Allison(US:ALSN) Prnewswireยท2025-10-29 20:05Core Insights - Allison Transmission Holdings Inc. reported third quarter net sales of $693 million, a decrease from $824 million in the same period last year, primarily driven by challenges in the North America On-Highway market and growth in the Defense sector [1][3][4]. Financial Performance - Net income for the quarter was $137 million, down from $200 million year-over-year, with diluted EPS at $1.63 [3][8]. - Adjusted EBITDA for the quarter was $256 million, reflecting a margin of 36.9% despite a challenging demand environment [3][14]. - Net cash provided by operating activities was $228 million, a decrease from $246 million in the previous year [3][9]. Sales Breakdown by End Market - North America On-Highway sales decreased by $130 million to $327 million [4][15]. - Defense sales increased by $25 million to $78 million, marking a 47% year-over-year growth [4][15]. - Global Off-Highway sales fell by $13 million to $7 million, while Outside North America On-Highway sales decreased by $4 million [4][15]. Cost and Expense Management - Gross profit for the quarter was $329 million, down from $396 million, primarily due to lower volumes and unfavorable direct material costs [5]. - Selling, general and administrative expenses decreased to $82 million from $85 million, driven by lower incentive compensation and commercial activities spending [6]. - Engineering research and development expenses were $43 million, down from $51 million, reflecting reduced spending on product initiatives [7]. Guidance Update - The company revised its full-year 2025 guidance, expecting net sales between $2,975 million and $3,025 million, and net income in the range of $620 million to $650 million [10][11].