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Mar 31, 2023

Allison Q1 2023 Earnings Report

Allison Transmission reported record quarterly net sales and increased diluted EPS for Q1 2023.

Key Takeaways

Allison Transmission announced record first quarter net sales of $741 million, a 9% increase year over year, and diluted EPS of $1.85, up 42% compared to the same period in 2022. The company raised its full year 2023 guidance due to sustained demand and growth initiatives.

Record quarterly net sales of $741 million, up 9% year over year.

Diluted EPS of $1.85, up 42% year over year.

Net sales in Service Parts, Support Equipment and Other end market increased by $44 million.

Net sales in the North America On-Highway end market increased by $30 million.

Total Revenue
$741M
Previous year: $677M
+9.5%
EPS
$1.85
Previous year: $1.3
+42.3%
Adjusted EBITDA
$276M
Previous year: $244M
+13.1%
Gross Profit
$361M
Previous year: $320M
+12.8%
Cash and Equivalents
$344M
Previous year: $145M
+137.2%
Free Cash Flow
$169M
Previous year: $143M
+18.2%
Total Assets
$4.83B
Previous year: $4.53B
+6.8%

Allison

Allison

Allison Revenue by Segment

Forward Guidance

Allison expects 2023 Net Sales in the range of $2.9 to $3.0 billion, Net Income in the range of $550 to $600 million, Adjusted EBITDA in the range of $1.01 to $1.09 billion, Net Cash Provided by Operating Activities in the range of $635 to $695 million, Capital Expenditures in the range of $125 to $135 million, and Adjusted Free Cash Flow in the range of $510 to $560 million.

Positive Outlook

  • Higher customer demand in the Global On-Highway end market
  • Higher customer demand in the Global Off-Highway end market
  • Higher customer demand in the Service Parts, Support Equipment & Other end markets
  • Price increases on certain products
  • Continued execution of growth initiatives

Revenue & Expenses

Visualization of income flow from segment revenue to net income