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Jun 30, 2020

Allison Q2 2020 Earnings Report

Allison Transmission's financial performance significantly impacted by the COVID-19 pandemic, with decreased net sales and net income compared to the same period in 2019.

Key Takeaways

Allison Transmission reported a decrease in net sales by 49% to $377 million due to the COVID-19 pandemic, except for the Defense end market. Net income decreased to $23 million, with adjusted EBITDA at $115 million and adjusted free cash flow at $67 million.

Net sales decreased by 49% year-over-year to $377 million, primarily due to the COVID-19 pandemic.

Net income was $23 million, a significant decrease from $181 million in the same period last year.

Adjusted EBITDA was $115 million, compared to $308 million in the second quarter of 2019.

Adjusted Free Cash Flow was $67 million, a decrease from $214 million in the prior year.

Total Revenue
$377M
Previous year: $737M
-48.8%
EPS
$0.2
Previous year: $1.46
-86.3%
Adjusted EBITDA
$115M
Previous year: $308M
-62.7%
Gross Profit
$165M
Previous year: $389M
-57.6%
Cash and Equivalents
$434M
Previous year: $153M
+183.7%
Free Cash Flow
$64M
Previous year: $214M
-70.1%
Total Assets
$4.63B
Previous year: $4.36B
+6.4%

Allison

Allison

Allison Revenue by Segment

Forward Guidance

Given the uncertain duration of the pandemic, as well as continuously evolving customer demand and supply chain readiness, we cannot conclusively provide a full year 2020 revenue, earnings or cash flow outlook at this time.

Revenue & Expenses

Visualization of income flow from segment revenue to net income