Core Viewpoint - Allison Transmission Holdings Inc. will hold its first quarter 2025 financial results conference call on May 1, 2025, at 5:00 p.m. EDT, where key executives will discuss the company's financial performance for the period [1]. Company Overview - Allison Transmission is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles, and it is the largest global manufacturer of medium- and heavy-duty fully automatic transmissions [3]. - The company was founded in 1915 and is headquartered in Indianapolis, Indiana, USA, with a presence in over 150 countries [3]. - Allison's products are utilized in various applications, including on-highway vehicles, buses, motorhomes, off-highway vehicles, and defense vehicles [3]. - The company has regional headquarters in the Netherlands, China, and Brazil, and manufacturing facilities in the USA, Hungary, and India [3]. - Allison also operates global engineering resources, including electrification engineering centers located in Indianapolis, Auburn Hills, and London [3]. - The company has approximately 1,600 independent distributor and dealer locations worldwide [3].

Core Viewpoint - Allison Transmission has appointed Scott Mell as the new Chief Financial Officer (CFO) and Treasurer, effective April 14, 2025, following the previous CFO Fred Bohley's transition to COO [1][2]. Company Overview - Allison Transmission is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles, and is the largest global manufacturer of medium- and heavy-duty fully automatic transmissions [7]. - The company was founded in 1915 and is headquartered in Indianapolis, Indiana, with a presence in over 150 countries [7]. Leadership Appointment - Scott Mell brings nearly 30 years of diverse experience in strategic and financial leadership, with a strong international background in operations across Asia, Europe, and South America [3][6]. - His previous roles include serving as CFO at TriMas Corporation and various senior leadership positions at Ernst & Young LLP, McKinsey & Company, and AlixPartners, LLP [6]. Responsibilities of the New CFO - As CFO, Scott Mell will oversee the Finance organization, including financial planning, budgeting, reporting, analysis, and regulatory compliance [4]. - He will also set the overall treasury strategy, which encompasses cash management, risk management, and investor relations [4]. Company Growth and Innovation - The CEO of Allison Transmission, David Graziosi, expressed confidence that Scott Mell's international experience and financial expertise will be crucial for driving growth and innovation within the company [4]. - Scott Mell has expressed enthusiasm about joining Allison Transmission and contributing to its success by enhancing financial performance and shareholder value [5].

Core Insights - Allison Transmission is expanding its service network in Japan and West Africa to enhance global customer support and service accessibility for its growing fielded population outside North America [1][6]. Group 1: Service Network Expansion - The Allison Authorized Service Network now includes approximately 1,600 independent distributor and dealer locations globally [2]. - In Japan, the number of Allison Authorized Service locations has increased from 7 to 29 over the past 10 years, reflecting rising demand for Allison-equipped vehicles [3]. - Strategic distributor agreements have been established in Japan to strengthen after-sales service, including partnerships with SYNAGY Corporation, Sanko Diesel Co., Ltd., and Chikuho Seisakusho Co., Ltd. [3]. Group 2: West Africa Partnership - A new strategic partnership has been formed with Services Machinery Trucks (SMT) Ghana, designating them as an Allison Authorized Dealer [4]. - SMT Ghana's expertise in construction, transport, and mining vehicle services will enhance Allison's technical support and service capabilities in West Africa [4]. Group 3: Strategic Goals - The expansion of service channels is part of Allison's broader strategy to support the increasing preference for fully automatic transmissions outside North America [5]. - The new partnerships in Japan and West Africa aim to deliver the Allison Brand Promise across various end markets, including On-Highway, Off-Highway, and Defense [6].

Core Insights - Allison Transmission has announced that Daimler Truck North America LLC (DTNA) will standardize its FuelSense® 2.0 Neutral at Stop technology for Freightliner and Western Star trucks, aimed at reducing fuel consumption and emissions [1][2]. Company and Industry Summary - The Neutral at Stop feature minimizes engine load when vehicles are stopped, thereby conserving fuel that would otherwise be wasted during idling, which is particularly beneficial for fleets with frequent stop-start operations [2][3]. - The FuelSense 2.0 technology suite, which includes the Neutral at Stop feature, can deliver quantifiable fuel savings of up to 6% while maintaining the quality, reliability, durability, and productivity associated with Allison products [3]. - Allison Transmission is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles, and is the largest global manufacturer of medium- and heavy-duty fully automatic transmissions [5][6].

