Brief: Allison Transmission Q2 EPS USD 2.29

Allison Transmission Holdings

04/08/2025 21:05

Overview

Allison Q2 2025 sales beat analyst expectations, driven by Defense market strength

Diluted EPS hits quarterly record, rising 8% yr/yr

Co announces acquisition of Dana's Off-Highway business for $2.7 bln

Outlook

Allison expects 2025 net sales between $3,075 mln and $3,175 mln

Company anticipates 2025 net income between $640 mln and $680 mln

Allison projects 2025 adjusted EBITDA between $1,130 mln and $1,180 mln

Company maintains midpoint of adjusted EBITDA margin guidance

Result Drivers

DEFENSE MARKET - Net sales increased by $20 mln due to growth initiatives in the Defense end market

OUTSIDE NORTH AMERICA - Record $142 mln in quarterly net sales driven by higher demand in South America and Europe

ACQUISITION COSTS - One-time costs related to Dana Off-Highway business acquisition impacted results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$814 mln
$793.70 mln (5 Analysts)
Q2 EPS
$2.29
Q2 Net Income
$195 mln
Q2 Basic EPS
$2.32
Q2 Operating income
$256 mln
Q2 Pretax Profit
$242 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "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 $105.00, about 16.5% above its August 1 closing price of $87.69

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

Press Release: ID:nPn4z7vgZa

(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.)