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Sep 30, 2022

Allison Q3 2022 Earnings Report

Allison Transmission reported a strong third quarter with significant year-over-year growth in net sales and diluted EPS, driven by resilient customer demand and the execution of growth initiatives.

Key Takeaways

Allison Transmission announced third quarter 2022 results with net sales of $710 million, a 25% increase year-over-year. Diluted EPS was $1.45, up 63% year-over-year. The company also reported record quarterly net sales in the Outside North America On-Highway end market.

Net sales increased by 25% year over year to $710 million.

Diluted EPS increased by 63% year over year to $1.45.

Record quarterly net sales of $118 million were achieved in the Outside North America On-Highway end market.

Adjusted EBITDA for the quarter was $245 million.

Total Revenue
$710M
Previous year: $567M
+25.2%
EPS
$1.45
Previous year: $0.89
+62.9%
Adjusted EBITDA
$245M
Previous year: $189M
+29.6%
Gross Profit
$328M
Previous year: $261M
+25.7%
Cash and Equivalents
$180M
Previous year: $261M
-31.0%
Free Cash Flow
$182M
Previous year: $153M
+19.0%
Total Assets
$4.59B
Previous year: $4.54B
+1.2%

Allison

Allison

Allison Revenue by Segment

Forward Guidance

Allison expects 2022 Net Sales in the range of $2,690 to $2,740 million, Net Income in the range of $490 to $510 million, Adjusted EBITDA in the range of $915 to $945 million, Net Cash Provided by Operating Activities in the range of $620 to $650 million, Capital Expenditures in the range of $160 to $170 million, and Adjusted Free Cash Flow in the range of $460 to $480 million.

Positive Outlook

  • Net Sales in the range of $2,690 to $2,740 million.
  • Net Income in the range of $490 to $510 million.
  • Adjusted EBITDA in the range of $915 to $945 million.
  • Net Cash Provided by Operating Activities in the range of $620 to $650 million.
  • Adjusted Free Cash Flow in the range of $460 to $480 million.

Challenges Ahead

  • Capital Expenditures in the range of $160 to $170 million.
  • Increases in cost, disruption of supply or shortage of labor.
  • Global economic volatility.
  • The duration and spread of the COVID-19 pandemic.
  • Our participation in markets that are competitive.

Revenue & Expenses

Visualization of income flow from segment revenue to net income