Allison Transmission Holdings Inc

Latest Results (14.11.2025):

Allison Transmission Holdings Inc reported its Third Quarter 2025 financial results with consolidated net sales of $693 million and net income of $137 million. Despite a challenging operating environment in key segments such as North America On-Highway, the company delivered strong adjusted EBITDA margins at 37% and robust cash generation, which supported share repurchases and dividend distributions while prompting revised full-year guidance.

Financial Metrics

The quarter showcased key metrics with net sales of $693 million, net income of $137 million, diluted EPS of $1.63, and an adjusted EBITDA of $256 million. Allison Transmission’s performance in Q3 2025 also included operating cash flows of $228 million and adjusted free cash flow of $184 million, underscoring strong liquidity amidst market challenges.

Segment Performance

In Q3 2025, the company's Defense end market experienced notable growth with a $25 million increase in net sales, reflecting higher demand for tracked vehicle applications and strategic pricing actions. Meanwhile, other segments such as North America On-Highway saw a $130 million decline due to lower demand, and similar downward trends appeared in the Global Off-Highway and Service Parts segments.

Cash Flow and Guidance

The robust cash flow generation enabled Allison Transmission Holdings Inc to make strategic capital allocations including a $27 million stock repurchase and $23 million in dividend payments during Q3 2025. Based on these results and evolving market conditions, the company revised its full-year 2025 guidance, setting targets for net sales between $2,975 and $3,025 million, net income between $620 and $650 million, and maintaining a strong focus on operational efficiency and strategic investments.