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Mar 31, 2021

Allison Q1 2021 Earnings Report

Allison Transmission reported an increase in net sales compared to the previous quarter and announced an increase to its full year net sales guidance.

Key Takeaways

Allison Transmission reported Q1 2021 net sales of $588 million, a 10% increase from the fourth quarter of 2020. Net income for the quarter was $120 million, with diluted EPS at $1.07. The company raised its full year 2021 net sales guidance to $2,325 to $2,475 million.

Net sales for the first quarter were $588 million.

Net income reached $120 million, representing 20% of net sales.

Adjusted EBITDA was $222 million, accounting for 38% of net sales.

Diluted EPS stood at $1.07.

Total Revenue
$588M
Previous year: $637M
-7.7%
EPS
$1.07
Previous year: $1.2
-10.8%
Adjusted EBITDA
$222M
Previous year: $257M
-13.6%
Gross Profit
$291M
Previous year: $326M
-10.7%
Cash and Equivalents
$295M
Previous year: $114M
+158.8%
Free Cash Flow
$107M
Previous year: $127M
-15.7%
Total Assets
$4.53B
Previous year: $4.42B
+2.5%

Allison

Allison

Allison Revenue by Segment

Forward Guidance

Allison expects 2021 Net Sales in the range of $2,325 to $2,475 million, Net Income in the range of $395 to $465 million, Adjusted EBITDA in the range of $795 to $885 million, Net Cash Provided by Operating Activities in the range of $585 to $655 million, Adjusted Free Cash Flow in the range of $415 to $475 million and Capital Expenditures in the range of $170 to $180 million.

Positive Outlook

  • Net Sales in the range of $2,325 to $2,475 million
  • Net Income in the range of $395 to $465 million
  • Adjusted EBITDA in the range of $795 to $885 million
  • Net Cash Provided by Operating Activities in the range of $585 to $655 million
  • Adjusted Free Cash Flow in the range of $415 to $475 million

Challenges Ahead

  • Capital Expenditures in the range of $170 to $180 million
  • Unspecified risks associated with business
  • Uncertainty in the global regulatory and business environments
  • Cyclical industries in which certain of end users operate
  • Competitive markets

Revenue & Expenses

Visualization of income flow from segment revenue to net income