Allison Transmission Holdings Inc. has reported a record full year net sales of $3 billion, marking a significant milestone for the company. The achievement is all the more impressive given the meaningful macroeconomic challenges that 2025 presented. With a focus on cost management and execution aligned with end markets demand conditions, Allison has demonstrated its resilience in difficult operating environments.
The company's Adjusted EBITDA margin of 37.5% is a testament to its ability to manage costs and maintain profitability despite the uncertainty of the market. This level of efficiency is a key factor in Allison's success, enabling it to generate significant free cash flow and invest in growth initiatives.
Despite the challenges posed by macroeconomic conditions, Allison has remained committed to its capital allocation priorities, including repurchasing $328 million of its common stock. This strategic move demonstrates the company's confidence in its long-term prospects and its ability to deliver value to shareholders.
The acquisition of Dana's Off-Highway business was a transformational moment for Allison, significantly expanding its presence in the global mobility market and portfolio of high-quality products. The combination of these two industry-leading businesses has created a platform that will continue to drive strong financial performance through both organic and inorganic growth.
Net sales for the year were $3,010 million, with year-over-year results led by significant growth in certain product lines. This increase in revenue is a positive indicator of Allison's ability to adapt to changing market conditions and capitalize on emerging opportunities.
The company's net income for the year was $623 million, with diluted EPS of $7.33. These results demonstrate Allison's focus on delivering strong earnings power despite the challenges posed by macroeconomic conditions.
Adjusted EBITDA for the year was $1,130 million, a significant increase from previous periods. This level of profitability is a key factor in Allison's ability to generate free cash flow and invest in growth initiatives.
The company's adjusted free cash flow for the year was $661 million, a testament to its efficiency and ability to manage costs. This level of cash generation will enable Allison to continue investing in its business and driving long-term growth.
Overall, Allison Transmission's record full year sales demonstrate the company's resilience and adaptability in difficult operating environments. Its focus on cost management, execution, and strategic investments has enabled it to achieve strong financial performance and drive long-term growth.
The company's disciplined approach to cost management and execution has enabled it to achieve strong earnings power despite challenging macroeconomic conditions.
