Allison Transmission Holdings, Inc. has recently released its 10-K report, providing an in-depth look at the company's financial performance and operations. The company, founded in 1915 and headquartered in Indianapolis, Indiana, designs, manufactures, and sells fully automatic transmissions for medium and heavy-duty commercial vehicles, as well as medium and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. In 2024, approximately 77% of the company's revenues were generated in North America, where it serves customers through an independent network of around 1,600 distributor and dealer locations.
In the 10-K report, Allison Transmission discussed the trends impacting its business, including a new four-year collective bargaining agreement with UAW Local 933, resulting in a significant increase in labor costs. The company also expects higher net sales in 2025, driven by price increases on certain products, increased demand for Tracked vehicle applications in its Defense end market, and robust North American vocational demand.
The report also presented a detailed breakdown of net sales by end market for the full year of 2024, revealing a 6% increase in total net sales compared to 2023. Notably, net sales in the North America On-Highway end market saw a 15% increase, driven by strong demand for Class 8 vocational and medium-duty trucks, along with price increases on certain products. However, Global Off-Highway net sales experienced a 37% decrease due to lower demand from the energy sector in North America and the mining and construction sectors outside of North America.
The 10-K report also delved into the company's key components of results of operations, including net sales, cost of sales, selling, general and administrative expenses, engineering research and development costs, and non-GAAP financial measures such as Adjusted EBITDA and Adjusted free cash flow.
Furthermore, the report provided a detailed comparison of the financial performance for the years ended December 31, 2024, and 2023. It highlighted a 6% increase in net sales, reaching $3,225 million in 2024, along with a breakdown of the cost of sales, gross profit, operating expenses, and income before income taxes.
Today the company's shares have moved 1.7% to a price of $101.64. If you want to know more, read the company's complete 10-K report here.
