Among the Zacks Rank #1 (Strong Buy) list, Allison Transmission Holdings (ALSN)  and Ford Motor (F)  are two top auto stocks that investors will want to consider as their Q4 results approach after-market hours on Tuesday, February 10.Magnifying their strong buy ratings, Allison and Ford stock are both checking the box in terms of valuation with an “A” Zacks Style Scores grade for Value.That said, here is some insight as to why these highly ranked auto stocks could serve as valuable options to consider in th ...

This presentation contains statements that are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's current expectations that are based on assumptions that are subject to risks and uncertainties. Actual results may vary because of variations between these assumptions and actual performance. Investors are referred to Twin Disc's fiscal year 2025 Annual Report and Form 10-K, "Management's Discussion and Analysis of Fin ...

Core Insights - The trucking industry, particularly those involved in automotive transport, is facing significant volatility due to tariff-driven changes in freight volumes and supply chain adjustments [2][3][4] Group 1: Tariff Impact - The implementation of 25% tariffs on vehicles and parts manufactured outside the U.S. has forced automakers to modify their import strategies and supply chains to mitigate costs [3][4] - Automakers rushed to import vehicles and components before the tariffs took effect, leading to increased trucking and transportation demands as they stockpiled products [5][6] Group 2: Market Uncertainty - There is ongoing uncertainty regarding future market conditions, including the potential impact of tariffs on fleet growth and overall strategies for automotive carriers [2][6] - The initial surge in freight volumes experienced by larger carrier partners has normalized, but concerns about tariffs continue to influence discussions around vehicle orders for 2026 [6]

Financial Performance - First quarter sales increased by 9.7% year-over-year to $80.0 million[8] - Organic sales increased by 1.1% year-over-year[8] - EBITDA increased by 172.3% year-over-year to $4.7 million, including currency translation loss and stock-based compensation[8] - Earnings per share (EPS) improved from a loss of $0.20 to a loss of $0.04 year-over-year[35] - Gross margin increased by 220 basis points year-over-year, from 26.5% to 28.7%[50] Backlog and Defense Market - The company has a robust six-month backlog of $163.3 million, higher sequentially[8] - Defense sector experienced a 45% year-over-year increase[11] - Defense accounts for approximately 15% of the total backlog[11] - The company is well-positioned to capture robust defense market demand, supported by increased US and NATO defense spending[9] Sales by Product Group - Marine & Propulsion Systems sales increased by 14.6% year-over-year[16] - Land-Based Transmissions sales increased by 1.6% year-over-year[20] - Industrial sales increased by 13.2% year-over-year[23]

Core Insights - Kirby Corporation's shares increased by 15.6% on Wednesday, reflecting positive market sentiment [1] - The company operates in two main segments: traditional tank barge transportation and a growing power equipment distribution and servicing business, with the latter benefiting from AI-related growth [2] Financial Performance - In Q3, Kirby's revenue rose by 4.8% to $871.2 million, and earnings per share increased by 6.5% to $1.65, both surpassing analyst expectations [3] - The core tank barge business showed stability but experienced a slight decline in marine transportation revenue, while the distribution and services segment thrived with an 11.9% revenue increase, driven by a 56% growth in the power generation market [4] Shareholder Returns - The company actively repurchased shares, buying back 1.31 million shares for $120 million in the quarter, with an additional $36 million in repurchases already initiated for Q4 [5] Valuation and Market Position - Despite the recent stock surge, Kirby trades at a relatively low valuation of 16.4 times this year's earnings estimates, with a significant portion of its business in the cyclical transportation sector and about 20% in the high-growth power generation segment [7] - The power generation segment's growth, particularly related to AI data centers, positions Kirby as an attractive investment opportunity for value investors compared to higher-valued tech stocks [8]

Financial Performance - Full year sales increased by 15.5% year-over-year to $340.7 million[8] - Organic sales increased by 1.0% year-over-year[8] - EBITDA was $19.0 million, including currency translation loss, stock-based compensation, and other items[8] - Operating Cash Flow reached $24.0 million[8] - Free cash flow amounted to $8.8 million[8] - The company's six-month backlog was $150.5 million, showing sequential growth[8] - Net debt to EBITDA leverage ratio increased from 0.2x in FY24 to 0.8x in FY25, primarily due to the acquisition of Kobelt[45, 46] Market and Strategic Highlights - Defense backlog increased by 45% year-over-year as a percentage of total major geographies backlog[11] - Defense accounts for approximately 15% of the total backlog[11] - Industrial sales increased by 82.0% year-over-year[23] - Industrial sales excluding Katsa and Kobelt increased 13.1% year-over-year[23]

