Allison Transmission (ALSN) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 net sales of $824 million, up 12% year-over-year, driven by strong North America On-Highway and Defense demand, as well as price increases.

• Net income rose 27% to $200 million, with diluted EPS reaching a record $2.27, up 29% year-over-year, reflecting higher gross profit and lower interest expense.

• Adjusted EBITDA increased to $305 million, up 14% year-over-year, supported by higher net sales and gross profit.

Financial highlights

• Gross profit rose to $396 million, up 11% year-over-year, with gross margin at 48%.

• Operating income increased to $260 million, up 17% year-over-year.

• Adjusted free cash flow was $210 million, up 15% year-over-year.

• Net cash from operating activities was $246 million, up 16% year-over-year.

Outlook and guidance

• Raised full-year 2024 guidance: net sales expected between $3,135 million and $3,215 million; net income $675–$725 million; adjusted EBITDA $1,115–$1,175 million.

• Adjusted free cash flow forecasted at $605–$655 million; capital expenditures at $135–$145 million.

• Q4 expected to be seasonally soft due to fewer OEM workdays and normalizing post-pandemic patterns.