Allison(US:ALSN)2025-10-29 20:05Financial Performance - Third quarter net sales were $693 million, a decrease of 15.9% year over year from $824 million[4] - Net income for the quarter was $137 million, representing 19.8% of net sales, down from $200 million in the same period last year[5][11] - Adjusted EBITDA for the quarter was $256 million, with an EBITDA margin of 37% despite a challenging demand environment[4][5] - Net income (GAAP) for the three months ended September 30, 2025, was $137 million, a decrease of 31.5% from $200 million in the same period of 2024[32] - Adjusted EBITDA (Non-GAAP) for the three months ended September 30, 2025, was $256 million, representing 36.9% of net sales, compared to 37.0% in the same period of 2024[32] Market Performance - Defense end market net sales increased by 47% year over year to $78 million, driven by higher demand for tracked vehicle applications[5][6] - North America On-Highway net sales decreased by $130 million to $327 million, primarily due to lower demand for Class 8 vocational and medium-duty trucks[6][7] Cash Flow and Liquidity - Net cash provided by operating activities was $228 million, down from $246 million in the same period last year[12] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $593 million, slightly up from $590 million in the same period of 2024[30] - Cash and cash equivalents at the end of the period increased to $902 million, up from $788 million at the end of the same period in 2024[30] - The company expects adjusted free cash flow (Non-GAAP) for the year ending December 31, 2025, to be between $600 million and $620 million[38] Guidance and Projections - The company expects 2025 net sales to be in the range of $2,975 to $3,025 million and net income between $620 to $650 million[14] - The company provided guidance for net income (GAAP) for the year ending December 31, 2025, in the range of $620 million to $650 million[38] - Capital expenditures for 2025 are projected to be between $165 to $175 million[14] Shareholder Returns - The company repurchased $27 million of common stock and paid $23 million in dividends during the third quarter[3] Assets and Liabilities - Total assets increased to $5,517 million as of September 30, 2025, compared to $5,336 million on December 31, 2024, reflecting a growth of 3.4%[28] - Total current liabilities decreased to $438 million as of September 30, 2025, from $506 million on December 31, 2024, a reduction of 13.4%[28] - Long-term debt remained stable at $2,393 million as of September 30, 2025, compared to $2,395 million on December 31, 2024[28] Research and Development - Engineering research and development expenses for the quarter were $43 million, a decrease of $8 million from the same period in 2024[10] Acquisition Activities - The company incurred acquisition-related expenses of $14 million in the three months ended September 30, 2025, as part of its pending acquisition of the Dana Off-Highway business[32]