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Dec 31, 2022

Allison Q4 2022 Earnings Report

Allison Transmission reported an increase in fourth quarter net sales and diluted EPS, driven by the realization of growth initiatives and further improvement in operating performance.

Key Takeaways

Allison Transmission reported record fourth quarter net sales of $718 million, up 11% year over year, and diluted EPS of $1.52, up 32% year over year. The company's performance was driven by strong customer demand across its Global On-highway and Off-highway end markets.

Net sales for the quarter were $718 million, up 11% year over year.

Diluted EPS for the quarter was $1.52, up 32% year over year.

Net income for the quarter was $141 million.

Adjusted EBITDA for the quarter was $245 million.

Total Revenue
$718M
Previous year: $644M
+11.5%
EPS
$1.52
Previous year: $1.15
+32.2%
Adjusted EBITDA
$245M
Previous year: $220M
+11.4%
Gross Profit
$338M
Previous year: $305M
+10.8%
Cash and Equivalents
$232M
Previous year: $127M
+82.7%
Free Cash Flow
$132M
Previous year: $105M
+25.7%
Total Assets
$4.67B
Previous year: $4.46B
+4.8%

Allison

Allison

Allison Revenue by Segment

Forward Guidance

Allison expects 2023 Net Sales in the range of $2,825 to $2,925 million, Net Income in the range of $500 to $550 million, Adjusted EBITDA in the range of $965 to $1,025 million, Net Cash Provided by Operating Activities in the range of $605 to $665 million, Capital Expenditures in the range of $125 to $135 million, and Adjusted Free Cash Flow in the range of $480 to $530 million.

Positive Outlook

  • Higher net sales across all end markets
  • Driven by price increases on certain products
  • Continued execution of growth initiatives

Revenue & Expenses

Visualization of income flow from segment revenue to net income