Allison Transmission Holdings, Inc. · NYSE:ALSN

Allison Transmission — Q2 2024 Earnings Presentation

13 slides from Allison Transmission's earnings presentation, Jul 25, 2024

  1. Slide 1: Q2 2024 Earnings Release

    Q2 2024 Earnings Release July 25th, 2024 Dave Graziosi, Chair & CEO Fred Bohley, COO, CFO & Treasurer 1

  2. 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

  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 Q2 2024 Performance 2024 Guidance Update 4

  5. Slide 5: Q2 2024 Performance Summary

    Q2 2024 Performance Summary ($ in millions, except per share data; variance % from Q2 2023) Net Sales Gross Profit Net Income Adjusted EBITDA* Diluted Earnings Per Share $816 $394 $187 $301 $2.13 +4% +3% +7% +5% +11% Increase principally driven by: Increase was principally driven Increase was princi

  6. Slide 6: Q2 2024 Net Sales Performance

    Q2 2024 Net Sales Performance ($ in millions, variance % from Q2 2023) End Markets Q2 2024 Variance Commentary Principally driven by strength in demand for Class 8 vocational vehicles North America On-Hwy $456 15% and medium-duty trucks and price increases on certain products North America Off-Hwy $

  7. Slide 7: Q2 2024 Financial Performance

    Q2 2024 Financial Performance ($ in millions, except per share data) Q2 2024 $ Variance* % Variance* Commentary Increase was principally driven by strength in the North America On-Highway, Defense and Outside North America On-Highway end markets and price Net Sales $816 $33 4% increases on certain p

  8. Slide 8: Q2 2024 Cash Flow Performance

    Q2 2024 Cash Flow Performance ($ in millions, variance from Q2 2023) Q2 2024 $ Variance % Variance Commentary Net Cash Provided by Principally driven by lower cash income taxes and higher gross profit partially offset $171 $30 21.3% by higher operating working capital funding requirements Operating

  9. Slide 9: 2024 Guidance Update

    2024 Guidance Update ($ in millions) Increasing full year 2024 net sales, earnings and cash flow guidance previously provided to the market on April 25, 2024 $3,090 - $3,170 $650 - $700 $1,085 - $1,145 $715 - $775 $125 - $135 $590 - $640 Net Cash Provided Adjusted Capital Adjusted Free Net Sales Net

  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, June 30, June 30, 2019 2020 2021 2022 2023 2023 2024 2024 Net Income (GAAP) $604 $299 $442 $531 $673 $175 $187 $684 plus: Income tax e

  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, June 30, June 30, 2019 2020 2021 2022 2023 2023 2024 2024 Net Cash Provided by Operating Activities (GAAP) $847 $561 $635 $657

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

    Non-GAAP Reconciliations (3 of 3) Guidance Reconciliation $ in millions Guidance Year Ending December 31, 2024 Low High Net Income (GAAP) $ 650 $ 700 plus: Income tax expense 161 171 Depreciation of property, plant and equipment 113 113 Interest expense, net 94 94 Stock-based compensation expense 26

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