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Jun 30, 2023

Allison Q2 2023 Earnings Report

Reported record quarterly net sales with strong demand across largest end markets and growth initiatives.

Key Takeaways

Allison Transmission reported record second-quarter net sales of $783 million, an 18% increase year-over-year, and diluted EPS of $1.92, a 52% increase year-over-year. The company is raising its full-year 2023 net sales guidance to $3 billion at the midpoint.

Record quarterly net sales of $783 million, up 18% year over year

Net Income of $175 million, 22% of net sales, up 43% year over year

Diluted EPS of $1.92, up 52% year over year

Increased 2023 Net Sales, Earnings and Cash Flow Guidance

Total Revenue
$783M
Previous year: $664M
+17.9%
EPS
$1.92
Previous year: $1.26
+52.4%
Adjusted EBITDA
$288M
Previous year: $227M
+26.9%
Gross Profit
$381M
Previous year: $311M
+22.5%
Cash and Equivalents
$351M
Previous year: $122M
+187.7%
Free Cash Flow
$122M
Previous year: $36M
+238.9%
Total Assets
$4.86B
Previous year: $4.53B
+7.1%

Allison

Allison

Allison Revenue by Segment

Forward Guidance

Allison expects 2023 Net Sales in the range of $2.96 to $3.04 billion, Net Income in the range of $575 to $625 million, Adjusted EBITDA in the range of $1.05 to $1.11 billion, Net Cash Provided by Operating Activities in the range of $675 to $725 million, Capital Expenditures in the range of $125 to $135 million, and Adjusted Free Cash Flow in the range of $550 to $590 million.

Positive Outlook

  • Net Sales in the range of $2.96 to $3.04 billion
  • Net Income in the range of $575 to $625 million
  • Adjusted EBITDA in the range of $1.05 to $1.11 billion
  • Net Cash Provided by Operating Activities in the range of $675 to $725 million
  • Adjusted Free Cash Flow in the range of $550 to $590 million

Challenges Ahead

  • Capital Expenditures in the range of $125 to $135 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income