Company Overview - In 2024, Marine Transportation accounted for 59% of Kirby's revenues, totaling $1.913 billion[5] - Distribution and Services contributed 41% of the 2024 revenues, amounting to $1.353 billion[7] - As of March 31, 2025, Kirby's market capitalization stood at $5.889 billion, with net debt at $1.047 billion, resulting in an enterprise value of $6.936 billion[13] Marine Transportation - Kirby's inland share of the barge market is 28% as of March 31, 2025[48] - Petrochemicals and Chemicals account for 50% of Marine Transportation revenue, followed by Black Oil at 25%, Refined Petroleum Products at 22%, and Agricultural Chemicals at 3%[49] - The inland tank barge fleet has grown annually at approximately 2% over the last 20 years but has remained flat over the last 5 years[59] - In 2024, Kirby achieved 99.95% Safe Watches[40] Distribution & Services - Power Generation accounts for 34% of Distribution & Services segment revenues, while Commercial & Industrial contributes 52%, and Oil & Gas accounts for 14%[93, 95] - Power Generation is expected to be approximately 40% of the segment revenues in 2025[122] - Commercial and industrial is expected to be approximately 40-45% of the segment revenues in 2025[122] - Oil and gas is expected to be approximately 15-20% of the segment revenues in 2025[122] Financial Performance - In Q1 2025, Kirby's revenues were $785.7 million, a 3% decrease compared to $808.0 million in Q1 2024[113] - Q1 2025 earnings per share were $1.33, a 12% increase compared to $1.19 in Q1 2024[113]

Acquisition Overview - Allison Transmission is acquiring Dana Off-Highway Business for approximately $2.7 billion[11] - The purchase price represents 6.8x Adjusted EBITDA (LTM 12/31/24) of approximately $400 million[11] and 5.2x including estimated run-rate synergies of approximately $120 million[11] - The deal is expected to close in late Q4 2025[11] Financial Highlights - The company anticipates net leverage of less than 3.0x at close, with a near-term target of less than 2.0x[11] - The acquisition is anticipated to be immediately accretive to diluted earnings per share[11] - Allison had $753 million in cash and $744 million available under the revolving credit facility as of March 31, 2025[11] Strategic Rationale - The acquisition expands Allison's global platform and end-market expertise[10] - It accelerates product innovation and enhances alternative propulsion capabilities[10] - The combination expands into adjacent, diverse, and attractive end-markets[10] Dana Off-Highway Business - Dana Off-Highway reported approximately $2.8 billion in net sales in 2024[16] - The business generated approximately $400 million in Adjusted EBITDA in 2024[16] - Free cash flow for Dana Off-Highway was approximately $280 million in 2024[16] Combined Company - The combined company is expected to achieve $6.0 billion in net sales[38] - Adjusted EBITDA is expected to increase by 40% to $1.6-1.7 billion[38] - The combined Adjusted EBITDA margin is projected to be 27-29%[39] End-Market Mix - The combined company's end-market mix will include 45% On-Highway, 4% Defense, and 51% Off-Highway[32, 33] - Construction & Forestry represents 35% of Dana Off-Highway's end-market mix[18] - Agriculture accounts for 18% of Dana Off-Highway's end-market mix[18]

Group 1 - President Trump announced a 25% tariff on all cars not made in the United States, effective April 2, impacting the auto industry significantly [2][4] - General Motors stock fell approximately 6% in early trading, while Stellantis decreased by over 1%, while Tesla saw a slight increase and Ford's shares remained stable [2][3] - Deutsche Bank analysts indicated that Tesla and Ford are relatively insulated from the tariffs due to their vehicle assembly locations, whereas GM has the highest exposure to Mexico [3] Group 2 - The tariffs will apply to imported passenger vehicles, light trucks, and essential automobile parts such as engines and transmissions [4]