Allison Transmission Reports Record Q3 2024 Results

Allison Transmission ( (ALSN) ) has realeased its Q3 earnings. Here is a breakdown of the information Allison Transmission presented to its investors.

Allison Transmission Holdings, Inc., headquartered in Indianapolis, Indiana, is a leading global manufacturer specializing in propulsion solutions for commercial and defense vehicles, notably recognized as the largest producer of medium- and heavy-duty fully automatic transmissions.

The company recently reported its third quarter 2024 financial results, showcasing record net sales of $824 million, marking a 12% increase compared to the previous year. This surge in sales was accompanied by a record net income of $200 million, reflecting a 27% increase year over year, and a record diluted earnings per share of $2.27, up 29% from the prior year.

Key drivers of this robust financial performance include an $81 million increase in net sales from the North America On-Highway market, driven by strong demand for Class 8 vocational vehicles and medium-duty trucks. Additionally, sales in the Defense market rose by $10 million due to increased demand for tracked vehicle applications, while the Outside North America On-Highway market saw an $8 million boost, particularly from higher demand in Asia.

The company’s gross profit increased to $396 million, up from $357 million in the same quarter last year, fueled by increased net sales and strategic price adjustments. Despite higher manufacturing expenses, the company managed to decrease its selling, general, and administrative expenses slightly, while increasing its investment in research and development.

Looking forward, Allison Transmission is optimistic about its performance, raising its full-year 2024 guidance for revenue, earnings, and cash flow, buoyed by sustained demand in its primary markets and a favorable economic outlook for the remainder of the year.