Allison Transmission Holdings ALSN 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 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 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 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.

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