We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Allison Transmission Q1 Earnings Top Estimates, Sales Miss
Read MoreHide Full Article
Allison Transmission Holdings (ALSN - Free Report) delivered first-quarter 2024 earnings of $2.23 per share, which beat the Zacks Consensus Estimate of $1.97 and rose 17% year over year. Quarterly revenues of $766 million fell 3% from the year-ago period's level and fell short of the Zacks Consensus Estimate of $775 million.
Allison Transmission Holdings, Inc. Price, Consensus and EPS Surprise
Allison Transmission segregates revenues in terms of end markets served, which are as follows:
In the reported quarter, net sales in the North America On-Highway end market rose 3.5% year over year to $435 million and surpassed the Zacks Consensus Estimate of $406 million. High demand for Class 8 vocational and price increases on certain products resulted in sales growth.
The Outside North America On-Highway end market’s net sales of $112 million decreased from $115 million generated in the corresponding quarter of 2024 due to lower demand in Europe. The metric also missed the Zacks Consensus Estimate of $117 million.
Net sales in the Global Off-Highway end market plunged to $18 million from $46 million reported in the year-ago period and missed the Zacks Consensus Estimate of $25.83 million amid reduction in demand from the energy, mining and construction sectors outside of North America.
In the reported quarter, net sales in the Defense end market rose 10% year over year to $53 million, thanks to better pricing. The reported figure marginally missed the Zacks Consensus Estimate of $54 million.
Net sales in the Service Parts, Support Equipment & Other end markets contracted 7.5% year over year to $159 million in the quarter due to lower demand, offset by price increases on certain products. The reported figure topped the Zacks Consensus Estimate of $148 million.
Financial Position
Allison Transmission saw a gross profit of $378 million, which increased from $366 million reported in the year-ago quarter, mainly driven by price increases in certain products.
Adjusted EBITDA in the quarter came in at $287 million, which declined from $289 million reported a year ago.
Selling, general and administrative expenses in the quarter were $86 million, flat year over year. Engineering – research and development expenses decreased to $43 million from $46 million reported in the first quarter of 2024.
Allison Transmission had cash and cash equivalents of $753 million as of March 31, 2025, down from $781 million recorded as of Dec. 31, 2024. Long-term debt was $2.4 billion, unchanged from 2024-end levels.
Net cash provided by operating activities totaled $181 million. Adjusted free cash flow in the reported quarter totaled $155 million, down from $162 million generated in the year-ago period.
2025 Outlook
Allison Transmission expects full-year 2025 net sales in the band of $3.2-$3.3 billion compared with $3.23 billion reported in 2024. Net income is expected in the band of $735-$785 million, up from $731 million reported in 2024. Adjusted EBITDA is estimated in the range of $1.17-$1.23 billion, up from $1.16 billion reported in 2024.
ALSN expects net cash provided by operating activities between $800 million and $860 million, compared with $801 million reported in 2024. Capex is expected in the band of $165-$175 million. Adjusted free cash flow is estimated between $635 million and $685 million compared with $658 million reported in 2024.
Other Releases From the Auto Space
Genuine Parts Company (GPC - Free Report) reported first-quarter 2025 adjusted earnings of $1.75 per share, which beat the Zacks Consensus Estimate of $1.66 but declined from the year-ago quarter’s earnings of $2.22 per share. Genuine Parts reported net sales of $5.87 billion, which surpassed the Zacks Consensus Estimate of $5.82 billion and inched up 1.4% year over year.
Genuine Parts had cash and cash equivalents worth $420.4 million as of March 31, 2025, down from $490 million as of Dec. 31, 2024. Long-term debt increased to $3.78 billion from $3.74 billion as of Dec. 31, 2024. For 2025, Genuine Parts expects year-over-year revenue growth of 2-4% for both automotive and industrial segments. Overall sales growth is projected in the range of 2-4% compared with growth of 1.6% in 2024.
Autoliv Inc. (ALV - Free Report) reported first-quarter 2025 adjusted earnings of $2.15 per share, which beat the Zacks Consensus Estimate of $1.72 and rose 37% year over year. The company reported net sales of $2.58 billion in the quarter, which beat the Zacks Consensus Estimate of $2.47 billion but fell 1.4% year over year. Autoliv had cash and cash equivalents of $322 million as of March 31, 2025. Long-term debt totaled $1.57 billion
Autoliv reiterated its guidance for 2025. It expects 2025 organic sales growth of around 2% compared with 0.4% reported in 2024. The adjusted operating margin is anticipated to be in the range of 10-10.5%. Operating cash flow is expected to be $1.2 billion in 2025.
LKQ Corporation (LKQ - Free Report) delivered adjusted earnings of 79 cents per share for first-quarter 2025, in line with the Zacks Consensus Estimate. However, earnings declined from 82 cents reported in the year-ago period. Revenues of $3.46 billion missed the Zacks Consensus Estimate of $3.57 billion and also fell from the year-ago level of $3.7 billion. LKQ had cash and cash equivalents of $227 million and total debt of $4.4 billion as of March 31, 2025.
