and our focus on a low-cost, flexible and pre-payable debt structure with long-dated maturities, we increased commitments under our revolving credit facility to $750 million, extending the maturity date to 2029 and refinanced $518 million of term loan debt, paying down $101 million of existing term loan debt and extending the maturity date to 2031.

“We also maintained our commitment to returning capital to shareholders through our share repurchase program, repurchasing nearly 1 percent of outstanding shares. We also increased our quarterly dividend by 9 percent to $0.25 per share, the fifth consecutive annual increase to our quarterly dividend.”

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