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Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canada, Robert has earned Bachelor of Arts and Master of Business Administration (MBA) degrees.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the co ...

Allison Transmission Holdings, Inc. (NYSE: ALSN ) has had a pullback recently from its highs in January. Given it reported its FY24 numbers recently, I wanted to take a look at its progress and touchMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure ...

Core Viewpoint - Allison Transmission has demonstrated a commitment to shareholder returns through dividend increases and share repurchases, while also positioning itself for future growth amid a challenging economic environment [1][3][19]. Financial Performance - In 2024, Allison generated an adjusted free cash flow of $658 million and repaid over $100 million of term loan debt, increasing cash and cash equivalents to $781 million from $555 million year-over-year [2]. - The company reported record revenues of $3.2 billion in 2024, with expectations for net sales in the range of $3.2-$3.3 billion for 2025, driven by strong demand in vocational vehicle markets [4]. - As of the end of 2024, long-term debt decreased to $2.39 billion from $2.49 billion in 2023 [2]. Shareholder Returns - Allison raised its first-quarter 2025 dividend by 8% to 27 cents, marking the sixth consecutive year of dividend increases, with a sustainable payout ratio of around 12% [1]. - The company authorized an additional $1 billion for share repurchases, having already bought back $250 million worth of stock in 2024, and repurchased over 63% of its outstanding shares since its IPO in 2012 [3]. Market Position and Growth Drivers - The company is well-positioned to benefit from rising global defense budgets, with sales in its Defense market increasing by 28% year-over-year to a decade-high of $212 million [5]. - Allison's focus on innovation, including fully automatic transmissions and electrification solutions, is expected to unlock new growth opportunities [6]. - International expansion efforts, particularly in Brazil and partnerships in Africa, Asia, and South America, reinforce its global growth strategy [7]. Challenges and Economic Factors - Rising R&D expenses, driven by increased spending on product initiatives, may impact short-term profitability despite supporting long-term growth [8]. - Inflationary pressures have led to higher costs for raw materials and labor, which could affect profitability if the company struggles to pass on these costs [9]. - Geopolitical risks, supply chain disruptions, and economic uncertainty pose challenges to the commercial vehicle industry, which is sensitive to economic downturns [10]. Future Estimates - The Zacks Consensus Estimate for Allison's 2025 sales and EPS indicates a year-over-year increase of 1.4% and 9%, respectively, with further growth projected for 2026 [11]. - However, EPS estimates for the first two quarters of 2025 and the full year have seen downward revisions over the past 30 days [12]. Valuation and Performance - Year-to-date, Allison shares have declined by 7%, underperforming its industry and peers [13]. - The company is currently trading at a forward sales multiple of 2.55X, which is higher than some peers but similar to others in the industry [16]. Analyst Recommendations - The average brokerage recommendation for Allison is 3 on a scale of 1 to 5, with a mix of "Hold," "Strong Buy/Buy," and "Sell/Strong Sell" ratings among analysts [20].

INDIANAPOLIS, Feb. 20, 2025 /PRNewswire/ -- Allison Transmission Holdings Inc. (NYSE: ALSN), a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions for commercial and defense vehicles, announced today that its Board of Directors has approved an increase in the Company's quarterly dividend from $0.25 to $0.27 per share on the Company's common stock and has declared a cash divi ...

High Income DIY Portfolios: The primary goal of "High Income DIY Portfolios" Marketplace service is high income with low risk and preservation of capital. It provides DIY investors with vital information and portfolio/asset allocation strategies to help create stable, long-term passive income with sustainable yields. The portfolios are designed for Income-Investors (including retirees or near-retirees). We provide seven portfolios: 3 buy-and-hold, 3 Rotational portfolios, and 3-Bucket NPP Model Portfolio. T ...