Investing.com -- Allison Transmission Holdings Inc. (NYSE:ALSN) reported better-than-expected first quarter earnings on Wednesday, sending its stock up 4.5% despite a revenue miss. The company also reaffirmed its full-year guidance.
The transmission manufacturer posted adjusted earnings per share of $2.23, surpassing analyst estimates of $2.10. However, revenue came in at $766 million, falling short of the $792.25 million consensus forecast and declining 2.9% YoY from $789 million.
Net income rose 14% YoY to $192 million, representing 25.1% of net sales, an improvement of 370 basis points from the same period last year. Adjusted EBITDA margin expanded 90 basis points YoY to 37.5%.
"Allison is well-positioned to navigate current trade uncertainties, utilizing our global footprint to provide our North American customers with Made in USA products while supplying our Outside North America customers with on-highway products produced outside North America," said David S. Graziosi, Chair and Chief Executive Officer.
The company’s North America On-Highway segment saw a $15 million increase in net sales, driven by price increases and strong demand for Class 8 vocational trucks. However, this was offset by declines in other segments, particularly a $28 million decrease in Global Off-Highway sales due to lower demand from energy, mining, and construction sectors outside North America.
Allison Transmission reaffirmed its full-year 2025 guidance, projecting net sales between $3.2 billion and $3.3 billion, below the analyst consensus of $3.37 billion. The company expects net income of $735-$785 million and adjusted EBITDA of $1.17-$1.23 billion for the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.