The following is a summary of the Allison Transmission Holdings, Inc. (ALSN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Allison reported Q1 2024 net sales of $789 million, up 6% year-over-year.
Gross profit rose slightly to $366 million due to an increase in manufacturing expenses and non-reoccurring costs.
Net income for the quarter was down $1 million year-over-year at $169 million.
Diluted earnings per share showed improvement, increasing 3% to $1.90 from Q1 2023.
Adjusted EBITDA was $289 million, due to increased net sales offset by higher manufacturing costs.
Adjusted free cash flow was $162 million, down from $169 million in Q1 2023.
The company upheld its full-year 2024 guidance, with net sales projected between $3.5 billion to $3.15 billion.
Business Progress:
Allison has successfully expanded into the South American agriculture sector.
The collaboration with Yutong, a leading Chinese bus OEM, aided in delivering transit buses to Rwanda.
Allison and SANY have expanded their partnership to integrate Allison's 4000 series specialty transmissions into SANY's 500-ton all-terrain cranes.
The first X1100 cross-drive transmissions have been delivered to Turkey for their Firtina self-propelled howitzer program.
Allison's eGen Flex electric hybrid system was chosen by the New Orleans Regional Transit Authority for their city buses.
Allison's 3414 Regional Haul Series and 4000 series were endorsed as the exclusive automatic transmissions for Navistar International's RH and HX Series trucks.
Allison repurchased nearly 1% of its outstanding shares for the first quarter and raised its quarterly dividend by 9% to $0.25 per share.
Demand for Allison's Class 8 straight products remains strong, with the company expecting this trend to continue throughout 2024.
Despite industry-wide component shortages, Allison is actively working on overcoming these challenges using internal resources and its supply base.
The company is considering reducing some customer incentives and is exploring additional pricing opportunities across other markets.
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