Allison Transmission Holdings Inc. reported second quarter net sales of $814 million, with top-line performance driven by continued strength in the Defense end market and record quarterly net sales in the Outside North America On-Highway end market. In addition, Allison announced during the quarter that the company had entered into a definitive agreement to acquire the Off-Highway business of Dana Incorporated, a global provider of drivetrain and propulsion solutions, with operations in more than 25 countries, for approximately $2.7 billion. This acquisition is expected to close late in the fourth quarter of 2025.
David S. Graziosi, chair and chief executive officer of Allison Transmission commented, “Delivering record quarterly earnings per share, while incurring one-time costs associated with our recently announced acquisition of the Dana Off-Highway business, is a clear reflection of the Allison team’s continued focus on execution and delivering strong financial performance. Our second quarter results, highlighted by continued growth in the Defense end market and a record $142 million of quarterly net sales in the Outside North America On-Highway end market, demonstrate the diversity of Allison’s end markets and the incremental sales opportunities available from growth initiatives.”
Graziosi continued, “Adjusted EBITDA of $313 million increased 4% year over year in the second quarter as Allison is well-positioned to navigate current trade uncertainties while focusing on operational efficiencies and the alignment of costs and initiatives with end market developments. Our capital allocation priorities remain intact with $102 million of our common stock, representing over 1% of outstanding shares, repurchased during the second quarter. Year-to-date we have repurchased 3% of our outstanding shares.”
Second Quarter Financial Highlights
Net sales for the quarter were $814 million. Year over year results by end market include:
- A $20 million increase in net sales in the Defense end market principally driven by the continued execution of our growth initiatives
- A $14 million increase in net sales in the Outside North America On-Highway end market principally driven by higher demand in South America and Europe
- A $10 million increase in net sales in the Service Parts, Support Equipment and Other end market principally driven by higher demand for service parts and price increases on certain products, partially offset by lower demand for aluminum die cast components
- A $7 million decrease in net sales in the Global Off-Highway end market principally driven by lower demand from the energy, mining and construction sectors outside of North America
- A $39 million decrease in net sales in the North America On-Highway end market principally driven by lower demand for medium-duty trucks, partially offset by price increases on certain products
Net income for the quarter was $195 million. Diluted EPS for the quarter was $2.29. Adjusted EBITDA, a non-GAAP financial measure, for the quarter was $313 million. Adjusted EBITDA margin, a non-GAAP financial measure, for the quarter was 38.5%. Net cash provided by operating activities for the quarter was $184 million. Adjusted free cash flow, a non-GAAP financial measure, for the quarter was $153 million.
Second Quarter Net Sales by End Market
For additional information from the Allison Transmission financial report, click here.
