Lucid files for 1-for-10 reverse stock split requiring shareholder approval
NEW YORK - Allison Transmission Holdings Inc. (NYSE:ALSN) reported better-than-expected fourth quarter results but provided disappointing guidance for 2025, sending shares tumbling 8.9% in after-hours trading on Tuesday.
The Indianapolis-based manufacturer of vehicle transmissions posted Q4 adjusted earnings per share of $2.01, surpassing analyst estimates of $1.89. Revenue rose 2.7% YoY to $796 million, also beating expectations of $777.81 million.
However, Allison’s outlook for 2025 fell short of Wall Street projections. The company forecasts full-year revenue between $3.2 billion and $3.3 billion, compared to the consensus estimate of $3.22 billion.
"At the midpoint, we are guiding to another record revenue year for 2025 driven by price increases on certain products, increased demand for Tracked vehicle applications and robust North America vocational demand," said David S. Graziosi, Chair and Chief Executive Officer of Allison Transmission.
For Q4, net sales in the North America On-Highway segment, Allison’s largest market, increased 10% YoY to $419 million. The Defense segment saw an 8% rise to $68 million.
The company reported Q4 net income of $175 million, up from $170 million in the year-ago period. Adjusted EBITDA declined slightly to $270 million from $277 million last year.
Allison returned cash to shareholders in 2024 by increasing its quarterly dividend for the fifth consecutive year while repurchasing over $250 million of common stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.