Fri, Jul 26, 12:58 PM (43 days ago)
Allison Transmission Holdings, Inc.'s 10-Q for the quarter ended June 30, 2024, reports robust financial health and operational performance. Key highlights include: 1. **Revenue and Profitability**: Net sales increased by 4% YoY to $816 million, driven primarily by a 15% rise in North America On-Highway sales and a 30% increase in Defense sales. Gross profit rose to $394 million, supported by price increases despite higher manufacturing costs. 2. **Expenses**: SG&A expenses decreased by 11% to $82 million due to lower intangible amortization, while R&D expenses rose slightly by 4% to $49 million. 3. **Earnings**: Net income improved to $187 million, reflecting a 7% increase. The effective tax rate remained steady at 20%. 4. **Cash Flow**: Operating activities generated $344 million, up from $334 million in the prior year, driven by higher gross profit and lower taxes. Investing activities used $32 million, primarily for capital expenditures, while financing activities used $218 million, including debt repayments and stock repurchases. 5. **Debt and Liquidity**: Long-term debt stood at $2.4 billion, with significant liquidity comprising $648 million in cash and $745 million available under the revolving credit facility. 6. **Outlook**: The company anticipates continued revenue growth driven by price adjustments and strong demand in key markets. Overall, Allison Transmission demonstrates strong financial performance with effective cost management, strategic investments, and robust cash flow, positioning it well for future growth.