Allison Transmission Holdings Inc. (NYSE: ALSN) saw its stock price plummet 6.85% in after-hours trading on Wednesday following the release of its third-quarter earnings report, which fell short of analysts' expectations.

The company reported quarterly sales of $693 million, significantly missing the consensus estimate of $780 million from five analysts. This represents a substantial decrease of $131 million year-over-year. Earnings per share (EPS) came in at $1.63, also falling short of the mean expectation of $1.78 from seven analysts.

The disappointing results were primarily attributed to demand uncertainty in the North America On-Highway market due to global macroeconomic factors, which impacted sales by $130 million. Despite these challenges, Allison Transmission maintained an adjusted EBITDA margin of 37%. The company has adjusted its 2025 outlook, now expecting net sales between $2.975 billion and $3.025 billion, with net income projected between $620 million and $650 million. On a positive note, the Defense market showed growth driven by increased demand for tracked vehicle applications and price increases.