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/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $814 mln $793.70

mln (5

Analysts

)

Q2 EPS $2.29

Q2 Net $195 mln

Income

Q2 Basic $2.32

EPS

Q2 $256 mln

Operatin

g income

Q2 $242 mln

Pretax

Profit

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 ( ALSN ) 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:

(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.)