For 2025, LKQ anticipates parts and services organic revenue growth in the range of 0-2% year over year. It expects adjusted EPS in the range of $3.40-$3.70 compared with $3.48 in 2024. It expects free cash flow in the range of $750-$900 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Allison Transmission Q1 Earnings Top Estimates, Sales Miss
Allison Transmission Holdings (ALSN - Free Report) delivered first-quarter 2024 earnings of $2.23 per share, which beat the Zacks Consensus Estimate of $1.97 and rose 17% year over year. Quarterly revenues of $766 million fell 3% from the year-ago period's level and fell short of the Zacks Consensus Estimate of $775 million.
Allison Transmission Holdings, Inc. Price, Consensus and EPS Surprise
Allison Transmission Holdings, Inc. price-consensus-eps-surprise-chart | Allison Transmission Holdings, Inc. Quote
Segmental Performance
Allison Transmission segregates revenues in terms of end markets served, which are as follows:
In the reported quarter, net sales in the North America On-Highway end market rose 3.5% year over year to $435 million and surpassed the Zacks Consensus Estimate of $406 million. High demand for Class 8 vocational and price increases on certain products resulted in sales growth.
The Outside North America On-Highway end market’s net sales of $112 million decreased from $115 million generated in the corresponding quarter of 2024 due to lower demand in Europe. The metric also missed the Zacks Consensus Estimate of $117 million.
Net sales in the Global Off-Highway end market plunged to $18 million from $46 million reported in the year-ago period and missed the Zacks Consensus Estimate of $25.83 million amid reduction in demand from the energy, mining and construction sectors outside of North America.
In the reported quarter, net sales in the Defense end market rose 10% year over year to $53 million, thanks to better pricing. The reported figure marginally missed the Zacks Consensus Estimate of $54 million.
Net sales in the Service Parts, Support Equipment & Other end markets contracted 7.5% year over year to $159 million in the quarter due to lower demand, offset by price increases on certain products. The reported figure topped the Zacks Consensus Estimate of $148 million.
Financial Position
Allison Transmission saw a gross profit of $378 million, which increased from $366 million reported in the year-ago quarter, mainly driven by price increases in certain products.
Adjusted EBITDA in the quarter came in at $287 million, which declined from $289 million reported a year ago.
Selling, general and administrative expenses in the quarter were $86 million, flat year over year. Engineering – research and development expenses decreased to $43 million from $46 million reported in the first quarter of 2024.
Allison Transmission had cash and cash equivalents of $753 million as of March 31, 2025, down from $781 million recorded as of Dec. 31, 2024. Long-term debt was $2.4 billion, unchanged from 2024-end levels.
Net cash provided by operating activities totaled $181 million. Adjusted free cash flow in the reported quarter totaled $155 million, down from $162 million generated in the year-ago period.
2025 Outlook
Allison Transmission expects full-year 2025 net sales in the band of $3.2-$3.3 billion compared with $3.23 billion reported in 2024. Net income is expected in the band of $735-$785 million, up from $731 million reported in 2024. Adjusted EBITDA is estimated in the range of $1.17-$1.23 billion, up from $1.16 billion reported in 2024.
ALSN expects net cash provided by operating activities between $800 million and $860 million, compared with $801 million reported in 2024. Capex is expected in the band of $165-$175 million. Adjusted free cash flow is estimated between $635 million and $685 million compared with $658 million reported in 2024.
Other Releases From the Auto Space
Genuine Parts Company (GPC - Free Report) reported first-quarter 2025 adjusted earnings of $1.75 per share, which beat the Zacks Consensus Estimate of $1.66 but declined from the year-ago quarter’s earnings of $2.22 per share. Genuine Parts reported net sales of $5.87 billion, which surpassed the Zacks Consensus Estimate of $5.82 billion and inched up 1.4% year over year.
Genuine Parts had cash and cash equivalents worth $420.4 million as of March 31, 2025, down from $490 million as of Dec. 31, 2024. Long-term debt increased to $3.78 billion from $3.74 billion as of Dec. 31, 2024. For 2025, Genuine Parts expects year-over-year revenue growth of 2-4% for both automotive and industrial segments. Overall sales growth is projected in the range of 2-4% compared with growth of 1.6% in 2024.
Autoliv Inc. (ALV - Free Report) reported first-quarter 2025 adjusted earnings of $2.15 per share, which beat the Zacks Consensus Estimate of $1.72 and rose 37% year over year. The company reported net sales of $2.58 billion in the quarter, which beat the Zacks Consensus Estimate of $2.47 billion but fell 1.4% year over year. Autoliv had cash and cash equivalents of $322 million as of March 31, 2025. Long-term debt totaled $1.57 billion
Autoliv reiterated its guidance for 2025. It expects 2025 organic sales growth of around 2% compared with 0.4% reported in 2024. The adjusted operating margin is anticipated to be in the range of 10-10.5%. Operating cash flow is expected to be $1.2 billion in 2025.
LKQ Corporation (LKQ - Free Report) delivered adjusted earnings of 79 cents per share for first-quarter 2025, in line with the Zacks Consensus Estimate. However, earnings declined from 82 cents reported in the year-ago period. Revenues of $3.46 billion missed the Zacks Consensus Estimate of $3.57 billion and also fell from the year-ago level of $3.7 billion. LKQ had cash and cash equivalents of $227 million and total debt of $4.4 billion as of March 31, 2025.
For 2025, LKQ anticipates parts and services organic revenue growth in the range of 0-2% year over year. It expects adjusted EPS in the range of $3.40-$3.70 compared with $3.48 in 2024. It expects free cash flow in the range of $750-$900 million.