Kyle Menges

Tami Zakaria

Angel Castillo Malpica

Ian Zaffino

Jerry Revich

Luke Junk

Robert Wertheimer

Timothy Thein

Angel Castillo

Isaac Sellhausen

Rob Wertheimer

Sherif El-Sabbahy

Tim Thein

- Allison Transmission reported **Q3 2025 net sales of $693 million**, a **16% decrease** year-over-year, primarily driven by lower demand in the North America on-highway market, despite a **47% increase** in defense end market net sales.  **[0001411207_2212869_4]** 
- For Q3 2025, the company achieved an **Adjusted EBITDA margin of 37%** and generated **$184 million in adjusted free cash flow**, maintaining a strong balance sheet with **$902 million of cash on hand** and a **net leverage ratio of 1.33 times**.  **[0001411207_2212869_1]** **[0001411207_2212869_4]** 
- Allison updated its full-year 2025 guidance, projecting **net sales between $2,975 million and $3,025 million**, **net income of $620 million to $650 million**, and **adjusted free cash flow of $600 million to $620 million**.  **[0001411207_2212869_4]** 
- The company continues to manage through a challenging operating environment, particularly in the North America on-highway market, which is experiencing reduced demand due to global macroeconomic factors, but views this as a **deferral of purchases**.  **[0001411207_2212869_1]** 
- Allison is diligently working to close its acquisition of **Dana's off-highway business**, which is expected to enhance its global footprint and access to new markets and customers.  **[0001411207_2212869_1]** **[0001411207_2212869_10]**

Allison Transmission Reports Q3 2025 Results and Updates Full-Year Guidance

- Allison Transmission reported **Q3 2025 net sales of $693 million**, a **16% decrease** year-over-year, primarily driven by lower demand in the North American on-highway market, with net income at **$137 million**.  **[0001411207_2218359_4]** 
- Despite the revenue decline, the company maintained an **adjusted EBITDA margin of 37%** and generated **$184 million in adjusted free cash flow** during Q3 2025.  **[0001411207_2218359_1]** **[0001411207_2218359_4]** 
- For the full year 2025, Allison updated its guidance, expecting net sales between **$2,975 million and $3,025 million** and adjusted free cash flow between **$600 million and $620 million**.  **[0001411207_2218359_4]** 
- The North America on-highway end market continues to face negative impacts from macroeconomic factors, leading to reduced demand, which the company views as a deferral of purchases rather than a permanent market shift.  **[0001411207_2218359_1]** **[0001411207_2218359_5]** 
- Allison is progressing with the acquisition of Dana's off-highway business and announced new product adoptions and partnerships in international on-highway and defense markets.  **[0001411207_2218359_1]** **[0001411207_2218359_2]** **[0001411207_2218359_3]** **[0001411207_2218359_10]**

- Allison Transmission reported **Q3 2025 net sales of $693 million**, a **16% decrease** year-over-year, primarily driven by reduced demand in the North American on-highway market.  **[0001411207_2218376_4]**  Despite this, the company achieved an **adjusted EBITDA margin of 37%** and generated **$184 million in adjusted free cash flow**.  **[0001411207_2218376_1]** **[0001411207_2218376_4]** 
- The company revised its **full-year 2025 guidance**, projecting **net sales between $2,975 million and $3,025 million** and **adjusted EBITDA between $1,090 million and $1,125 million**.  **[0001411207_2218376_4]** 
- Allison maintains a **strong financial position with over $900 million of cash on hand** and a **net leverage ratio of 1.33 times**.  **[0001411207_2218376_1]** **[0001411207_2218376_4]** 
- Strategic initiatives include diligently working to close the acquisition of **Dana's off-highway business** and continued growth in the defense end market, which saw sales increase **47%** year-over-year in Q3 2025.  **[0001411207_2218376_1]** **[0001411207_2218376_4]**

- **Net Sales** for Q3 2025 were **$693 million**, marking a **16% decrease** from Q3 2024, primarily driven by lower demand in the North America On-Highway, Global Off-Highway, Service Parts, Support Equipment & Other, and Outside North America On-Highway end markets, partially offset by higher net sales in the Defense end market.  **[0001411207_2212607:8]** **[0001411207_2212607:11]** 
- **Net Income** for Q3 2025 was **$137 million**, a **32% decrease** year-over-year, mainly due to lower gross profit and acquisition-related expenses.  **[0001411207_2212607:8]** **[0001411207_2212607:11]** 
- **Adjusted EBITDA** for Q3 2025 decreased **16%** to **$256 million**, principally driven by lower gross profit.  **[0001411207_2212607:8]** 
- **Diluted Earnings Per Share** for Q3 2025 was **$1.63**, a **28% decrease** compared to Q3 2024.  **[0001411207_2212607:11]** 
- Allison Transmission **revised its full-year 2025 guidance** for Net Sales to a range of **$2,975 - $3,025 million**, Net Income to **$620 - $650 million**, and Adjusted EBITDA to **$1,090 - $1,125 million**, based on Q3 results and current end market conditions.  **[0001411207_2212607:14]**

