NYSE$ALSN

Allison Transmission Holdings Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Allison Transmission reported a 60% increase in net sales and a significant rise in net income, driven by recovering customer demand and global economic improvements.

Allison Transmission announced strong second-quarter results with a 60% increase in net sales to $603 million and a net income of $110 million, reflecting a substantial recovery in global markets. The company reaffirmed its full-year 2021 guidance, indicating continued confidence in its performance.

  • Net sales increased by 60% year-over-year, reaching $603 million.
  • Net income rose significantly to $110 million, representing 18% of net sales.
  • Adjusted EBITDA stood at $213 million, accounting for 35% of net sales.
  • Diluted EPS was reported at $1.01.

Headline financials

Total Revenue

$603M

Previous: $377M+59.9%
EPS (adj)

$1.01

Previous: $0.20+405.0%
Adjusted EBITDA

$213M

Previous: $115M+85.2%
Capital Expenditures

-$69M

Previous: -$49M-40.8%
Free Cash Flow

$41M

Previous: -$26M+257.7%
Net Income

$110M

Previous: $23M+378.3%
Operating Income

$167M

Previous: $58M+187.9%
Gross Profit

$288M

Previous: $165M+74.5%
Cash & Equivalents

$238M

Previous: $434M-45.2%
Total Assets

$4.52B

Previous: $4.63B-2.4%
Stock-Based Comp

$5M

Previous: $2M+150.0%

Revenue & EPS history

Allison · Revenue · Quarterly

$603M

Q2 2021+59.9%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Allison · $576M total across 4 segments · Q2 2021

  • North America On-Highway
    $302M+84.1%
  • Service Parts & Other
    $128M+43.8%
  • Outside North America On-Highway
    $98M+63.3%
  • Defense
    $48M+14.3%

Forward guidance

Allison Transmission reaffirmed its full year 2021 guidance ranges released to the market on April 28 for Net Sales, Adjusted EBITDA, Net Cash Provided by Operating Activities, Adjusted Free Cash Flow and Capital Expenditures. Allison expects 2021 Net Sales in the range of $2,325 to $2,475 million, Net Income in the range of $395 to $465 million, Adjusted EBITDA in the range of $795 to $885 million, Net Cash Provided by Operating Activities in the range of $585 to $655 million, Adjusted Free Cash Flow in the range of $415 to $475 million and Capital Expenditures in the range of $170 to $180 million.

Tailwinds

  • Higher demand in the global On-Highway end market.
  • Increased demand in the Service Parts, Support Equipment & Other end market.
  • Growing demand in the North America Off-Highway end market.
  • Ongoing global economic recovery driving demand.
  • Price increases on certain products contributing to revenue.

Headwinds

  • Continuation of industry production constraints.
  • Global supply chain challenges persisting.
  • Unfavorable material costs.
  • Higher operating working capital requirements.
  • Higher cash income taxes.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.7%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.7%

Avg return

30 days after

61%

37 / 61 earnings

Positive

+11.9%

Q2 2018

Best reaction

-12.5%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.7%-6.2%-9.5%
Q4 2025+4.8%+7.2%-0.4%
Q3 2025+2.4%-2.7%+8.7%
Q1 2025+4.1%+4.1%+10.8%
Q4 2024-12.5%-8.4%-15.8%
Q3 2024+8.2%+7.4%+18.8%
Q2 2024+6.2%+6.8%+9.6%
Q1 2024-6.9%-8.1%-5.3%
Q4 2023+11.6%+12.3%+19.4%
Q3 2023-10.8%-11.2%-5.7%
Q2 2023+1.7%+3.2%+1.4%
Q1 2023+7.4%+5.8%+6.9%
Q4 2022+10.3%+9.2%-8.0%
Q3 2022+5.8%+8.3%+12.9%
Q2 2022-8.4%-7.4%-11.7%
Q1 2022+4.6%+4.3%+8.7%
Q4 2021+1.4%+0.5%-2.4%
Q3 2021+2.8%+2.2%+9.3%
Q2 2021+1.0%+1.3%-4.1%
Q1 2021-3.9%-4.1%-2.8%
Q4 2020-9.6%-11.5%-0.2%
Q3 2020-6.8%-1.3%+10.9%
Q2 2020-1.9%-1.7%-4.7%
Q1 2020-0.5%+5.0%+9.5%
Q4 2019-1.0%-1.0%-34.8%
Q3 2019-7.2%-5.3%+3.0%
Q2 2019-1.3%-6.5%-5.2%
Q1 2019+1.3%-2.6%-11.4%
Q4 2018+2.4%-3.0%-10.5%
Q3 2018+0.6%+1.6%+9.1%
Q2 2018+11.9%+10.7%+18.1%
Q1 2018+2.7%+4.8%+7.7%
Q4 2017-3.2%-5.8%-6.5%
Q3 2017-1.0%+1.7%-6.4%
Q2 2017+0.4%+1.1%-8.3%
Q1 2017+4.8%+4.3%+4.4%
Q4 2016+5.4%+6.2%+2.0%
Q3 2016+3.3%+6.6%+18.2%
Q2 2016-4.8%-5.3%-7.8%
Q1 2016+0.9%
Q4 2015-3.3%
Q3 2015-1.1%
Q2 2015+2.9%
Q1 2015-3.3%
Q4 2014-2.5%
Q3 2014+7.3%
Q2 2014-0.3%
Q1 2014+6.6%
Q4 2013+3.3%
Q3 2013-6.3%
Q2 2013+0.5%
Q1 2013+0.5%
Q4 2010+0.3%
Q4 2011+0.3%
Q4 2012-0.8%
Q3 2011+6.1%
Q3 2012+3.8%
Q2 2011-3.0%
Q2 2012+4.0%
Q1 2011+2.6%
Q1 2012+3.0%
Q3 2010
Q2 2010

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro