Allison Transmission ( (ALSN) ) has released its Q3 earnings. Here is a breakdown of the information Allison Transmission presented to its investors.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Allison Transmission Holdings Inc., a prominent designer and manufacturer of propulsion solutions for commercial and defense vehicles, is the largest global producer of medium- and heavy-duty fully automatic transmissions. The company operates in over 150 countries, serving diverse sectors including on-highway vehicles, buses, off-highway vehicles, and defense vehicles.
In its third quarter of 2025, Allison Transmission reported net sales of $693 million, with significant growth in the Defense end market, which saw a 47% year-over-year increase. Despite a challenging demand environment, the company achieved a robust adjusted EBITDA margin of 37% and generated a net income of $137 million, which represents 19.8% of net sales.
Key financial highlights from the quarter include a $25 million increase in net sales in the Defense end market, driven by demand for tracked vehicle applications and price increases. However, the North America On-Highway end market experienced a $130 million decline in net sales due to reduced demand for Class 8 vocational and medium-duty trucks. The company also reported a decrease in net cash provided by operating activities, totaling $228 million, and adjusted free cash flow of $184 million.
Despite the current economic challenges, Allison Transmission remains focused on operational excellence and strategic investments. The company is progressing with the acquisition of Dana’s Off-Highway business and has repurchased $27 million of its common stock while paying $23 million in dividends during the quarter.
Looking ahead, Allison Transmission is revising its full-year 2025 guidance, expecting net sales between $2,975 million and $3,025 million, with net income ranging from $620 million to $650 million. The company continues to adapt to market dynamics, ensuring resilience and sustained investment in strategic initiatives.