Allison Transmission Announces Q3 2025 Results and Updates 2025 Guidance

- Allison Transmission Holdings Inc. reported **net sales of $693 million** and **net income of $137 million** for the third quarter of 2025.  **[1411207_0001193125-25-256299_d20681dex991.htm:0]** **[1411207_0001193125-25-256299_d20681dex991.htm:1]** 
- Net sales in the Defense end market increased by **over 47% year over year** to **$78 million**, while the North America On-Highway end market saw a **$130 million decrease** in net sales, primarily due to lower demand.  **[1411207_0001193125-25-256299_d20681dex991.htm:0]** **[1411207_0001193125-25-256299_d20681dex991.htm:1]** 
- The company generated **$228 million** in Net Cash Provided by Operating Activities and **$184 million** in Adjusted Free Cash Flow during Q3 2025, and repurchased **$27 million** of common stock and paid **$23 million** in dividends.  **[1411207_0001193125-25-256299_d20681dex991.htm:0]** **[1411207_0001193125-25-256299_d20681dex991.htm:1]** 
- Allison Transmission revised its full-year 2025 guidance, now expecting net sales between **$2,975 and $3,025 million** and net income between **$620 and $650 million**.  **[1411207_0001193125-25-256299_d20681dex991.htm:2]**

Allison Transmission Announces Third Quarter 2025 Results and Updates Full-Year Guidance

- Allison Transmission Holdings Inc. reported **net sales of $693 million** for the third quarter of 2025, a decrease from $824 million in the same period of 2024, primarily driven by a **$130 million decrease** in the North America On-Highway end market due to lower demand.  **[1411207_20251029DE10321:0]** 
- Despite a challenging demand environment, the company achieved **net income of $137 million** and **diluted EPS of $1.63** for Q3 2025.  **[1411207_20251029DE10321:0]** 
- **Adjusted EBITDA was $256 million**, resulting in an **Adjusted EBITDA margin of 37%** for the quarter.  **[1411207_20251029DE10321:0]** 
- Allison generated **$228 million in net cash provided by operating activities** and **$184 million in Adjusted Free Cash Flow** during Q3 2025, and allocated **$27 million** to common stock repurchases and **$23 million** to dividend payments.  **[1411207_20251029DE10321:0]** 
- The company revised its full year 2025 guidance, now expecting net sales in the range of **$2,975 to $3,025 million** and net income between **$620 to $650 million**.  **[1411207_20251029DE10321:1]**

Allison Transmission Announces Third Quarter 2025 Results and Updates Full Year Guidance

- **Allison Transmission** has significantly expanded its global network of authorized service providers to support its cross-drive transmissions for defense applications.  **[1411207_20251029DE09816:0]** 
- The latest addition to this network is **Wojskowe Zakłady Motoryzacyjne (WZM) in Poland**, which is now an official channel partner for tracked vehicles.  **[1411207_20251029DE09816:0]** 
- This strategic partnership allows **maintenance and overhauls for key Polish combat systems**, such as K9PL and Krab howitzers, Abrams tanks, and Borsuk infantry fighting vehicles, to be performed locally in Poznań.  **[1411207_20251029DE09816:0]** 
- Allison's strategy focuses on **local servicing and training**, leveraging its commercial vehicle service network of approximately **1,600 independent distributors and dealers** to reduce costs and downtime for defense customers.  **[1411207_20251029DE09816:0]**

Allison Transmission Expands Global Defense Service Network

- Allison Transmission has secured a **$97 million contract** to provide propulsion systems for the U.S. Army's **2026 Abrams Main Battle Tank orders**.  **[1411207_20251013DE96171:0]** 
- The contract underscores the continued reliance on Allison's **X1100™ cross-drive transmission**, which has powered the Abrams platform since its inception nearly five decades ago.  **[1411207_20251013DE96171:0]** 
- This award reinforces Allison's position as a global leader in **defense propulsion solutions** and its commitment to supporting the Army's evolving operational needs.  **[1411207_20251013DE96171:0]**

Allison Transmission Secures $97 Million Contract for Abrams Tank Orders

- Allison Transmission's **Neutral at Stop** fuel saving technology is now a **standard offering** on Kenworth and Peterbilt models equipped with Allison **4700 Rugged Duty Series™ transmissions**.  **[1411207_20250911DE71932:0]** 
- This technology is designed to **improve fuel efficiency** and **reduce operating costs** for commercial fleets, particularly those operating in stop-start duty cycles, by automatically shifting the transmission to neutral when the vehicle is stopped.  **[1411207_20250911DE71932:0]** 
- Neutral at Stop is a feature of Allison's FuelSense® 2.0 package, which in aggregate can achieve fuel savings of up to **6%**.  **[1411207_20250911DE71932:0]**

Allison Transmission Holdings (ALSN)