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Sep 30, 2021

Allison Q3 2021 Earnings Report

Allison Transmission announced a 7% increase in net sales, driven by robust customer demand and global economic recovery, with diluted EPS up 31% and adjusted EBITDA up 15% year-over-year.

Key Takeaways

Allison Transmission reported a 7% increase in net sales to $567 million, with a diluted EPS of $0.89, up 31% year-over-year. Net income was $94 million, and adjusted EBITDA reached $189 million. The company's performance reflects the continuing recovery in global markets and customer demand, despite ongoing supply chain challenges.

Net sales increased by 7% year-over-year to $567 million.

Diluted EPS increased by 31% year-over-year to $0.89.

Net income was $94 million, representing 17% of net sales.

Adjusted EBITDA was $189 million, representing 33% of net sales.

Total Revenue
$567M
Previous year: $532M
+6.6%
EPS
$0.89
Previous year: $0.68
+30.9%
Adjusted EBITDA
$189M
Previous year: $174M
+8.6%
Gross Profit
$261M
Previous year: $254M
+2.8%
Cash and Equivalents
$261M
Previous year: $251M
+4.0%
Free Cash Flow
$153M
Previous year: $127M
+20.5%
Total Assets
$4.54B
Previous year: $4.45B
+2.0%

Allison

Allison

Allison Revenue by Segment

Forward Guidance

Allison expects 2021 Net Sales in the range of $2,325 to $2,400 million, Net Income in the range of $395 to $440 million, Adjusted EBITDA in the range of $795 to $845 million, Net Cash Provided by Operating Activities in the range of $585 to $635 million, Adjusted Free Cash Flow in the range of $415 to $455 million and Capital Expenditures in the range of $170 to $180 million.

Positive Outlook

  • Higher demand in the Global On-Highway end market.
  • Higher demand in the Global Off-Highway end market.
  • Higher demand in the Service Parts, Support Equipment & Other end markets.
  • Ongoing global economic recovery.
  • Price increases on certain products.

Challenges Ahead

  • Commercial vehicle industry production constraints.
  • Global supply chain challenges.
  • Adverse impact on commercial vehicle industry production.
  • Continuation of commercial vehicle industry production constraints for the foreseeable future.
  • Continuation of global supply chain challenges for the foreseeable future.

Revenue & Expenses

Visualization of income flow from segment revenue to net income