Allison Transmission's Q3 sales miss estimates, net income down

Allison Transmission Holdings

29/10/2025 20:33

Overview

Allison Q3 net sales drop by $131 mln yr/yr to $693 mln, missing analysts' expectations

Net income for Q3 was $137 mln, reflecting a $63 mln decrease from last year

Company maintained adjusted EBITDA margin of 37% despite demand challenges

Outlook

Allison expects 2025 net sales between $2.975 bln and $3.025 bln

Company forecasts 2025 net income between $620 mln and $650 mln

Allison maintains midpoint of adjusted EBITDA margin guidance

Result Drivers

DEFENSE MARKET - Growth in Defense end market driven by increased demand for tracked vehicle applications and price increases

NORTH AMERICA CHALLENGES - Demand uncertainty in North America On-Highway market due to global macroeconomic factors impacted sales by $130 mln

STRONG CASH FLOW - Company generated strong cash flow enabling investment in strategic initiatives and capital allocation

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$693 mln
$780 mln (5 Analysts)
Q3 EPS
$1.63
Q3 Net Income
$137 mln
Q3 Basic EPS
$1.63
Q3 Operating income
$204 mln
Q3 Pretax Profit
$182 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the heavy machinery & vehicles peer group is "buy."

Wall Street's median 12-month price target for Allison Transmission Holdings Inc is $95.50, about 14% above its October 28 closing price of $82.11

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn86cg65a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)