Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Q4 2024 Earnings Presentation
14 slides from Allison Transmission's earnings presentation, Feb 11, 2025
Slide 1: Q4 2024 Earnings Release
Q4 2024 Earnings Release February 11th, 2025 Dave Graziosi, Chair & CEO Fred Bohley, COO, CFO & Treasurer 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement The following information contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions
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 Q4 2024 Performance 2025 Guidance 4
Slide 5: Q4 2024 Performance Summary
Q4 2024 Performance Summary ($ in millions, except per share data; variance % from Q4 2023) Net Sales Gross Profit Net Income Adjusted EBITDA* Diluted Earnings Per Share $796 $373 $175 $270 $2.01 +3% +1% +3% -3% +5% Increase principally driven by: Increase was principally driven by Increase was prin
Slide 6: Q4 2024 Net Sales Performance
Q4 2024 Net Sales Performance ($ in millions, variance % from Q4 2023) End Markets Q4 2024 Variance Commentary Principally driven by strength in demand for Class 8 vocational vehicles North America On-Hwy $419 10% and price increases on certain products North America Off-Hwy $2 (60%) Principally dri
Slide 7: Q4 2024 Financial Performance
Q4 2024 Financial Performance ($ in millions, except per share data) Q4 2024 $ Variance* % Variance* Commentary Increase was principally driven by strength in the North America On-Highway, Service Parts, Support Equipment and Other, and Defense end markets, and Net Sales $796 $21 3% price increases
Slide 8: Q4 2024 Cash Flow Performance
Q4 2024 Cash Flow Performance ($ in millions, variance from Q4 2023) Q4 2024 $ Variance % Variance Commentary Net Cash Provided by Principally driven by higher operating working capital funding requirements and Operating Activities $211 ($27) (11.3%) higher cash income taxes Principally driven by in
Slide 9: 2025 Guidance
2025 Guidance ($ in millions) Full year 2025 guidance ranges provided to the market on February 11, 2025 $3,200 - $3,300 $735 - $785 $1,170 - $1,230 $800 - $860 $165 - $175 $635 - $685 Net Cash Provided Adjusted Capital Adjusted Free Net Sales Net Income by Operating EBITDA* Activities Expenditures
Slide 10: 2025 Guidance: Net Sales by End Market
2025 Guidance: Net Sales by End Market ($ in millions) 2024 2025 End Markets Net Sales Midpoint North America On-Hwy $1,752 1% Defense $212 18% Outside North America On-Hwy $493 0% Global Off-Hwy $105 (22%) Service Parts, Support Equipment & Other $663 (1%) Total $3,225 1% 10
Slide 11: Appendix
Appendix Non-GAAP Financial Information 11
Slide 12: Non-GAAP Reconciliations (1 of 3)
Non-GAAP Reconciliations (1 of 3) Adjusted EBITDA Reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2020 2021 2022 2023 2024 2023 2024 Net income (GAAP) $299 $442 $531 $673 $731 $170 $175 plus: Income tax expense 94 130 114 154 166 36 35 Deprecia
Slide 13: Non-GAAP Reconciliations (2 of 3)
Non-GAAP Reconciliations (2 of 3) Adjusted Free Cash Flow Reconciliation Three months ended $ in millions, Unaudited For the year ended December 31, December 31, 2020 2021 2022 2023 2024 2023 2024 Net cash provided by operating activities (GAAP) $561 $635 $657 $784 $801 $238 $211 (Deductions) or add
Slide 14: 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) $ 735 $ 785 plus: Income tax expense 185 195 Depreciation of property, plant and equipment 123 123 Interest expense, net 91 91 Amortization of intangible assets 7
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