Allison Transmission Holdings Inc (ALSN) Reports Q3 2023 Earnings
Allison Transmission Holdings Inc (NYSE:ALSN) reported a 4% increase in net sales to $736 million in Q3 2023.
The company's diluted EPS increased by 21% to $1.76 in the same period.
ALSN's EBITDA grew by 9% year over year, driven by solid operational and financial performance.
The company also reaffirmed its full-year 2023 guidance provided on July 27, 2023.
On October 25, 2023, Allison Transmission Holdings Inc (NYSE:ALSN) announced its third-quarter 2023 results. The company reported a 4% increase in net sales to $736 million and a 21% increase in diluted EPS to $1.76, compared to the same period in 2022. The company's EBITDA also saw a solid year-over-year growth of 9%.
Financial Highlights
David S. Graziosi, Chairman and Chief Executive Officer of Allison Transmission, commented on the results, stating,
Allisons third quarter 2023 results demonstrate the sustained strength in our North America On-Highway and Service Parts end markets and the continued focus of our team to drive operational and financial performance."
He also noted that the increase in net sales was surpassed by an even stronger increase in diluted EPS, up 21%.
The company's net income for the quarter was $158 million, while the adjusted EBITDA, a non-GAAP financial measure, for the quarter was $267 million. Net cash provided by operating activities for the quarter was $212 million, and adjusted free cash flow, another non-GAAP financial measure, for the quarter was $182 million.
Net Sales by End Market
Net sales in the North America On-Highway end market saw an 11% increase, while the Service Parts, Support Equipment & Other end market saw a 9% increase. However, the North America Off-Highway and Outside North America Off-Highway end markets saw decreases of 63% and 47% respectively.
2023 Guidance Update
Given the third quarter results and current end market conditions, Allison Transmission Holdings Inc (NYSE:ALSN) reaffirmed its full year 2023 guidance provided to the market on July 27. The company expects 2023 Net Sales in the range of $2.96 to $3.04 billion, Net Income in the range of $575 to $625 million, and Adjusted EBITDA in the range of $1.05 to $1.11 billion.
About Allison Transmission Holdings Inc (NYSE:ALSN)
Allison Transmission Holdings Inc (NYSE:ALSN) is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles. The company is the largest global manufacturer of medium- and heavy-duty fully automatic transmissions. Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA.
Explore the complete 8-K earnings release (here) from Allison Transmission Holdings Inc for further details.
This article first appeared on GuruFocus.
