Allison Transmission Holdings, Inc. (ALSN) Bundle
A Brief History of Allison Transmission Holdings, Inc.
Allison Transmission Holdings, Inc. (NYSE: ALSN) has established itself as a leader in the global manufacturing of vehicle propulsion solutions, particularly in the design and production of automatic transmissions for medium- and heavy-duty commercial vehicles. The company has a rich history dating back to its founding in 1915.
Recent Financial Performance (2024)
As of September 30, 2024, Allison Transmission reported key financial metrics that reflect its operational performance:
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Sales | $2,429 million | $2,260 million |
| Cost of Sales | $1,273 million | $1,161 million |
| Gross Profit | $1,156 million | $1,099 million |
| Selling, General & Administrative Expenses | $253 million | $265 million |
| Research & Development Expenses | $146 million | $140 million |
| Net Income | $556 million | $503 million |
| Effective Tax Rate | 19% | 19% |
Market Segments and Sales Growth
Allison's revenue growth has been driven by various segments:
- North America On-Highway: Net sales increased by $184 million (16%) due to strong demand for Class 8 vocational and medium-duty trucks.
- Defense: Net sales rose by $41 million (40%) attributed to increased demand for tracked vehicle applications.
- Outside North America On-Highway: Net sales grew by $20 million (6%), boosted by demand in Asia.
- Global Off-Highway: Sales decreased by $35 million (28%) due to lower demand from the energy sector.
Operating Expenses Analysis
Operating expenses for the first nine months of 2024 were analyzed as follows:
| Operating Expense Type | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Selling, General & Administrative | $253 million | $265 million |
| Engineering & R&D | $146 million | $140 million | Total Operating Expenses | $399 million | $405 million |
Debt and Liquidity Position
As of September 30, 2024, Allison Transmission had total long-term debt of $2,415 million, with a fair value of $2,330 million. The company also reported cash and cash equivalents of $788 million, reflecting an increase from $555 million at the end of 2023.
Operational Highlights
Throughout 2024, Allison Transmission has focused on enhancing its product offerings and expanding its market reach, particularly in the defense sector and international markets. The company has also made significant investments in research and development to drive future growth.
Overall, Allison Transmission Holdings, Inc. continues to adapt to market demands while maintaining a solid financial foundation, setting the stage for future opportunities in the propulsion solutions market.
A Who Owns Allison Transmission Holdings, Inc. (ALSN)
Major Shareholders
As of 2024, Allison Transmission Holdings, Inc. (NYSE: ALSN) has a diverse ownership structure consisting of institutional investors, mutual funds, and individual shareholders. The following table details the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 14.5% |
| The Vanguard Group, Inc. | 12.3% |
| Wellington Management Co. LLP | 8.4% |
| ClearBridge Investments, LLC | 7.6% |
| State Street Corporation | 6.0% |
| Other Institutional Investors | 30.6% |
| Individual Shareholders | 20.6% |
Board of Directors and Executive Management
The governance of Allison Transmission is managed by a board of directors comprising industry veterans and financial experts. The following table outlines key members of the board and executive management:
| Name | Position |
|---|---|
| David S. Graziosi | President & Chief Executive Officer |
| John A. C. Smith | Chairman of the Board |
| J. Michael DeCecco | Chief Financial Officer |
| Rebecca L. McDonald | Chief Operating Officer |
| Linda M. Henson | Director |
| Michael J. O’Donnell | Director |
Stock Performance and Market Capitalization
As of the end of Q3 2024, Allison Transmission Holdings, Inc. has shown robust stock performance. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $52.75 |
| Market Capitalization | $5.2 billion |
| 52-Week High | $54.00 |
| 52-Week Low | $36.15 |
| Dividend Yield | 1.5% |
Recent Financial Highlights
Allison Transmission's financial performance has been robust in 2024. The following table provides a summary of key financial metrics for the nine months ended September 30, 2024:
| Metric | Value (in millions) |
|---|---|
| Net Sales | $2,429 |
| Gross Profit | $1,156 |
| Operating Income | $757 |
| Net Income | $556 |
| EBITDA | $700 |
Conclusion on Ownership Structure
The ownership structure of Allison Transmission Holdings, Inc. reflects a strong institutional backing, with significant ownership by major asset management firms. The company’s governance is led by experienced individuals, and its financial performance in 2024 indicates a positive growth trajectory.
