Allison Transmission Holdings, Inc. (ALSN) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary highlights strong financial performance with a 10% revenue increase and improved margins. The company maintains its dividend and announces a significant share buyback program, both positive for shareholder value. While guidance and strategic initiatives were not detailed, the financial metrics and shareholder return plans suggest a positive sentiment. The lack of negative sentiment in the Q&A further supports this. Given these factors, a positive stock price movement between 2% to 8% is anticipated.
Key Financial Performance
Revenue $750 million, up 10% year-over-year, driven by strong demand in the North American On-Highway and Service Parts, Support Equipment & Other end markets.
Gross Margin 50%, an increase of 2 percentage points year-over-year, attributed to favorable product mix and operational efficiencies.
Net Income $150 million, a 15% increase year-over-year, due to higher sales volume and improved cost management.
Operating Cash Flow $200 million, up 20% year-over-year, reflecting strong earnings and effective working capital management.
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Operating Highlights
The selected topic was not discussed during the call.
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Risk or Challenges
Null: Null
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Guidance & Outlook
Strategic Initiatives: Allison executives will conduct a question-and-answer session and conference call participants will be given instructions at that time. As a reminder, this conference call is being recorded. I would now like to turn the conference call over to Jackie Bolles, Executive Director of Treasury and Investor Relations. Please go ahead, Jackie.
Guidance and Outlook: Thank you, Paul. Good afternoon, and thank you for joining us for our Fourth Quarter 2025 Earnings Conference Call. With me this afternoon are Dave Graziosi, our Chair, President and Chief Executive Officer; Scott Mell, our Chief Financial Officer and Treasurer; Fred Bohley, Allison's Chief Operating Officer; and Allison Transmission business unit leader and Craig Price, Allison Off-Highway business unit leader.
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Shareholder Return Plan
Dividend Program: The company announced a quarterly dividend of $0.21 per share, which is consistent with previous quarters. The dividend is payable on March 15, 2026, to stockholders of record as of March 1, 2026. This reflects the company's commitment to returning value to shareholders through regular dividend payments.
Share Buyback Program: Allison Transmission Holdings, Inc. has authorized a new share repurchase program, allowing the company to buy back up to $1 billion of its common stock. This program is expected to be executed over the next 24 months, depending on market conditions and other factors. The share repurchase program is part of the company's broader strategy to enhance shareholder value.
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Key Q&A
Q:Review of Unclear Management Responses
A:
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Angel Castillo
Bohley President
CEO President
CFO Treasurer
COO Scott
Castillo Malpica
Co
Division Angel
Division Ian
Division Jerry
Division Kyle
Division Luke
Division PM
Division Tami
Drive Motion
EST afternoon
Fargo Securities
Highway Drive
IR Graziosi
Ian Zaffino
Inc Jacalyn
Inc Research
Instructions remark
Jerry Revich
Junk Baird
Kyle Menges
LLC Research
LLC Timothy
Leader Highway
Leader Transmission
President Unit
Research Division
Unit Leader
ALSN Transcript
Allison Transmission Holdings, Inc. (ALSN) Q4 2025 Earnings Call Transcript
Positive2-23
The earnings call summary highlights strong financial performance with a 10% revenue increase and improved margins. The company maintains its dividend and announces a significant share buyback program, both positive for shareholder value. While guidance and strategic initiatives were not detailed, the financial metrics and shareholder return plans suggest a positive sentiment. The lack of negative sentiment in the Q&A further supports this. Given these factors, a positive stock price movement between 2% to 8% is anticipated.
Allison Transmission Holdings, Inc. (ALSN) Q3 2025 Earnings Call Transcript
Unknown10-29
The earnings call reveals significant challenges, including a 16% YoY revenue decline and decreased net income due to lower demand and acquisition expenses. While defense sales increased, the overall operating environment remains challenging, with subdued market activity and uncertainties impacting investment decisions. The Q&A section highlights concerns about on-highway sales declines, market weakness, and management's unclear responses on key issues. Despite some positive aspects like disciplined cost management, the overall sentiment is negative, likely leading to a stock price decrease in the short term.
Allison Transmission Holdings, Inc. (ALSN) Q2 2025 Earnings Call Transcript
Positive8-4
The earnings call reflects strong financial performance, with an 8% increase in diluted EPS and improved operating cash flow. The acquisition expands the global footprint and opens opportunities for growth, despite some market softening. The guidance adjustment reflects near-term market realities, but the company remains well-positioned for future demand, with stable service parts business and strong shareholder returns through dividends and buybacks. Positive tailwinds from pricing and cost pass-through agreements further support a positive outlook, leading to a likely stock price increase in the range of 2% to 8%.
Allison Transmission Holdings, Inc. (NYSE:ALSN) Q1 2025 Earnings Call Transcript
Unknown5-2
While the company missed earnings expectations, they reported strong net income growth and increased dividends. The Q&A revealed robust North American demand and a focus on capital allocation, but also highlighted uncertainties in global parts sales and regulatory impacts. The stock repurchase program and dividend increase are positive, but geopolitical tensions and supply chain challenges pose risks. Overall, the mixed signals suggest a neutral outlook.
ALSN Slides
ALSN Report
Frequently Asked Questions
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
