#USA #Indianapolis #Allison Transmission #Net Sales #EPS Record

Allison Transmission Achieves Record Financial Milestones in 2024

Allison Transmission Holdings Inc., a renowned leader in propulsion solutions, reported extraordinary financial results for the fourth quarter and full year of 2024. The company recorded net sales of $3.2 billion, marking a notable 6% increase over the previous year. This significant achievement underscores Allison’s strong market presence and effective strategic initiatives throughout the year.

Quarterly Performance Overview

In the fourth quarter alone, Allison's net sales reached $796 million. This impressive quarter was bolstered by a 10% increase in sales within the North America On-Highway end market. The surge in demand for Class 8 vocational vehicles was a critical driver in this growth, complemented by strategic price adjustments across several product lines.

The Defense market also showcased robust performance, with a year-on-year sales increase of 28%. This reflects escalating demand for tracked vehicle applications, a pivotal area of focus for Allison. Within the quarter, the company’s total net income was reported at $175 million, translating to a diluted earnings per share (EPS) of $2.01, a rise from $1.91 in the same period the previous year.

Annual Financial Highlights

Full year results reveal a remarkable upward trend, with net income soaring to $731 million. The diluted EPS for the year climbed 12% year-over-year to an impressive $8.31, a figure that not only highlights Allison's profitability but also signifies its shareholder value creation. Adjusted EBITDA for 2024 stood at $1.165 billion, reflecting strong operational efficiency amid market challenges.

David S. Graziosi, Chair and Chief Executive Officer, emphasized that the unprecedented demand for vocational vehicles was a key factor fueling the company’s success. He noted, “Our growth initiatives proved beneficial as we closed the year with decade-high net sales in our Defense end market and reached all-time highs in the Outside North America On-Highway segments.”

Strategic Actions and Future Outlook

In a bid to enhance shareholder value, Allison returned cash through a consistent quarterly dividend increase for the fifth consecutive year, complemented by stock repurchases worth over $250 million. The company’s proactive measures also included paying down existing term loan debt by $101 million, showcasing a commitment to financial health and stability.

Looking ahead, Allison Transmission is guiding for another exceptional year in 2025, with net sales anticipated between $3.2 billion and $3.3 billion. This outlook is driven by anticipated price adjustments on select products, increasing demand for tracked vehicle applications, and vigorous vocational vehicle demand in North America.

Conclusion

With 2024 marked by unprecedented achievements, Allison Transmission is not only solidifying its market leadership but also setting the stage for future growth. The company’s strategic focus on high-demand sectors, combined with its strong financial performance, poise Allison for continued success in the coming years. Investors and stakeholders alike can look forward to an exciting trajectory as the company aims for new heights in operational excellence and market expansion.

In conclusion, Allison Transmission Holdings Inc. stands at the forefront of innovation and growth in the propulsion solutions industry, further evidenced by its record-breaking performance in 2024.