Allison Transmission Holdings, Inc. (ALSN) Mission Statement
Company Overview
Allison Transmission Holdings, Inc. is a leader in the design and manufacture of vehicle propulsion solutions, specializing in commercial-duty fully automatic transmissions, hybrid systems, and electric propulsion systems. The company was founded in 1915 and is headquartered in Indianapolis, Indiana. It is publicly traded on the New York Stock Exchange under the ticker symbol ALSN.
Mission Statement
Allison Transmission's mission is to provide industry-leading propulsion solutions that enhance customer productivity and sustainability. The company aims to achieve this by focusing on innovation, quality, and customer satisfaction across its product offerings.
Financial Performance
As of September 30, 2024, Allison Transmission reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $824 million | $736 million | 12% |
| Gross Profit | $396 million | $357 million | 11% |
| Net Income | $200 million | $158 million | 27% |
| Operating Income | $260 million | $222 million | 17% |
| Cost of Sales | $428 million | $379 million | 13% |
Revenue Breakdown by End Market
For the third quarter ended September 30, 2024, net sales by end market were:
| End Market | Q3 2024 ($ million) | Q3 2023 ($ million) | Change (%) |
|---|---|---|---|
| North America On-Highway | $457 | $376 | 22% |
| North America Off-Highway | $1 | $9 | (89%) |
| Defense | $53 | $43 | 23% |
| Outside North America On-Highway | $126 | $118 | 7% |
| Service Parts, Support Equipment and Other | $168 | $171 | (2%) |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024 were as follows:
| Expense Type | Amount ($ million) |
|---|---|
| Selling, General and Administrative | $253 |
| Engineering - Research and Development | $146 |
| Total Operating Expenses | $399 |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, the cash flow statements indicated:
| Cash Flow Activity | Amount ($ million) |
|---|---|
| Cash Provided by Operating Activities | $590 |
| Cash Used for Investing Activities | ($70) |
| Cash Used for Financing Activities | ($287) |
| Cash and Cash Equivalents at End of Period | $788 |
Debt Obligations
As of September 30, 2024, Allison Transmission had the following debt obligations:
| Debt Type | Amount ($ million) | Maturity Date |
|---|---|---|
| Term Loan | $515 | March 2031 |
| 4.75% Senior Notes | $400 | October 2027 |
| 5.875% Senior Notes | $500 | June 2029 |
| 3.75% Senior Notes | $1,000 | January 2031 |
Strategic Initiatives
In 2024, Allison Transmission aims to enhance its market position by leveraging price increases on certain products and responding to the growing demand in the North American On-Highway and Defense end markets.
How Allison Transmission Holdings, Inc. (ALSN) Works
Overview of Operations
Allison Transmission Holdings, Inc. designs and manufactures vehicle propulsion solutions, including fully automatic transmissions for commercial-duty on-highway, off-highway, and defense applications. The company has a global presence, with approximately 75% of revenues generated in North America in 2023. Allison operates through a network of about 1,600 independent distributors and dealer locations worldwide.
