#USA #Indianapolis #quarterly dividend #stock buyback #Allison Transmission

Allison Transmission Increases Dividends and Stock Repurchase Authorization

On February 20, 2025, Allison Transmission Holdings Inc. (NYSE: ALSN) made a significant announcement regarding its financial strategies, showcasing its commitment to returning value to shareholders. The company, recognized as a leader in designing and manufacturing vehicle propulsion solutions, reported an 8% increase in its quarterly dividend from $0.25 to $0.27 per share. This increase represents the sixth consecutive year that Allison has raised its dividend, reflecting strong financial performance and disciplined capital management.

Fred Bohley, the company’s COO and CFO, emphasized that this move underscores Allison’s dedication to maintaining a robust balance sheet while continuing to invest in the business. He stated, "The consistent return of capital to shareholders, while simultaneously investing across the organization, is supported by Allison's strong financial performance."

Shareholders should note that the new dividend will be payable on March 14, 2025, to those recorded as stockholders by the close of business on March 3, 2025. This update highlights Allison's strategy of rewarding shareholders while ensuring the necessary investments for growth and innovation are in place.

In addition to the dividend increase, Allison Transmission also disclosed a substantial enhancement to its existing stock repurchase program. The Board of Directors authorized an additional $1 billion for share buybacks, raising the total capacity under this program to an impressive $5 billion. These repurchases may take place in various formats, including open market transactions and privately negotiated agreements, dependent on market conditions and corporate needs. This flexible approach aims to optimize shareholder value while responding to evolving market dynamics.

The stock repurchase program showcases Allison’s strategic decision-making and willingness to act decisively in capitalizing on favorable market conditions. Such actions are pivotal for maintaining a competitive edge in a rapidly changing industry landscape.

Moreover, Allison is set to hold its annual meeting of stockholders on May 7, 2025, with a record date established for March 10, 2025. This gathering will allow shareholders to engage directly with management, further illustrating the company's commitment to transparency and communication.

Founded in 1915 and headquartered in Indianapolis, Indiana, Allison Transmission is the world's largest manufacturer of medium- and heavy-duty fully automatic transmissions for commercial and defense vehicles. The company operates in over 150 countries, showcasing its global reach and influence. Its products are instrumental in various applications, spanning from distribution and construction vehicles to off-highway systems used in energy and mining, underscoring its comprehensive expertise in the field.

As the automotive industry leans increasingly towards electrification, Allison remains poised to leverage its innovative capabilities to navigate this transition successfully. With significant resources allocated to electrification engineering and product development, the company aims to enhance its offerings and cater to the future needs of the automotive market.

In conclusion, Allison Transmission's recent announcements about its dividend increase and stock buyback authorization highlight its robust financial health and strategic foresight. As the company continues to adapt to a shifting landscape while rewarding its shareholders, it demonstrates a balanced approach between capital return and future growth aspirations.

For more information on Allison Transmission and its ongoing initiatives, visit Allison Transmission’s official website.