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].

Group 1 - The primary goal of the "High Income DIY Portfolios" Marketplace service is to achieve high income with low risk and capital preservation [1] - The service provides DIY investors with essential information and portfolio/asset allocation strategies aimed at creating stable, long-term passive income with sustainable yields [1] - The portfolios are specifically designed for income investors, including retirees or near-retirees, and include seven different portfolios: 3 buy-and-hold, 3 rotational portfolios, and a 3-bucket NPP model portfolio [1] Group 2 - The offerings include two high-income portfolios, two dividend growth investing (DGI) portfolios, and a conservative NPP strategy portfolio characterized by low drawdowns and high growth potential [1]

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 Insights - Not all share buyback programs create equal value, as the impact of a buyback program varies significantly based on the company's size and the proportion of the buyback relative to its market capitalization [1][2] Group 1: Fiserv - Fiserv has announced a buyback authorization of 60 million shares, bringing its total buyback capacity to approximately 78 million shares [3][5] - The value of Fiserv's buyback capacity is over $18 billion, which is nearly 14% of its market capitalization of $130 billion [5] - In 2024, Fiserv spent $5.5 billion on share repurchases, a 120% increase from $2.5 billion in 2022 [6] - Fiserv's stock price has risen 103% from the end of 2022 to the beginning of 2025, indicating aggressive share repurchase despite stock price increases [7] Group 2: Analog Devices - Analog Devices has announced a new buyback program of $10 billion, increasing its total buyback capacity to approximately $11.5 billion, which is 9.8% of its market cap of over $117 billion [8] - The company also increased its dividend by 8%, resulting in a yield of nearly 1.7%, which is competitive within its sector [9][10] - Analog Devices has historically repurchased an average of $760 million worth of shares annually over the past 21 years, indicating a more selective approach to buybacks [10][11] Group 3: Allison Transmission - Allison Transmission has announced an additional $1 billion share buyback authorization, bringing its total buyback capacity to $5 billion, which is 59% of its market capitalization of $8.4 billion [12][13] - In 2024, Allison spent over $250 million on share repurchases, which is significant relative to its market cap [14] - The company reported record full-year sales of $3.2 billion and record diluted EPS of $8.31 in 2024, reflecting increases of 6% and 12% compared to 2023 [15]

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 ...

Group 1 - The primary goal of the "High Income DIY Portfolios" Marketplace service is to achieve high income with low risk and capital preservation [1] - The service provides DIY investors with essential information and portfolio/asset allocation strategies aimed at creating stable, long-term passive income with sustainable yields [1] - The portfolios are specifically designed for income investors, including retirees or those nearing retirement, and include seven different portfolios: 3 buy-and-hold, 3 rotational portfolios, and a 3-bucket NPP model portfolio [1] Group 2 - The offerings include two high-income portfolios, two dividend growth investing (DGI) portfolios, and a conservative NPP strategy portfolio characterized by low drawdowns and high growth potential [1]

Core Viewpoint - Allison Transmission Holdings (ALSN) has shown strong performance with a 32.1% increase in share price over the past six months, significantly outperforming its sector and the S&P 500 index, indicating strong fundamentals and growth prospects that make it a compelling buy [1][2]. Financial Performance - Allison achieved record net sales of $3.2 billion in 2024, with a 15% year-over-year revenue increase in its North America on-highway market, driven by demand for Class 8 vocational vehicles [5]. - The defense segment experienced a 28% year-over-year sales increase to $212 million, attributed to rising global defense spending due to geopolitical uncertainties [6]. - For 2025, net sales are expected to range from $3.2 billion to $3.3 billion, with net income anticipated between $735 million and $785 million, reflecting growth from the previous year [10][11]. Growth Initiatives - The company is expanding its product portfolio, including a $100 million annual revenue opportunity from its wide-mining dump truck initiative and the launch of its 6,000 series transmission for heavy-duty vehicles [7]. - The e-Gen Power portfolio is adapting to industry changes, with specific focus on the eGen Flex and eGen Force portfolios enhancing Allison's market prospects [8]. Shareholder Returns - Allison generated $658 million in adjusted free cash flow in 2024, allowing for over $100 million in debt reduction and more than $250 million in share repurchases, alongside a 67% increase in quarterly dividends over the past five years [9]. Earnings Estimates - The Zacks Consensus Estimate for ALSN's first-quarter 2025 EPS is $2.17, indicating a year-over-year growth of 14.21%, with the 2025 EPS estimate at $9.22, reflecting a 10.95% growth [12]. Conclusion - With robust financial performance, strategic growth initiatives, and positive earnings projections for 2025, Allison presents an attractive investment opportunity, currently holding a Zacks Rank 2 (Buy) [13].