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Sep 30, 2020
Allison Q3 2020 Earnings Report
Allison Transmission reported improved third quarter results driven by customer demand and global economic recovery.
Key Takeaways
Allison Transmission announced third quarter net sales of $532 million, a 20 percent decrease from the same period in 2019. Net income for the quarter was $77 million, and adjusted EBITDA was $174 million.
Net sales increased by 41% from the second quarter of 2020.
Net income reached $77 million.
Diluted EPS stood at $0.68.
Adjusted EBITDA totaled $174 million.
Revenue by Segment
Forward Guidance
Allison expects 2020 Net Sales in the range of $2,025 to $2,075 million, Net Income in the range of $285 to $315 million, Adjusted EBITDA in the range of $690 to $730 million, Net Cash Provided by Operating Activities in the range of $490 to $520 million, Adjusted Free Cash Flow in the range of $385 to $425 million and Capital Expenditures in the range of $107 to $117 million.
Positive Outlook
- Net Sales are expected to be between $2,025 and $2,075 million.
- Net Income is projected to be between $285 and $315 million.
- Adjusted EBITDA is anticipated to be between $690 and $730 million.
- Net Cash Provided by Operating Activities is expected to be between $490 and $520 million.
- Adjusted Free Cash Flow is forecasted to be between $385 and $425 million.
Challenges Ahead
- Lower demand across all end markets except for the Defense end market as a result of the pandemic.
- The pandemic will continue to have an impact on the business.
- Economic conditions may remain volatile.
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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