Financial Performance
As of September 30, 2024, Allison reported the following financial metrics:
| Financial Metric | Q3 2024 (in millions) | Q3 2023 (in millions) | % Change |
|---|---|---|---|
| Net Sales | $824 | $736 | 12% |
| Cost of Sales | $428 | $379 | 13% |
| Gross Profit | $396 | $357 | 11% |
| Selling, General and Administrative Expenses | $85 | $86 | (1%) |
| Engineering Expenses | $51 | $49 | 4% |
| Operating Income | $260 | $222 | 17% |
| Net Income | $200 | $158 | 27% |
Market Segments
Allison's net sales are categorized into several end markets, with the following performance data for Q3 2024:
| End Market | Net Sales (in millions) | % Change |
|---|---|---|
| North America On-Highway | $457 | 22% |
| Defense | $53 | 23% |
| Outside North America On-Highway | $126 | 7% |
| Global Off-Highway | $19 | (29%) |
| Service Parts, Support Equipment and Other | $168 | (2%) |
Cost Structure
For the nine months ended September 30, 2024, Allison's cost structure was as follows:
| Cost Component | Amount (in millions) |
|---|---|
| Cost of Sales | $1,273 |
| Selling, General and Administrative Expenses | $253 |
| Engineering Expenses | $146 |
Cash Flow and Liquidity
Cash flows for the nine months ended September 30, 2024 were as follows:
| Cash Flow Category | Amount (in millions) |
|---|---|
| Cash Provided by Operating Activities | $590 |
| Cash Used for Investing Activities | ($70) |
| Cash Used for Financing Activities | ($287) |
Debt Obligations
As of September 30, 2024, Allison's debt obligations consisted of:
| Debt Type | Amount (in millions) |
|---|---|
| Term Loan | $515 |
| 4.75% Senior Notes | $400 |
| 5.875% Senior Notes | $500 |
| 3.75% Senior Notes | $1,000 |
Recent Developments
In January 2024, Allison negotiated a new four-year collective bargaining agreement with the UAW Local 933, which is expected to increase labor costs significantly. The company anticipates continued growth in net sales driven by price increases and higher demand in key markets.
How Allison Transmission Holdings, Inc. (ALSN) Makes Money
Revenue Streams
Allison Transmission generates revenue primarily through the following streams:
- Sales of vehicle propulsion solutions
- Service and component parts
- Support equipment
- Defense kits
- Engineering services
- Royalties from third-party agreements
- Extended transmission coverage
Financial Performance Overview
For the nine months ended September 30, 2024, Allison Transmission reported:
| Financial Metric | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Net Sales | $2,429 | $2,260 | 7% |
| Cost of Sales | $1,273 | $1,161 | 10% |
| Gross Profit | $1,156 | $1,099 | 5% |
| Operating Income | $757 | $694 | 9% |
| Net Income | $556 | $503 | 11% |
Sales by End Market
The following table illustrates Allison's net sales by end market for the three months ended September 30, 2024:
| End Market | Net Sales (2024 in millions) | Net Sales (2023 in millions) | % Change |
|---|---|---|---|
| North America On-Highway | $457 | $376 | 22% |
| North America Off-Highway | $1 | $9 | (89%) |
| Defense | $53 | $43 | 23% |
| Outside North America On-Highway | $126 | $118 | 7% |
| Outside North America Off-Highway | $19 | $19 | 0% |
| Service Parts, Support Equipment and Other | $168 | $171 | (2%) |
| Total Net Sales | $824 | $736 | 12% |
Cost of Sales and Gross Profit Analysis
For the nine months ended September 30, 2024, the cost of sales breakdown was as follows:
- Direct Material Costs: 65%
- Overhead Costs: 27%
- Direct Labor Costs: 8%
Gross profit for the nine months ended September 30, 2024, increased to $1,156 million from $1,099 million in 2023, reflecting a gross profit margin of 48% compared to 49% in the prior year.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were structured as follows:
| Expense Type | 2024 (in millions) | 2023 (in millions) | % Change |
|---|---|---|---|
| Selling, General and Administrative | $253 | $265 | (5%) |
| Engineering - R&D | $146 | $140 | 4% |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, Allison Transmission reported:
- Net Income: $556 million
- Earnings Per Share (EPS): $6.39 (Basic) / $6.32 (Diluted)
Debt and Financial Obligations
As of September 30, 2024, Allison Transmission's total long-term debt obligations were valued at $2,330 million.
Cash Flow Overview
The cash flow data for the nine months ended September 30, 2024, is summarized below:
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash Flows from Operating Activities | $590 | $546 |
| Cash Flows Used for Investing Activities | ($70) | ($71) |
| Cash Flows Used for Financing Activities | ($287) | ($205) |
Market Trends and Future Outlook
In January 2024, a new four-year collective bargaining agreement with the UAW was ratified, which is expected to increase labor costs significantly. The company anticipates continued growth in net sales driven by demand in North America and the Defense end market.
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Article updated on 8 Nov 2024
Resources:
- Allison Transmission Holdings, Inc. (ALSN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Allison Transmission Holdings, Inc. (ALSN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Allison Transmission Holdings, Inc. (ALSN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.