Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q2 2025 Earnings Presentation
15 slides from Allison Transmission's earnings presentation, Aug 4, 2025
Slide 1: Q2 2025 Earnings Release
Q2 2025 Earnings Release August 4th, 2025 Dave Graziosi, Chair & CEO Fred Bohley, COO 1 Scott Mell, CFO & Treasurer
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
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
Slide 4: Call Agenda
Call Agenda Business Update Q2 2025 Performance 2025 Guidance Update 4
Slide 5: Dana Off-Highway Acquisition – Transaction Highlights
Dana Off-Highway Acquisition – Transaction Highlights ▪ Total transaction value of ~$2.7bn ▪ Represents 6.8x Adjusted EBITDA (LTM 12/31/24) of ~$400mm (1) and 5.2x including estimated run-rate synergies of ~$120mm Purchase Price ▪ 100% cash consideration, financed with new debt and cash on-hand, pur
Slide 6: Dana Off-Highway Acquisition – Compelling Future Global Growth
Dana Off-Highway Acquisition – Compelling Future Global Growth Acceleration of combined businesses’ current growth objectives while multiplying future global growth opportunities Key Growth Drivers for Allison as a Premier Industrial Company Summary Growth Opportunities Facilities & People Products
Slide 7: Q2 2025 Performance Summary
Q2 2025 Performance Summary ($ in millions, except per share data; variance % from Q2 2024) Net Sales Gross Profit Net Income Adjusted EBITDA* Diluted Earnings Per Share $814 $402 $195 $313 $2.29 0% +2% +4% +4% +8% Year-over-year results were Increase was principally driven by Increase was principal
Slide 8: Q2 2025 Net Sales Performance
Q2 2025 Net Sales Performance ($ in millions, variance % from Q2 2024) End Markets Q2 2025 Variance Commentary Principally driven by lower demand for medium-duty trucks, partially North America On-Hwy $417 (9%) offset by price increases on certain products Outside North America On-Hwy $142 11% Princ
Slide 9: Q2 2025 Financial Performance
Q2 2025 Financial Performance ($ in millions, except per share data) Q2 2025 $ Variance* % Variance* Commentary Principally driven by lower net sales in the North America On-Highway and Global Off-Highway end markets, partially offset by higher net sales in the Net Sales $814 ($2) (0%) Defense, Outs
Slide 10: Q2 2025 Cash Flow Performance
Q2 2025 Cash Flow Performance ($ in millions, variance from Q2 2024) Q2 2025 $ Variance % Variance Commentary Net Cash Provided by Principally driven by lower operating working capital funding requirements and Operating Activities $184 $13 7.6% higher gross profit, partially offset by acquisition-re
Slide 11: 2025 Guidance Update
2025 Guidance Update ($ in millions) Given current end markets conditions, anticipated acquisition-related expenses and expected favorable cash income tax impacts from the recently passed One Big Beautiful Bill Act, we are revising our full year 2025 guidance provided to the market on May 1, 2025 $3
Slide 12: Appendix
Appendix Non-GAAP Financial Information 12
Slide 13: 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, June 30, June 30, 2020 2021 2022 2023 2024 2024 2025 2025 Net income (GAAP) $299 $442 $531 $673 $731 $187 $195 $762 plus: Income tax e
Slide 14: 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, June 30, June 30, 2020 2021 2022 2023 2024 2024 2025 2025 Net cash provided by operating activities (GAAP) $561 $635 $657 $784
Slide 15: 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) $ 640 $ 680 plus: Income tax expense 170 180 Depreciation of property, plant and equipment 123 123 Interest expense, net 100 100 Amortization of intangible assets
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