Allison Transmission Posts Record-Breaking Q4 Results, Sets Sights on Continued Growth
Indianapolis-based Allison Transmission, a leading global provider of commercial-duty automatic transmissions and other related products, has just announced its fourth quarter 2024 earnings results, with the company reporting another record-breaking year in terms of net sales.
The $3.2 billion in net sales reported by Allison for full-year 2024 represents an all-time high for the company, a testament to its continued success and growth momentum. The North America On-Highway end market was a major driver of this performance, with full year net sales reaching a record $1.8 billion, up 15% from the previous year.
In a call with analysts and investors, Allison Transmission's Chair and Chief Executive Officer Dave Graziosi highlighted the company's strong demand for its 3000 and 4000 Series products in the North America On-Highway end market, citing ongoing U.S. infrastructure spending as a key factor driving this growth.
Other end markets also contributed to Allison's record-breaking performance, with full year net sales increasing by 28% year-over-year in the Defense end market and reaching a decade-high $212 million. The company also reported record net sales of $493 million in its outside North America On-Highway end market, driven in part by its widebody mining dump truck initiative.
Not only did Allison achieve record net sales in 2024, but the company's full year earnings per share also increased to a company-record diluted EPS of $8.31, up 12% from the previous year. This demonstrates not only the strength of the company's top-line performance but also its ability to deliver on earnings growth.
Looking ahead to 2025, Allison has set ambitious targets for continued growth in its business, citing ongoing U.S. infrastructure spending and expansion into new markets as key drivers of this future success. The company expects another notable year in 2025 for the North America On-Highway end market, with full-year net sales anticipated to continue strong demand for Class 8 vocational vehicles.
The fourth quarter 2024 financial performance summary provided by Allison's Chief Operating Officer, Chief Financial Officer and Treasurer Fred Bohley highlighted a 3% year-over-year increase in net sales to $796 million, led by a 10% increase in the North American On-Highway end market. Net sales in the service parts, support equipment and other markets also increased 5% year-over-year, driven by price increases.
With its record-breaking Q4 results and ambitious targets for continued growth in 2025, Allison Transmission is well-positioned to continue delivering strong financial performance and driving success across a range of end markets."
