Allison Q3 2020 Earnings Report
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.
Allison
Allison
Allison 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.
- Supply chain disruptions could occur.
- There may be increased trade protectionism.
Revenue & Expenses
Visualization of income flow from segment revenue to net income