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Jun 30, 2021
Allison Q2 2021 Earnings Report
Allison Transmission reported a 60% increase in net sales and a significant rise in net income, driven by recovering customer demand and global economic improvements.
Key Takeaways
Allison Transmission announced strong second-quarter results with a 60% increase in net sales to $603 million and a net income of $110 million, reflecting a substantial recovery in global markets. The company reaffirmed its full-year 2021 guidance, indicating continued confidence in its performance.
Net sales increased by 60% year-over-year, reaching $603 million.
Net income rose significantly to $110 million, representing 18% of net sales.
Adjusted EBITDA stood at $213 million, accounting for 35% of net sales.
Diluted EPS was reported at $1.01.
Revenue by Segment
Forward Guidance
Allison Transmission reaffirmed its full year 2021 guidance ranges released to the market on April 28 for Net Sales, Adjusted EBITDA, Net Cash Provided by Operating Activities, Adjusted Free Cash Flow and Capital Expenditures. 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
- Higher demand in the global On-Highway end market.
- Increased demand in the Service Parts, Support Equipment & Other end market.
- Growing demand in the North America Off-Highway end market.
- Ongoing global economic recovery driving demand.
- Price increases on certain products contributing to revenue.
Challenges Ahead
- Continuation of industry production constraints.
- Global supply chain challenges persisting.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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