Allison Transmission Holdings, Inc. · NYSE:ALSN

Allison Transmission — Q3 2025 Earnings Presentation

13 slides from Allison Transmission's earnings presentation, Oct 29, 2025

  1. Slide 1: Q3 2025 Earnings Release

    Q3 2025 Earnings Release October 29th, 2025 Dave Graziosi, Chair & CEO Fred Bohley, COO 1 Scott Mell, CFO & Treasurer

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement The following information contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-look

  3. Slide 3: Non-GAAP Financial Information

    Non-GAAP Financial Information We use Adjusted EBITDA and Adjusted EBITDA as a percent of net sales to measure our operating profitability. We believe that Adjusted EBITDA and Adjusted EBITDA as a percent of net sales provide management, investors and creditors with useful measures of the operationa

  4. Slide 4: Call Agenda

    Call Agenda Business Update Recent Announcements Q3 2025 Performance 2025 Guidance Update 4

  5. Slide 5: Q3 2025 Performance Summary

    Q3 2025 Performance Summary ($ in millions, except per share data; variance % from Q3 2024) Net Cash Provided Adjusted Adjusted EBITDA Adjusted Free Net Sales Net Income by Operating EBITDA* Margin* Cash Flow** Activities $693 $137 $256 36.9% $228 $184 (16%) (32%) (16%) (10 bps) (7%) (12%) Year-over

  6. Slide 6: Q3 2025 Net Sales Performance

    Q3 2025 Net Sales Performance ($ in millions, variance % from Q3 2024) End Markets Q3 2025 Variance Commentary Principally driven by lower demand for Class 8 vocational and medium- North America On-Hwy $327 (28%) duty trucks, partially offset by price increases on certain products and market share g

  7. Slide 7: Q3 2025 Financial Performance

    Q3 2025 Financial Performance ($ in millions, except per share data) Q3 2025 $ Variance* % Variance* Commentary Principally driven by lower net sales in the North America On-Highway, Global Off-Highway, Service Parts, Support Equipment & Other and Outside North Net Sales $693 ($131) (16%) America On

  8. Slide 8: Q3 2025 Cash Flow Performance

    Q3 2025 Cash Flow Performance ($ in millions, variance from Q3 2024) Q3 2025 $ Variance % Variance Commentary Principally driven by lower gross profit and $13 million of payments for Net Cash Provided by Operating Activities $228 ($18) (7.3%) acquisition-related expenses, partially offset by lower c

  9. Slide 9: 2025 Guidance Update

    2025 Guidance Update ($ in millions) Given third quarter results and current end markets conditions, we are revising our full year 2025 guidance provided to the market on August 4, 2025 $2,975 - $3,025 $620 - $650 $1,090 - $1,125 $765 - $795 $165 - $175 $600 - $620 Net Cash Provided Adjusted Capital

  10. Slide 10: Appendix

    Appendix Non-GAAP Financial Information 10

  11. Slide 11: Non-GAAP Reconciliations (1 of 3)

    Non-GAAP Reconciliations (1 of 3) Adjusted EBITDA Reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, September 30, September 30, 2020 2021 2022 2023 2024 2024 2025 2025 Net income (GAAP) $299 $442 $531 $673 $731 $200 $137 $699 plus: In

  12. Slide 12: Non-GAAP Reconciliations (2 of 3)

    Non-GAAP Reconciliations (2 of 3) Adjusted Free Cash Flow Reconciliation Last twelve Three months ended months ended $ in millions, Unaudited For the year ended December 31, September 30, September 30, 2020 2021 2022 2023 2024 2024 2025 2025 Net cash provided by operating activities (GAAP) $561 $635

  13. Slide 13: Non-GAAP Reconciliations (3 of 3)

    Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2025 Low High Net income (GAAP) $ 620 $ 650 plus: Income tax expense 166 171 Depreciation of property, plant and equipment 117 117 Interest expense, net 99 99 Amortization of intangible assets 7

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