Allison Transmission Reports Strong Q1 2025 Results

Allison Transmission ( (ALSN) ) has released its Q1 earnings. Here is a breakdown of the information Allison Transmission presented to its investors.

Allison Transmission Holdings Inc., a leading global manufacturer of medium- and heavy-duty fully automatic transmissions, has reported its financial results for the first quarter of 2025. The company, based in Indianapolis, Indiana, serves a diverse range of markets including commercial, defense, and off-highway vehicles across more than 150 countries.

In the first quarter of 2025, Allison Transmission achieved a net income of $192 million, marking a 14% increase from the previous year. The company’s net sales reached $766 million, driven by strong performance in the North America On-Highway and Defense markets. Notably, the diluted earnings per share (EPS) rose by 17% to $2.23, and the adjusted EBITDA margin improved by 90 basis points to 37.5%.

The company’s financial highlights include a $15 million increase in net sales within the North America On-Highway market, attributed to price increases and robust demand for Class 8 vocational trucks. However, there were declines in other segments, such as a $28 million decrease in the Global Off-Highway market due to reduced demand from energy, mining, and construction sectors outside North America. Despite these challenges, Allison Transmission maintained a strong balance sheet, ending the quarter with nearly $1.4 billion in stock repurchase authorization.

Looking ahead, Allison Transmission reaffirms its full-year 2025 guidance, projecting net sales between $3,200 and $3,300 million and net income ranging from $735 to $785 million. The company remains focused on strategic capital allocation and balance sheet management to navigate market uncertainties and continue delivering value to shareholders.